ITM102 Chapter 1

Prep for the Final Exam

Total Global Spending in E-Commerce?

Total Amount: 3.8 Trillion Dollars

IT Innovations Over The Years

• Cloud Computing

• Mobile Digital Platforms

• AI and Social Networks

E-Commerce Expansion

E-commerce grows simultaneously with Mobile Usage Growth

• Grew more than 20% reaching 300 Billion as of 2020

Management Changes

• Drifting to more mobile methods by using Social Media, and collaborations tools

Changes in Firms and Organizations

Companies are more interested in approaches that apply less emphasis on hierarchy and structure but:

More Interest in Collaboration for employees
Higher willingness to Interact with consumers and overall a Better Understanding of IT

Globalization Challenges + Opportunities

• Reduction of costs of operations on a global scale

• Increase of Competition for jobs, markets, resources and ideas

• Growing Interdependence of Global Economies

• Requires New Understandings of Skills, Markets and Opportunities

Digital Firm

he organization’s significant business relationships with customers, suppliers and employees are digitally enabled and mediated

Business Processes

set of logically related tasks and behaviors that organizations develop over time to produce specific business results

Operational Excellence

Information Systems and Technology helps improve the efficiency and productivity of a business: Overall Improved Efficiency = Increased Profits

Opportunity to Create New Products

Using Information Systems and Technology to create new products, services and business models

Customer and Supplier Intimacy:

 good relationships with customers results in repeated usage of your product, and close relationships with suppliers result in lower costs

Improved Decision Making

Real time data allows managers to make good decisions

Competitive Advantage

having advantages over competitors to create an edge that differentiates your products to competitors

Survival

Keeping Up with competitors and generally keeping your company alive for example a firm investing in an information system because it is a necessity

Disruptive Technology

producing a new product to kill your old product

System

a set of interrelated, interconnected components that work together to produce an outcome 

Information Technology

the hardware and software a business uses to achieve objectives

Information System

interrelated components that manage information to support decision making and control and help with analysis, visualization and product creation

Role Of Information Systems

integrated sets of components for collecting storing and processing data and for delivering information, knowledge and digital products

Data

Streams of Raw Facts

Information

Data shaped into meaningful, useful form

Knowledge

information applied with experience

Activities in an Information System

INPUT —>   PROCESS —> OUTPUTS —-> FEEDBACK

Dimensions Of An Information System

• Organization

• Management

• Technology

Organization Hierarchy

• Senior Management

• Middle Management: manage scientists and knowledge workers

• Operational Management : Manage data workers and production or service workers

Separation of Business Functions

• Sales and Marketing

• Manufacturing and Production

• Finance and Accounting

• Human Resources

Sales and Marketing

Systems that help the firm identify customers for the firm’s products or services, develop products and services to meet customers’ needs, promote them, and sell them.

Manufacturing and Production

systems for scheduling and tracking different processes involved in producing goods, managing quality, and inventory control

Finance and Accounting

Systems used to manage the firm’s financial assets and maintain the firm's records.

Human Resources

Systems that maintain employee records; track employee skills, job performance, and training; and support planning for employee compensation and career development.

IT Infrastructure

 Networking and Telecommunications technologies; along with computer hardware; software; data management technology; and the people required to run and manage them; constitute an organization’s

Complementary Assets

assets assisting value that are not the primary product

Managerial Information Systems (MIS)

Technical Approaches and Behavioural Approaches combined together

Technical Approach:

 Management Science, Computer Science, Operations Research

Behavioural Approach

 Sociology, Economics, Psychology