2.Why are information system so essential for running and managing a business today? * List six reasons why information systems are so important for business today.
(1) Operational excellence
(2) New products, services, and business models
(3) Customer and supplier intimacy
(4) Improved decision making
(5) Competitive advantage
Information systems are the foundation for conducting business today. In many industries, survival and even existence without extensive use of IT is inconceivable, and IT plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage.
3. What exactly is an information system? How does it work? What are its management, organization and technology components?
* Define an information system and describe the activities it performs. An information system is a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.
* List and describe the organizational, management, and technology dimensions of information systems. Organization: The organization dimension of information systems involves issues such as the organization’s hierarchy, functional specialties, business processes, culture, and political interest groups. Management: The management dimension of information systems involves setting organizational strategies, allocating human and financial resources, creating new products and services and re-creating the organization if necessary. Technology: The technology dimension consists of computer hardware, software, data management technology, and networking/telecommunications technology.
* Distinguish between data and information and between information systems literacy and computer literacy. Information literacy: is the ability to find, learn and use information. It doesn't rely on what you can remember but what you can locate and use. The process of learning in an information literate environment involves being able to find the information rather than memorize it. Computer literacy: is the ability to use the computer. This is an understanding of how to use productivity software on the computer such as word processing, excel, and powerpoint presentation researchs. It is also having knowlege on how to use the internet, collabaration tools, and technology.
4. What are complementary assets? Why are complementary assets essential for ensuring that information systems provide genuine value for an organization? * Define complementary assets and describe their relationship to information technology. Complementary assets are those assets required to derive value from a primary investment. Firms must rely on supportive values, structures, and behavior patterns to obtain a greater value from their IT investments. Value must be added through complementary assets such as new business processes, management behavior, organizational culture, and training.
* Describe the complementary social, managerial, and organizational assets required to optimize returns from information technology investments. Organizational assets:
* Supportive culture that values efficiency and effectiveness * Appropriate business model
* Efficient business processes
* Decentralized authority
* Strong senior management support for technology investment and change * Incentives for management innovation
* Teamwork and...