• Understanding the effects of information systems on business and their relationship to

globalization.

Information systems have been playing a key role in business and their relationship to globalization.
Some of the effects are:

1. Increase in the usage of wireless technology

2. Shifts in media and advertising
3. New federal security and accounting laws
It has provided globalization opportunities as well such as the cost of operating on a global scale
has been significantly reduced due to the internet. Information systems have presented both
challenges and opportunities.

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• Explain why information systems are so essential in business today.

• Information systems, especially which deal with IT and Enterprise systems, serve key
corporate functions, and involve centralized information shared by many users. It further
includes one or more database programs to add, delete, change, analyze, or otherwise act
upon data elements in those databases. Information systems are essential in business
today because it Integrate many software applications and business functions using a
common database. Further, to the business today, following are some potential benefits:

–         Cycle time reduction

–         Faster information transactions

–         Better financial management

–         Laying the groundwork for electronic commerce

–         Encourages organizations to manage processes more explicitly

For example, picking up the information system that deals with the Customer Relationship
model:

Customer Relationship Management (CRM):

•          Sales Force Automation (pre-sales)-

–         managing leads and contacts

–         generating proposals

–         configuring products, telemarketing

•          Customer Service and Support (post-sales)-

–         help desks

–         call center

–         field service operations

•          Marketing automation

In terms of online selling, information system pertaining to the CRM also has an important role
to play.

•          On-line sales-

–         product catalogues

–         shopping carts

–         credit cards

–         shopping lists

–         product configuration for complex products

•          On-line service-

–         help

–         track on-line activities

•          on-line marketing analysis

Another example of the information system’s significance to the business would be that which
relates to the Supply Chain Management:

•          Managing interrelated activities “from your suppliers’ suppliers to your customers’
customers.”

•          May involve-

–         changing information flows and decision-making within a firm

–         changing information flows and decision-making between firms

–         using new software tools to enable these changes

•          ERP systems » Cross-organizational planning, scheduling, and optimization tools

•          Increase responsiveness to supply and demand fluctuations without sacrificing margins

–         linking with suppliers, customers, and transportation providers

•          Reduce inventory

 •          Improve reliability of delivery commitments

–         ATP (Available To Promise)

•          Manage changes in product mix

–         including new product introductions

Few other examples of information systems:

•          EAI – Enterprise Application Integration

•          Enterprise portals

•          ERM – Employee Relationship Management

•          Product Lifecycle Management (PLM)

It is to be noted that for most of the businesses, there are variety of requirements for
information. Senior managers need information to help with their business planning. Middle
management needs more detailed information to help them monitor and control business
activities. Employees with operational roles need information to help them carry out their duties.
As a result, businesses tend to have several “information systems” operating at the same time.
System Analysts develop different types of information systems to meet a variety of business
needs. Information systems are Structured & semi-structured decisions. It is Report control
oriented with Past & present data information presented and with Internal orientation. It is most
suitable in case of lengthy design process.

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• Define an information system and describe its management, organization, and technology
components.

Information System is defined as a software which would help to organize and analyze the data
which will help to answer few questions and solve the problems which are relevant to the
organizations goal.

Some of the components of Information Systems are as follows:

1) Computer hardwares

2) Computer softwares

3) Telecommunications

4) Database and data warehouse

5) Human resource and procedures etc

The management will be as per the organizations needs. It can mostly be an hierarchy based
management system to develop, review, test and approve.

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• Define complementary assets and explain how they ensure that information systems
provide genuine value to an organization.

• (1)
•  Define complementary assets and explain how they ensure that information system
provide genuine value to an organization.
•  Complementary assets the assets or infrastructure needed to support technological
innovation and facilitate marketing and commercialization of new products and innovations.
They provide extra ordinary opportunities for flexible global organization capabilities.
•  In order to obtain meaningful value form information systems, organizations must
support their technology investments with aprropriate complementary investments
 ----------
-------

Describe the different academic disciplines used to study information systems and explain how
each contributes to our understanding of them.

Q. Describe the different academic disciplines used to study information system and explain how
each contributes to our understanding of them.

