MANAGEMENT INFORMATION SYSTEM

Chapter 1:

Information Systems in Global Business Today

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Content Outlines

1.1 The role of Information

Systems in Business Today

1.2 Perspectives on Information

System

1.3 Contemporary Approaches

to Information Systems

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 1.1 The Role of Information Systems in Business Today

How information systems are transforming business

 Every day by observing how people conduct business

 To rapidly changing customer demand, reduce inventories to the lowest possible
levels, and achieve higher levels of operational efficiency
 Use social networking tools to connect their employees, customers, and managers
worldwide
 Increase in wireless technology use, Web sites
 Increased business use of Web technologies
 Cloud computing, mobile digital platform allow more distributed work,
decision-making, and collaboration

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 What’s New In Management Information
system?

Three Interrelated Changes In The Technology Area-

1) the emerging mobile digital platform,
2) the growth of online software as a service, and
3) the growth in “cloud computing” where more and more
business software runs over the Internet

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 Globalization Challenges And Opportunities:
A Flattened World

 Internet has drastically reduced costs of operating on global scale

 Increase in foreign trade, outsource
 Presents both challenges and opportunities.

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 The Emerging Digital Firm

A digital firm in which nearly all of the organization’s significant

business relationship with customers, supplier and employees are
digitally enabled and mediated.
Digital firms allows a lot of business to buy, sell, advertise and
solicit customer feedback online.
Digital firms offer extraordinary opportunities for more flexible
global organization and management.
Digital firms sense and respond to their environment far more
rapidly than traditional firms, giving them more flexibility to
survive in turbulent times ( example : covid period ).

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 Strategic Business Objectives of
Information Systems

Operational excellence:

 Information System (IS) improvement of efficiency of

operation to attain higher profitability

 Information systems and technology are the

most important tool available to managers for
achieving greater efficiency and productivity

 E.g. Walmart’s Retail Link system links suppliers to

stores for superior replenishment system
 Strategic Business Objectives of
Information Systems

New products, services, and business models:

 Information systems and technology a major enabling

tool for new products, services, business models

 Business model: describes how company produces,

delivers, and sells product or service to create wealth
• Examples: Apple’s iPod, iTunes, iPhone, iPad,

and Netflix’s internet-based DVD rentals

 Strategic Business Objectives of
Information Systems

Customer and supplier intimacy:

 When a business really knows its customers and serving
customers
 well leads to customers returning and purchasing more
 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
• TAL sends the shirts to each J . C. Penney store
 Strategic Business Objectives of
Information Systems
Competitive advantages

 Achieve higher sales and profit through using IS by:

• Doing things better

• Charging less for superior products

• Responding to customers and suppliers in real time

 Using the internet is competitive advantage

- Examples: Apple, Walmart, UPS

 Strategic Business Objectives of
Information Systems
Survival
 Business firms also invest in information systems and
technologies because they are necessities of doing
business.
 Sometimes these “necessities” are driven by industrial-
level changes.
 May be:
Industry-level changes,
e . g . Citibank introduced the first automated teller
machines (ATMs) in the New York