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ManagementInformationSystems:ManagingtheDigitalFirmXieJingEmail:bmy_xj@163.comManagementInformationSystems1Chapter
ManagingtheDigitalFirm1ChapterManagingtheDigitalOBJECTIVESManagementInformationSystemsChapter1ManagingtheDigitalFirmExplainwhyinformationsystemsaresoimportanttodayforbusinessandmanagementEvaluatetheroleofinformationsystemsintoday’scompetitivebusinessenvironmentAssesstheimpactoftheInternetandInternettechnologyonbusinessandgovernmentOBJECTIVESManagementInformatiDefineaninformationsystemfrombothatechnicalandbusinessperspectiveanddistinguishbetweencomputerliteracyandinformationsystemsliteracyIdentifythemajormanagementchallengestobuildingandusinginformationsystemsOBJECTIVES(Continued)ManagementInformationSystemsChapter1ManagingtheDigitalFirmDefineaninformationsystemfManagementInformationSystemsChapter1ManagingtheDigitalFirmDaimlerChryslerCaseChallenge:104plants,37countries,14,000suppliersSolutions:IntegratedVolumePlanningSystemconnectsdemandsideofbusinesswithsuppliers,reducinginventories.Powerwayhelps3,400supplierstrackpartsandquality,reducingerrors.DemonstratesIT’sroleinoperationalexcellence,betterqualityproducts,andagility–timetomarketIllustratestheemergingdigitalfirmlandscapewhereinformationcanflowseamlesslyamongbusinesspartnerstocreateasuperiorcustomerexperienceManagementInformationSystemsWHYINFORMATIONSYSTEMS?ManagementInformationSystemsChapter1ManagingtheDigitalFirmCapitalmanagement
Foundationofdoingbusiness
Productivity
Strategicopportunityandadvantage
WhyInformationSystemsMatterTherearefourreasonswhyITmakesadifferencetothesuccessofabusiness:WHYINFORMATIONSYSTEMS?ManageManagementInformationSystemsChapter1ManagingtheDigitalFirmITisthelargestsinglecomponentofcapitalinvestmentintheUnitedStates.About$1.8trillionisspenteachyearbyAmericanbusinesses.Managersandbusinessstudentsneedtoknowhowtoinvestthiscapitalwisely.ThesuccessofyourbusinessinthefuturemaywelldependonhowyoumakeITinvestmentdecisions.CapitalManagement:WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmInformationTechnologyCapitalInvestmentFigure1-1WHYINFORMATIONSYSTEMS?Source:BasedonthedatainU.S.DepartmentofCommerce,BureauofEconomicAnalysis,NationalIncomeandProductAccounts,Tables5.2and5.8,2004.ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmMostbusinessestodaycouldnotoperatewithoutextensiveuseofinformationsystemsandtechnologies.ITcanincreasemarketshare.
ITcanhelpabusinessbecomeahigh-quality,
low-costproducer.ITisvitaltothedevelopmentofnewproducts.Foundationofdoingbusiness:WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTheInterdependencebetweenOrganizationsandInformationSystemsFigure1-2WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmITisoneofthemostimportanttoolsmanagershavetoincreaseproductivityandefficiencyofbusinesses.AccordingtotheFederalReserveBank,IThasreducedtherateofinflationby0.5to1%inthelastdecade.ForfirmsthismeansITisamajorfactorinreducingcosts.ItisestimatedthatIThasincreasedproductivityintheeconomybyabout1%inthelastdecade.ForfirmsthismeansITisamajorsourceoflaborandcapitalefficiency.
