MIS Mid Term

What are the benefits to a digital firm?

-Greater flexibility around someones schedule -can work from home at any time

four major business functions:

1. Sales and marketing 2. manufacturing and production 3. finance and accounting 4. Human Resources

Hierarchy of authority, responsibility

1. Senior management 2. Middle management 3. Operational management 4. Knowledge workers 5. Data workers 6. Production or service workers

In each of the years between 1999 and 2019, capital investment in information technology, consisting of IT equipment, software, and research and development (R&D), accounted for over ________ percent of U.S. total capital spending (in nominal GDP).

40%

Digital Firm

All of the organization's business relationships with customers, suppliers, and employees are digitally enabled and mediated

Example of how IT systems improve new products, services, and business models:

Apple: transformed from having iPods to creating a platform of apple music that can be streamed on many apple devices.

Strategic Business Objectives of Information Systems

Business firms invest in information systems to achieve 6 strategic business objectives: 1. operational excellence 2. new products, services, and business models 3. customer and supplier intimacy 4. improved decision making 5. competitive advantage 6. survival

knowledge workers

Design products or services and create new knowledge for the firm. EX: engineers, scientist, and architects

Business Process

Tasks and behaviors that an organizations develop over time to produce specific business results. EX: developing a new product, fulfilling an order, hiring a new worker, creating a marketing plan

Example of how IT systems improve operational excellence:

Walmart's Retail Link System: digitally links their suppliers to each of the Walmart stores so that as soon as a customer purchases an item, the supplier monitoring the item knows to ship a replacement to the shelf.

data workers

assist with scheduling and communications at all levels of the firm

Input

captures raw data from external environment to be processed within the system

middle manager

carries out decisions and plans of senior manager

Information Systems

collects, processes, stores, and analyzes information for a specific purpose

Process

converts raw data into a meaningful form

senior manager

makes longterm decisions about the firms products and services

operational manger

monitors daily activities of the business

Feedback

output that's returned to the appropriate members of the organization to help them evaluate and correct the input stage.

service workers

produce the product and provide services directly to individuals

Information value chain

raw data is systematically acquired and transformed during various stages that add value to that information.

data management technology

software governing the organization of data on physical storage media

organizational culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

Output

transfers the processed data information to the people or activities that it will be used for