Management Information Systems: Managing the Digital Firm Chapter 1 Information Systems in Global Business Today Learning Outcomes 1.1 How are information systems transforming business, and why are they so essential for running and managing a business today? 1.2 What is an information system? How does it work? What are its management, organization, and technology components? 1.3 What academic disciplines are used to study information systems, and how does each contribute to an understanding of information systems? How Information Systems Are Transforming Business (1 of 2) • In 2017, more than 140 million businesses had dot-com addresses registered • 273 million adult Americans online; 190 million purchased online • 269 million Americans have mobile phones • 200 million use social networks How Information Systems Are Transforming Business (2 of 2) • Social networking tools being used by businesses to connect employees, customers, and managers • Internet advertising continues to grow at more than 20 percent per year • New laws require businesses to store more data for longer periods • Changes in business result in changes in jobs and careers 5 Years Figure 1.1 Information Technology Capital Investment What’s New in Management Information Systems (1 of 2) • IT Innovations – Cloud computing, big data, Internet of Things – Mobile digital platform • New Business Models – Online streaming music and video – On-demand e-commerce services 2016 75 million 67 % movies and TV shows What’s New in Management Information Systems (2 of 2) • E-commerce Expansion – – – – E-commerce expands to nearly $1 trillion in 2018 Netflix now has more than 125 million US subscribers Online services now approach online retail in revenue Online mobile advertising now larger than desktop • Management Changes – Managers use social networks, collaboration tools – Virtual meetings proliferate Globalization Challenges and Opportunities: A Flattened World • Internet and global communications have greatly changed how and where business is done – Drastic reduction of costs of operating and transacting on global scale – Competition for jobs, markets, resources, ideas – Growing interdependence of global economies