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Introduction to Information Systems

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Text Preview BB 102 Business Information Systems
Chapter 1 Introduction to information systems

1

Learning Objectives
• Understanding the effects of information systems on business and their relationship to globalization. • Explain why information systems are so essential in business today. • Define an information system and describe its management, organization, and technology components. 2

Learning Objectives
• Define complementary assets and explain how they ensure that information systems provide genuine value to an organization. • Describe the different academic disciplines used to study information systems and explain how each contributes to our understanding of them.

3

The Role of Information Systems in Business Today
• How information systems are transforming business
– Increase in wireless technology use, Websites – Increased business use of Web 2.0 technologies – Cloud computing, mobile digital platform allow more distributed work, decision-making, and collaboration

• Globalization opportunities
– Internet has drastically reduced costs of operating on global scale – Presents both challenges and opportunities 4

Mobile digital platform
• I-phones, i-Pads, Blackberrys and Web-surfing netbooks are not just gadgets or entertainment outlets. • More and more business computing is moving from PCs and desktop to these mobile devices. • Managers are increasingly using these devices to coordinate work, communicate with employees, and provide information for decision making. 5

The Role of Information Systems in Business Today
Information Technology Capital Investment

Figure 1-1: Information technology capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009. 6

The Role of Information Systems in Business Today
• Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals • Business firms invest heavily in information systems to achieve six strategic business objectives: 1. 2. 3. 4. 5. 6. Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival

7

Interdependence Between Organizations & IT

Figure 1.2: 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. 8

The Role of Information Systems in Business Today
• Operational excellence:
– Improvement of efficiency to attain higher profitability – IS & IT are tools to achieve greater efficiency and productivity – Walmart’s Retail Link system links suppliers to stores for superior replenishment system 9

The Role of Information Systems in Business Today
Operational excellence: • Walmart, largest and most efficient retailer in the industry and exemplifies operational excellence. • Retail link system digitally links its suppliers to every one Walmart’s store. • As soon as customer purchases an item, the supplier monitoring the item know to ship a replacement to the shelf. 10

The Role of Information Systems in Business Today
• New products, services, and 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 • Examples: Apple’s iPod, iTunes, iPhone, iPad, Google’s Android OS, Netflix 11

The Role of Information Systems in Business Today
• Customer intimacy and supplier intimacy:
– Serving customers well leads to customers returning, which raises revenues and profits • Example: High-end hotels that use computers to keep... Show More

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