Chapter 1 Information Systems in Global Business Today 1 1 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today 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 1 2 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today LEARNING OBJECTIVES Continued 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 Explain what is meant by a sociotechnical systems perspective 1 3 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today NBA Teams Make a Slam Dunk with Information Technology Problem Lack of hard data usable in decision making processes costly and competitive market Solutions Developed a new system designed to collect and organize data using video clips of games Synergy Sports Technology tags video of each game with hundreds of descriptive categories and allows coaches and players to stream game footage from the Web Demonstrates IT s role in innovation and improving business processes Illustrates how the Web has allowed businesses to use new tools to analyze critical data 1 4 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today How information systems are transforming business Increase in wireless technology use Web sites Shifts in media and advertising New federal security and accounting laws Globalization opportunities Internet has drastically reduced costs of operating on global scale Presents both challenges and opportunities 1 5 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today Information Technology Capital Investment Information technology investment defined as hardware software and communications equipment grew from 32 to 51 between 1980 and 2008 Source Based on data in U S Department of Commerce Bureau of Economic Analysis National Income and Product Accounts 2008 Figure 1 1 1 6 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today 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 1 7 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today Virtual Meetings Smart Management Read the Interactive Session and then discuss the following questions What are the advantages of using videoconferencing technologies What are the disadvantages What is telepresence and what sorts of companies are best suited to use it as a communications tool What kinds of companies could benefit from using videoconferencing Are there any companies that might not derive any benefits from this technology 1 8 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today 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 9 Operational excellence New products services and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today Operational excellence Improvement of efficiency to attain higher profitability Information systems technology an important tool in achieving greater efficiency and productivity Wal Mart s RetailLink system links suppliers to stores for superior replenishment system 1 10 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today 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 for new products services business models Examples Apple s iPod iTunes and iPhone Netflix s Internet based DVD rentals 1 11 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today 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 use to monitor and customize environment Intimacy with suppliers allows them to provide vital inputs which lowers costs Example J C Penney s information system which links sales records to contract manufacturer 1 12 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today Improved decision making Without accurate information Managers must use forecasts best guesses luck Leads to Overproduction underproduction of goods and services 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 etc 1 13 2010 by Prentice Hall Management Information Systems Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today Operational excellence Improvement of efficiency to attain higher profitability New products services and business models Enabled by