Chapter 1 Information Systems in Global Business Today

Question 1

Factors of information systems

Answer 1

→ Continual change in technology
→ Management use of the technology
→ Impact on business success
Successful firms are those that learn how to use new technologies.

Question 2

New information systems trends

Answer 2

(1) The emerging mobile digital platform
(2) The growing business use of “big data”/online software as a service
(3) The growth in cloud computing

Question 3

Business processes

Answer 3

Set of logically related tasks and behaviours that organisations develop over time to produce specific business results and the unique way in which these activities are organised and created. (Accomplishing these businesses processes can provide organisations with a competitive advantage).
	- Examples:
		○ Developing new product
		○ Generating and fulfilling orders
		○ Creating marketing plan
Hiring employees

Question 4

Four-step Method for Problem Solving

Answer 4

1) Problem identification
2) Solution design
3) Solution evaluation and choice
4) Implementation

During implementation, the outcome must be continually measured.
In this way, the identification of the problem can change over time, solutions can be changed, and new choices can be made based on experience.

Question 5

Business Problems in Organisational Dimension

Answer 5

• Outdated business processes
  
  • Unsupportive culture and attitudes
  • Political conflict
  • Turbulent business environment, change
  • Complexity of task
    Inadequate resources

Question 6

Business Problems in Technology Dimension

Answer 6

• Insufficient or aging hardware
  
  • Outdated software
  • Inadequate database capacity
  • Insufficient network capacity
  • Incompatibility of old systems with new technology
    Rapid technological change and failure to adopt new technology

Question 7

Business Problems in People Dimension

Answer 7

• Lack of employee training
  
  • Difficulties of evaluating performance
  • Legal and regulatory compliance
  • Work environment
  • Lack of employee support and participation
  • Indecisive management
  • Poor management
    Wrong incentives

Question 8

Business Objectives of Firms using Information Systems

Answer 8

(1) Operational excellence
(2) New products, services and business models
(3) Customer and supplier intimacy
(4) Improved decision making
(5) Competitive advantage
Survival

Question 9

Operational Excellence (business objective)

Answer 9

○ Improving efficiency of operations

○ Achieving higher levels of productivity

Question 10

New products, services and business models (business objective)

Answer 10

Business model describes how a company produces, delivers and sells a product or service to create wealth.

Question 11

Customer and Supplier Intimacy (business objective)

Answer 11

• By knowing and serving its customers, a business’ customers will return and continue purchasing more - raising revenues.
  
  • By engaging more with suppliers, the more vital inputs that will be provided - lowering costs.

Question 12

Improved Decision Making (business objective)

Answer 12

• Managers can use real-time data from the marketplace to:
  ○ Increase response times
  ○ Better allocate resources
  ○ Better produce goods and services

Question 13

Competitive Advantage (business objective)

Answer 13

• Already have competitive advantage if already achieved at least one business objective.
  
  • Will lead to higher sales and profits that competitors do not have.

Question 14

Survival (business objective)

Answer 14

Current and new information systems are becoming a necessity.

Question 15

Information Technology

Answer 15

All hardware and software that firms need to achieve business objectives.

Question 16

Information System

Answer 16

Set of related components that collect (retrieve), process, store, and distribute information to support decision making, control, and coordination.

Can help managers and workers to:
□ Analyse problems
□ Visualise complex subjects
□ Create new products

Question 17

Information

Answer 17

Data that has been shaped into a form that is useful and meaningful to humans.

Question 18

Data

Answer 18

Streams of raw facts before they have been organised and arranged into an understandable form.

Question 19

Activities in an Information System

Answer 19

Input, processing, output, feedback (required in IS)

Question 20

Input (activity in IS)

Answer 20

Captures or collects raw data from within organisation or from external environment.

Question 21

Processing (activity in IS)

Answer 21

Conversion of raw input into meaningful form (includes classifying, arranging, calculating data).

Question 22

Output (activity in IS)

Answer 22

Transfer of processed information to people who will use it or to the activities for which it will be used.

Question 23

Feedback (required in IS)

Answer 23

Output that is returned to appropriate members of organisation to help them evaluate and improve input stage.

Question 24

Different Dimensions of IS

Answer 24

Organisations, management, technology

Question 25

Organisation Dimension of IS

Answer 25

Involves issues such as the organisation’s hierarchy, functional specialties, business processes/functions (specialised tasks), culture and political interest groups.

Question 26

Technology Dimension of IS

Answer 26

Consists of computer hardware, software, data management technology, and networking/telecommunications technology (including the Internet).

Question 27

Management Dimension of IS

Answer 27

Involves issues such as leadership, strategy and management behaviour.

Question 28

Information Technology Infrastructure of a Firm

Answer 28

All these technologies, along with the people required to run and manage them, represent resources that can be shared throughout the organisation.