30 Questions
What is the primary reason information systems are essential for running and managing a business today?
Because they are transforming business operations and strategies
What is the current trend in internet advertising according to the text?
It is growing at a rate of more than 20 percent per year
What is the result of changes in business due to information systems?
Changes in jobs and careers
What is the approximate number of adult Americans online according to the text?
273 million
What is the purpose of social networking tools in businesses?
To connect employees, customers, and managers
What is the requirement of new laws for businesses in terms of data storage?
To store more data for longer periods
What percentage of movies and TV shows were contributed to the growth of online streaming in 2016?
67%
What is a characteristic of a fully digital firm?
Having significant business relationships that are digitally enabled and mediated
What has been a significant impact of the internet and global communications on the business environment?
A drastic reduction of costs of operating and transacting on a global scale
What is the estimated value of e-commerce in 2018?
$1 trillion
What is the primary goal of achieving operational excellence in an organization?
To increase profits through improved efficiency
What is an example of a company that has achieved operational excellence through the use of information systems?
Walmart
How many strategic business objectives do firms invest in information systems to achieve?
6
What has been a significant change in the way managers work and collaborate?
Virtual meetings have proliferated and managers use social networks and collaboration tools
What has been a significant impact of the growth of online services on online retail?
Online services now approach online retail in revenue
What is one of the ways in which information systems and technologies help improve efficiency and productivity?
By combining information systems and best business practices
What is the primary benefit of a company's ability to foster an intimate relationship with its customers through the use of IT?
Repeat customers who purchase more
What is the estimated number of US subscribers of Netflix?
125 million
What is the primary outcome of a company's ability to create new products, services, and business models enabled by information systems and technologies?
The transformation of traditional business models
What is the primary benefit of a company's close relationships with its suppliers?
Lower costs through more efficient supply chain management
What is the primary outcome of managers having access to real-time data for decision-making?
More accurate decision-making leading to better outcomes
What is the primary example of a company that has successfully transformed its business model through the use of IT?
Apple
What is the primary outcome of poor decision-making by managers without access to accurate information?
Poor response times, misallocation of resources, and overproduction
What is the relationship between organizations and information systems according to Figure 1.2?
They are interdependent
What is the primary function of the output stage in an information system?
To provide feedback to evaluate or correct the input stage
What is the key distinction between a computer or computer program and an information system?
The technical foundation versus the overall system
What is the role of the input stage in an information system?
To collect raw data from the organization
What are the three dimensions of an information system?
Organization, management, and technology
What is the primary purpose of feedback in an information system?
To evaluate or correct the input stage
What is the relationship between computers and information systems?
Computers and software are the technical foundation of an information system
Study Notes
Information Systems in Global Business Today
- In 2017, over 140 million businesses had dot-com addresses registered, with 273 million adult Americans online, 190 million making online purchases, and 269 million using mobile phones.
- Social networking tools are being used by businesses to connect employees, customers, and managers.
- Internet advertising continues to grow at more than 20% per year.
How Information Systems Are Transforming Business
- New laws require businesses to store more data for longer periods, leading to changes in business and jobs.
- IT innovations, such as cloud computing, big data, and the Internet of Things, are driving new business models.
- E-commerce has expanded to nearly $1 trillion in 2018, with online services approaching online retail in revenue.
The Emerging Digital Firm
- The internet and global communications have greatly changed how and where business is done, leading to a drastic reduction in operating costs and increased competition.
- In a fully digital firm, significant business relationships are digitally enabled and mediated, core business processes are accomplished through digital networks, and key corporate assets are managed digitally.
Strategic Business Objectives of Information Systems
- Firms invest heavily 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.
Operational Excellence
- Improved efficiency results in higher profits, and information systems and technologies help improve efficiency and productivity.
- Example: Walmart's use of digital links between suppliers and stores to achieve operational efficiency.
New Products, Services, and Business Models
- Information systems and technologies enable firms to create new products, services, and business models.
- Example: Apple's transformation of the music distribution model with iTunes and its constant innovations.
Customer and Supplier Intimacy
- Information systems and technologies help firms foster intimate relationships with customers and suppliers.
- Examples: Hilton Oriental Hotel's use of IT to track customer preferences, and JC Penney's use of IT to enhance relationships with suppliers.
Improved Decision Making
- Accurate information enables managers to make better decisions, reducing costs, and improving response times.
- Example: Verizon's web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, and line outages.
What is an Information System?
- An information system consists of input, processing, output, and feedback, with a sharp distinction between computer/computer program and information system.
Dimensions of Information Systems
- Information systems consist of three dimensions: organization, management, and technology.
Figure 1.4 Functions of an Information System and Figure 1.5 Information Systems Are More Than Computers
- These figures illustrate the functions of an information system and the distinction between computer/computer program and information system.
Test your understanding of how information systems are transforming business and their essential role in managing a business today. Learn about the components of an information system, including management, organization, and technology, and its relation to various academic disciplines.
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