chapter 1 Flashcards
Long lines limit how many rides, shops, and restaurants a customer can visit during a stay. How do we solve this issue?
- Enhance customer satisfaction and spending by using information systems to spot gridlock and improve crowd flow.
- Operational Command Center uses video cameras, digital maps, computer programs, and mobile apps to monitor attendance, registers, and spot and prevent gridlock
- Demonstrates IT’s role in increasing value and revenue in any business.
- Illustrates the potential for technology to improve customer experience.
How information systems are transforming business?
- Emergence of mobile digital platforms allows businesses to connect with their customers in real-time and from anywhere.
- Increasing use of big data refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.
- Cloud computing, is experiencing rapid growth as businesses shift their IT resources to the cloud, which provides flexibility , scalability and cost-effectiveness.
Globalization opportunities opened up by cloud computing:
- The internet has drastically reduced the costs of operation on a global scale. Therefore, businesses can now expand their operations beyond their local markets without the need for a physical presence in every location.
- It has enabled businesses to increase foreign trade and outsourcing. As they can easily collaborate with partners and suppliers from around the world
Disadvantages opened up by cloud computing:
operating in different countries mean dealing with different cultures, languages and legal frameworks which can be challenging to navigate.
How Digital firms offer greater flexibility in organization and management.?
- Time Shifting
- Space Shifting:
Define both time shifting & space shifting
- Time Shifting: refers to the ability of businesses to operate 24/7, with employees and customers in different time zones accessing services and products at their convenience.
- Space Shifting: refers to the ability of businesses to operate remotely, with employees and customers accessing services and products from anywhere in the world.
How are Time Shifting and Space Shifting related to globalization?
By expanding their reach beyond their local markets.
By operating across different time zones and geographic locations, businesses can access a wider customer base, reduce costs, and tap into new markets and opportunities. This can lead to increased revenue, competitiveness, and growth potential, resulting in greater profitability and success.
Business firms invest heavily in information systems to achieve six strategic business objectives:
- Operational excellence:
refers to the achievement of higher efficiency in business operations, which ultimately leads to higher profitability. - New products, services, and business models
- Customer and supplier intimacy
- Improved decision making
provide timely, accurate, and relevant data to decision-makers, enabling them to make more informed decisions. - Competitive advantage
it can be obtained through various factors such as cost leadership, differentiation, innovation, or customer service excellence. - Survival
provide essential tools for managing operations, making informed decisions, and staying competitive in a rapidly changing market.
Business model definition
: Describes how company produces, delivers, and sells product or service to create wealth.
Competitive advantage definition
A unique attribute or combination of attributes that allows a company to outperform its competitors in the market
Information System definition
a collection of hardware, software, data, people, and processes that work together to store, process, and communicate information in an organization.
Information VS Data definitions
Data: Refers to raw, unprocessed facts and figures that are often meaningless in isolation. It is the raw material that is used to generate information.
Information: Is data that has been processed, organized, and presented in a meaningful way
3 activities of information systems that produce information organizations needs:
- Input: Captures raw data from organization or external environment.
- Processing: Converts raw data into meaningful form.
- Output: Transfers processed information to people or activities that use it.
Feedback definition
Is the output returned to appropriate members of organization to help evaluate or correct input stage.
Computer/Computer program vs. information system
Computers and software are technical foundation and tools, similar to the material and tools used to build a house.
