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Questions and Answers
What was the global spending on information technology (IT) and IT services in 2019?
Which emerging technology is used in business for data analysis and automation?
What was the approximate value of global e-commerce in 2019?
Which factor is NOT mentioned as often required for firms to achieve full business value from IT investments?
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What significant trend is driving the growth of mobile retail e-commerce?
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Which of the following is a new business model enabled by advancements in information systems?
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How much was the mobile retail e-commerce expected to reach in 2020?
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What type of tools are managers increasingly using in response to management changes?
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Which of the following is a trend in management information systems?
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What has the internet influenced in terms of business operations?
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What characterizes a fully digital firm?
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What is NOT one of the strategic business objectives of information systems?
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How have firms responded to globalization challenges?
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What does 'time shifting' refer to in a digital firm?
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Which of the following emphasizes the interdependence between technology and corporate strategy?
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What is a key advantage of digital firms?
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What is the primary benefit of improved efficiency in a business context?
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How did Walmart achieve its operational efficiency?
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What is a business model?
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Which of the following exemplifies how Apple transformed the music distribution model?
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How does Mandarin Oriental Hotel enhance customer intimacy?
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What is a consequence of managers not having accurate information for decision making?
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What advantage does real-time data provide to managers?
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Which company uses information technology to enhance its relationship with suppliers in Hong Kong?
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Study Notes
Information Systems in Global Business Today
- Global spending on information technology (IT) and IT services was nearly $3.8 trillion in 2019 with $160 billion spent on management consulting and services.
- Changes in organization, management and culture are often required for companies to fully utilize the value of their IT investments.
What’s New in Management Information Systems
- Cloud computing, big data, Internet of Things, a mobile digital platform, artificial intelligence (AI) and machine learning, and the use of social networks for business objectives are all examples of IT innovations.
- Online streaming and downloadable video are examples of new business models, including Netflix, Apple TV Channels, and Amazon.
- E-commerce worldwide expanded to nearly $3.6 trillion in 2019, with social commerce spurred by the growth of mobile platforms.
- Mobile retail e-commerce grew more than 20 percent a year, reaching almost $300 billion in 2020.
- Managers are becoming more mobile, using social networks and other collaboration tools, and business intelligence applications are accelerating.
- Organizations are becoming more collaborative, with less emphasis on hierarchy and structure while placing more emphasis on competencies and skills.
- This shift has resulted in higher-speed and more accurate decision making based on data and analysis, a greater willingness to interact with consumers on social media, and a better understanding of the importance of IT.
Globalization Challenges and Opportunities
- The internet and global communications have drastically changed how and where businesses operate.
- There has been a drastic reduction in the cost of operating and transacting on a global scale, leading to increased competition for jobs, markets, resources, and ideas.
- This has also led to growing interdependence of global economies, requiring new understandings of skills, markets, and opportunities.
The Emerging Digital Firm
- In a fully digital firm, significant business relationships are digitally enabled and mediated.
- Digital firms offer greater flexibility in organization and management.
- Digital firms utilize time shifting and space shifting to optimize productivity.
Strategic Business Objectives of Information Systems
- Organizations heavily invest in information systems to achieve six strategic business objectives: operational excellence, new products, services, and business models, customer and supplier intimacy, improved decision making, competitive advantage, and survival.
- The ability to use information technology is directly intertwined with the ability to implement corporate strategies and achieve corporate goals.
Operational Excellence
- Improved efficiency leads to higher profits.
- Information systems and technologies help improve efficiency and productivity.
- Walmart is an example of how companies can combine information systems and best business practices to achieve operational efficiency.
New Products, Services, and Business Models
- Information systems and technologies enable businesses to create new products, services, and business models.
- A business model describes how a business produces, delivers, and sells its products and services.
- Apple's transformation of the music distribution model with iTunes and its constant innovation of products like the iPod, iPhone, iPad, and others are examples of this principle.
Customer and Supplier Intimacy
- Customers who are served well become repeat customers who purchase more.
- Mandarin Oriental Hotel uses IT to foster an intimate relationship with its customers by keeping track of their preferences.
- Close relationships with suppliers result in lower costs.
- Mandarin Oriental Hotel and J C Penney use IT to enhance their relationships with suppliers.
Improved Decision Making
- Without accurate information, managers must rely on forecasts, best guesses, and luck, which can lead to misallocation of resources, inventory, and employees.
- Real-time data improves the ability of managers to make better decisions.
- Verizon’s web-based digital dashboard provides managers with real-time data on customer complaints, network performance, line outages, etc.
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Description
Explore the impact of information technology on global business, including spending trends and innovative IT solutions like cloud computing and AI. This quiz delves into changes necessary for organizations to maximize their IT investments and discusses new business models driven by e-commerce.
