Podcast Beta
Questions and Answers
A digital firm enables digital relationships among customers, suppliers, and employees.
True
Data consists of clusters of facts that are meaningful and useful to human beings.
False
Computer-Based Information Systems excel at applying computer hardware and software, but not at processing and disseminating information.
False
Businesses invest in Information Systems primarily to decrease profitability.
Signup and view all the answers
Time-based competition emphasizes a longer product life cycle for companies.
Signup and view all the answers
An employee with a limited knowledge base may face challenges in an information-based economy.
Signup and view all the answers
Agile sensing and responding to environmental changes is not a feature of the Digital Firm.
Signup and view all the answers
Information Systems play no role in supporting decision making and control within an organization.
Signup and view all the answers
Knowledge is not considered a central productive and strategic asset in the Information Economy.
Signup and view all the answers
The emergence of the Digital Firm does not involve the digital management of key corporate assets.
Signup and view all the answers
Study Notes
Foundations of Doing Business
- Businesses heavily rely on information systems and technologies to operate
- IT increases market share and helps businesses become high-quality and low-cost producers
- IT is vital for developing new products
Importance of Information Systems
- IT increases productivity and efficiency of businesses
- According to the Federal Reserve Bank, IT reduces price rises by 0.5 to 1% in the last decade
- IT has increased productivity in the economy by about 1% in the last decade
Strategic Opportunity and Advantage
- IT creates and maximizes competitive advantage
- IT enables the development of competitive advantages and new business models
- Examples: Dell Computer's build-to-order business model and eBay's online trading platform
Why IT Now?
- Information systems are an organizational and management solution to business challenges
- IT requires significant investment in organizational and management changes and innovations
- IT creates value primarily by changing business processes and management decision making
Perspectives on Information Systems
- Information systems literacy involves behavioral, management, and technical knowledge
- The business information value chain includes sales, manufacturing, marketing, finance, accounting, and human resources
- The three dimensions of information systems are organizational, management, and technology
Organizational Dimension of Information Systems
- People, structure, business processes, culture, and policies are key components
- The rise of the information economy is characterized by knowledge and information-based economies
What Is an Information System?
- Technology perspective: a set of interrelated components that collect, process, store, and distribute information to support decision making and control in an organization
- Data and information are distinct concepts
- A computer-based information system (CBIS) collects, stores, and uses information to support decision making and control in an organization
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the vital role of information systems and technologies in modern businesses. Learn about the interdependence between organizations and information systems, the importance of IT in increasing market share, productivity, and efficiency.
