Chapter 1 Notes | Information Systems In Global Business Today  - Social Networking tools are being used by companies to connect customers, employees, managers. Companies are starting to use internet Ads more often. New laws require companies to store data for longer (because of lesser use of paper). Changes in business create changes in jobs and careers. What’s new in management information systems? - VERY IMPORTANT!! IT innovations: - Cloud computing - storing data on the computers (iCloud). - Big data - Internet of Things - Mobile digital platform - social media (Instagram, Snapchat) - AI (robots) and machine learning (computers, machines...etc). New business models that come with Information Systems in Business - Online streaming music and video (Youtube, Spotify, iMusic). - On-demand e-commerce services (Netflix, Apple Customer Service). On-demand: people want it. E-commerce: buying and selling anything online. - Online services have large online retail presence like NAMSHI/ Carrefour. Online mobile advertising is more than laptop/ desktop advertising. - Managers use social networks like e-mail, LinkedIn. Business Intelligence applications are becoming more prominent; LockDown Responus and Zoom. Less emphasis on hierarchy, and more on skills. Faster decision making like Zoom Polls or Google Forms. Social Media is making business more closer/ making them want to interact more to the customer. Companies want to keep understanding and having IT important in their business. - Internet and global communications have changed the way business is done: Changes in operating costs (ex: less on rent, more on ADs). Competition for jobs (LinkedIn job posting), markets (Amazon vs Noon), resources (oil), ideas. Global economics/ markets depend on each other (Apple and China). Requires new understanding of skills, markets, and opportunities (Mcdonalds and the world). There are a lot of challenges, but also opportunities. Because of information systems, companies can globalize their commerce (buying and selling things). Firm = company. In an online business, relationships in your business are digitally enabled. Important business processes can be done online. - Important assets (valuable data for the business) can be managed online/ digitally. Online firms allow greater flexibility in organization and management (time shift, space shifting). - Business objectives of Information systems: With Information systems comes the need for information technology, and ability to perform company goals. - Six reasons companies invest/ spend a lot of money on Information systems 1) Operational excellence. 2) New products (youtube videos), services (Apple online customer service/ Carrefour), and business models (not being only brick and mortar, they can also be online). Business model - how a company produces, delivers, and sells its products and services. 3) 4) 5) - Customer and supplier intimacy. Improved decision making (Zoom Polls). Competitive advantage (Carrefour online vs dukaan). Charging less for superior products (ex: skin care in sephora vs iherb), better and faster performance (customer services). 6) Survival (Banks and ATMs) or (Businesses and Receipts). Using Information Systems correctly is very important, it can be good and bad. - Can result in overproduction or underproduction. - Misallocation of resources. - Poor response times (ex: real life VS email customer service). - Real-time = immediate response. Real time improves the ability of managers to make decisions. - Information technology (IT): hardware/ software (Laptop/ IOS/ Android) Information systems (IS): components that manage information (Safeassign/ Respondus Lockdown). Data: raw facts. Information: data shaped into a meaningful form. - Data → Information Very important!! Input (Data) → Processing → Output → Feedback (Information) Dimensions of Information Systems 1) - Organization Sales and marketing (identifying customers, creating ADs) HR (hiring and firing employees) Finance and accounting (create financial statements, ex: CFO Chief Financial Officer, Data analyst) Manufacturing and production (assemble/ create the product = ex: Scientist, researcher/ tester). 2) - Management Respond to problems. Create new products/ services. Occasionally can re-create the organization. 3) - Technology Computer hardware/ software. Data management. Networking and telecommunications (WWW, Intranet and extranet). IT infrastructure. - Each dimension has a different business processes, culture, and politics. Information systems has superior long-term strategic positioning (the earlier, the better). Very important!!! Hierarchy of authority, responsibility 1. Senior management 2. Middle management: Scientists 3. Operational management 4. Knowledge workers 5. Data workers 6. Production or service workers - Complementary assets/ things that add value to the business. 1st asset- Invest in IT and IS 2nd asset - Skilled people - Management Information systems: combines many disciples like computer science and psychology + economics. Four main actors 1) Suppliers of hardware and software 2) Business firms 3) Managers and employees 4) Firm’s environment that’s sociotechnical (legal, social, cultural context)