Information Systems In Business Today - An-Najah Videos
Chapter 1Information Systems inBusiness TodayVIDEO CASESCase 1: UPS Global Operations with the DIAD IVCase 2: Google Data Center Efficiency Best PracticesInstructional Video 1: Green Energy Efficiency in a DataCenter Using Tivoli ArchitectureInstructional Video 2: Tour IBM’s Raleigh Data Center
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayLearning Objectives Understand the effects of informationsystems on business and their relationship toglobalization. Explain why information systems are soessential in business today. Define an information system and describeits management, organization, andtechnology components.1.2Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayLearning Objectives (cont.) Define complementary assets and explainhow they ensure that information systemsprovide genuine value to an organization. Describe the different academic disciplinesused to study information systems andexplain how each contributes to ourunderstanding of them. Explain what is meant by a sociotechnicalsystems perspective.1.3Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayEfficiency in Wood Harvesting with Information Systems Problem: How to keep in contact with the various parties of thewood production and procurement chain Solutions: Use information systems to enhance experience.Cutting plans, maps and working instructions delivered via adedicated e-mail system. Ponsse provides technology to make them the most wired in allof the timber machine industry. Demonstrates IT’s role in providing new products and services. Illustrates the benefits of utilizing networks and mobileapplications to enhance customer service, information.1.4Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today How information systems are transformingbusiness– Emerging mobile digital platform– Growing business use of “big data”– Growth in cloud computing Globalization opportunities– Internet has drastically reduced costs of operatingon global scale– Increases in foreign trade, outsourcing– Presents both challenges and opportunities1.5Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayInformation Technology Capital InvestmentFIGURE 1-11.6Information 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.Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayInteractive Session: ManagementRUNNING THE BUSINESS FROM THE PALM OF YOUR HANDRead the Interactive Session and discuss the following questions What kinds of applications are described in the case? Whatbusiness functions do they support? How do they improveoperational efficiency and decision making? Identify the problems that businesses in this case studysolved by using mobile digital devices. What kinds of businesses are most likely to benefit fromequipping their employees with mobile devices? Discuss the implications of this statement: “The iPhone isnot a game changer, it’s an industry changer.”1.7Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today In the emerging, fully digital firm:– Significant business relationships with customers,suppliers, and employees are digitally enabled andmediated.– Core business processes are accomplished throughdigital networks.– Key corporate assets are managed digitally. Digital firms offer greater flexibility inorganization and management.– Time shifting, space shifting1.8Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today Growing interdependence between ability to useinformation technology and ability to implementcorporate strategies and achieve corporate goals Business firms invest heavily in information systemsto achieve six strategic business objectives:1.91.Operational excellence2.New products, services, and business models3.Customer and supplier intimacy4.Improved decision making5.Competitive advantage6.SurvivalCopyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Interdependence Between Organizations and Information TechnologyFigure 1.21.10In contemporary systems there is a growing interdependence between a firm’s information systems and itsbusiness capabilities. Changes in strategy, rules, and business processes increasingly require changes inhardware, software, databases, and telecommunications. Often, what the organization would like to do dependson what its systems will permit it to do.Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today Operational excellence:– Improvement of efficiency to attain higherprofitability– Information systems, technology an importanttool in achieving greater efficiency andproductivity– Walmart’s Retail Link system links suppliers tostores for superior replenishment system1.11Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today New products, services, and business models:– Business model: describes how companyproduces, delivers, and sells product or service tocreate wealth– Information systems and technology a majorenabling tool for new products, services,business models Examples: Apple’s iPad, Google’s Android OS,and Netflix1.12Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today Customer and supplier intimacy:– Serving customers well leads to customers returning,which raises revenues and profits. Example: High-end hotels that use computers to trackcustomer preferences and used to monitor andcustomize environment– Intimacy with suppliers allows them to provide vitalinputs, which lowers costs. Example: JCPenney’s information system which linkssales records to contract manufacturer1.1313Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today Improved decision making– Without accurate information: Managers must use forecasts, best guesses, luck Results in:– Overproduction, underproduction– Misallocation of resources– Poor response times Poor outcomes raise costs, lose customers– Example: Verizon’s Web-based digital dashboard toprovide managers with real-time data on customercomplaints, network performance, line outages, andso on1.14Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today Competitive advantage– Delivering better performance– Charging less for superior products– Responding to customers and suppliers inreal time– Examples: Apple, Walmart, UPS1.15Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Role of Information Systems in Business Today Survival– Information technologies as necessity of business– Industry-level changes Example: Citibank’s introduction of ATMs– Governmental regulations requiring recordkeeping Examples: Toxic Substances Control Act,Sarbanes-Oxley Act1.16Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Information system:– Set of interrelated components– Collect, process, store, and distributeinformation– Support decision making, coordination, andcontrol Information vs. data– Data are streams of raw facts.