Chapter 1 - Information Systems in Global Business Today

Chapter 1 – Information Systems in Global Business Today

Computers are changing every aspect of our lives from entertainment to shopping, from the work we do and where we do it, to how we communicate with friends and relatives. Information Technology is being used by many businesses worldwide to increase efficiency, save money, and create better relationships between suppliers and customers.

Information systems are transforming businesses and creating global relationships. Next time you purchase a product, any product, look at the fine print and see where it’s made. It may be China, the Philippines, or even in the United States. It can be debated that many manufacturing jobs are being moved from the U.S. to foreign countries, but look at the huge number of jobs that are being created here in the U.S. In fact, many of the jobs are in the information industry and serve whole new markets that didn’t exist just a few years ago.

Why does Information Systems matter in running and managing business today? Capital Management, Foundation for Doing Business, Productivity, Strategic Opportunities and Advantages are just a few of the reasons to consider if it matters. For many years computer technology was only the “techies” worry; today every employee, must know how to take advantage of information systems to improve organizations and leverage available information into a competitive advantage for the company.

As a company becomes more digital, its’ information system should continue to extend beyond the traditional role of serving the employees. Developing the complementary assets associated with the information systems such as developing new business processes, emphasizing employee training in technology, and creating new partnerships with suppliers, customers, and even competitors, can be challenging.

This is why using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.

Successful managers must concentrate on all three parts of the information systems triangle (hardware, software, and persware) then integrate them into a single, cohesive system that serves the needs of the organization, customer wants, and employee desires.

Everyone in the organization must understand that information systems and the use of technology belong to them. This concept is best carried out through a sociotechnical approach to viewing information systems, which allows both the technical and behavioral approaches to be combined for the good of the organization.

Bottom Line: Management’s focus must continually change to take advantage of new opportunities with changes taking place throughout the organization. These changes require lots of attention and planning for smooth execution.