WHYINFORMATIONSYSTEMS?Productivity:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCreatecompetitiveadvantage:ITmakesitpossibletodevelopcompetitiveadvantages.NewBusinessModels:DellComputerhasbuiltitscompetitiveadvantageonanITenabledbuild-to-orderbusinessmodelthatotherfirmshavenotbeenabletoimitate.WHYINFORMATIONSYSTEMS?StrategicOpportunityandAdvantage:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCreatenewservices:eBayhasdevelopedthelargestauctiontradingplatformformillionsofindividualsandbusinesses.Competitorshavenotbeenabletoimitateitssuccess.Differentiateyourselffromyourcompetitors:AmazonhasbecomethelargestbookretailerintheUnitedStatesonthestrengthofitshugeonlineinventoryandrecommendersystem.Ithasnorivalsinsizeandscope.WHYINFORMATIONSYSTEMS?StrategicOpportunityandAdvantage:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCarrhaswrittenthatwhateveradvantagesfirmsbuildusingITcanbeeasilycopiedbycompetitors.Thisviewisnotsupportedbytheevidence:Amazon,eBay,Dell,Wal-MartandApple'siTunesarejustafewfirmsthathavebuiltandmaintainedtechnology-basedadvantages.HowMuchDoesITMatter?WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCommoditizationoftechnologyistypicallyaspurtoinnovationandnewbusinessmodels,productsandservices.Competitiveadvantagederivesnotfromthetechnology,butonhowbusinessesusethetechnology.Innovationsinbusinessprocesses,managementandorganizationarenoteasilycopiedfromonefirmtoanother.HowMuchDoesITMatter?WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmInternetgrowthandtechnologyconvergenceTransformationofthebusinessenterprise
WhyITNow?DigitalConvergenceandtheChangingBusinessEnvironmentGrowingimpactofITinbusinessfirmscanbeassessedfromthefollowingfivefactors:WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmGrowthofagloballyconnectedeconomyGrowthofknowledgeandinformation-basedeconomiesEmergenceofthedigitalfirmWHYINFORMATIONSYSTEMS?WhyITNow?DigitalConvergenceandtheChangingBusinessEnvironment(Continued)ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmGrowthoftheInternet:120milliononlineintheUnitedStates,500millionglobalusersTheInternetisbringingaboutaconvergenceoftelecommunicationsandcomputing:VoIPtelephones.WHYINFORMATIONSYSTEMS?TheInternetandTechnologyConvergence:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmGrowthine-business,e-commerce,ande-governmentInternetisbringingaboutrapidchangesinmarketsandmarketstructure:financialservicesandbankingsuchaseT.TheInternetismakingmanytraditionalbusinessmodelsobsolete:thecornermusicstoreandvideostore.WHYINFORMATIONSYSTEMS?TheInternetandTechnologyConvergence:
ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmFlatteningDecentralizationFlexibilityWHYINFORMATIONSYSTEMS?TransformationoftheBusinessEnterprise:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmLocationindependenceLowtransactionandcoordinationcostsEmpowermentCollaborativeworkandteamworkWHYINFORMATIONSYSTEMS?TransformationoftheBusinessEnterprise(Continued):ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmManagementandcontrolinaglobalmarketplaceCompetitioninworldmarketsGlobalworkgroupsGlobaldeliverysystemsWHYINFORMATIONSYSTEMS?Globalization:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmKnowledgeandinformation-basedeconomiesNewproductsandservicesKnowledgeasacentralproductiveandstrategicassetWHYINFORMATIONSYSTEMS?RiseoftheInformationEconomy:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTime-basedcompetitionShorterproductlifeTurbulentenvironmentLimitedemployeeknowledgebaseWHYINFORMATIONSYSTEMS?RiseoftheInformationEconomy(Continued):ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTheGrowthoftheInformationEconomyFigure1-3WHYINFORMATIONSYSTEMS?Source:U.S.DepartmentofCommerce,BureauoftheCensus,StatisticalAbstractoftheUnitedStates,2003,Table615;andHistoricalStatisticsoftheUnitedStates,ColonialTimesto1970,Vol.1,SeriesD,pp.182-232.ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmDigitallyenabledrelationshipswithcustomers,suppliers,andemployeesCorebusinessprocessesaccomplishedusingdigitalnetworksDigitalmanagementofkeycorporateassetsWHYINFORMATIONSYSTEMS?EmergenceoftheDigitalFirm:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmAgile(灵活)sensingandrespondingtoenvironmentalchangesSeamless(无缝)flowofinformationwithinthefirm,andwithstrategicpartnersWHYINFORMATIONSYSTEMS?EmergenceoftheDigitalFirm(Continued):ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTheEmergingDigitalFirmFigure1-4WHYINFORMATIONSYSTEMS?ManagementInformationSystemsPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmWhatIsanInformationSystem?
Technologyperspective:
Asetofinterrelatedcomponentsthatcollect(orretrieve),process,store,anddistributeinformationtosupportdecisionmakingandcontrolinanorganization
PERSPECTIVESONINFORMATIONSYPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmWhatisanInformationSystem?(Continued)
Data:StreamsofrawfactsrepresentingeventssuchasbusinesstransactionsInformation:ClustersoffactsmeaningfulandusefultohumanbeingsintheprocessessuchasmakingdecisionsPERSPECTIVESONINFORMATIONSYPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmDataandInformationFigure1-5PERSPECTIVESONINFORMATIONSYPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmFunctionsofanInformationSystemFigure1-6PERSPECTIVESONINFORMATIONSYManagementInformationSystemsChapter1ManagingtheDigitalFirmRelyoncomputerhardwareandsoftwareProcessinganddisseminatinginformationFixeddefinitionsofdataandproceduresCollecting,storing,andusinginformation
PERSPECTIVESONINFORMATIONSYSTEMSComputer-BasedInformationSystem(CBIS)ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmInformationsystemsareanorganizationalandmanagementsolutiontobusinesschallengesthatarisefromthebusinessenvironment.
