Friday, April 10, 2015

CHAPTER 1

INFORMATION SYSTEM IN BUSINESS TODAY


WHAT IS INFORMATION SYSTEM
  • Information systems are a foundation for conducting business today
  • Information systems have become essential for helping organizations operate in a global economy
  • Organizations are trying to become more competitive and efficient by transforming themselves into digital firms
  • Information system is set of interrelated components that collect, store and distribute information to support decision making, coordination and control in organization
  • It may help managers and workers analyse problem, visualize complex subject and create new product

SIX STRATEGIC BUSINESS OBJECTIVES

a) Operational Excellence:

- Information system, technology an important tool in achieving greater efficiency and productivity
- Improvement of efficiency to attain higher profitability
- Example : Walmart's Retail Link system

b) New Products, Services and Business Models

- Describe how company produces, delivers and sells product or service to create wealth
- Information system and technology a major enabling tool for new products, services and business model
- Example : Apple iPad (provider of on demand internet streaming media)

c) Customer and Supplier Intimacy

- Serving customers well leads to customers returning, which revenues and profits
- Intimacy with supplier allows them to provide vital input which lower costs
- Example : Complains and comment from the customers

d) Competitive Advantage

- Delivering better performance
- Charging less for superior products
- Responding to customer and supplier in real time
- Example :Walmart's Retail Link System

e) Survival

- Information technology as necessity of business
- Industry-level changes
- Governmental regulations requiring record-keeping
- Example :


THREE ACTIVITIES OF INFORMATION SYSTEMS



INPUT : Capture raw data from organization or external environment 


 PROCESSING : Convert raw data into meaningful form



 OUTPUT : Transfer processed information to people or activities that use it



 LEVELS IN A FIRM



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