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Information Systems in GlobalBusiness Today



• Using information systems effectively requires an understanding of

the organization, management, and information technology shapingthe systems.

• Information Systems creates value for the firm as an organizational

and management solution to challenges posed by the environment).

Information Systems Are More Than Computers



Organizational dimension of

information systemsHierarchy of authority, responsibility

Senior management

Middle management Operational management

Knowledge workers

Data workers Production or service workers




information systems…cont.

Business organizations are hierarchies consisting of three principallevels and Information systems serve each of these levels.

Levels in a Firm




information systems…cont. Separation of business functions Sales and marketing

Human resources Finance and accounting

Manufacturing and production

“Every business is different. Unique business processes

Unique business culture

Organizational politics



Management dimension of

information systems Managers set organizational strategy for

responding to business challenges

In addition, managers must act creatively: in the creation of new products and services,

or

occasionally re-creating the organization

Otherwise businesses quickly become obsolete unless

they continue to change



Technology dimension of

information systems While organization and management are important,

it’s the technology at the heart of the information

system that enables the systems and the

organizations

The technology include: Computer hardware and software

Data management technology

Networking and telecommunications technology

• Networks, the Internet, intranets and extranets, World Wide Web

IT infrastructure: provides platform that system is built on



Business perspective on information

systems Information system is instrument for

creating value

Investments in information technology willresult in superior returns:

Productivity increases

Revenue increases

Superior long-term strategic positioning




systems…cont. Business information value chain

Raw data acquired and transformed through stages thatadd 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 toorganizational and managerial nature ofinformation systems




systems…cont.

Information systems are part of a series of value-adding activities foracquiring, transforming, and distributing information that managers canuse to improve decision making, enhance organizational performance,and, ultimately, increase firm profitability.

The Business Information Value Chain




systems…cont. Investing in information technology does not

guarantee good returns

Considerable variation in the returns firms receivefrom systems investments

Factors: Adopting the right business model

Investing in complementary assets (organizational andmanagement capital)



What’s New In Management

Information Systems? MIS is exciting because of the continual change in

technology, management use of the technology,

and the impact these have on business success.

New businesses and industries appear,

old ones decline, and

successful firms are those who learn how to use

the new technologies



CASE STUDY

WHAT’S THE BUZZON SMART GRIDS?

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