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9/30/2009

Managing Information Systems – Ch. 1
Information Systems in Global Business Today

Learning Objectives
• Understanding the effects of information systems (IS) on business and their relationship to globalization • Explain why information systems are essential in business • Define an information system and describe its y management, organization, and technology components • Define complementary assets and their role in ensuring that information systems add organizational value • Describe the different disciplines used to study information systems, and explain how each contributes to our understanding of them • Explain what is meant by a sociotechnical systems perspective

NBA Teams: A Slam Dunk With IT
• Problem: Lack of hard data usable in decision-making processes, costly and competitive market • Solutions: Developed a new system designed to collect and organize data using video clips of games • Synergy Sports Technology tags video of each game with hundreds of descriptive categories and allows coaches and players to stream game footage from the Web • Demonstrates IT’s role in innovation and improving business processes • Also Illustrates how the Web has allowed businesses to use new tools to analyze critical data

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Information Systems in Business Today
• Information systems are transforming business
• Increase in wireless technology use, Web sites • Shifts in media and advertising • New federal security and accounting laws

• Globalization opportunities
• Internet has drastically reduced costs of operating on global scale • Presents both challenges and opportunities

IT Capital Investment

Information technology investment, defined as hardware, software, and communications equipment, grew from 32% to 51% between 1980 and 2008. Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2008.

Figure 1-1

Digital Firms
• In the emerging, fully digital firm:
– Significant business relationships are digitally enabled and mediated – Core business processes are accomplished through digital networks – Key corporate assets are managed digitally

• Digital firms offer greater flexibility in organization and management – Time shifting – Space shifting

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Example: Virtual Meetings
Questions: • What are the advantages of using videoconferencing technologies? What are the disadvantages? • Wh t is t l What i telepresence and what sorts of companies are d h t t f i best suited to use it as a communications tool? • What kinds of companies could benefit from using videoconferencing? Are there any companies that might not derive any benefits from this technology?

IT and Corporate Strategy
• Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals • Business firms invest heavily in information systems to achieve six strategic b i hi i i business objectives: bj i – – – – – – Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival

IT and Strategic Business Objectives
• Operational excellence:
– Improvement of efficiency to attain higher profitability – Information systems, technology an important tool in achieving greater efficiency and productivity –E Example: W l M ’ R ilLi k system li k suppliers to l Wal-Mart’s RetailLink links li stores for superior replenishment system

• New products, services, and business models:
– Business model: describes how company produces, delivers, and sells product or service to create wealth – Information systems and technology a major enabling tool for new products, services, business models • Examples: Apple’s iPod, iTunes, and iPhone, Netflix’s Internet-based DVD rentals

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IT and Strategic Business Objectives
• Customer and supplier intimacy:
– Serving...
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