– Information is data shaped into meaningful form.1.17Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayData and InformationFigure 1.31.18Raw data from a supermarket checkout counter can be processed and organized to produce meaningfulinformation, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for aspecific store or sales territory.Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Three activities of information systemsproduce information organizations need– Input: Captures raw data from organization orexternal environment– Processing: Converts raw data into meaningfulform– Output: Transfers processed information topeople or activities that use it1.19Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Feedback:– Output is returned to appropriate members oforganization to help evaluate or correct input stage. Computer/Computer program vs.information system– Computers and software are technical foundationand tools, similar to the material and tools used tobuild a house.1.20Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayFunctions of an Information SystemAn information systemcontains information about anorganization and itssurrounding environment.Three basic activities—input,processing, and output—produce the informationorganizations need. Feedbackis output returned toappropriate people or activitiesin the organization to evaluateand refine the input.Environmental actors, such ascustomers, suppliers,competitors, stockholders, andregulatory agencies, interactwith the organization and itsinformation systems.Figure 1.41.21Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayInformation Systems Are More Than ComputersUsing information systemseffectively requires anunderstanding of theorganization, management, andinformation technologyshaping the systems. Aninformation system createsvalue for the firm as anorganizational andmanagement solution tochallenges posed by theenvironment.Figure 1.51.22Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Organizational dimension of informationsystems– Hierarchy of authority, responsibility (p.49) Senior management Middle management Operational management Knowledge workers Data workers Production or service workers1.23Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayLevels in a FirmBusiness organizations arehierarchies consisting of threeprincipal levels: seniormanagement, middlemanagement, and operationalmanagement. Informationsystems serve each of theselevels. Scientists andknowledge workers often workwith middle management.Figure 1.61.24Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Organizational dimension of informationsystems (cont.)– Separation of business functions Sales and marketing Human resources Finance and accounting Manufacturing and production– Unique business processes (p. 49)– Unique business culture– Organizational politics1.25Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Management dimension of informationsystems– Managers set organizational strategy forresponding to business challenges– In addition, managers must act creatively: Creation of new products and services Occasionally re-creating the organization1.26Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Technology dimension of informationsystems (p. 51)– Computer hardware and software– Data management technology– Networking and telecommunications technology Networks, the Internet, intranets andextranets, World Wide Web– IT infrastructure: provides platform that systemis built on1.27Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayInteractive Session: OrganizationsUPS COMPETES GLOBALLY WITH I.T.Read the Interactive Session and discuss the following questions What are the inputs, processing, and outputs ofUPS’s package tracking system? What technologies are used by UPS? How are thesetechnologies related to UPS’s business strategy? What business objectives do UPS’s informationsystems address? What would happen if these systems were notavailable?1.28Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Dimensions of UPS tracking system– Organizational: Procedures for tracking packages and managinginventory and provide information– Management: Monitor service levels and costs– Technology: Handheld computers, bar-code scanners, networks,desktop computers, and so on1.29Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Business perspective on informationsystems:– Information system is instrument for creatingvalue– Investments in information technology will resultin superior returns: Productivity increases Revenue increases Superior long-term strategic positioning1.30Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Business information value chain– Raw data acquired and transformed through stagesthat add value to that information– Value of information system determined in part byextent to which it leads to better decisions, greaterefficiency, and higher profits Business perspective:– Calls attention to organizational and managerialnature of information systems1.31Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayThe Business Information Value ChainFigure 1-71.32From a business perspective, information systems are part of a series of value-adding activities for acquiring,transforming, and distributing information that managers can use to improve decision making, enhanceorganizational performance, and, ultimately, increase firm profitability.Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Investing in information technology does notguarantee good returns. There is considerable variation in the returnsfirms receive from systems investments. Factors:– Adopting the right business model– Investing in complementary assets (organizationaland management capital)1.33Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayVariation in Returns on Information Technology InvestmentAlthough, on average,investments in informationtechnology produce returns farabove those returned by otherinvestments, there isconsiderable variation acrossfirms.Figure 1.81.34Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Complementary assets:– Assets required to derive value from a primaryinvestment– Firms supporting technology investments withinvestment in complementary assets receivesuperior returns– Example: Invest in technology and the people tomake it work properly1.35Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayPerspectives on Information Systems Complementary assets include:– Organizational assets, for example: Appropriate business model Efficient business processes– Managerial assets, for example: Incentives for management innovation Teamwork and collaborative work environments– Social assets, for example: The Internet and telecommunications infrastructure Technology standards1.36Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayContemporary Approaches to Information SystemsThe study of informationsystems deals with issues andinsights contributed fromtechnical and behavioraldisciplines.Figure 1.91.37Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayContemporary Approaches to Information Systems Technical approach– Emphasizes mathematically based models– Computer science, management science, operationsresearch Behavioral approach– Behavioral issues (strategic business integration,implementation, etc.)– Psychology, economics, sociology1.38Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayContemporary Approaches to Information Systems Management Information Systems, GlobalEdition– Combines computer science, management science,operations research and practical orientation withbehavioral issues Four main actors––––1.39Suppliers of hardware and softwareBusiness firmsManagers and employeesFirm’s environment (legal, social, cultural context)Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayContemporary Approaches to Information Systems Approach of this book: Sociotechnical view– Optimal organizational performance achieved byjointly optimizing both social and technical systemsused in production– Helps avoid purely technological approach1.40Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business TodayA Sociotechnical Perspective on Information SystemsFigure 1-101.41In a sociotechnical perspective, the performance of a system is optimized when both the technology and theorganization mutually adjust to each other until a satisfactory fit is obtained.Copyright 2014 Pearson Education
Management Information Systems, Global EditionChapter 1: Information Systems in Global Business Today1.42Copyright 2014 Pearson Education
Management Information Systems, Global Edition Chapter 1: Information Systems in Global Business Today An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output— produce the information organizations need. Feedback is output returned to
CONTENTS Introduction to Business 3 International Business 3 Corporate Governance 3 Business Law 4 Business Research Methods 4 Business Ethics 5 Business Economics/Accounting 5 Business Communication 5 Business Statistics/Decision Sciences 6 Business and Management Information Systems 7 Entrepreneurship and Small Business Management 8 Project Management 8 Operations Management/Supply Chain .
Chapter 1 Information Systems in Global Business Today From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to
Other major categories are expert systems, knowledge management systems, strategic information systems, and functional business systems. However, in the real world most application . Give examples to illustrate how the business applications of information systems can support a firm's business processes, managerial decision-making, and .
Information Systems in Global Business Today Introduction Computers and Information technology (IT) 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. Many companies are remodeling their businesses and information systems with
4 Brief Contents Part One Organizations, Management, and the Networked Enterprise 31 Chapter 1 Information Systems in Global Business Today 32 Chapter 2 Global E-Business and Collaboration 70 Chapter 3 Information Systems, Organizations, and Strategy 108 Chapter 4 Ethical and Social Issues in Information Systems 150 Part Two Information Technology Infrastructure 191
Learning Objectives 2 1. Understand the effects of information systems on business 2. Investigate the relationship between information systems and globalization. 3. Explain why information systems are so essential in business today. 4. Define an information system and describe its management, organization, and te
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ABR ¼ American Board of Radiology; ARRS ¼ American Roentgen Ray Society; RSNA ¼ Radiological Society of North America. Table 2 Designing an emergency radiology facility for today Determine location of radiology in the emergency department Review imaging statistics and trends to determine type and volume of examinations in emergency radiology Prepare a comprehensive architectural program .
