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  • Uploaded on Information Systems in Global Business Today Objective data Better information Performance improvement NBA teams with information technology Basketball Fast-paced, high-energy sport Big business NBA player’s average salary 5 Millions per year

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information systems in global business today

Information Systems inGlobal Business Today

Objective data

Better information

Performance improvement

nba teams with information technology
NBA teams withinformation technology
  • Basketball
    • Fast-paced, high-energy sport
    • Big business
      • NBA player’s average salary
        • 5 Millions per year
      • Constantly on the watch for performance improvement
        • Statistics
          • Strength & weakness in offensive & defensive
          • Opponents & its own team
Traditional basketball statistics
    • Fail to capture all of the detail
      • Do not associate with every play
    • Decisions on
      • Change team tactics
      • How to take advantages of opponents’ weakness

are made on gut instincts

not based on hard data

Synergy Sports Technology
    • Games are dissected and tagged
      • Hundreds of descriptive categories
        • Which players have the ball
        • What type of play is involved
        • Results
      • Link to high-resolution video

fine-grained statistics

Coach and player
    • Use an index to locate the exact video clip
      • Download to laptops or ipods
    • ex: find all the fast-break plays of
      • Games with a team (ex. Phoenix Sun)
      • Entire season
    • Analyze the strengths and weakness of individual players
      • Which offensive and defensive moves are

the most effective for each team player

  • Objective data
  • Better information
  • Performance improvement
1.1 The role of Information Systems in business today

1.2 Perspectives on Info Systems

1.3 Contemporary approaches to IS

role of info systems
Role of Info Systems
  • In 2008, American business invest more than 50% of all invested capital in information technology
    • Land
    • facility
    • Machine
    • Process/office equipment
    • Human resources
    • ….
Managers need to know
    • How to invest money wisely
    • How to make wise decisions
      • Information technology
      • Information systems
role of info systems12
Role of Info Systems
  • How information systems are transforming business
    • Landline telephone, fax & copy machines
    • Cellular phone, smart phones, emails, teleconferencing
    • Online shopping
    • UPS move 3.7 billion packages in 2007
      • More than 10 millions per day
  • Social networks
    • Facebook, myspace
  • eCommerce, Internet advertisement
    • Google, eBay, amazon, itune
  • Federal security and accounting laws
    • Keep email message for 5 years
What’s new in management info systems
    • Technology, Management, Organizations
      • Table 1-1
    • Technology
      • Cloud computing
      • More powerful, energy efficient computing
      • Growth on software as a service
      • Netbooks, open source software
      • Mobile digital platform
    • Online collaboration, knowledge sharing
      • Social network
    • Business intelligence
    • Mobile digital platform to accelerate decision making
    • Virtual meeting proliferate
    • Web 2.0 enable employees to interact as online community
    • Telework
    • Outsourcing product/service
    • Co-creation of business value via customers, suppliers
role of info systems17
Role of Info Systems
  • Globalization opportunities
    • Reduce the cost to operate on a global scale
      • Shop in a worldwide marketplace
      • Obtain info reliably 24 hours a day
      • Find low cost suppliers in other nations
      • Communicate real time with minimal cost
        • Skype, instant messages, emails
role of info systems18
Role of Info Systems
  • The emerging digital Firm
    • Digital firm
      • Business relationships with customers, suppliers, and employees are digitally enabled
      • Core business processes are accomplished through digital network
        • Business process:
          • The set of logical related tasks and behaviors
          • Order, customer service
Digital Firm
    • Core assets are managed thru digital means
      • Intellectual property
      • Core competence
      • Financial & human resources
Sense and response to their environment rapidly
    • Time shifting
      • Business conduct continuously
      • 24x7
    • Space shifting
      • Work take place in a global workshop
role of info systems21
Role of Info Systems
  • Essential for conducting day-to-day business
    • E-commerce firm
      • Amazon, eBay, Google
    • Service industry
      • Finance, insurance, travel
    • Retail
      • Wal-mart
    • Manufacturing
growing interdependence between
Growing interdependence between

Firm’s ability to use IT &

Firm’s ability to implement corporate strategies

Strategic business objectives & IT
    • Operational excellence
    • New products, Services, & Business models
    • Customer & Supplier Intimacy
    • Improved Decisions Making
    • Competitive Advantage
    • Survival
Operational excellence
    • Info systems lead to higher levels of efficiency and productivities
      • Walmart: efficient retail stores
        • Checkout
        • Continuous replenishment systems
        • Automated distribution centers
New products, services & business models

(a major enabling tool: IT)

      • Business model
        • How a company produces, delivers, and sells a product or service to create wealth
    • Music industry
      • Apple: itune
      • Records, tapes, CD
    • Video rentals
Customer and supplier intimacy
    • Know your customers, serve customers well
      • More repeat sales
      • Raise more revenue and profits
    • Engage your suppliers,
      • Suppliers will provide more vital inputs
      • Lower cost
    • High-end hotels
      • Customer profile
        • Preferred room type: non-smoking
    • JC Penney & TAL Apparel LTD
      • 香港聯業集團 – 益大成衣
Improved decision making
    • Verizon
      • Real-time info on customer complaints, network performance,… to allocate repair resources
    • Use real-time data from marketplace

Better decisions (?)

