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CHAPTER 1

INFORMATION SYSTEMS IN GLOBAL BUSINESS


Contents
01 The role of information systems in business today

02 Data and information

03 What is an information system?

04 Are information systems bad or good?


1. The role of information systems in business today

 How will your company do if:

(1) cannot receive the information which company needs;

(2) receives the information which company needs but it comes late;

(3) receives the information on time but being distorted.


1. The role of information systems in business today

 How will the Board of Directors


do if they would like to capture the
consumption trends of customers,
the new ideas of their rivals, or
extend distribution channels?
1. The role of information systems in business today

Nutrition facts
Calories 0
Total fat 0 g
Saturated fat 0 g
Trans fat 0g
Cholesterol 0 mg
Sugar 0g
2. Data and Information
2. Data and Information
Data Information

Data are streams of Information are data


raw facts that have that have been shaped,
not been shaped, ar- arranged, processed,…
ranged, processed,… into meaningful forms
into meaningful forms that people can under-
that people can un- stand and use.
derstand and use.

Ex: Ex:
2. Data and Information
2. Data and Information
2. Data and Information
2. Data and Information
2. Data and Information

 Practice creates QR codes based on some websites as follows:

https://www.unitag.io/qrcode

https://www.live-qrcode-generator.com/

https://vi.qr-code-generator.com/
2. Data and Information
3. What is an information system?

An 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.
3. What is an information system?

The functions of information system:

 Input: captures or collects raw data from within the organization or from
its external environment.

 Processing: converts this raw input into a meaningful form.

 Output: transfers the processed data to the people who will use it or to
the activities for which it will be used.

 Information systems also require feedback, which is output that is


returned to appropriate members of the organization to help them
evaluate or correct the input stage.
3. What is an information system?
4. Are information good or bad?

Do information
systems affect
positive or negative
to our life?
4. Are information good or bad?
4. Are information good or bad?
4. Are information good or bad?
4. Are information good or bad?
4. Are information good or bad?
CHAPTER 2
INFORMATION SYSTEMS IN GLOBALIZATION
Contents
01 What is globalization?

02 Multinational Enterprises/Corporations (MNEs/MNCs)

03 Why do MNCs need to invest abroad?

What’s new in Management Information Systems in


04 globalization?

05 Strategic business objectives of Information Systems


1. What is globalization?

Globalization is a process of interaction, integration, interdependence and


interconnection among the people, companies, and governments of different
nations, a process driven by international trade, investment and aided by
information technology.
1. What is globalization?

Interaction Interdependence

Interconnection
Integration
1. What is globalization?
Impacts of globalization

Positive Negative

- Increase international trade - Increase climate change/global warming


- Increase foreign investment capital - Increase terrorisms
- Increase cultural exchanges - Increase smuggling
- Increase migrate, immigrate - Increase pandemic
- …… - Widen the gap between poor and rich
- Widen gender inequality
- ……..
2. Multinational Enterprises/ Corporations (MNEs/MNCs)

A multinational corporation (MNC/MNE) is a


corporate organization that owns, controls, produces
and sells goods or services in at least two countries.
2. Multinational Enterprises/ Corporations (MNEs/MNCs)

1. The largest MNCs


2. The second MNCs
3. The third MNCs
4. The fourth MNCs
5. The fifth MNCs
6. The sixth MNCs
3. Why do MNCs need to invest abroad?

Developed market
Resources seeking
Low labor cost
Transportation costs
Quotas and tariffs
Political factors
…….
4. What is new in Management Information Systems in globalization?

The emerging mobile digital platform

The growing business use of "big


data“ and online software

The growth in “cloud computing”


4. What is new in Management Information Systems in globalization?
The emerging mobile digital platform
4. What is new in Management Information Systems in globalization?
The emerging mobile digital platform
4. What is new in Management Information Systems in globalization?
4. What is new in Management Information Systems in globalization?
The growing of big data and online software

 Web 2.0: enable people to collaborate, share information, and create new
services and content online. These second-generation interactive Internet-based
services are referred to as Web 2.0.
Ex: Facebook, You Tube, blog, Wikipedia,…
4. What is new in Management Information Systems in globalization?
4. What is new in Management Information Systems in globalization?
4. What is new in Management Information Systems in globalization?

