BIS I - Introduction Flashcards
Information Systems: Motivation and meaning for doing business
1) Required for all employees to work efficiently and profitably.
2) IS support firms to
a. Reach dispersed subsidiaries
b. Offer new products and services
c. Re-organize work and business processes,
d. To fundamentally change the way to approach and conduct business
How have businesses (organizations/products and services) changed through IS? – Six paramount changes to business context.
1) Using IS in a globalized economy
2) Service economies that are knowledge- and information-based gain increasing relevance
3) Evolution of enterprises
4) The genesis of the IT-Enabled enterprise and digital firm
5) Behavioral changes through new IS/IT
6) New technologies for business analytics and operations
Using IS in a globalized economy
- Management and control on globalized markets: IS enable management and control function for international business cooperation; im- and exports
- Global competition: IS provide communication and analysis function in trading and commerce
- Global production and work groups: IS serve the coordination and control function, especially operations management and are used for knowledge management
- Global distribution systems: information transparency is a threat; IS can be used to stay informed (information function & analytics function)
Increasing relevance of knowledge- and information-based service economies
- Companies increasingly produce knowledge-intensive products & services, the knowledge thus is the core production resource & strategic asset. Intangibles become significant part of company value.
- Increasing allocation of workforce to service (tertiary) sector.
(a) Consequences & challenges:
a. high demand for employee qualification,
b. challenge to identify, open up and manage the “right” knowledge,
c. need for investments -> required for changes in organization and management, IT-related consulting services and IT personnel costs
Evolution of enterprises: trends influencing “modern” management
- Fewer hierarchies & decentralization
- High flexibility & location independence
- Decreased transaction and coordination costs
- Responsibility is transferred to those operatively in charge
- Inter-firm cooperation & teamwork
- Leads to new business trends, all of which require IS
a. casual informal arrangements,
b. agile organizations,
c. networking in & between teams,
d. emphasis of learning & diversity in team
e. telework
The Genesis of the IT-enabled Enterprise
- Business Process: A sequence of logically related activities that contribute to value creation for the company. Possesses a defined start and end, is executed repeatedly, and generally focuses on the customer.
- IT-Enabled enterprise aka DIGITAL FIRM: Organizations whose entire business processes, management functions and relationships to the company environment (e.g. customers, suppliers) are enabled by IT.
a. Advantage: Offer greater flexibility in organization and management: time- and space shifting.
Behavioral changes through new IS/IT - Exemplary effects of new IT, IS and application software:
- Change of user behavior, e.g. communication (FB, twitter)
- Consumerization: Users want to use their own (mobile) devices and applications at work, in the company. Many employees already perceive that personal devices are more useful than company IT.
- Cloud Computing: expectations towards ubiquitous accessibility and availability of data and (cooperatively used) application software, e.g. Google Drive
New technologies for business analytics and operations
- New technologies promise new avenues for business, regarding automation of operations, business models, cooperation, integration with society, etc.: “Digital Transformation”
a. Big Data: new technologies for data storage & techniques for analysis of large data sets
b. IOT: machine-to-machine communication to enable the use and development of technology
c. Industry 4.0: automated, decentralized management of manufacturing technologies, based on interoperable information services
