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ITM Final exam notes.docx

Information Technology Management
Course Code
ITM 102
Vikraman Baskaran
Study Guide

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Chapter 1 Information Systems in Global Business Today
ď‚· Vehicle order management system has helped reduce production time and the cost of maintaining materials
and finished cars in inventory , while increasing customer service and satisfaction
ď‚· Has created business processes and info systems that promote agility, efficiency and quality
ď‚· Order management system increases customer satisfaction, helps monitor trends and forecast demand and
production requirements more accurately
Role of Information Systems in Businesses Today
 Cell phones, blackberry’s, I-phones, email and online conferencing has become an essential tool for businesses
ď‚· Social networking sites attract 70 and 30 million visitors a month, businesses are starting to use this to connect
to employees, customers and managers worldwide
ď‚· E-commerce and internet are booming- internet advertising grows 25% each year
ď‚· MIS is a hot topic in business due to the continual change in technology, management use of technology, and
technology’s impact on business success
ď‚· In technology area there are three interrelated changes: the emerging mobile digital platform, growth of online
software as a service and growth in cloud computing
ď‚· Emerging mobile platform help improve management and achieve competitive advantage
Globalization challenges and opportunities
ď‚· Develop high-level skills through education and experience
ď‚· Avoid markets for goods and services that can be produced offshore much less expensively
ď‚· Can shop in worldwide marketplace obtaining price and quality info
ď‚· Info systems enable globalization
ď‚· Extraordinary cost reduction
The emerging digital firm
 Digital firm: is one which nearly all of the org’s significant business relationships with customers, suppliers,
and employees are digitally enabled and mediated
ď‚· Core business processes: are accomplished through digital networks spanning the entire org or linking multiple
ď‚· Respond more rapidly
ď‚· More flexible global organization and mgmt
Strategic business objectives
ď‚· Operational excellence
ď‚· New products, services, and business models
ď‚· Customer and supplier intimacy
ď‚· Improved decision making
ď‚· Competitive advantage
ď‚· Survival
Perspectives on Information Systems
Information Technology: consists of all the hardware and software that a firm needs to use in order to achieve
their business objectives

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Information System: a set of interrelated components that collect, process, store and distribute info to support
decision making and control in an org
Information: data that has been shaped into a form that is useful to humans
Input: captures or collects raw data from within the org or from its external env
Processing: converts this raw input into a meaningful form
Output : transfers the processed info to the people who will use it or to the activities for which it will be used
Information systems are an integral part of org
Senior mgmt- long range decisions about products and services and ensures financial performance of firm
Middle mgmt- carries out the programs and plans of senior mgmt
Operational mgmt- responsible for monitoring daily activities
Knowledge workers- design products or services and create new knowledge for the firm ex, engineers
Data workers- assist with paperwork at all levels of firm ex secretaries
Production or service workers- produce the product and deliver the service
Major business functions- sales and marketing, manufacturing and production, finance and accounting, and human
Each organization has a unique culture or fundamental set of assumptions, values , and ways of doing things
ď‚· Makes sense out of situations faced by org
ď‚· Makes decisions , formulates action plans to solve problems
ď‚· Create new products and recreate org from time to time
ď‚· Do creative work driven by knowledge and info
Information Technology
ď‚· Computer hardware: physical equipment used for input , processing, and output activities
ď‚· Computer software: consists of detailed, pre-programmed instructions that control and coordinate the
computer hardware component
ď‚· Data mgmt technology: consists of the software governing the org of data on physical storage media
ď‚· Networking and telecommunications technology: consists of both physical devices and software , links various
pieces of hardware and transfers data from on physical location to another
ď‚· Network links two or more computers to share data ex, printer
ď‚· Internet- global network of networks
ď‚· Internal corporate networks based on internet technology are called intranets
ď‚· Private intranets extended to authorized users outside the org are called extranets
ď‚· World wide web- a service provided by internet that uses universally accepted standards for storing, retrieving,
formatting and displaying info
ď‚· Information Technology infrastructure provides foundation or platform on which the firm can build its specific
info system
Complementary Assets are those assets required to derive value from a primary investment
ď‚· Investments in org and mgmt are also known as organizational and mgmt capital

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How are information systems transforming business, and what is their relationship to globalization?
E-mail, online conferencing, and cell phones have become essential tools for conducting business. Information
systems are the foundation of fast-paced supply chains. The Internet allows many businesses to buy, sell, advertise,
and solicit customer feedback online. Organizations are trying to become more competitive and efficient by digitally
enabling their core business processes and evolving into digital firms. The Internet has stimulated globalization by
dramatically reducing the costs of producing, buying, and selling goods on a global scale. New information system
trends include the emerging mobile digital platform, online software as a service, and cloud computing.
Why are information systems so essential for running and managing a business today?
Information systems are a foundation for conducting business today. In many industries, survival and the ability to
achieve strategic business goals are difficult without extensive use of information technology. Businesses today use
information systems to achieve six major objectives: operational excellence; new products, services, and business
models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival.
What exactly is an information system? How does it work? What are its management, organization, and
technology components?
From a technical perspective, an information system collects, stores, and disseminates information from an
organization’s environment and internal operations to support organizational functions and decision making,
communication, coordination, control, analysis, and visualization. Information systems transform raw data into useful
information through four basic activities: input, processing, output, and feedback. From a business perspective, an
information system provides a solution to a problem or challenge facing a firm and represents a combination of
management, organization, and technology elements. The management dimension of information systems involves
issues such as leadership, strategy, and management behaviour. The technology dimension consists of computer
hardware, software, data management technology, and networking/telecommunications technology (including the
Internet). The organizational dimension of information systems involves issues such as the organization’s hierarchy,
functional specialties, business processes, culture, and political interest groups.
What are complementary assets? Why are complementary assets essential for ensuring that information
systems provide genuine value for an organization?
In order to obtain meaningful value from information systems, organizations must support their technology
investments with appropriate complementary investments in organizations and management. These complementary
assets include new business models and business processes, supportive organizational culture and management
behaviour, appropriate technology standards, regulations, and laws. New information technology investments are
unlikely to produce high returns unless businesses make the appropriate managerial and organizational changes to
support the technology.
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