ITM102 TEXT BOOK NOTES
Chapter 1: Information Systems in Global Business Today
E-commerce and internet advertising booming
New systems are being created with IT and its becoming a huge part of the
Successful firms are those that learn to use IT
The digital firm: business relationships are digitally enabled, customers,
consumers, suppliers, employers
Globalization; flatter world due to the internet
Three interrelated changes in MIS:
1. The emerging mobile digital platform
2. The growth of online software as a service
3. The growth in “cloud computing”
Digital firm: a firm in which nearly all of its significant business relationships
with customers, employees and suppliers are digitally enabled and mediated.
Business processes: the set of logically related tasks behaviors that organizations
develop over time to produce specific business results and the unique in manner in
which these activities are organized and coordinated.
Key corporate assets: intellectual property, core competencies
Time shifting: business being conducted 24/7 rather than on 9 to 5 business days.
Space shifting: work takes place globally
Strategic business objectives of I/S
Operational excellence: improving business productivity and efficiency
New products, services and business models: a major enabling tool to developing
new things, I/S allows for great innovations. Ex. Digital music
Customer and supplier intimacy: I/S allows businesses to know their customers
more, as well as their suppliers.
Improved decision making: I/S allows for data to be accessed digitally giving
managers the ability to know whats going on in their company and make better-
Competitive advantage: using I/S allows a business to become more efficient and
create a competitive advantage.
Survival: when a new technology becomes standard in the industry, having it is a
means to survival. If you don’t have it, you’re out.
1.2 perspectives on information systems
Information Technology (IT): consists of all the hardware and software a firm
needs in order to achieve its business objectives. Information: data that have been shaped into a form that is meaningful and useful
to human beings
Data: raw facts about anything in a form that humans cannot understand and use.
Input: collects raw data from within the organization or from its external
Processing: converts raw input into a meaningful form.
Output: transfers processed information to the people who need it.
Feedback: output that is returned to people who will evaluate the input stage.
Computer-based information system: use computer technology to process data
into meaningful information
I/S are composed of: Organizations, Information Technology, and Management
Senior management: makes long-range strategic decisions.
Middle management: carries out the programs & plans of the senior man