Professional Documents
Culture Documents
01. How are information systems transforming business and what is their relationship to
globalization?
E-mail, online conferencing, and cell phones have become essential tools for conducting
business. Information systems are the foundation of fast-paced supply chains. The Internet
allows many businesses to buy, sell, advertise, and solicit customer feedback online.
Organizations are trying to become more competitive and efficient by digitally enabling their
core business processes and evolving into digital firms. The Internet has stimulated globalization
by dramatically reducing the costs of producing, buying, and selling goods on a global scale.
New information system trends include the emerging mobile digital platform, online software as
a service, and cloud computing.
2. Why are information systems so essential for running and managing a business today?
Information systems are a foundation for conducting business today. In many industries, survival
and the ability to achieve strategic business goals are difficult without extensive use of
information technology. Businesses today use information systems to achieve six major
objectives: operational excellence; new products, services, and business models;
customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day
survival.
3. What exactly is an information system? How does it work? What are its management,
organization, and technology components?
From a technical perspective, an information system collects, stores, and disseminates
information from an organizations environment and internal operations to support
organizational functions and decision making, communication, coordination, control, analysis,
and visualization. Information systems transform raw data into useful information through three
basic activities: input, processing, and output.
From a business perspective, an information system provides a solution to a problem or
challenge facing a firm and represents a combination of management, organization, and
technology elements. The management dimension of information systems involves issues such as
leadership, strategy, and management behavior. The technology dimension consists of computer
hardware, software, data management technology, and networking/telecommunications
technology (including the Internet). The organization dimension of information systems involves
issues such as the organizations hierarchy, functional specialties, business processes, culture,
and political interest groups.
of primary activities possible. A firms value chain can be linked to the value chains of its
suppliers, distributors, and customers. A value web consists of information systems that enhance
competitiveness at the industry level by promoting the use of standards and industry-wide
consortia, and by enabling businesses to work more efficiently with their value partners.