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    3 Information Systems in Business Today

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    Frank Martin
    Information systems are transforming businesses in three key ways: through increased mobility, use of big data, and cloud computing. They provide benefits like remote work, better collaboration, and more efficient operations. An information system collects, processes, stores, and distributes data to support decision making. It has organizational, management, and technology components, and requires complementary assets like effective processes and incentives to create value. Information systems are studied through technical, behavioral, and management lenses to understand their strategic role in business.

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    3 Information Systems in Business Today

    Uploaded by

    Frank Martin
    58 views28 pages
    Information systems are transforming businesses in three key ways: through increased mobility, use of big data, and cloud computing. They provide benefits like remote work, better collaboration, and more efficient operations. An information system collects, processes, stores, and distributes data to support decision making. It has organizational, management, and technology components, and requires complementary assets like effective processes and incentives to create value. Information systems are studied through technical, behavioral, and management lenses to understand their strategic role in business.

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    Information systems are transforming businesses in three key ways: through increased mobility, use of big data, and cloud computing. They provide benefits like remote work, better collaboration, and more efficient operations. An information system collects, processes, stores, and distributes data to support decision making. It has organizational, management, and technology components, and requires complementary assets like effective processes and incentives to create value. Information systems are studied through technical, behavioral, and management lenses to understand their strategic role in business.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    58 views28 pages

    3 Information Systems in Business Today

    Uploaded by

    Frank Martin
    Information systems are transforming businesses in three key ways: through increased mobility, use of big data, and cloud computing. They provide benefits like remote work, better collaboration, and more efficient operations. An information system collects, processes, stores, and distributes data to support decision making. It has organizational, management, and technology components, and requires complementary assets like effective processes and incentives to create value. Information systems are studied through technical, behavioral, and management lenses to understand their strategic role in business.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 28

    Information Systems in

    Business Today
    Learning objectives
     How are information systems transforming business, and why are they so essential for running
    and managing a business today?
     What is an information system? How does it work? What are its management, organization,
    and technology components? Why are complementary assets essential for ensuring that
    information systems provide genuine value for organizations?
     What academic disciplines are used to study information systems and how does each
    contribute to an understanding of information systems?
    How Information Systems are
    Transforming Businesses
    Changes in technology and new innovative business models
    Spending on IT worldwide
    Newspaper to online news feed, blogs
    Boom in e-commerce and internet advertising
    Laws and regulations- e.g. keep emails for five years
    Businesses use IT to
     Sense and respond to rapidly changing customer demand
     Reduce inventory to lowest possible level
     Achieve higher levels of operational efficiency
    Technology
    In the technology area there are three interrelated changes impacting business
    1. Mobile digital platform
    2. Growing business use of “big data”
    3. Growth in cloud computing

    Benefits- telework, distributed decision making, outsource more work, collaborate with
    suppliers and customers to create new products, or make existing products more efficiently
    Discussion Change Business Impact
    Technology
    Cloud computing
    Powerful, energy efficient computer processing
    Growth in Software as a Service
    Mobile digital platform
    Management
    Managers adopt online collaboration
    Business intelligence applications
    Managers adopt mobile tools
    Virtual meetings

    Organizations
    Web applications adopted by firms
    Telework
    Outsourcing production
    Co-creation of business value
    Globalization challenges and
    opportunities
    Globalization opportunities
    ◦ Internet has drastically reduced costs of operating on global scale
    ◦ Increases in foreign trade, outsourcing
    ◦ Presents both challenges and opportunities
    Role of information systems
    In the emerging, fully digital firm:
    ◦ Significant business relationships are digitally enabled and mediated.
    ◦ Core business processes are accomplished through digital networks.
    ◦ Key corporate assets are managed digitally.

    Digital firms offer greater flexibility in organization and management.


    ◦ Time shifting, space shifting

    Growing interdependence between:


    ◦ Ability to use information technology and
    ◦ Ability to implement corporate strategies and achieve corporate goals
    Strategic business objectives
    1. Operational excellence

    2. New products, services, and business models

    3. Customer and supplier intimacy

    4. Improved decision making

    5. Competitive advantage

    6. Survival
    Operational excellence
    ◦ Improvement of efficiency to attain higher profitability

    ◦ Information systems, technology an important tool in achieving


    greater efficiency and productivity
    ◦ Walmart’s Retail Link system links suppliers to stores for superior
    replenishment system
    New products, services, business models
    ◦ Business model: describes how company produces, delivers, and
    sells product or service to create wealth
    ◦ Information systems and technology a major enabling tool for new
    products, services, business models
    ◦ Examples: Apple’s iPad, Google’s Android OS, and Netflix
    Customer and supplier intimacy
    ◦ Serving customers well leads to customers returning, which raises revenues
    and profits.
    ◦ Example: High-end hotels that use computers to track customer preferences and used to
    monitor and customize environment

