COMMERCE 2KA3 Chapter Notes - Chapter 3: Information System, Business Process, Market Power
2 Oct 2017
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Document Summary
Organizations and information systems: - information systems are developed by managers to serve the interests of the business firm. Formal, social structure that takes resources from the environment and processes them to produce outputs. Routines: - precise rules, procedures, and practices that have been developed to cope with expected situations. Disruptive technologies: - technologies with a disruptive impact on industries and business, rendering existing products, services and business models obsolete. Features of organization: - all modern organizations have certain characteristics. How information systems impact organizations and business firms: - Economic impacts: - it changes both the relative costs of capital and the costs of information. Information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labour. Transaction cost theory: - economic theory stating that firms grow larger because they can conduct marketplace transactions internally more cheaply than they can with external firms in the marketplace.
