Information Systems in Contemporary Global Business
Information Systems in Contemporary Global Business
COURSE:
Management Information System
ISSUE:
Information Systems in Contemporary Global Business
TEACHER:
Dr. César Wilbert, RONCAL DIAZ
MEMBERS:
CHIRINOS HURTADO, Anggie
HUANGAL GONZALES, Mirella
LIZANA DIAZ, Karin
PACHERRES TIQUILAHUANCA, Martin
QUIÑONES CHINCHAY, Nicolle
VASQUEZ SERNAQUE, Katherine.
CYCLE:
IX
As time goes by, information systems have evolved and with it the way businesses,
products and services operate. Currently, businesses have been developing from a traditional
to a technological way, that is, through the use of technology (such as the internet, cell
phones, tablets) communication between clients, suppliers and the company has been easier.
More and more businesses are beginning to operate through the use of the Internet, they
are beginning to use technologies to manage, social networks for work. This is allowing
businesses to extend beyond their physical territorial limits, break down barriers and conduct
business in different parts of the world, even having employees in different cities within their
The use of technologies has caused new businesses and industries to appear, previous ones
to disappear, and those that learn to correctly implement new information systems to remain
successful.
The main trends of new information systems are: the emerging mobile digital platform, the
The challenges of globalization in a flat world are developing high-level skills through
education and work experience that cannot be outsourced, as well as avoiding markets for
goods and services that can be produced abroad with a much lower cost. The opportunities, as
well as the challenges, are immense, such as improved communication between branches of a
company located in different countries, cost reduction, better information on prices and
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INFORMATION SYSTEMS IN CONTEMPORARY GLOBAL BUSINESS
range of challenges to meet its goals, which is why to be on par in monitoring these it is
vitally important that a company incorporate or make use of technology to make your
technological one, that is, through the use of technology (such as the internet,
cell phones, tablets) communication between clients, suppliers and the company
● More and more businesses are beginning to move towards the internet, they are
beginning to use technologies to manage, social networks for work. This has
allowed businesses to extend beyond their physical territorial limits, break down
barriers and conduct business in different parts of the world, even having
● The use of technologies has led to new businesses and industries appearing,
information systems.
changing customer demand, reduce inventories to the lowest possible levels, and
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Example of the power country of the USA:
More than 247 million Americans have mobile phones (67% of the population), of
which 167 million access the Internet through the use of smartphones and tablets. 46%
of the entire world population uses tablet computers, whose sales have skyrocketed. 172
million Americans use online social networks, 150 million use Facebook, while 48
By June 2014, more than 114 million businesses around the world had registered “dot
com” Internet sites (Domain Tools, 2014). Currently, 196 million Americans are
looking to shop online and 163 million have already done so. Every day, nearly 90
New federal security and accounting laws, which require many companies to store
email messages for five years, coupled with existing health and labor laws, which
stimulate the growth of digital information at an estimated rate of 5 exabytes per year,
digital platform)
The growth in commercial use of “big data” (The growth of online software as a
service)
The growth of “cloud computing,” where more and more business software is
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iPhone, iPad, Android tablets and smartphones represent the new emerging
Managers are increasingly using these devices to coordinate their work, communicate
with employees and provide information for decision making. We call these
The strength of cloud computing and the growth of the mobile digital platform
allows organizations to rely more on teleworking, remote work and distributed decision
making. This same platform means companies can outsource more work and rely on
markets (rather than employees) to generate value. It also means that companies can
collaborate with suppliers and customers to create new products, or produce existing
Technology
innovation , as a flexible set of computers on the Internet begin to carry out tasks
SaaS).
Big data , companies seek insights from the enormous volumes of data from
Web traffic, emails, social media content and machines (sensors) that require
Apple's iPhone and both tablet computers and Android mobile devices can
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services, based on the location and communication with colleagues. Small tablet
computers, including the iPad and Kindle Fire, challenge conventional laptops
Administration
process.
Organizations
employees, customers, and suppliers. Employees use blogs, wikis, email text
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computers make it possible for more and more people to work away from the
traditional office. 55% of businesses in the United States have some form of
The international trade resulting from Columbus's voyages brought these people
The challenge for businesses is to develop high-level skills through education and
The challenge for businesses is to avoid markets for goods and services that can be
produced abroad at much lower cost. The opportunities are just as immense.