 Web 3.0, also known as Semantic Web,


is defined by the World Wide Web
Consortium (W3C) to determine a new
generation of web with unique, more
modern features, focusing on the use of
data formats and common protocols so
that all websites and online services can
communicate with each other quickly,
conveniently and easily.
Ex: Apple Siri
4. What is new in Management Information Systems in globalization?
The growth in cloud computing
 Advantages of cloud computing
 Cutting costs associated with IT services
 Fast processing speed
 Allows users to access and use the system through a web browser wherever and whenever they use
cloud computing service.
 Easy to fix and improve on features because they are not installed on any a specific computer.
 Disadvantage of cloud computing
 Privacy  Portable
 Availability  Security
 Lost data
4. What is new in Management Information Systems in globalization?
The growth in cloud computing
5. Strategic business objectives of Information Systems

Question:
- What makes information systems so essential today?
- Why are businesses investing so much in information systems
and technologies?

You should know:


Just as offices, telephones, filing cabinets, and efficient tall buildings with
elevators were once the foundations of business in the twentieth century,
information technology is a foundation for business in the twenty-first
century.
5. Strategic business objective of Information Systems
5.1 Operational excellence

Given two companies with the same strategy, the Operationally Excellent company will
have lower operational risk, lower operating costs, and increased revenues relative to
its competitors, creating value for customers and shareholders.

Retail Link
System
5.1 Operational excellence

 Retail Link is:


 A decision support system
 A bridge between Walmart and its suppliers
 A website that you can visit via Internet.
 Retail Link allows his suppliers:
 Retrieve the sales data of my items in Wal-Mart 
 Retrieve the inventory data of my items in Wal-Mart 
 Retrieve Walmart information on its development 
 Download purchase order on Retail Link.
5.2 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 model.
A business model describes how a company produces, delivers, and sells a
product or service to create wealth.

Ex: Ipod, iTunes (Apple), Build-a-bear workshop,…


Business model of Amazon, Google.

* What kinds of business models should we avoid?


5.2 New products, services and business models
5.2 New products, services and business models
5.2 New products, services and business models
5.3 Customer and Supplier intimacy

Customer: when a business really knows its customers, and serves


them well, the customers generally respond by returning and purchasing
more, raises revenues and profits.

Supplier: the more a business engages its suppliers, the better the
suppliers can provide vital inputs. This lowers costs.
5.3 Customer and Supplier intimacy
5.4 Improved decision making

Many business managers operate in an information fog bank, never really


having the right information at the right time to make an informed decision. Instead,
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.
Information systems and technologies have made it possible for managers
to use real-time data from the marketplace when making decisions.
Ex: Verizon Corporation
5.5 Competitive advantage

Why Amazon, Wal-mart, Google,…are big leaders in their business sector?


5.6 Survival

Information systems and technologies are major essential tools for firms to
survive in the fierce competitive environment.
5.6 Survival
CHAPTER 3
INFORMATION SYSTEMS, ORGANIZATIONS AND
STRATEGY
Contents
Using information systems to achieve competitive
01 advantage

Information systems strategies for dealing with com-


02 petitiveness

03 The Internet’s impact on competitive advantage


Why in every industry, are there some
firms do better than most others?
1. 1 Porter’s competitive forces model
1.1.1 Current Competitors/Traditional Competitors

Competitors: are companies that satisfy the


same group of customers and produce the
same products.
1.1.2 New/Potential market entrants

New market entrants: Companies that now are


not present in the industry but can penetrate into
the industry in the future.

 What factors affect to entry into the industry of


companies?
1.1.3 Substitute products and services

Substitute products and services: are products or


services that can meet the same functions as existing
and using ones.

Ex: Substitutes of Vinamilk are….


Substitutes of traditional market are…
Substitutes of oil or petrol are….
1.1.4 Customers
Customers: are classified into 2 groups: retail
customers, wholesale customers. Both two groups
cause pressure on companies about prices,
products quality, support service,…
1.1.5 Suppliers

Suppliers: are the persons who provide input


materials or input fuels for enterprises.
2. Information system strategies for dealing with
competitive forces

What is a firm to do when it is faced


with all these competitive forces?
And how can the firm use information
systems to counteract some of these
forces? How do you prevent substi-
tutes and inhibit new market entrants?
2. Information system strategies for dealing with
competitive forces

