Learning objectives

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

Competitive advantage

• Competitive advantage
• Delivering better performance
• Charging less for superior products
• Responding to customers and suppliers in real time
• Example: Toyota and TPS (Toyota Production System) enjoy a considerable advantage over competitors – information systems are critical to the implementation of TPS

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

Survival

• Survival
• Information technologies as necessity of business
• May be:
• Industry-level changes, e.g. Citibank’s introduction of ATMs
• Governmental regulations requiring record-keeping
• Examples: Toxic Substances Control Act, Sarbanes-Oxley Act

Management Information Systems
Chapter 1 Information Systems in Global Business Today
The Role of Information Systems in Business Today
The Role of Information Systems in Business Today
Management Information Systems
Chapter 1 Information Systems in Global Business Today
The Interdependence Between Organizations and Information Technology
In contemporary systems there is a growing interdependence between a firm’s information systems
and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
Figure 1-2

Information system:

• Information system:
• Set of interrelated components
• Collect, process, store, and distribute information
• Support decision making, coordination, and control
• Information vs. data
• Data are streams of raw facts
• Information is data shaped into meaningful form