Now customers can shop in a global marketplace, where they get price and quality
Companies that produce goods and services on a global scale achieve extraordinary
other countries.
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It is not just products that move across borders. It also happens with jobs, where
some of them are at a level with good pay that require a university degree.
All the changes described, together with an organizational redesign, have created the
In a digital company, almost all business relationships with customers, suppliers and
employees are enabled and mediated in digital ways that span the entire company, or
Business processes refer to the set of logically related tasks and behaviors that
organizations develop over time to produce specific business results, develop a new
product, generate and fulfill an order, create a marketing plan, and hire employees. an
employee, are examples of business processes, and the ways in which organizations
Digital companies detect and respond to their environments much more quickly than
traditional companies, which gives them greater flexibility in overall organization and
administration times.
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Time displacement: refers to businesses that are conducted continuously, 24/7,
Displacement in space: means that the work is done in a global workshop and
within national limits. Work is physically done wherever in the world it is best
done.
technologies are some of the tools available for managers to achieve higher levels
Example:
Walmart, the largest retail chain on Earth, exemplifies the power of information
systems along with its brilliant business practices and supportive management to
achieve global operational efficiency. In fiscal 2014 it made $473 billion in sales,
nearly a tenth of U.S. retail sales, largely due to its Retail Link system, which
digitally links its suppliers to each of its stores. As soon as a customer purchases an
technologies are an important enabling tool for companies to create new products
and services, as well as entirely new business models. A business model describes
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the way a company produces, delivers and sells a product or service to create
wealth. The music industry today is very different from a decade ago.
Example:
Apple Inc. transformed an old music distribution business model based on vinyl
records, tapes and CDs into a legal online distribution model based on its own iPod
innovations, including the iTunes music service, the iPad and the iPhone.
Intimacy with customers and suppliers: When a company really knows its
customers and gives them good service, they usually respond by coming back and
buying more. This generates income and profits. The same goes for suppliers: the
more a business engages with them, the better the way they offer vital input. This
reduces costs. How to know customers or suppliers is a core problem for companies
Example :
systems and technologies to achieve intimacy with the client. These hotels use
programs, and store this information in a large database. data. Individual rooms in
hotels are networked to a central network server computer, so that they can be
monitored or controlled remotely. When a guest arrives at one of these hotels, the
the temperature, or selecting appropriate music, based on the guest's digital profile.
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Hotels also analyze their customer data to identify frequent guests and develop
Improved decision making: Many business managers do not have the right data at
the right time to make an informed decision. Instead, they depend on projections,
best guesses, and luck. The result is over- or under-production of goods and
results raise costs and cause loss of customers. In the previous decade, information
systems and technologies made it possible for managers to use real-time data from
Example:
storms. With this information, managers can immediately allocate repair resources
to affected areas, inform consumers of repair efforts, and restore service quickly.
intimacy with customers and suppliers, and improved decision making, they have
likely already achieved a competitive advantage. Doing things better than your
competitors, charging less for superior products, and responding to both customers
and suppliers in real time are all positives that produce higher sales and higher
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Survival: Business companies also invest in information systems and technologies
because they are essential to carry out business activities. Sometimes these “needs”
Example:
After Citibank introduced the first automated teller machine (ATM) in the New
ATM machines to keep up with Citibank. Currently, almost all banks in the United
States have regional ATMs and link to national and international ATM networks.
and survive in the retail banking business. There are many federal and state statutes
and regulations that create a legal duty for businesses and their employees to
● Toxic Substances Control Act (1976), which regulates the exposure of American
public associations and their auditors, requires certified public accounting firms
that audit public companies to retain the reports and work records of public
● The Dodd-Frank Wall Street Reform and Consumer Protection Act (2010),
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In recent years, studies aimed at analyzing information as a key factor for decision-
making in the company, the key to business management, and the conceptual axis on
and human resources, which until now had constituted the axes on which business
management had revolved. If traditional economic theory maintained capital, land and
labor as primary elements of study, information has now become the fourth resource to
manage.
Until now we have used information systems and technologies informally, without
defining these terms. Information technology (IT) consists of all the hardware and
software that a company needs to use in order to meet its business objectives. This
includes not only computers, storage devices, and handheld mobile devices, but also
desktop productivity suite, and the many thousands of software programs. computer
found in the typical large company. “Information systems” are more complex and the
best way to understand them is to analyze them from a technology and business
perspective.