A- Academic disciplines used to study information systems:

Information systems which has several disciplines such as

● Computer science
● Engineering
 ● Mathematics
● Management sciences
● Cybernetics
Computer science: Computer science is the study of the principles and use of computers and
computing concepts. it includes both hardware and software, as well as networking and the
internet.
Engineering: engineering is the work of designing and creating large structures (such as roads and
bridges) new products or systems by using scientific methods.
-----------------------------------------

• Explain what is meant by a sociotechnical systems perspective.

• A sociotechnical systems perspective of consider by :-

•  A sociotechnical system as complex organizational work design to approach by that
identities of the technology & people between communication.
•  The communication human behavior & public's complex between infrastructure of it's
also said.
 Chapter 2

• Define and describe business processes and their relationship

to information systems.

• Evaluate the role played by systems serving the various levels of

management in a business and their relationship to each other.

• Explain how enterprise applications improve organizational

performance.

• Explain the importance of collaboration and teamwork in

business and how they are supported by technology.

• Assess the role of the information systems function in a

business.

1. DEFINITION OF BUSINESS PROCESSES : SERIES OF ACTIVITIES UNDERTAKEN AND

SYNCHRONIZED TOGETHER TO ACHIEVE AN ORGANIZATIONAL GOAL.
THERE ARE THREE TYPES OF BUSINESS PROCESSES-

A. MANAGEMENT PROCESSES - governing system operations. Examples include Corporate

Governance and Strategic Management.

B. OPERATIONAL PROCESSES - constituting the core business and creating the primary value
stream. In a manufacturing organization , raw material purchasing is an operation process.

C. SUPPORT PROCESSES - support the main operational processes. For example , accounting is
a support process in a manufacturing organization.
ROLE OF BUSINESS PROCESSES IN ORGANIZATIONS :

1. HELPS IN PRIORITISING KEY TASKS IN DOWNSTREAM PROCESS

2. HELPS IN ENHANCING EFFICIENCY

3. HELPS IN RESOURCE OPTIMIZATION

4. HELPS IN STANDARDIZING CORE PROCESSES AND ENCOURAGES RESPONSIBILITY.

2. INFORMATION SYSTEM - is an integrated system for the collection , processing , organization ,

storage and recollection (access) of data for providing information.
1. INCREASE AUTOMATION - helps in reducing manual labour.

2. STREAMLINING INFORMATION FLOW MAKING IT MORE UNIVERSALLY ACCESSIBLE TO ALL

HIERARCHIES TO ACCELERATE DECISION MAKING - by creating new parallel information flows
that replace older sequential information flows that was more restrictive and time consuming .

3. SUPPLEMENT BUSINESS PROCESSES - by creating alternative models that can even slowly
change the business process to more efficient one

3. ENTERPRISE APPLICATIONS - computer software that is specifically designed to aid the

business process of an organization to organize information systems to increase efficiency and
productivity.
IT IMPROVES ORGANIZATIONAL PERFORMANCE BY :

1. IT INTEGRATES INFORMATION SYSTEMS AND ACTS AS SINGLE ENTRY POINT TO ACCESS

THE WHOLE SYSTEM THROUGH A USER FRIENDLY INTERFACE.

2. IT REDUCES DATA REDUNDANCIES AND PROVIDES UPDATED INFORMATION.

3. ENHANCES FLEXIBILITY by streamlining business processes , encouraging information

exchange .

4. INCREASES AUTOMATION of processes , thereby increasing speed .

4. INTRANET - CENTRALIZED PRIVATE NETWORK THAT IS ACCESSIBLE ONLY TO

ORGANIZATION MEMBERS. IT CONTAINS THE INFORMATION DATABASE REQUIRED FOR THE
BUSINESS PROCESSES OF THE ORGANIZATION.
CONTRIBUTION :

1. INCREASING INFORMATION ACCESS, INTER-COMMUNICATION , COLLABORATION AND

ULTIMATELY PRODUCTIVITY

2. REDUCING TIME TAKEN TO ACCESS AND DISTRIBUTE INFORMATION

3. REDUCING COSTS OF HAVING TO MAINTAIN PHYSICAL DOCUMENTS

EXTRANET - PART OF INTRANET THAT IS MADE ACCESSIBLE TO PUBLIC ( FOR EXAMPLE

,CUSTOMERS) TO DISSEMINATE INFORMATION ABOUT PRODUCTS/INVENTORY.
CONTRIBUTION :

1. DISSEMINATING MOST UP TO DATE INFORMATION ABOUT INVENTORY

2. IMPROVING SUPPLY CHAIN MANAGEMENT BY REDUCING INVENTORY. B2B EXTRANETS

ALLOW LIVE UPDATES ABOUT STOCK SO THAT SUPPLIERS CAN REPLENISH AS SOON AS
STOCKS DEPLETE.