PERSPECTIVESONINFORMATIONSYSTEMSInformationsystemsaremorethanjusttechnology.BusinessesinvestinISinordertocreatevalueandincreaseprofitability.
ABusinessPerspectiveonInformationSystemsManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmBasedoninformationtechnologybutalsorequiresignificantinvestmentinorganizationalandmanagementchangesandinnovations
IScreatevalueprimarilybychangingbusinessprocessesandmanagementdecisionmaking.PERSPECTIVESONINFORMATIONSYSTEMSABusinessPerspectiveonInformationSystems(Continued)ManagementInformationSystemsPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmTheBusinessInformationValueChainFigure1-7PERSPECTIVESONINFORMATIONSYPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmInformationSystemsAreMorethanComputersFigure1-8PERSPECTIVESONINFORMATIONSYManagementInformationSystemsChapter1ManagingtheDigitalFirmInformationsystemsliteracy:Broad-basedunderstandingofinformationsystemsthatincludesbehavioralknowledgeaboutorganizations,managementandindividualsusinginformationsystemsaswellastechnicalknowledgeaboutcomputersComputerliteracy:Knowledgeaboutinformationtechnology,focusingonunderstandinghowcomputertechnologieswork
PERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmSalesandmarketingManufacturingFinanceAccountingHumanresources
PERSPECTIVESONINFORMATIONSYSTEMSMajorBusinessFunctionsRelyonInformationSystemsManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmThreeImportantDimensionsofInformationSystemsOrganizationsManagersTechnologyPERSPECTIVESONINFORMATIONSYSTEMSYouwillneedtounderstandandbalancethesedimensionsofinformationsystemsinordertocreatebusinessvalue.DimensionsofInformationSystemsManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmPeopleStructureBusinessprocessesCulturePoliticsPERSPECTIVESONINFORMATIONSYSTEMSTheOrganizationalDimensionofInformationSystemsManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmManagersare:
SensemakersDecisionmakersPlannersInnovatorsofnewprocessesLeaders:setagendas
PERSPECTIVESONINFORMATIONSYSTEMSTheManagementDimensionofInformationSystemsManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmPERSPECTIVESONINFORMATIONSYSTEMSTheManagementDimensionofInformationSystems(Continued)Managerswhocanunderstandtheroleofinformationsystemsincreatingbusinessvaluearethekeyingredienttosuccesswithsystems,andcannoteasilybereplicatedbyyourcompetitors.ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmHardware:PhysicalequipmentSoftware:Detailedpreprogrammedinstructions
Storage:PhysicalmediaforstoringdataandthesoftwarePERSPECTIVESONINFORMATIONSYSTEMSInformationtechnologyisoneofthetoolsmanagersusetocopewithchange:TheTechnologyDimensionofInformationSystems
ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCommunicationstechnology:TransfersdatafromonephysicallocationtoanotherNetworks:Linkscomputerstosharedataorresources
PERSPECTIVESONINFORMATIONSYSTEMSTheTechnologyDimensionofInformationSystems(Continued)
Managersneedtoknowenoughaboutinformationtechnologytomakeintelligentdecisionsabouthowtouseitforcreatingbusinessvalue.
ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmComplementaryassets:
NewbusinessprocessesManagementbehaviorOrganizationalcultureTrainingPERSPECTIVESONINFORMATIONSYSTEMSComplementaryAssetsandOrganizationalCapitalManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmSupportivebusinessculturethatvaluesefficiencyandeffectivenessEfficientbusinessprocesses,decentralizationofauthorityHighlydistributeddecisionrightsAstronginformationsystem(IS)developmentteamPERSPECTIVESONINFORMATIONSYSTEMSOrganizationalcapital:
ManagementInformationSystemsPERSPECTIVESONINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmVariationinReturnsonInformationTechnologyInvestmentFigure1-9Source:BasedonErikBrynjolfssonandLorinM.Hitt,“BeyondComputation:InformationTechnology,OrganizationalTransformationandBusinessPerformance.”JournalofEconomicPerspectives14,no.4(Fall2000).UsedwithpermissionoftheAmericanEconomicAssociation.PERSPECTIVESONINFORMATIONSYCONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmSociotechnicalSystemsOptimizesystemsperformance:
TechnologyandorganizationOrganizationsmutuallyadjusttooneanotheruntilfitissatisfactoryCONTEMPORARYAPPROACHESTOINFCONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMSManagementInformationSystemsChapter1ManagingtheDigitalFirmASociotechnicalPerspectiveonInformationSystemsFigure1-11CONTEMPORARYAPPROACHESTOINFTheChallengeofInformationSystems:KeyManagementIssuesManagementInformationSystemsChapter1ManagingtheDigitalFirmTheinformationsystemsinvestmentchallenge:Howcanorganizationsobtainbusinessvaluefromtheirinformationsystems?Thestrategicbusinesschallenge:Whatcomplementaryassetsareneededtouseinformationtechnologyeffectively?Theglobalizationchallenge:Howcanfirmsunderstandthebusinessandsystemrequirementsofaglobaleconomicenvironment?TheChallengeofInformationSTheChallengeofInformationSystems:KeyManagementIssuesManagementInformationSystemsChapter1ManagingtheDigitalFirmTheinformationtechnologyinfrastructurechallenge:Howcanorganizationsdevelopaninformationtechnologyinfrastructurethatcansupporttheirgoalswhenbusinessconditionsandtechnologiesarechangingsorapidly?Ethicsandsecurity:Howcanorganizationsensurethattheirinformationsystemsareusedinanethicallyandsociallyresponsiblemanner?TheChallengeofInformationSManagementInformationSystems:ManagingtheDigitalFirmXieJingEmail:bmy_xj@163.comManagementInformationSystems1Chapter
ManagingtheDigitalFirm1ChapterManagingtheDigitalOBJECTIVESManagementInformationSystemsChapter1ManagingtheDigitalFirmExplainwhyinformationsystemsaresoimportanttodayforbusinessandmanagementEvaluatetheroleofinformationsystemsintoday’scompetitivebusinessenvironmentAssesstheimpactoftheInternetandInternettechnologyonbusinessandgovernmentOBJECTIVESManagementInformatiDefineaninformationsystemfrombothatechnicalandbusinessperspectiveanddistinguishbetweencomputerliteracyandinformationsystemsliteracyIdentifythemajormanagementchallengestobuildingandusinginformationsystemsOBJECTIVES(Continued)ManagementInformationSystemsChapter1ManagingtheDigitalFirmDefineaninformationsystemfManagementInformationSystemsChapter1ManagingtheDigitalFirmDaimlerChryslerCaseChallenge:104plants,37countries,14,000suppliersSolutions:IntegratedVolumePlanningSystemconnectsdemandsideofbusinesswithsuppliers,reducinginventories.Powerwayhelps3,400supplierstrackpartsandquality,reducingerrors.DemonstratesIT’sroleinoperationalexcellence,betterqualityproducts,andagility–timetomarketIllustratestheemergingdigitalfirmlandscapewhereinformationcanflowseamlesslyamongbusinesspartnerstocreateasuperiorcustomerexperienceManagementInformationSystemsWHYINFORMATIONSYSTEMS?ManagementInformationSystemsChapter1ManagingtheDigitalFirmCapitalmanagement
Foundationofdoingbusiness
Productivity
Strategicopportunityandadvantage
WhyInformationSystemsMatterTherearefourreasonswhyITmakesadifferencetothesuccessofabusiness:WHYINFORMATIONSYSTEMS?ManageManagementInformationSystemsChapter1ManagingtheDigitalFirmITisthelargestsinglecomponentofcapitalinvestmentintheUnitedStates.About$1.8trillionisspenteachyearbyAmericanbusinesses.Managersandbusinessstudentsneedtoknowhowtoinvestthiscapitalwisely.ThesuccessofyourbusinessinthefuturemaywelldependonhowyoumakeITinvestmentdecisions.CapitalManagement:WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmInformationTechnologyCapitalInvestmentFigure1-1WHYINFORMATIONSYSTEMS?Source:BasedonthedatainU.S.DepartmentofCommerce,BureauofEconomicAnalysis,NationalIncomeandProductAccounts,Tables5.2and5.8,2004.ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmMostbusinessestodaycouldnotoperatewithoutextensiveuseofinformationsystemsandtechnologies.ITcanincreasemarketshare.
ITcanhelpabusinessbecomeahigh-quality,
low-costproducer.ITisvitaltothedevelopmentofnewproducts.Foundationofdoingbusiness:WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTheInterdependencebetweenOrganizationsandInformationSystemsFigure1-2WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmITisoneofthemostimportanttoolsmanagershavetoincreaseproductivityandefficiencyofbusinesses.AccordingtotheFederalReserveBank,IThasreducedtherateofinflationby0.5to1%inthelastdecade.ForfirmsthismeansITisamajorfactorinreducingcosts.ItisestimatedthatIThasincreasedproductivityintheeconomybyabout1%inthelastdecade.ForfirmsthismeansITisamajorsourceoflaborandcapitalefficiency.
