1 - Intro to Info Sys

How are information systems transforming business

• emerging mobile digital platform

• growing business use of “big data”

• growth in cloud computing

Globalization opportunities

• Internet drastically reduced costs of operating on global scale

• Increases in foreign trade, outsourcing

Why do firms invest in info systems? (6)

1. Operational excellence

2. New products, services, and business models

3. Customer and supplier intimacy

4. Improved decision making

5. Competitive advantage

6. Survival

Operational Excellence

• improving efficiency to increase profits

  • use info sys/tech to achieve greater productivity

• Walmart: Retail Link system links suppliers to stores for superior replenishment system

New Products, Services, Business Models

Business Model: how a company operates to make money

Information systems and tech enable new products/services/business models

Customer and Supplier Intimacy

• Customer retention = profits

  • high end hotels use computers to track customer preferences and use data to monitor and customize environment

• Supplier intimacy = lowered costs from vital inputs

  • JCPenney uses info sys to link sales records with contract manufacturer

Improved Decision Making

• Without accurate info, managers guess/use forecasts which leads to

  • overproduction/underproduction

  • misallocation of resources

  • poor response times

    • Which all RAISE costs!

  • Verizon’s web-based digital dashboard provides managers with real-time data on customer complaints/network performance/line outages, etc)

competitive advantage

• delivery better performance

• charging less for superior products

• responding to customers/suppliers in real time

  • apple, walmart, usps

Survival

• Info tech = business necessity

• Industry-level changes

  • Citi’s introduction of ATM’s

• Govt regulations require record keeping

  • Toxic substances control act

  • sarbanes oxley act

  • dodd-frank act