Chapter 1.

Information Systems in the Digital Age

Globalization Challenges and Opportunities: A Flattened World

According to Friedman (2005) the internet and global communications had expanded the opportunities
for people to communicate with one another and reduced the economic and cultural advantages of
developed countries.

How are Information Systems transforming Business?

Cell phones, smart phones, tablet computers, email, apps, online conferencing over the Internet have all
become essential tools of business.

IS made new innovative business model possible.

Examples: Fedex, UPS, Bookstore, Newspapers, Airbnb, Netflix, ITunes

Information System:
A set of interrelated components that collects (or retrieve), process, store and distribute (disseminate)
information to support decision making, coordinating and control in an organization/business.

5 Components of an Information System:

Hardware, Software, Data, People & Procedure.

3 Dimensions of Information Systems:

Technology (Computer hardware, computer software, Data
Management Technology, Networking and Telecommunications
Technology, Internet, Intranet, Extranet, World Wide Web)
Organization (Hierarchical Organizational Structure, Business
Processes & Business Culture.
People (Skilled people to build and maintain IS, but also trained
employees to operate within the business on different level s.a. top
management, managers, supervisor and workers on the operational
level)

Business Drivers of Information Systems;

 Operational Excellence
 New Products, Services and Business Models
 Customer and Suppliers Intimacy
 Improved Decision Making
 Competitive Advantage
 Survival
The Problem Solving Approach
Problem Solving is a continuous process rather than a single event.

The Role of Critical Thinking in Problem Solving.

Critical Thinking can be defined as the sustained suspension of judgement with an awareness of multiple
perspectives and alternatives.

Critical thinking involves at least these four elements:

1. Maintaining doubt and suspending judgement
2. Being aware of different perspectives
3. Testing alternatives and letting experience guide
4. Being aware of organizational and personal limitations

The Connection among Business Objectives, Problems, and Solutions

How Information Systems will affect Business Careers.

Outsourcing vs Offshoring
 Five MPC’s

1) A firm that invests in an information system because it is a necessity of doing business does so
because it is seeking to achieve which of the following business objectives?
A) Survival
B) Improved decision making
C) Competitive advantage
D) Operational excellence
E) Customer intimacy

2) The three activities in an information system that produce the information organizations use to
control operations are:
A) information, research, and analysis.
B) input, output, and feedback.
C) input, processing, and output.
D) data analysis, processing, and feedback.
E) information, data, and processing.

3) An example of raw data from an automobile manufacturer would be:

A) an average of 130 Subarus sold daily in New York in 2015.
B) 1,300 Subaru Outbacks sold during the first quarter 2015 in New York.
C) 1 Subaru Outback sold January 7, 2015 in Mount Kisco, New York for $25,000.
D) annual sales of Subaru Outbacks increased 4.5 percent.
E) an average sale price of $26,000 for all Subaru Outbacks sold during January 2015 in Mount
Kisco, New York.

4) Intranets:
A) are based on mainframe technology.
B) are multiple networks joined together.
C) are typically used to communicate with the business's trusted vendors.
D) use Internet technology for a private company network.
E) provide the platform on which a firm builds its information systems.

5) A database into which employees manually insert customer names and addresses is riddled
with errors and you have been charged with rectifying the situation. In considering the
organizational dimensions of this problem, you should review:
A) the skill levels of the employees inputting the data.
B) the training given to the employees inputting the data.
C) the business processes in place governing the manual input of the data.
D) the types of automatic error checking provided by the input software.
E) the storage capacity of the database.