WHYINFORMATIONSYSTEMS?Productivity:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCreatecompetitiveadvantage:ITmakesitpossibletodevelopcompetitiveadvantages.NewBusinessModels:DellComputerhasbuiltitscompetitiveadvantageonanITenabledbuild-to-orderbusinessmodelthatotherfirmshavenotbeenabletoimitate.WHYINFORMATIONSYSTEMS?StrategicOpportunityandAdvantage:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCreatenewservices:eBayhasdevelopedthelargestauctiontradingplatformformillionsofindividualsandbusinesses.Competitorshavenotbeenabletoimitateitssuccess.Differentiateyourselffromyourcompetitors:AmazonhasbecomethelargestbookretailerintheUnitedStatesonthestrengthofitshugeonlineinventoryandrecommendersystem.Ithasnorivalsinsizeandscope.WHYINFORMATIONSYSTEMS?StrategicOpportunityandAdvantage:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCarrhaswrittenthatwhateveradvantagesfirmsbuildusingITcanbeeasilycopiedbycompetitors.Thisviewisnotsupportedbytheevidence:Amazon,eBay,Dell,Wal-MartandApple'siTunesarejustafewfirmsthathavebuiltandmaintainedtechnology-basedadvantages.HowMuchDoesITMatter?WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmCommoditizationoftechnologyistypicallyaspurtoinnovationandnewbusinessmodels,productsandservices.Competitiveadvantagederivesnotfromthetechnology,butonhowbusinessesusethetechnology.Innovationsinbusinessprocesses,managementandorganizationarenoteasilycopiedfromonefirmtoanother.HowMuchDoesITMatter?WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmInternetgrowthandtechnologyconvergenceTransformationofthebusinessenterprise
WhyITNow?DigitalConvergenceandtheChangingBusinessEnvironmentGrowingimpactofITinbusinessfirmscanbeassessedfromthefollowingfivefactors:WHYINFORMATIONSYSTEMS?ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmGrowthofagloballyconnectedeconomyGrowthofknowledgeandinformation-basedeconomiesEmergenceofthedigitalfirmWHYINFORMATIONSYSTEMS?WhyITNow?DigitalConvergenceandtheChangingBusinessEnvironment(Continued)ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmGrowthoftheInternet:120milliononlineintheUnitedStates,500millionglobalusersTheInternetisbringingaboutaconvergenceoftelecommunicationsandcomputing:VoIPtelephones.WHYINFORMATIONSYSTEMS?TheInternetandTechnologyConvergence:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmGrowthine-business,e-commerce,ande-governmentInternetisbringingaboutrapidchangesinmarketsandmarketstructure:financialservicesandbankingsuchaseT.TheInternetismakingmanytraditionalbusinessmodelsobsolete:thecornermusicstoreandvideostore.WHYINFORMATIONSYSTEMS?TheInternetandTechnologyConvergence:
ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmFlatteningDecentralizationFlexibilityWHYINFORMATIONSYSTEMS?TransformationoftheBusinessEnterprise:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmLocationindependenceLowtransactionandcoordinationcostsEmpowermentCollaborativeworkandteamworkWHYINFORMATIONSYSTEMS?TransformationoftheBusinessEnterprise(Continued):ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmManagementandcontrolinaglobalmarketplaceCompetitioninworldmarketsGlobalworkgroupsGlobaldeliverysystemsWHYINFORMATIONSYSTEMS?Globalization:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmKnowledgeandinformation-basedeconomiesNewproductsandservicesKnowledgeasacentralproductiveandstrategicassetWHYINFORMATIONSYSTEMS?RiseoftheInformationEconomy:ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTime-basedcompetitionShorterproductlifeTurbulentenvironmentLimitedemployeeknowledgebaseWHYINFORMATIONSYSTEMS?RiseoftheInformationEconomy(Continued):ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmTheGrowthoftheInformationEconomyFigure1-3WHYINFORMATIONSYSTEMS?Source:U.S.DepartmentofCommerce,BureauoftheCensus,StatisticalAbstractoftheUnitedStates,2003,Table615;andHistoricalStatisticsoftheUnitedStates,ColonialTimesto1970,Vol.1,SeriesD,pp.182-232.ManagementInformationSystemsManagementInformationSystemsChapter1ManagingtheDigitalFirmDigitallyenabledrelationshipswithcustome
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