Transaction processing systems are the basic business systems that serve the
the daily routine transactions necessary for the operation of the business. They are at
the lowest level of the organizational hierarchy and support the day-to-day activities
of the business.
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Business Process Control Systems:
steel plant.
For example, in an oil refinery, electronic sensors connected to computers are used to
control the refining process. A process control system comprises a whole range of
Enterprise collaboration systems are one of the most used types of information
systems. They help company managers control the flow of information in their
organizations.
It is one of the types of information systems that are not specific to a specific level in
the organization, but rather provide important support for a wide range of users.
These information systems are designed to support office tasks such as multimedia
managers and supervisors. This level contains computer systems that are intended to
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Management information systems are the types of information systems that take
internal system data and summarize it into useful formats such as management
information system that helps the manager in decision making when he needs to
model, formulate, calculate, compare, select the best option or predict the scenarios.
Decision support systems are specifically designed to help the management team
information, often presented in graphical format, but with the ability to present more
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2.1. What is a System Information
making and control processes in the organization, in turn, it can help analyze problems,
Information systems contain information on important points for the company, such as:
behavior and countless other things that are significant in supporting and guiding
customers. the company that uses them. It is important to know that there is a big
difference between data and information; Data are simple flows of raw elements that
show the situations or events that occur in a given organization, while information is
that data that, after being organized, processed and interpreted, receives a useful form
To obtain meaningful information, information systems follow these three basic stages:
input, processing and output. In the input stage, raw data is captured or collected from
converting the data and giving it a useful and relevant presentation. In the third stage,
the distribution of the processed information to all those people who need it occurs.
Information systems also require feedback, which is the output that is returned to the
appropriate members of the organization to help them evaluate or correct the input
stage.
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The dimensions of information systems are made up of: organizations,
Organizations
In an organization the key elements are: its people, its structure, its business
Organizations are found through a pyramid or hierarchy structure, where the upper
levels of the hierarchy are made up of managerial personnel and at the base of the
pyramid are the operational personnel of the company. Each level of organizational
the company.
of higher-level management.
the company.
responsible for designing products or services and creating new knowledge for
the company.
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- Production or service workers: Refers to those who produce the product and
In the case of a commercial organization, its business function will consist of sales
and marketing, manufacturing and production, finance and accounting, and human
resources.
which are logically related tasks and behaviors to get work done.
- Fulfill an order
- Hire an employee
In most organizations, business processes include formal rules for performing tasks
that have developed over a long period. These rules guide employees in a variety of
these business processes are in writing, but others are informal work practices (such
as the requirement to return phone calls from co-workers or customers) that have
due to the different points of view and interests of the company's management.
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Information systems arise from these different perspectives, conflicts, commitments
Administration
resolve these challenges, it makes use of both its human and financial resources.
But a manager has to be much more than managing what already exists, he must be
very creative and innovative in the creation of new products and services, which is
why information technology can play a very important role in helping managers. to
information technology
Information technology is one of several tools that managers use to deal with
change.
For example:
pocket-sized mobile devices); various input, output and storage devices; and
system.
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Data storage technology : It consists of the software that governs the organization
the various pieces of hardware and transfers data from one physical location to
Internet: Technological platform that has internal uses and can provide
connectivity to link the different systems and networks within a company. These
Private intranets that extend to authorized users outside the organization are called
extranets; Here companies use these networks to coordinate their activities with
other companies to make purchases, collaborate on design and other types of work
For most businesses today, using Internet technology is both a business necessity
All of these technologies, along with the people required to operate and manage
them, represent resources that can be shared across the organization and constitute
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Every organization must carefully design and manage its IT infrastructure so that
it has the set of technology services it needs for the work it wants to do with
information systems.
Nowadays, companies invest in information systems since this means that they will
improve the processes in the company and, above all, in the efficiency of obtaining
their results. The decision to create or maintain an information system assumes that
the returns on this investment will be higher than other investments in buildings,
increases in income and, above all, it will increase the value of the company in the
stock market, even as a tool for superior long-term strategic positioning of the
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Every company has an information value chain, which is illustrated in Figure No. 1,
where raw information is acquired systematically and then transformed through several
any new system, is determined in large part by the degree to which it helps achieve
Although there are other reasons why systems are created, their main purpose is to
The business perspective promotes a focus on the organizational and managerial nature
environment.
