Learning objectives

Customer and supplier intimacy:

• Customer and supplier intimacy:
• Serving customers well leads to customers returning, which raises revenues and profits
• Example: High-end hotels that use computers to track customer preferences and use to monitor and customize environment
• Intimacy with suppliers allows them to provide vital inputs, which lowers costs
• Example: J.C.Penney’s information system which links sales records to contract manufacturer

Management Information Systems
Chapter 1 Information Systems in Global Business Today
The Role of Information Systems in Business Today

Improved decision making

• Improved decision making
• Without accurate information:
• Managers must use forecasts, best guesses, luck
• Leads to:
• Overproduction, underproduction of goods and services
• Misallocation of resources
• Poor response times
• Poor outcomes raise costs, lose customers
• Example: Verizon’s Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc.

Management Information Systems
Chapter 1 Information Systems in Global Business Today
The Role of Information Systems in Business Today

Operational excellence:

• Operational excellence:
• Improvement of efficiency to attain higher profitability
• New products, services, and business models:
• Enabled by technology
• Customer and supplier intimacy:
• Serving customers raises revenues and profits
• Better communication with suppliers lowers costs
• Improved decision making
• More accurate data leads to better decisions

Management Information Systems