Identify three major new information system trends.

Application & Case Study Questions

Introduction to Information Systems

An information system is a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products. Wireless communications, including computers and mobile hand-held computing devices, are keeping managers, employees, customers, suppliers, and business partners connected in every way possible. Email, online conferencing, the web, and the Internet, are providing new and diverse lines of communication for all businesses, large and small. Through increased communication channels and decreased costs of the communications, customers are demanding more of businesses in terms of service and product, at lower costs. E-commerce is changing the way businesses must attract and respond to customers.

Information systems automate manual business processes and make an organization more efficient. Data and information are available to a wider range of decision-makers more quickly when information systems are used to change the flow of information. Tasks can be performed simultaneously rather than sequentially, speeding up the completion of business processes. Information systems can also drive new business models that perhaps wouldn’t be possible without the technology. The Internet and World Wide Web have had a tremendous impact on the role that information systems play in organizations. These two tools are responsible for the increased connectivity and collaboration within and outside the organization. The Internet, World Wide Web, and other technologies have led to the redesign and reshaping of organizations. They have helped transform the organization’s structure, scope of operations, reporting and control mechanisms, work practices, work flows, and products and services. Further, three information system trends that are influencing the way businesses interact with employees, customers, suppliers, and business partners include emerging mobile digital platforms, the growth of online software-as-a-service, and the growth of cloud computing.

Digital firm have many characteristics. Some of which are: Significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations. Key corporate assets—intellectual property, core competencies, and financial and human assets—are managed through digital means. They sense and respond to their environments far more rapidly than traditional firms. They offer extraordinary opportunities for more flexible global organization and management, practicing time-shifting and space-shifting. Having said that, there are of course some challenges as well as opportunities of globalization. Customers no longer need to rely on local businesses for products and services. They can shop 24/7 for virtually anything and have it delivered to their door or desktop. Companies can operate 24/7 from any geographic location around the world. Jobs can just as easily move across the state or across the ocean. Employees must continually develop high-level skills through education and on-the-job experience that cannot be outsourced. Businesses must avoid markets for goods and serves that can be produced offshore much more cheaply. The emergence of the Internet into a full-blown international communications system has drastically reduced the costs of operating and transacting business on a global scale.

There are several strategic objectives of information systems that include: Operational excellence – businesses use information systems to improve efficiency and achieve higher profitability. New products, services, and business models – information systems allow companies to create new products and services and even new business models (example – online music streaming). Customer and supplier intimacy – information systems allow businesses to know their customers better, and customers respond by purchasing more. Improved decision making – information systems allow companies to make better decisions using better information. Competitive advantage – information systems help companies outperform their competitors. Survival – information systems are necessities for doing business, and companies could not survive without them.

QUESTIONS (5 marks each)

a. Identify three major new information system trends. Explain how the Internet and the World Wide Web are related to the other technology components of information systems.

b. Describe how information systems have changed the way businesses operate and their products and services.

c. Describe the challenges and opportunities of globalization in a “flattened” world.

d. List and briefly describe the six strategic business objectives of information systems.

e. United Parcel Service Inc. (UPS), is a global company with one of the most recognised and admired brands in the world, using information systems, access to global resources, and an integrated network of physical, technological, and human assets. Apply Porter’s Five Forces analytical framework to UPS. Your answer should include critical elements and supported with evidence/ justification.

f.  Discuss UPS embracement of sustainable technologies and the benefits of doing so