Unit II- Organization, Management
and Network Enterprise
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Information systems in today’s global
business: The Role of information system
• Information systems are critical for the success of businesses
today. They help businesses make informed decisions by
providing data and tools to analyze information.
Information systems can also help businesses improve their
performance and gain a competitive advantage.
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• How information systems are transforming business
• Emerging mobile digital platform
• Growing business use of “big data”
• Growth in cloud computing
• Globalization opportunities
• Internet has drastically reduced costs of operating on global
scale
• Increases in foreign trade, outsourcing
• Presents both challenges and opportunities
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RUNNING THE BUSINESS FROM THE PALM OF
YOUR HAND
• What kinds of applications are described in the case? What business
functions do they support? How do they improve operational
efficiency and decision making?
• Identify the problems that businesses in this case study solved by
using mobile digital devices.
• What kinds of businesses are most likely to benefit from equipping
their employees with mobile devices?
• Discuss the implications of this statement: “The iPhone is not a game
changer, it’s an industry changer.
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• 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
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• 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. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
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The Interdependence Between
Organizations and Information Technology
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• 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
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• 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 for new products, services, business
models
• Examples: Apple’s iPad, Google’s Android OS, and
Netflix
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• 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.
• Example: JCPenney’s information system which links sales
records to contract manufacturer
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• 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
• Example: Verizon’s Web-based digital dashboard to
provide managers with real-time data on customer
complaints, network performance, line outages, and so
on
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•Competitive advantage
•Delivering better performance
•Charging less for superior products
•Responding to customers and suppliers in
real time
•Examples: Apple, Walmart, UPS
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• Survival
• Information technologies as necessity of business
• Industry-level changes
• Example: Citibank’s introduction of ATMs
• Governmental regulations requiring
recordkeeping
• Examples: Toxic Substances Control Act, Sarbanes-
Oxley Act
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• 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.
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Perspectives on Information Systems
• Technical Perspective: Focuses on the infrastructure—hardware,
databases, networking, and software. For instance, a cloud-based is
reduces dependency on physical infrastructure and ensures scalability.
• Business Perspective: Is supports strategic objectives such as gaining
competitive advantage, improving customer service, and enabling
innovation. For example, Uber leverages Is for real-time ride-hailing
services.
• Social Perspective: Considers the broader implications of is, such as how it
affects workplace culture, personal privacy, and societal norms. For
instance, remote work culture supported by IS has transformed traditional
office environments.
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Global E-Business and Collaboration
• Business Processes: Business processes are the structured activities
businesses follow to achieve their objectives.
• For example: Order-to-Cash: Covers customer order placement to
payment receipt.
• Procure-to-Pay: Manages purchasing and supplier payments.
• Customer Support: Handles queries, complaints, and feedback
efficiently.
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Types of Information Systems:
• Transaction Processing Systems (TPS):Automate routine transactions
like payroll or sales processing.
• Management Information Systems (MIS):Summarize TPS data for
middle managers, offering weekly or monthly reports.
• Decision Support Systems (DSS):Assist in unstructured decisions by
simulating scenarios or offering predictive analytics.
• Enterprise Applications: Integrate business functions like accounting,
HR, and supply chain across departments.
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System for Collaboration and Team Work:
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