SUMMARY MIS CHAPTER 1 – 4
Chapter 1: information systems in global business
How is information system transforming global business today?
Much of the business and management consulting and services involves redesigning firms’ business
operations to take advantage of these new technologies.
How information systems are transforming business
1. Changes in technology and new, innovative business models have transformed social life and
business practices.
Are using information technology to sense and respond to rapidly changing customer demand, reduce
inventories to the lowest possible levels, and achieve higher levels of operational efficiency.
2. Supplu chains become more fast-paced, with companies of all sizes depending on just-in-time
inventory to reduce their overhead costs to get to market faster.
3. Global e-commerce and internet advertising continue to expand.
What’s new in management information systems, five changes are of paramount importance:
1. Information technology (IT)
Examples are emerging of cloud computing and growth of mobile digital business platform.
Based on smartphones and tablets computers, big data, business analytics, the use of social networks
by managers to achieve business objectives.
- Enable entrepreneurs and traditional firms (innovative) -> create new products and services, develop
new business models and transform day-to-day conduct of business.
2. New business models
For instance, the emergence of online video service like Netflix has changed how premium video is
distributed and even created.
3. E-commerce expanding
Is changing how firms design, produce, and deliver products and services -> growth in social commers
is spurred by powerful growth of mobile platform.
- New service-based e-commerce and information systems and technologies with their employees.
4. Management changes
Business is going mobile, along with customers -> managers on the move are in direct, continuous
contact with their employees.
5. Changes in firms and organizations
Nowadays, less emphasis on hierarchy and structure but more on employees taking on multiple roles
and tasks + collaborating with other on a team.
- Emphasis is on higher speed + more accurate decision making based on data and analysis. As well on
competency and skills rather than position in hierarchy.
,Globalization challenges + opportunities Flattened world
Significant percentage of the global economy depends on imports and exports.
Not only goods that move across borders, but jobs do also, some of them high-level jobs that pay well and
require a college degree.
➔ Manufacturing jobs replaced by service and retail jobs even as the value of manufactured goods
made in U.S. has soared by 20% in the same period.
o Largely due to highly automated factories and enterprise information systems.
➔ Employment in information system and other service occupations is expanding and wage in the tech
sector are rising.
➔ Emerge internet into a full-blown international communications system has drastically reduced the
costs of operating and transacting on a global scale.
o Customers can shop worldwide marketplace, obtaining prices and quality information 24 /7.
➔ Information systems enable globalization.
The emerging digital firm
Can be defined along several dimensions.
Digital firm = one in which nearly all of the organization’s significant business relationships with
customers, suppliers and employees are digitally enabled and mediated.
- Core business processes are accomplished through digital network spanning the entire organization
or linking multiple.
Business processes = the set the set of logically related tasks & behaviors that organizations develop over
time to produce specific business results and unique manner in which these activities are organized and
coordinated.
Digital firms’ sense + respond to their environments for more rapidly than traditional firms, giving them
more flexibility to survive in turbulent times.
The norm is:
Time shifting Space shifting
Refers to business being conducted continuously, That work takes place in a global workshop as well
24/7, rather than in narrow ‘workday’ time bands as within national boundaries.
of 9 a.m. to 5 p.m.
Strategic business objective of information systems
Those are essential for conducting day-to-day business in most advanced countries as well as achieving
strategic business objective.
There is a growing interdependence between a firms’ ability to use IT and its ability to implement
corporate strategies and achieve corporate goals.
, In contemporary systems, there is a
growing interdependence between
a firm’s information systems and
its business capabilities. Changes in
strategy, rules, and business
processes increasingly require
changes in hardware, software,
databases, and
telecommunications. Often, what
the organization would like to do
depends on what its systems will
permit it to do.
Business firms invest heavily in information systems to achieve strategic business objectives:
1. Operational excellence = continuously seek to improve the efficiency of their operations in order to
achieve higher profitability,
o IS and IT most (one of) important tools.
2. New products, services, and business models.
A business model describes how a company produces, delivers, and sells a product or service to
create wealth.
3. Customer and supplier intimacy.
When really knows + serves well, they generally The more engages them, the better one can
respond by returning and purchasing more -> provide vital inputs -> lower costs.
raises revenue and profits.
4. Improved decision-making.
Information system and information technology made it possible to use real-time data from
marketplace when making decisions.
5. Competitive advantage.
When firms achieve one or more business objectives chances that one already achieves a competitive
advantage.
6. Survival.
They are necessities of doing business (IS and IT). sometimes these ‘necessities’ are driven by
industry-level changes.
What is an information system?
IT = information technology = consists of all the hardware and software that a firm needs to use in order
to achieve its business objectives.
- Includes:
o Computer machines,
o Handheld mobile devices,
o Storage devices,
o Software.
Information system (IS) = technically as a set of interrelated components that collect (or retrieve),
process, store, and distribute information to support decision making and control in an organization.
, - Help to analyze problems, visualize complex subjects, and create new products.
By information we mean data that have been shaped into a form that is meaningful and useful to human
beings.
- Data = streams of raw facts representing events occurring in organizations or the physical;
environment before they have been organized + arranged into a form that people can understand
and use.
Three activities in an information system produce the information that organizations need to make
decision, control operations, analyze problems, and create new products or services:
1. Input = captures or collects raw data from within the organization or from its external environment.
2. Processing = converts this raw input into a meaningful form.
3. Output = transfers the processed information to people who will use it or to the activities for which it
will be used.
Also require feedback = output that is returned to appropriate members of the organization to help them
evaluate or correct.
Raw data (left side) from a supermarket checkout counter can be processed and organized to produce
meaningful information, such as the total unit sales of soh detergent or the total sales revenue from dish
detergent for a specific store or sales territory.
An information system contains information
about an organization and its surrounding
environment, three basic activities, input,
processing, and output, produce the
information organizations need.
Although computer-based information
systems use computer technology to process
raw data into meaningful info, there is a
sharp distinction between a computer and a
computer program on the other hand
information system on the other hand.
Computer + related software programs are
the technical foundation, the tools &
materials, of modern IS.
