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Ch.1
2. What do you think globalization means? It could include increased number of companies with operations in multiple countries worldwide, and increased reliance on imports and exports of goods or jobs. Globalization will be discussed in later slides as well.
Information systems have three components: management, organization, and technology. Among these components, management and organization will be also referred to as complementary assets with social assets.
3. The sociotechnical systems perspective holds that optimal organizational performance is achieved by jointly optimizing the social and technical systems used in production. This helps to avoid the mistaken idea that information systems consist of computers or technology alone. How do you feel? Will the information systems be nothing more than technology? This issue will be discussed later in more detail.
4. Think about what difference it makes to the world economy, or the Korea economy, if global operations become much less expensive?
5. As you see in this picture, information technology capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009. Why would it be that the percentage of total investment devoted to IT has increased so much since 1980? Other kinds of capital investment are machinery and buildings. Why would firms increase IT investment faster than machinery and buildings? The answer is capital substitution: the price of IT capital has been falling exponentially, while the price of machine and buildings has been growing at slightly more than the rate of inflation. Wherever possible, firms would much rather invest in more IT than machinery or buildings because the returns on the investment are greater.
6. Time shifting and space shifting are connected to globalization. Could you explain why a digital firm is more likely to benefit from globalization than a traditional firm? One
2. What do you think globalization means? It could include increased number of companies with operations in multiple countries worldwide, and increased reliance on imports and exports of goods or jobs. Globalization will be discussed in later slides as well.
Information systems have three components: management, organization, and technology. Among these components, management and organization will be also referred to as complementary assets with social assets.
3. The sociotechnical systems perspective holds that optimal organizational performance is achieved by jointly optimizing the social and technical systems used in production. This helps to avoid the mistaken idea that information systems consist of computers or technology alone. How do you feel? Will the information systems be nothing more than technology? This issue will be discussed later in more detail.
4. Think about what difference it makes to the world economy, or the Korea economy, if global operations become much less expensive?
5. As you see in this picture, information technology capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009. Why would it be that the percentage of total investment devoted to IT has increased so much since 1980? Other kinds of capital investment are machinery and buildings. Why would firms increase IT investment faster than machinery and buildings? The answer is capital substitution: the price of IT capital has been falling exponentially, while the price of machine and buildings has been growing at slightly more than the rate of inflation. Wherever possible, firms would much rather invest in more IT than machinery or buildings because the returns on the investment are greater.
6. Time shifting and space shifting are connected to globalization. Could you explain why a digital firm is more likely to benefit from globalization than a traditional firm? One