LOW COST PRODUCT FOCUS ON STRENGTHEN


LEADERSHIP DIFFERENTIATION MARKET CUSTOMERS&
NICHE SUPPLIER
INTIMACY
3. The internet’s impact on competitive advantage
CHAPTER 4
INFORMATION TECHNOLOGY INFRASTRUCTURE
Contents
01 IT Infrastructure

02 Using database to improve decision making

03 Managing data resources


INFRASTRUCTURE
1. IT Infrastructure

IT infrastructure consists of a set of physical devices, software


applications and services (such as telecommunications services,
application software services, physical facilities management
services, IT education services, IT research and development
services,…) that are required to operate the entire enterprise.
1. IT Infrastructure
2. Using database to improve decision making

Database Data Data marts


warehouse
Database

Database is a collection of logically related data that


can be easily shared and designed to meet the demands
of an organization or individual.

Ex:
Data warehouse

Data warehouse is a database that stores current and


historical data of potential interest to decision makers
throughout the company. The data warehouse extracts
current and historical data from multiple operational sys-
tems inside the organization.

Ex:
Data marts

A data mart is a subset of a data warehouse in which a


summarized or highly focused portion of the organization’s
data is placed in a separate database for a specific population
of users.

Ex:
2.1 Business Intelligence

+ Online analytical
processing (OLAP)
Business
Intelligence + Data mining

Business Intelligence (BI) allows businesses / organizations to use data


from a variety of sources to gain meaningful information and analysis
about their customers, markets, partners, suppliers, personnel,…
supporting in decision making.
2.1.1 Online Analytical Processing (OLAP)

Case: Suppose your company sells four different products—nuts, bolts, washers,
and screws—in the East, West, and Central regions. If you wanted to ask a fairly
straightforward question, such as how many washers were sold during the past
quarter, you could easily find the answer by querying your sales database. But
what if you wanted to know how many washers sold in each of your sales regions
and compare actual results with projected sales?
2.1.1 Online Analytical Processing (OLAP)

OLAP supports multidimensional


data analysis, enabling users to view
the same data in different ways using
multiple dimensions. Each aspect of
information—product, pricing, cost,
region, or time period—represents a
different dimension.
2.1.1 Online Analytical Processing (OLAP)
2.1.1 Online Analytical Processing (OLAP)
2.1.1 Online Analytical Processing (OLAP)
2.1.2 Data mining

Answer quickly these following questions:

(1) When you search information on Google, do you sign in or not?

(2) How do you add friends on Facebook?

(3) Have you ever bought online?


2.1.2 Data mining

Data mining is a process of extracting information that is correlated or associated with a large
(extremely large) data warehouse for the purpose of predicting future trends, behaviors, or useful
information searches that can not be normally identified.
3. Managing data resources

Question: Do all employees in your company have the rights to access and
view data? Do all employees have the rights to edit the data?
Your firm’s data are an important resource, and you don’t want every-
one access , view or edit data. You need to have rules on how the data are
to be organized and maintained, and who is allowed to view the data or
change
them.
CHAPTER 5
APPLICATION INFORMATION SYSTEMS
IN ENTERPRISES
Contents
01 Enterprise Resource
Enterprise Resource Planning
Planning systems
systems

02 Supply Chain
Supply Chain Management
Management systems
systems

03 Customer Relationship Management systems


1. Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is a term


used to refer to a range of business activities,
supported by computer software, to help the
company manage its operations including:
accounting, financial analysis, purchasing
management, inventory management,
production planning and management,
logistics management, customer relationship
management.
1. Enterprise Resource Planning (ERP)
1. Enterprise Resource Planning (ERP)

Suppliers provide Enterprise Resource Planning are SAP,


Oracle, Infor Global Solution, Microsoft.
1. Enterprise Resource Planning (ERP)

Business value
of ERP

Support in
decision Time and cost
making savings
Quick response to
the demands of
customers
2. Supply Chain Management (SCM)

SCM is a process of procuring


raw materials, transforming these
materials into intermediate and
finished products, and distributing
the finished products to customers.
2. Supply Chain Management (SCM)
2. Supply Chain Management (SCM)
I don’t believe there is a university in the world that
doesn’t talk about Walmart and the supply chain,” said
James Crowell, director of the Supply Chain Manage-
ment Research Center at the
Walton College of Business. “They are just so
well respected because they do it so well.”
2. Supply Chain Management (SCM)
How RFID works
2. Supply Chain Management (SCM)
Bullwhip effect
information about the
demand for a product
gets distorted as it
passes from one entity
to the next across the
supply chain.
3. Customer Relationship Management systems (CRM)