3. IMPROVE SECURITY ACROSS OPERATION CHAINS

4. MAKE INFORMATION AVAILABLE GLOBALLY TO EMPLOYEES WORKING IN DIFFERENT

CITIES IN DIFFERENT TIME ZONES ROUND THE CLOCK
 Chapter 3

1. Identify and describe important features of organizations that

managers need to know about in order to build and use
information systems successfully.
2. 1. All organizations organized, impartial, and hierarchical. They are also making efforts to
maximize their efficiency.
3. 2. All organizations have their own culture and politics. These politics affects the working of
the organization.
4. 3. Organizations differ in aims, social roles, incentives, types of tasks performed.
5. These are all the features of different organizations that the managers need to know about
in order to build and use information systems successfully.

2 - Demonstrate how Porter’s competitive forces model helps

companies develop competitive strategies using information
systems.

1. Explain how the value chain and value web models help
businesses identify opportunities for strategic information
system applications.

2. Demonstrate how information systems help businesses use

synergies, core competencies, and network-based strategies to
achieve competitive advantage.

3. Assess the challenges posed by strategic information systems

and management solutions.
 1. Information systems are too important to be left to computer specialists. Do you agree? Why or
why not?

Information systems are too important to be left to computer specialists. I do not agree with this
this statement because when we talk about output produce by a computer mean it contains various
software, hardware and database requires to generate an input. A computer specialists may have
good knowledge of programming, installing software and creating various software. But what about
the data api or data format that are used and how it to be managed. So according to me it should
be left to someone one who have good thinking of data like manager.

2. . What are some of the organizational, managerial, and social complementary assets that help
make UPS’s information systems so successful?

Following are some of the organizational, managerial and social complementary assets that help
make UPS’s information systems so successful-----------

Organizational assets:
a. Distributed authority
b. Effective business model

c. Supportive managerial values

d. Efficient business procedures

e. Dispersed decision-making privileges

Managerial assets:
a. Incentives for management improvements.
b. Firm senior management support for technology investment.

c. Teamwork and cooperative work environments.

d. Training programs to develop management decision skills.

e. Management philosophy that beliefs on flexibility and knowledge-based decision making.

Social assets:
a. The Internet and telecommunications organization.
b. IT-enriched educational programs nurturing labor force computer literacy.

c. Standards (both government and private sector).

d. Laws and regulations creating fair, steady market environments.

e. Technology and service firms in similar markets to improve performance.

------------------------------

Investing in information technology does not guarantee good returns why ?

The answer lies in the concept of complementary assets. Information technology investments alone
cannot make organizations and managers more effective unless they are accompanied by
supportive values, structures, and behavior patterns in the organization and other complementary
assets. Business firms need to change how they do business before they can really reap the
advantages of new information technologies. Some firms fail to adopt the right business model that
suits the new technology, or seek to preserve an old business model that is doomed by new
technology, Also failing to adapt new business processes, management behavior, organizational
culture, training, decentralization of authority and highly distributed decision rights, failing to adapt
these concepts won’t guarantee good returns. For instance, recording label companies refused to
change their old business model, which was based on physical music stores for distribution rather
than adopt a new online distribution model. As a result, online legal music sales are dominated not
by record companies but by a technology company called Apple Computer.

Complementary assets are those assets required to derive value from a primary investment.
Research indicates that firms that support their technology investments with investments in
complementary assets, such as new business models, new business processes, management
behavior, organizational culture, or training, receive superior returns, whereas those firms failing to
make these complementary investments receive less or no returns on their information technology
investments .These investments in organization and management are also known as organizational
and management capital, some of this investment involves tangible assets, such as buildings,
machinery, and tools

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