The 2008 economic recession and bubble (Essay Sample)

BUSINESS INFORMATION SYSTEMS IN YOUR CAREER What is MIS? A MIS is a system that provides information needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all three resources are key components when studying management information systems, the most important resource is people. How Information Systems Are Transforming Business In 2013, more than 102 million businesses had dot-com addresses registered. 150 million people read news online; 170 million use a social networking site. Internet advertising continues to grow at around 7 percent per year. New laws require businesses to store more data for longer periods. Changes in business result in changes in jobs and careers. What’s New in MIS? New technologies Cloud computing / software as a service (SaaS) Big Data Mobile digital platform Management Managers use social networks, collaboration. Business intelligence applications accelerate. Virtual meetings proliferate. Organizations Social business Telework gains momentum Co-creation of value, collaboration across firms Globalization Challenges and Opportunities: A Flattened World Internet and global communications have greatly reduced economic and cultural advantages of developed countries. Drastic reduction of costs of operating and transacting on global scale Competition for jobs, markets, resources, ideas Dependence on imports and exports Requires new understandings of skills, markets, opportunities Business Drivers of Information Systems Businesses invest in IT to achieve six important business objectives. Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival Operational Excellence: Improved efficiency results in higher profits. Information systems and technologies help improve efficiency and productivity. Example: Wal-Mart Power of combining information systems and best business practices to achieve operational efficiency—and more than $469 billion in sales in 2013 Most efficient retail store in world as result of digital links between suppliers and stores New Products, Services, and Business Models: Information systems and technologies enable firms to create new products, services, and business models. Business model: how a company produces, delivers, and sells its products and services Example: Apple Transformed old model of music distribution with iTunes Constant innovations—iPod, iPhone, iPad Customer and Supplier Intimacy: Customers who are served well become repeat customers who purchase more. Mandarin Oriental hotel Uses IT to foster an intimate relationship with its customers, keeping track of preferences, and so on Close relationships with suppliers result in lower costs. JCPenney IT to enhance relationship with supplier in Hong Kong Improved Decision Making: If managers rely on forecasts, best guesses, and luck, they will misallocate employees, services, and inventory. Real-time data improves ability of managers to make decisions. Verizon: Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages Competitive Advantage Often results from achieving previous business objectives Advantages over competitors: Charging less for superior products, better performance, and better response to suppliers and customers Examples: Apple, Walmart, UPS are industry leaders because they know how to use information systems for this purpose Survival: Businesses may need to invest in information systems out of necessity; simply the cost of doing business. Keeping up with competitors Citibank’s introduction of ATMs Federal and state regulations and reporting requirements Toxic Substances Control Act and the Sarbanes-Oxley Act What Is an Information System? 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. Help with analysis, visualization, and product creation. Data: streams of raw facts. Information: data shaped into meaningful, useful form. It Isn’t Simply Technology: The Role of People and Organizations
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. Figure 1-1 Activities in an information system that produce information: Input Processing Output Feedback Sharp distinction between computer and computer program versus information system Functions of an Information System
Figure 1-2 An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output—produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems. The Role of People and Organizations Information systems literacy Includes behavioral and technical approach Computer literacy Focuses mostly on knowledge of IT Management information systems (MIS) Focuses on broader information systems literacy Issues surrounding development, use, impact of information systems used by managers and employees Information Systems Are More than Computers
Figure 1-3 Using information systems effectively requires an understanding of the organization, people, and information technology shaping the systems. An information system provides a solution to important business problems or challenges facing the firm. Dimensions of Information Systems Organizations Coordinate work through structured hierarchy and business processes. Business processes: related tasks and behaviors for accomplishing work Examples: fulfilling an order, hiring an employee May be informal or include formal rules Culture embedded in information systems Example: UPS’s concern with placing service to customer first People Information systems require skilled people to build, maintain, and use them. Employee attitudes affect ability to use systems productively. Role of managers Perceive business challenges. Set organizational strategy. Allocate human and financial resources. Creative work: new products, services. Technology IT Infrastructure: Foundation or platform that information systems built on Computer hardware Computer software Data management technology Networking and telecommunications technology Internet and Web, extranets, intranets Voice, video communications The Problem-Solving Approach Few business problems are simple or straightforward. Most business problems involve a number of major factors that can fall into three main categories: Organization Technology People A Model of the Problem-Solving Process Problem solving: four-step process Problem identification Solution design Choice Implementation Problem identification includes: Agreement that problem exists Definition of problem Causes of problem What can be done given resources of firm Typical organizational problems Outdated business processes Unsupportive culture and attitudes Political in-fighting Turbulent business environment, change Complexity of task Inadequate resources Typical technology problems Insufficient or aging hardware Outdated software Inadequate database capacity Insufficient telecommunications capacity Incompatibility of old systems with new technology Rapid technological change Typical people problems Lack of employee training Difficulties of evaluating performance Legal and regulatory compliance Work environment, ergonomics Poor or indecisive management Lack of employee support and participation Solution design Often many possible solutions Consider as many as possible to understand range of solutions Choice: Factors include Cost Feasibility given resources and skills Length of time needed to implement solution Implementation Building or purchasing solution Testing solution, employee training Change management Measurement of outcomes Feedback, evaluation of solution Problem solving is a continuous process, not a single event Sometimes chosen solution doesn’t work or needs adjustment
Figure 1-4 During implementation and thereafter, the outcome must be c...