Chapter

(1)Information
system in global
business today
DR .MAZIN BILAIL
Introduction
The role of information systems in
business today
 business process it not as usual over the globe anymore.
business need redesigning firms’ business operations to
take advantage of these new
technologies.
As managers, most of you will work for firms that are
intensively using information systems and making large
investments in information technology. You will certainly
want to know how to invest this money wisely
WHAT’S NEW IN MANAGEMENT
?INFORMATION SYSTEMS
In the technology area there are three interrelated
changes:
the emerging mobile digital platform
the growth of online software as a service
growth in “cloud computing” where more and more
business software runs over the Internet.
GLOBALIZATION CHALLENGES AND
OPPORTUNITIES
A growing percentage of the economy of the United States and
other advanced industrial countries in Europe and Asia depends on
imports and exports.
It’s not just goods that move across borders. So too do jobs, some
of them high-level jobs that pay well and require a college degree.
lower wage countries, many of them in less-skilled information
system capabilities
THE EMERGING DIGITAL
FIRM
A digital firm is one in which nearly all of the organization’s significant business relationships
with customers, suppliers, and employees are digitally enabled and mediated. Core business
processes are accomplished through digital networks spanning the entire organization or linking
multiple organizations.
Business processes refer to the set of logically related tasks and behaviors that organizations
develop over time to produce specific business results and the unique manner in which these
activities are organized and coordinated. Developing a new product, generating and fulfilling an
order, creating a marketing plan, and hiring an employee are examples of business processes,
and the ways organizations accomplish their business processes can be a source of competitive
strength.
Key corporate assets—intellectual property, core competencies, and financial and human
assets—are managed through digital means. In a digital firm, any piece of information required
to support key business decisions is available at any time and anywhere in the firm.
STRATEGIC BUSINESS OBJECTIVES OF
INFORMATION SYSTEMS
There is a growing interdependence between a firm’s ability to use
information technology and its ability to implement corporate
strategies and achieve corporate goals
Operational Excellence
Businesses continuously seek to improve the efficiency of their
operations in order to achieve higher profitability. Information
systems and technologies are some of the most important tools
available to managers for achieving higher levels of efficiency and
productivity in business operations
STRATEGIC BUSINESS OBJECTIVES OF
INFORMATION SYSTEMS
STRATEGIC BUSINESS OBJECTIVES OF
INFORMATION SYSTEMS
New Products, Services, and Business Models
Information systems and technologies are a major enabling tool for firms to
create new products and services, as well as entirely new business models. A
business model describes how a company produces, delivers, and sells a product
or service to create wealth.
Customer and Supplier Intimacy
When a business really knows its customers, and serves them well, the
customers generally respond by returning and purchasing more. This raises
revenues and profits. Likewise with suppliers: the more a business engages its
suppliers, the better the suppliers can provide vital inputs. This lowers costs. How
to really know your customers, or suppliers, is a central problem for businesses
with millions of offline and online customers
STRATEGIC BUSINESS OBJECTIVES OF
INFORMATION SYSTEMS
Improved Decision Making
managers rely on forecasts, best guesses, and luck. The result is over or
underproduction of goods and services, misallocation of resources, and poor
response times. These poor outcomes raise costs and lose customers. In the past
decade, information systems and technologies have made it possible for
managers to use real-time data from the marketplace when making decisions.
Competitive Advantage
When firms achieve one or more of these business objectives—operational
excellence; new products, services, and business models; customer/supplier
intimacy; and improved decision making—chances are they have already
achieved a competitive advantage.
Perspectives on information
system
Information technology (IT)
consists of all the hardware and software that a firm needs to use in order to
achieve its business objectives. This includes not only computer machines,
storage devices, and handheld mobile devices, but also software, such as the
Windows or Linux operating systems, the Microsoft Office desktop productivity
suite, and the many thousands of computer programs that can be found in a
typical large firm.
Information system
information system can be defined technically as a set of interrelated
components that collect (or retrieve), process, store, and distribute information
to support decision making and control in an organization.
Perspectives on information
system
Data
raw facts representing events occurring in organizations or the physical
environment before they have been organized and arranged into a form that
people can understand and use.
Information
information we mean data that have been shaped into a form that is meaningful
and useful to human beings.
Input
captures or collects raw data from within the organization or from its external
environment
Perspectives on information
system
Processing
Processing converts this raw input into a meaningful form.
Output
Output transfers the processed information to the people who will use it or to
the activities for which it will be used.
feedback
is output that is returned to appropriate members of the organization to help
them evaluate or correct the input stage.
FUNCTIONS OF AN INFORMATION
SYSTEM
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
Organizations
The key elements of an organization are its people, structure, business processes,
politics, and culture.
Senior management
Senior management makes long-range strategic decisions about products and
services as well as ensures financial performance of the firm
Middle management
Middle management carries out the programs and plans of senior management
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
operational management
operational management is responsible for monitoring the daily activities of the business
Data workers
data workers, such as secretaries or clerks, assist with scheduling and communications at all
levels of the firm.
Production or service workers
Production or service workers actually produce the product and deliver the service
business functions
business functions or specialized tasks performed by business organizations, consist of sales and
marketing, manufacturing and production, finance and accounting, and human resources
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
culture
culture, or fundamental set of assumptions, values, and ways of doing things, that has been
accepted by most of its members.
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
Management
Managers perceive business challenges in the environment; they set the organizational strategy
for responding to those challenges; and they allocate the human and financial resources to
coordinate the work and achieve success.
Information Technology
Computer hardware
Computer hardware is the physical equipment used for input, processing, and output activities in
an information system.
Computer software
Computer software consists of the detailed, preprogrammed instructions that control and
coordinate the computer hardware components in an information system.
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
Networking and telecommunications technology
Networking and telecommunications technology, consisting of both physical
devices and software, links the various pieces of hardware and transfers data
from one physical location to another.
A network
A network links two or more computers to share data or resources, such as a
printer.
Internet.
The Internet is a global “network of networks” that uses universal standards to
connect millions of different networks with more than 1.4 billion users in over
230 countries around the world.
INFORMATION SYSTEMS ARE MORE
THAN COMPUTERS
Intranets
Internal corporate networks based on Internet technology are called intranets.
Extranets
Private intranets extended to authorized users outside the organization are called extranets, and
firms use such networks to coordinate their activities with other firms for making purchases,
collaborating on design, and other interorganizational work.
World Wide Web
World Wide Web is a service provided by the Internet that uses universally accepted standards
for storing, retrieving, formatting, and displaying information in a page format on the Internet.
THE BUSINESS INFORMATION
VALUE CHAIN
CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS
CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS
TECHNICAL APPROACH
Computer science
Computer science is concerned with establishing theories of computability, methods of
computation, and methods of efficient data storage and access.
Management science
Management science emphasizes the development of models for decision-making and
management practices.
Operations research
Operations research focuses on mathematical techniques for optimizing selected parameters of
organizations, such as transportation, inventory control, and transaction costs.
CONTEMPORARY APPROACHES TO
INFORMATION SYSTEMS
BEHAVIORAL APPROACH
sociologists
sociologists study information systems with an eye toward how groups and organizations shape the
development of systems and also how systems affect individuals, groups, and organizations.
Psychologists
Psychologists study information systems with an interest in how human decision makers perceive and use
formal information. study information systems with an interest in how human decision makers perceive
and use formal information.
Economists
Economists study information systems with an interest in understanding the production of digital goods,
the dynamics of digital markets, and how new information systems change the control and cost
structures within the firm.