Lecture 1: Information
Systems in Business Today

1.1

Coursework and
Assessment
•

1.2

Summative assessment:

Method of
Assessment

%

Detail (length, hours)

Presentation

20
%

David will explain the details

Contribution to learning: active participation in class activities 20
%

David will explain the details

Written Exam

60
%

End of the term

Learning Objectives
• The Role of Information Systems in Business
Today
– How are information systems transforming business and what is their relationship to globalization?
– Why are information systems so essential for running and managing a business today?

• Perspectives on Information Systems and
Information Technology
– What exactly is an information system? How does it work? • Keep you awake and your brains working
1.3

interActivity
What are a Manager’s two Most
Important Resources?
A. Money
B. Equipment
C. People
D. Information
E. Materials

1.4

How Information Systems
Are Transforming Business
• In 2013, more than 102 million businesses had dot-com addresses registered
– A new .com is registered every six seconds
– July 1st 2013 number of .com domains indexed by Google was 25,270,000,000

• 150 million people read news online; 170 million use a social networking site
• Internet advertising continues to grow at around 7% per year • New laws require businesses to store more data for longer periods • Changes in business result in changes in jobs and careers

1.5 The Role of Information Systems in Business Today

What’s New in MIS?
• New technologies
– Cloud computing / software as a service (SaaS)
– Big Data
– Mobile digital platform

• People and behaviour changes
– Managers use social networks, collaboration
– Business intelligence applications accelerate
– Virtual meetings proliferate

• Organizations
– Social business
– Telework gains momentum
– Co-creation of value, collaboration across firms
1.6 The Role of Information Systems in Business Today

Running a Business from the
Palm of Your Hand
• TCHO Chocolate operations management
– Uses iPhone apps to remotely log into each chocolatemaking machine, control time and temperature, turn the machines on and off, and receive alerts about when to make temperature changes

• General Electric manages electronic transformers
– Uses iPhone and iPad apps so that managers can zoom in from a global map to a specific transformer and read key performance indicators at any time.

• SAP’s Business One mobile application
– Sends alerts on specific events to sales managers with real-time information about deviations from approved discounts, inventory availability, and in-stock products
1.7 Case Study: Enterprise Apps

Globalization Challenges and Opportunities
• Internet and global communications have greatly reduced economic and cultural advantages of developed countries
– Drastic reduction of costs of operating and transacting on global scale
– Competition for jobs, markets, resources, ideas
– Dependence on imports and exports
– Requires new understandings of skills, markets, opportunities 1.8 The Role of Information Systems in Business Today

Business Drivers of
Information Systems
• Businesses invest in IT to achieve six important business objectives:
1.
2.
3.
4.
5.
6.

Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

1.9 The Role of Information Systems in Business Today

Operational Excellence:
• Improved efficiency results in higher profits
• Information systems and technologies help improve efficiency and productivity
– Walmart
• Power of combining information systems and best business practices to achieve efficiency—and more than $469 billion in sales in 2013
• Most efficient store in world as result of digital links between suppliers and stores

1.10The Role of Information Systems in Business Today

New Products, Services, and
Business Models:
• Information systems and technologies enable firms to create new