10 Questions
Which of the following is NOT considered a component of an information system?
Hardware
Which academic discipline primarily focuses on the technical aspects of information systems?
Computer science
What is the purpose of complementary assets in relation to information systems?
To provide additional resources and capabilities that enhance the value of information systems
Which of the following best describes the sociotechnical systems perspective?
The view that information systems are a combination of social and technical components, and should be studied from both perspectives
Which of the following is NOT a reason why information systems are so essential in business today?
Provide a competitive advantage by automating manual processes
Which of the following is NOT one of the six strategic business objectives that firms invest heavily in information systems to achieve?
Increased market share
What percentage of all invested capital was spent on information technology capital investment in 2009, according to the figure shown?
52%
In a fully digital firm, which of the following statements is TRUE according to the text?
Significant business relationships are digitally enabled and mediated
What does the term "time shifting" refer to in the context of digital firms, as mentioned in the text?
The ability to perform tasks at different times
What is the growing interdependence between a firm's information systems and its business capabilities an example of?
Changes in strategy often require changes in hardware and software
Study Notes
Information Systems in Global Business Today
- Information systems have a significant impact on business and are closely related to globalization.
- They are essential in business today as they provide genuine value to organizations.
Defining Information Systems
- An information system consists of management, organization, and technology components.
- Complementary assets ensure that information systems provide genuine value to an organization.
- Information systems can be studied from different academic disciplines, including sociology, psychology, and computer science.
Sociotechnical Systems Perspective
- The sociotechnical systems perspective considers the interaction between social and technical systems.
Transformation of Business
- Information systems are transforming business through emerging mobile digital platforms, big data, and cloud computing.
- Globalization has drastically reduced costs of operating on a global scale, leading to increased foreign trade and outsourcing.
The Role of Information Systems in Business
- Information technology capital investment has grown from 32% to 52% of all invested capital between 1980 and 2009.
- In the emerging, fully digital firm, business relationships are digitally enabled, core business processes are accomplished through digital networks, and key corporate assets are managed digitally.
- Digital firms offer greater flexibility in organization and management, enabling time shifting and space shifting.
Business Objectives
- Businesses invest heavily in information systems to achieve six strategic objectives:
- Operational excellence
- New products, services, and business models
- Customer and supplier intimacy
- Improved decision making
- Competitive advantage
- Survival
Interdependence between Information Systems and Business
- There is a growing interdependence between a firm's information systems and its business capabilities.
- Changes in strategy, rules, and business processes require changes in hardware, software, databases, and telecommunications.
- A firm's ability to achieve its objectives depends on what its systems permit it to do.
Operational Excellence
- Operational excellence involves improving efficiency to attain higher profitability.
- Information systems and technology are important tools in achieving greater efficiency and productivity.
- Example: Walmart's Retail Link system links suppliers to stores for superior replenishment.
Test your knowledge on the effects of information systems on business and their relationship to globalization, the importance of information systems in today's business, and the components of an information system including management, organization, and technology.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