      • Bikes sales

Competitive advantages

Doing things better than your competitors

    • Dell Computer
      • Made to Order
      • Web-based order entry models
      • Mass customization
    • Necessities of doing business
      • ATM
    • Regulations
    • Accountability of public firms and their auditors
1 2 perspectives on info systems
1.2 Perspectives on Info Systems
  • What is an Information System
  • Dimensions of Information Systems
  • Business perspective on Info Systems
  • Complementary Assets
    • 互補性資產
    • (配套資產)
Information systems

Business perspective

    • A set of interrelated components
      • Collect (or retrieve), process, store, and distribute information
      • Support decision making and control
      • Help analyze problems, visualize complex subjects, and create new products
    • Contain info about people, places, things
    • Data have been shaped into forms that are meaningful and useful to human beings
  • Data
    • Streams of raw facts representing events
  • Supermarket checkout
    • Data: product identification codes
    • Info: most popular items
Information systems

Technical perspective

    • Activities in an information system
      • Input
        • Captures or collects raw data
      • Process
        • Convert raw input into a more meaningful form
      • Output
        • Transfer processed info to the people
      • (Feedback)
        • Help evaluate or correct input
Dimensions of information systems
    • Information system literacy
      • Broader understanding of information systems
        • Management dimension
        • Organizational dimension
        • Technical dimension
    • Computer literacy
      • Knowledge of info technology
Dimensions of information systems
    • Using IS effectively requires an understanding
      • Organizations
      • Managements
      • Technology
Organizations perspective
    • Key elements of an organization
      • People, structure, business processes, and culture.
    • Structure
      • Organization require many different kinds of skills and people
        • Knowledge workers
        • Data workers
        • Production and service workers
      • Different levels and specialists
      • Division of labor
Business functions
    • Sales and marketing, manufacturing and production, finance and accounting, human resources

(IS is created to support functions)

  • Organization coordinate work
    • Through a structured hierarchy
      • Authority and responsibility
    • Through its business processes
      • Formal rules for accomplishing tasks
      • ex. invoice, customer complaints

(IS is created to support coordination)

    • Fundamental sets of assumptions, values, ways of doing things
    • Accepted by most of its members
  • Organizational politics
    • Different levels and specialists create different interests and points of view
Management perspective
    • Management’s job
      • Make sense out of many situations faced by organization
      • Make decisions
      • Formulate action plans to solve organizational problems
      • Set the organizational strategy
      • Allocate the human and financial resources
      • Exercise responsible leadership

How managers perform their jobs will greatly shape their Information systems

Technology perspective
    • Computer hardware
    • Software
    • Storage technology
    • Communication technology
      • Network


    • Elastic
      • Network can be added or removed freely
      • Failures occur in parts of system, the rest will continue to operate
New “Universal” technology platform
    • Foundation of new products, services, strategy, and business model
    • Intranet:
      • internal corporate network based on Internet technology
    • Extranet:
      • private intranet extended to authorized users outside the organization
    • World wide web (WWW)
      • Internet service
      • Universal standard for storing, retrieving, formatting, and displaying info
Business perspective on Info Systems
    • Important instruments for creating values
      • Real economic value
        • Increase in productivity
        • Increase in revenue
        • Superior long-term strategic positioning
      • “Costs of doing business”
        • Governmental regulations
        • Environmental demands
        • Required to stay in business
Information value chain
    • Raw info
      • Systematically acquired
      • Transformed thru various stages

Add value to that information

      • Better management decision
      • More efficient business process
      • Higher firm profitability
Complementary Assets and Organizational Capital
    • Complementary assets
      • Assets required to derive value from a primary investment
    • Automobiles
      • Requires substantial complementary investment in highway, parking lot, …..
Primary Investment: Information Technology
  • Complementary Assets:
    • New business processes
    • Management behavior
    • Organizational culture
    • Training
    • ……
  • Organizational and management capital
    • Investment in organization and management
1 3 contemporary approaches
1.3 Contemporary Approaches
  • Information systems is multidisciplinary
    • Technical Approach
    • Behavioral Approach
    • Sociotechnical Systems










Technical Approach
    • Mathematically emphasis
      • Computer science
        • Computation capability, efficiency in data storage & access
      • Management science
        • Models for decision making
      • Operations research
        • Mathematically optimization of company’s resources
Behavioral Approach

Concern with behavioral issues

    • Sociology
        • How organizations shape the development of systems
        • How systems affect individual
    • Economics
        • How info systems change the cost structures
    • Psychology
        • How human decision makers perceive and use information
Sociotechnical systems
    • The success and failure of information systems are rarely all technical or all behavior
    • Optimal performance is achieved
      • Jointly optimizing both the social and technical systems
        • Ex: recently installed enterprise-wised financial reporting system
          • Can not guarantee it will be used
        • Ex: recently introduced business procedure and process
          • Can not assure that employee will be more productive
To fit organizational and individual needs
    • Technology may have to be “de-optimized”
  • To allow technology to operate and prosper
    • Organization and individual must also be changed
      • Training, learning,
      • Planed organizational change
interactive session
Interactive session


  • Management
    • Virtual meetings: smart management
    • P.40
  • Technology
    • UPS competes globally with information technology
    • P. 53