Business Objectives of Information System Investment

Business Objectives of Information System Investment

• Improved decision making, competitive advantage, and survival are important business objectives of information system investment.
• Improved employee morale and ESG leadership are not considered key business objectives.

Walmart's Success

• Walmart's success can be attributed to its effective use of information systems combined with sophisticated business practices and supportive management, resulting in competitive advantage.

Citibank's ATM Innovation

• Citibank introduced the first ATMs in New York, and competitors rushed to provide their own ATMs seeking competitive advantage.

Definition of an Information System

• An information system is a set of interrelated components that collect, process, store, and distribute information to support decision making and control in an organization.

Technology-Related Challenges in MIS

• Except for co-creation of business value, cloud computing, Big Data, IoT, and the mobile platform are all technology-related challenges in MIS.

Examples of Data and Information

• The average number of movie tickets sold at a particular price is an example of meaningful information.
• Raw data is the input, and output is the result of processing the data, while feedback is the response to the output.

Characteristics of IoT

• IoT devices can range from ordinary household objects to sophisticated industrial tools.
• IoT involves a network of physical objects that connect and exchange data with other devices and systems over the Internet.
• Traditional retailers use IoT, and connected IoT devices are an important source of Big Data.
• Some IoT devices have enough intelligence to make simple decisions and remember particular patterns and routines.

Work Environment and Business Problems

• Work environment is an example of the organizational dimension of business problems.

Business Problem Dimensions

• Crepe World's difficulty in implementing a new automated crepe batter measurement system due to chef preferences is a business problem that falls into the people dimension.

Business Organization Hierarchy

• The three principal levels of hierarchies within a business organization are senior management, middle management, and operational management.

Types of Information Systems

• A human resources system that summarizes the total moving, house-hunting, and home financing costs for employees in all company divisions is an example of a Management Information System.

Benefits of Enterprise Applications

• The most important benefit of an enterprise application is its ability to enable business functions and departments to share information.

This quiz assesses your understanding of the business objectives of investing in information systems, including improved decision making and competitive advantage. Learn how companies like Walmart achieve success through effective use of information systems.