Customer relationship management (CRM) systems


capture and integrate customer data from all over the
organization, consolidate the data, analyze the data, and
then distribute the results to various systems and
customer touch points across the enterprise.
3. Customer Relationship Management systems (CRM)

Case: Many business owners often complain about the


same thing: my business is mostly dependent on sales staff
because the sales department is the department grasps the
customer list; the company's employees have just laid off
and dragged customers leaving companies, I lost a
significant number of customers, sales are declining; my
company has hundreds of customers but no systematic
storage, consequently each time I want to communicate
with customers via email, phone ... we take a long time to
find customer information.
3. Customer Relationship Management systems (CRM)

CRM software:
 Fully, detailed and systematic customer information storage.

 Store business opportunities with your customers

 Develop and implement effective marketing campaigns

 Complaints management

 Hotline center
CHAPTER 6
IT CRIMES, ETHICAL ISSUES AND SECURITY IN IN-
FORMATION SYSTEMS
Contents
01 IT crimes

02 Ethics in an information society and business

03 Economic Intelligence Systems

04 Security in Information Systems


1. IT crimes
1.1 Definition
1.1 Definition: Criminal offenses use
computers and computer networks for the
purpose of infringing upon the safety of
computer systems and the data storage process
of such systems, which cause damage
dramatically to the users.
1. IT crimes
1.2 Features of IT crimes

Computer is valuable asset which will be target of crimes.


1. IT crimes
1.2 Features of IT crimes

Computer is subject so that crimes violate the property rights


such as theft, vandalism to remove or steal information.
1. IT crimes
1.2 Features of IT crimes

Computer is considered as a tool to carry out traditional


crimes such as gambling, fraud; online betting, taking
advantage of computer and computer programs to seduce
those who are easy to trust.
1. IT crimes
1.2 Features of IT crimes

Computer is the environment to carry out destructive


behavior such as spread the virus, steal account information,
hack the accounts,…
1. IT crimes
1.3 The difference between IT crimes and other crimes

IT crimes relate to computers and computer networks.


1. IT crimes
1.3 The difference between IT crimes and other crimes

The majority of IT crimes are those who have a deep understanding of digital
technology, computers and have the proficient skills to use IT.
1. IT crimes
1.3 The difference between IT crimes and other crimes

The consequences of the crime will quickly affect to most aspects of life,
causing incalculable consequences on socio-economic.

Offenses are implemented without any limitation of time or space, they


can commit criminal offenses at any time, anywhere.
2. Ethics in information society
2. Ethics in information society

Information systems have created new ethical dilemmas in which one set
of interests is pitted against traditional ethic rules.

Case 1: Apart from basic channel is CV, social networking is


becoming a useful reference channel for companies and businesses
before making a decision whether to make an interview or not with just
a few clicks of the Linkedin, Facebook, Twitter, Google Plus, Youtube ...
of that person. Employers use social networks as an useful reference to
recruit young candidates if necessary.
2. Ethics in information society
Case 2: Many of the large companies are using information
technology to reduce the sizes of their workforces. Voice
recognition software reduces the need for human operators by
enabling computers to recognize a customer’s responses to a
series of computerized questions.
2. Ethics in information society

Case 3: Many companies monitor what their employees are doing


on the Internet to prevent them from wasting company resources on
non-business activities.
• There are some software records Web sites visited by employees, e-
mails sent and received, chat and messages, keystrokes typed, file
transfers, print documents and applications are using. In addition, it
also monitors how well - like a video camera.
2. Ethics in information society
3. Economic Intelligence Systems
Economic Intelligence: is the "steal" technology,
copy rights, formulas, business production plan, ...
of competitors.
3. Economic Intelligence Systems
 Forms of Intelligence:
 Train sales forces to collect information.
 Imitate customers to track sales at agents, affiliates.
 Understand competitors through the purchase of
competitor’s products, read competitor’s publications,
talk to former employees and current employees of the
competitors.
 Buy information from service companies.
 Self-establish the internal information center to collect
information.
OPERATIONAL
INSTRUMENTS

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