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2.4. Complementary assets: organizational capital and the right business model
organizations and managers, unless they are supported by values, structures and
Business companies need to change the way they do business so that they can truly reap
Some companies do not adopt the right business model that adapts to new technology,
For example:
- Record companies refused a few years ago to change their business model based
that support this type of spending with complementary assets, such as new business
higher returns, while companies that do not make these complementary investments
(Brynjolfsson, 2003; Brynjolfsson and Hitt, 2000; Davern and Kauffman, 2000;
Laudon, 1974).
theory or perspective. The field can generally be divided into technical and behavioral
properly.
formal capabilities.
The disciplines that contribute to the technical methodology are: computer science,
management practices.
costs.
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FIGURE N° 2: Contemporary methodologies for security systems information
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Behavioral methodology addresses behavioral aspects that arise in the development and
There are other behavioral disciplines that provide important concepts and methods. For
example:
organizations shape the development of systems and how they affect individuals,
Psychologists study them because they are interested in how formal information
dynamics of digital markets, and the way new information systems change
however, the focus of this methodology is not on technical solutions; rather, it focuses
technology and the organization to work together, that is, excellent organizational
performance will be achieved by jointly optimizing the social systems and the technical
methodology for information systems. For example, the fact that information
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technology is rapidly declining in cost and growing in power does not necessarily or
easily translate into improved productivity or net profits. Just because a company has
recently installed an enterprise-wide financial reporting system does not mean that it
will be used, or that it will be used effectively. Likewise, just because a company has
recently introduced new business procedures and processes does not mean that
From what was mentioned above, we can realize that technology and technical systems
will not work efficiently for a company if it is not used correctly. For this reason, the
members of the organization must also train and learn. to adapt to information systems.
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CONCLUSIONS:
install and start using this tool, with the sole purpose of improving their
administrative processes.
The constant change in technology and the strength of cloud computing allows
companies to rely more on remote work, this allows them to collaborate with
suppliers and customers to create new products, or produce existing ones more
efficiently.
The challenges and opportunities are a series of measures which are made
known so that clients and businesses update to these new trends in this
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globalized world, through the three ways proposed by the Technical
Methodology.
From information systems we can conclude that for their optimal functioning it
is important that the organization works hand in hand with technology; if both
RECOMMENDATIONS:
companies must also learn to use information systems for their benefit; since
good management allows us to be more efficient and thus achieve the success of
the company.
Update businesses and clients to these new trends, new technologies that
applications that make their work easier and save time, but the most expensive
why it is recommended that the company analyze First, what are your needs and
Companies must maintain control over the information systems they have and
make updates that go with the changes that companies make in their operations.
as an ally, it must train the people who will use it so that efficient use of the
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Finally, it is recommended that companies carefully manage their own
regulations and information systems, so that they can benefit from reduced costs,
GLOSSARY:
Big data: Data sets or combinations of data sets whose size (volume), complexity
(variability), and speed of growth make them difficult to capture, manage, process,
and conventional statistics. or display packages, within the time necessary for them
to be useful.
Cloud computing: This is a general term for anything that involves providing
suppliers and employees that are carried out and controlled by digital means.
Internet: Largest global network used by more than 1.4 billion people that allows
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Kindle Fire: is a tablet also developed by Amazon, as the multimedia version of the
Amazon Kindle e-book reader. Its color screen has a modified version of the
operating system. With this tablet you have access to the Amazon App Store, you
new IBM Lotus Connections tool, social software that this company generated to
SaaS: Software as a service (SaaS) allows users to connect to and use cloud-based
applications over the Internet. Some common examples are email, calendars, and
Information system: set of data that interact with each other for a common
purpose.
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Software: a program or set of computer programs, as well as data, procedures and
job or service for which the first person or company has been hired.
movement carried out between a buyer and a seller in which an asset is exchanged
businesses.
Data: A figure, letter, or word that is supplied to the computer as input and the
Information: A set of data, already processed and organized for understanding, that
phenomenon or entity.
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ANNEXES
https://www.youtube.com/watch?v=QeamuGFY9bw
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https://www.youtube.com/watch?v=6ygiIkNZ3q8
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