Information Systems in Global Business

Information Systems in Global Business Today

• Organizations are becoming more competitive and efficient through digital enablement of core business processes
• The Internet has facilitated globalization by lowering costs of production, purchase, and sales across the globe
• Emerging trends in information systems include mobile digital platforms, big data (including IoT), remote management, democratized decision making, machine learning systems, and social media use
• Information systems are fundamental to modern business, crucial for survival and achieving strategic business goals in various industries
• Information systems support operational excellence, new product/service development, customer/supplier relationships, enhanced decision-making, competitive advantage, and operational survival

Information System Definitions

• An information system collects, stores, and disseminates information internally from an organization's operational activities and externally from the environment to aid organizational functions (analysis, visualization, control, communication, coordination etc.)
• Transform raw data into usable information through input, processing, and output activities
• Information systems include managerial, organizational, and technological components
• Complementary assets (business models, management behavior, organizational culture) are vital for achieving genuine value from information systems for organizations

Information Systems: Components and Study Approaches

• Information systems involve computer hardware, software, data management, networking/telecommunications technology, organizational hierarchy, competencies, procedures, culture, and political influences
• Studying information systems uses technical approaches (like computer science, management science, operations research) and behavioral approaches (psychology, sociology, economics)
• The ideal perspective on information systems is a sociotechnical perspective (combining technical and social features)

Digital Firms

• Digital firms have significant business relationships nearly exclusively online using digital networks to accomplish internal work
• Core processes span the entire organization or link several firms
• Digital firms heavily leverage digital networks for operations and communication

Business Processes

• Business processes are sequences of connected tasks used to achieve business results
• These tasks have a unique approach to coordination and organization
• Key business processes can be a major source of competitive advantage

Strategic Business Objectives

• Six strategic business objectives are operational excellence, new product/service development, customer/supplier intimacy, effective decision-making, competitive advantage, and survival

Information Technology and Information Systems

• Information technology (IT) is the hardware and software required to achieve business objectives
• Information systems (IS) are the collection, organization, and dissemination of information from internal and external sources to function, make decisions, communicate, coordinate etc.

Data and Information

• Data are raw, unorganized facts or figures
• Information is data formatted, organized, and structured for meaning and useful applications

Information System Activities

• The three main activities in an IS are Input, Processing, and Output
• Input: Capturing data from both internal and external environments
• Processing: Transforming raw input to meaningful data
• Output: Delivering processed data to users and/or processes for actions

Feedback in IS

• Feedback in IS is the output returned to appropriate personnel for evaluations and adjustments in the input to improve processes

Organizational Dimensions

• Organizational elements include people, structure, processes, politics, and culture