Management Information Systems

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Management Information Systems

MANAGING THE DIGITAL FIRM

Chapter 1 Managing the Digital Firm

Kenneth C. Laudon

Jane P. Laudon

9th edition

PEARSON

Prentice Hall

2006

www.prenhall.com/laudon

Chapter 1 Managing the Digital Firm

Objectives:
After reading this chapter, you will be able to:
1. Explain why information systems are so important today for business and management. 2. Evaluate the role of information systems in today’s competitive business environment. 3. Assess the impact of the Internet and Internet technology on business and government. 4. Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems literacy. 5. Identify the major management challenges to building and using information systems. Discussion Questions:

1. Why is it important to understand the difference between computer literacy and information literacy?

2. Discuss the three elements of an information system (hardware, software and persware) that managers must consider. Which of the three do you consider the most important?

3. What are some of the new roles information systems are playing in organizations?

4. Discuss the changes in the business environment brought about by technology in the last five years. Use Table 1-1 and your own personal experiences to formulate your answer.

Chapter 1 Managing the Digital Firm

Computers are changing every aspect of our lives from entertainment to shopping, from the work we do and where we do it, to how we communicate with friends and relatives. Even though we are still hearing negative news about the dot-com bubble from the late 1990s through 2001, the death of the Internet has been greatly exaggerated. Not only is it alive and well, but thriving. The difference between then and now is that many of the companies went bust primarily because of poor business planning or simply because their product wasn't viable to begin with. As you can see from the opening vignette in the text, many companies are remodeling their businesses and information systems with the Internet in mind. This chapter gives you an overview of many of the subjects we'll touch on in this course. It will help you understand how information technology is being used by many businesses worldwide to increase efficiency, save money, and create better relationships between suppliers and customers. 1.1 Why Information Systems?

Ask managers to describe their most important resources and they'll list money, equipment, materials, and people — not necessarily in that order. It's very unusual for managers to consider information an important resource, and yet it is. As electronic business and electronic commerce grow in popularity and more firms digitize their operations, having useful information is becoming even more important to the global business community. This chapter will begin to explain why you need to manage your information resources as closely as any other in your organization. Why Information Systems Matter

While many managers are familiar with the reasons why managing their typical resources such as equipment and people are important, it is worthwhile to take a moment to examine four reasons why managing information systems and technology are just as important. Capital Management

As the text states, "Investment in information technology has doubled as a percentage of total business investment since 1980, and now accounts for more than one-third of all capital invested in the United States…" That's a lot of money that businesses are spending on a relatively new component of many organizations. The business world has come a long way very rapidly in the last twenty years in terms of the amount of dollars spent on technology. Unfortunately, many companies haven't made the same advances in learning how to properly manage all...
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