    ◦ Intimacy with suppliers allows them to provide vital inputs, which lowers
    costs.
    Improved decision making
    ◦ Without accurate information:
    ◦ Managers must use forecasts, best guesses, luck
    ◦ Results in:
    ◦ Overproduction, underproduction
    ◦ Misallocation of resources
    ◦ Poor response times
    ◦ Poor outcomes raise costs, lose customers
    Competitive advantage
    ◦ Delivering better performance
    ◦ Charging less for superior products
    ◦ Responding to customers and suppliers in real time
    ◦ Examples: Apple, Walmart, UPS
    Survival
    ◦ Information technologies as necessity of business
    ◦ Industry-level changes
    ◦ Example: Citibank’s introduction of ATMs
    ◦ Governmental regulations requiring record-keeping
    Recap
    What are the strategic business objective for information systems for he following
    - Amazon
    - Netflix
    - Airbnb
    - Uber/ Ola
    - Hotel chain
    - Sports
    What is an information system?
    Information technology (IT)- consist of all the hardwar eand software that firm uses to achieve its
    business objective
    Information system:
    ◦ Set of interrelated components
    ◦ Collect, process, store, and distribute information
    ◦ Support decision making, coordination, and control

    Information vs. data


    ◦ Data are streams of raw facts.
    ◦ Information is data shaped into meaningful form.

    Three activities of information systems produce information organizations need


    ◦ Input: Captures raw data from organization or external environment
    ◦ Processing: Converts raw data into meaningful form
    ◦ Output: Transfers processed information to people or activities that use it
    Optimize the relationship
    between organization,
    technology and management
    Organizational dimension of
    information systems
    ◦ Hierarchy of authority, responsibility
    ◦ Senior management
    ◦ Middle management
    ◦ Operational management
    ◦ Knowledge workers
    ◦ Data workers
    ◦ Production or service workers
    ◦ Separation of business functions
    ◦ Sales and marketing
    ◦ Human resources
    ◦ Finance and accounting
    ◦ Manufacturing and production
    ◦ Unique business processes
    ◦ Unique business culture
    ◦ Organizational politics
    Management dimension of information
    systems
    ◦ Managers set organizational strategy for responding to business
    challenges
    ◦ In addition, managers must act creatively:
    ◦ Creation of new products and services
    ◦ Occasionally re-creating the organization
    Technology dimension of information
    systems
    ◦ Computer hardware and software
    ◦ Data management technology
    ◦ Networking and telecommunications technology
    ◦ Networks, the Internet, intranets and extranets, World Wide Web
    ◦ IT infrastructure: provides platform that system is built on
    Business perspective in information
    systems
    ◦ Information system is instrument for creating value
    ◦ Investments in information technology will result in superior
    returns:
    ◦ Productivity increases
    ◦ Revenue increases
    ◦ Superior long-term strategic positioning
    Investing in information technology does not guarantee good returns.
    Factors:
    ◦ Adopting the right business model
    ◦ Investing in complementary assets (organizational and management capital)
    Complementary assets
    ◦ Assets required to derive value from a primary investment
    ◦ Firms supporting technology investments with investment in complementary assets receive
    superior returns
    ◦ Example: Invest in technology and the people to make it work properly
    ◦ Organizational assets, for example:
    ◦ Appropriate business model
    ◦ Efficient business processes
    ◦ Managerial assets, for example:
    ◦ Incentives for management innovation
    ◦ Teamwork and collaborative work environments
    ◦ Social assets, for example:
    ◦ The Internet and telecommunications infrastructure
    ◦ Technology standards
    Studying information systems
    Technical approach
    ◦ Emphasizes mathematically based models
    ◦ Computer science, management science, operations research

    Behavioral approach
    ◦ Behavioral issues (strategic business integration, implementation, etc.)
    ◦ Psychology, economics, sociology

    Management Information Systems


    ◦ Combines computer science, management science, operations research, and practical orientation with behavioral issues

    Four main actors


    ◦ Suppliers of hardware and software
    ◦ Business firms
    ◦ Managers and employees
    ◦ Firm’s environment (legal, social, cultural context)
    Uber
    Business model
    Value proposition- customer, driver
    Internal analysis
    External analysis
    SWOT analysis
    Recommendtaions
    Domino’s Pulse
    Unified Theory of Acceptance and Use of Technology-
    UTAUT framework (Venkatesh et al. 2003)
    Task technology fit

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