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Information Systems in Global Business Today - Coggle Diagram
Information Systems in Global Business Today
how information systems transform business
sense and respond to customer demands that change rapidly
reduce inventories to lowest possible levels, e.g. JIT inventory
achieve more operational efficiency
why information systems are essential for business
operational excellence.
improve efficiency of operations to get higher profit
IS enables firms to create
new products, services, business models
(e.g. selling vinyls and CD's to music streaming services)
customer & supplier intimacy
if business serves customers well, they will respond by purchasing more, resulting in higher profit
if business engages its suppliers, suppliers can give back important input
improved decision-making
based on real-time data instead of forecasts and luck
competitive advantage.
if business successfully achieves business objectives, it means business has competitive advantage over its competitors
survival.
for a business to survive, it needs to keep up with industry-level changes. if industry implements IS, business also needs to to survive
information systems
definition
: the collecting, processing, & distributing of information by a set of interrelated components to support decision-making & control in org
data vs information
data: raw, unprocessed
info: processed so it becomes useful to humans
activities
input: collect raw data
processing: converts data into info
output: tf info to people for decision-making
feedback: correct/evaluate input stage
dimensions
organizations
structure
. senior-middle-operations mgmt, knowledgeb workers, data workers, production/service workers
business processes
: rules, developed over time, for accomplishing tasks
culture
: values, ways of doing things, accepted by most members
business functions
: sales & marketing, manufacturing & prod, finance & accounting, HR
management
both can be done with the help of IS
management sees challenges, formulate plan to respond, allocate resources to coordinate work & achieve goals.
management also creates new products/services, and recreates organization
information technology
computer hardware & software
data mgmt tech
: softwares used to manage org data
networking & telecommunications:
links hardwares & transfers data, e.g. internet, intranet, extranet
business perspective on IS
IT and IS provide real economic value to business
returns may be in the form of increased productivity, revenues, superior long-term positioning in a market
complementary assets are essential
because
investing in IT doesn't guarantee good returns
firms that support tech investments with organizational & management capital (org culture, training, etc) will receive superior returns
academic disciplines used
to study information systems
technical approach:
computer sc, mgmt sc, operations research
behavioral approach:
sociology, psychology, economy
how IS transforms global business
IT innovations
enables firms to create new products/services, new biz models, transform firm's daily activities
new biz models
, e.g. streaming services disrupts cable networks for TV show prod.
e-commerce expansion
, not only in retail but also services, spurred by growth of mobile platforms
mgmt changes
managers & employees are in
continuous contact with each other
, regardless the physical distance
collaboration & information-sharing tools
managers have
easier access to
the whole org's
information
to make accurate & timely decisions
changes in firms and org
less emphasis on hierarchy, more on competency & skills
emphasize higher speed & more accurate decision-making based on data & analysis
use of socmed to converse with customers to show willingness to listen
globalization challenges and opportunities
many firms derive more than half their
revenues
from foreign operations
, i.e. overseas sales, manufacturing, and assembly
(-) manufacturing jobs have been replaced by service & retail jobs due to automated factories & IS
(+) these jobs move offshore to lower-wage countries, expanding global labor force
(+) employment in service occupations expanding
digital firms
digital firm:
firm in which org's significant biz relationships are done digitally; key corporate assets are managed digitally and is available ay time anywhere
biz processes
(related tasks used to produce biz results) are done digitally, spanning the entire org/linking multi-org
time shifting
&
space shifting
are the norm