Information Systems: Concepts
To be a successful business in today’s economic environment, managers must
know their competition, know their customers, work closely with their business
partners, and know their organization inside and out.
o Type of information systems: Functional Area Information Systems
(FAIS), Enterprise Resource Planning Systems (ERP), Transaction
Processing Systems (TPS) and Inter-organizational information systems
such as Supply Chain Management (SCM) systems.
o 3 main purposes: handling the present, remembering the past, and
preparing for the future
o Era I – spearheaded by countries: power to deploy
o Era II – spearheaded by companies: decreased cost of transportation and
o Era III - spearheaded by groups and individuals: the world is flat
o Integration of regional economies, societies, and cultures through globe
spanning networks of exchange
o Heightens competition, offers new opportunities
o Enhances the value of information to the firm
o Requires powerful information system responses to conduct trade and
manage businesses on a global scale
1. Now that exchanges take place at a global level, people are no longer
restricted to dealing with their local resources
2. With the expansion of the exchange networks, new opportunities emerge in
relation to business processes, supply chains, consumer base, etc…
3. With the expansion of exchanges and the reduction of geographical
constraints, communication and information became essence to businesses
4. Sophisticated information systems were necessary to ensure this increasingly
critical communication and information exchange
Ten Flatteners: Impact of IT on Globalization
10 forces (technologies & events) that created the leveled – global – economic
playing field (#4-9: forms of collaboration that resulted from #3):
1. Collapse of Berlin Wall: Windows powered PCs had on the ability of
individuals to create their own content and connect to one another. 2. Netscape: Internet accessible to everyone. Words, files, films, music, and
pictures could be accessed and manipulated on a computer screen by all
people across the world.
3. Workflow software: standards and technologies (HTML, SMTP) that
enabled computer systems and application to interoperate, communicate
and work with one another with or without human intervention.
4. Uploading: examples include open source software, blogs, and Wikipedia.
5. Informing: examples – Google and other search engines
6. Outsourcing: having another company perform one or more of your
business functions. Split service and manufact