chapter 1

Information Systems in Global Business

Today
jobs
• Task workers
• Knowledge workers
- problems: not happen frequently
- problems: new one ( never happen before)
- Decisions : strategy, new products, new services, expand business ect
…

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Review
• Inclass activities = 30% (15% individual video presentation min 10
minutes + 3 quizzes 15%)
• Midterm 30%
• Final 40%

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Touch screen kiosk

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IT Innovation trends 2021
1) Digital workplaces (cut cost, more productive, employee satisfaction)
2) Online learning (video conferencing tools, other digital services such as
language learning apps, virtual tutoring and e-learning software & 5G networks)
3) Telehealth (AI to help monitor and manage the demand on healthcare
resources, creating and refining advanced AI analysis and insight models for the
planning and prediction of healthcare resources.)
4) Contactless convenience (advanced processors and memory chips, better
image sensors, smarter AI and faster communications networks, virtual and
augmented reality – change in education, work, social interaction, travel and
retail)
5) AI-generated content (https://thispersondoesnotexist.com/ -
https://www.youtube.com/watch?v=djsEKYuiRFE)
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New business models - 2021
9 disruptive business models for companies
1. Freemium Model
2. Subscription Model
3. Free offerings (Google, Facebook)
4. Marketplace Model (Amazon, Alibaba, Uber, eBay)
5. Sharing Economy – Access-over-Ownership Model – Renting & Leasing
6. User Experience Premium (Tesla, Apple and Premium-Brands)
7. Pyramid Model (Affiliate) (Tiếp thị liên kết)
8. Ecosystem – Create your own ecosystem (Apple, Google)
9. On-demand Model
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Can you run the company with your iPhone -
Network Rail The Close Call app helps employees report hazards when
- improve they are found, then problems can be addressed quickly.
railway
performance
and safety. The MyWork app gives maintenance teams all the
information they need to start and complete repair tasks.

The Sentinel app allows field managers to electronically

scan ID cards to verify that workers are qualified to
perform specific tasks

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Can you run the company with your iPhone -
The FlightReact app used by British Airways mobilizes agents to scan a
British boarding pass, review the customer’s booking, look up alternate flight options,
and rebook and reticket passengers—all within four minutes.
airways. iBanner allows agents to identify passengers transferring onto a specific flight,

iTranslate enables staff to communicate easily with travelers speaking any

language

iLoad Direct app, turnaround managers are able to monitor the aircraft
loading process and share data with pilots and back-office staff in real time

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 18

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Applications

• https://www.youtube.com/watch?v=J2UwI6FDs-k
• https://www.youtube.com/watch?v=zK3TIXsgosU
• https://www.youtube.com/watch?v=OT7_Dy5wf7I
• https://www.youtube.com/watch?v=7yWgPp7zcXk
• https://www.youtube.com/watch?v=Sut4Dh7s9ag&list=RDCMUCN0ozINvk
0Os8XhjfkxtKjg&start_radio=1&rv=Sut4Dh7s9ag&t=57
• https://www.youtube.com/watch?v=-RJMh29fcnY

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Investment in information system to achieve :

new products, customer and

operational
services, and supplier
excellence;
business models; intimacy;

improved competitive
and survival.
decision making; advantage;

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1) Operational Excellence

• Businesses continuously seek to improve the efficiency of their operations in

order to achieve higher profitability.
• Information systems and technologies are some of the most important tools
available to managers for achieving higher levels of efficiency and productivity in
business operations, especially when coupled with changes in business practices
and management behavior.

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2) New Products, Services, and Business
Models
• Information systems and technologies are a major enabling tool for firms to
create new products and services as well as entirely new business models.
• A business model describes how a company produces, delivers, and sells a
product or service to create wealth.

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3) Customer and Supplier Intimacy
When a business really knows its customers and serves them well, the customers
generally respond by returning and purchasing more. This raises revenues and
profits. Likewise with suppliers, the more a business engages its suppliers, the
better the suppliers can provide vital inputs. This lowers costs. How to really know
your customers or suppliers is a central problem for businesses with millions of
offline and online customers.

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4 ) Improved Decision Making

• Many business managers operate in an information fog bank, never really having
the right information at the right time to make an informed decision. Instead,
managers rely on forecasts, best guesses, and luck.
• The result is over- or underproduction of goods and services, misallocation of
resources, and poor response times. These poor outcomes raise costs and lose
customers. In the past decade, information systems and technologies have made
it possible for managers to use real-time data from the marketplace when making
decisions

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5) Competitive Advantage
• When firms achieve one or more of these business objectives—
operational excellence; new products, services, and business models;
customer/supplier intimacy; and improved decision making—chances
are they have already achieved a competitive advantage.
• Doing things better than your competitors, charging less for superior
products, and responding to customers and suppliers in real time all
add up to higher sales and higher profits that your competitors
cannot match.

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6) Survival
• Business firms also invest in information systems and technologies
because they are necessities of doing business. Sometimes these
“necessities” are driven by industry-level changes.

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 What is an information system?

How does it work? What are its

Part 2 - management, organization, and
technology components?

Why are complementary assets

essential for ensuring that
information systems provide
genuine value for organizations?
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What Is an Information System?

• An information system can be defined technically as a set of interrelated

components that collect, process, store, and distribute information to support
decision making and control in an organization. In addition to supporting decision
making, coordination, and control, information systems may also help managers
and workers analyze problems, visualize complex subjects, and create new
products.
• Information systems contain information about significant people, places, and
things within the organization or in the environment surrounding it. By
information we mean data that have been shaped into a form that is meaningful
and useful to human beings. Data, in contrast, are streams of raw facts
representing events occurring in organizations or the physical environment before
they have been organized and arranged into a form that people can understand
and use.
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Sap – ERP (Enterprise Resource Planning)

What is SAP?
• SAP stands for Systems Applications and Products in Data Processing.
SAP, by definition, is also the name of the ERP (Enterprise Resource
Planning) software as well as the name of the company. SAP Software is
a European multinational, founded in 1972 by Wellenreuther, Hopp,
Hector, Plattner, and Tschira. They develop software solutions for
managing business operations and customer relationships.
• SAP system consists of a number of fully integrated modules, which
covers virtually every aspect of business management.

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SAP ERP

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32

Organizations -
hierarchy

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CONTEMPORARY WORKFORCE
DEMANDS
• Task workers: routine, structured tasks
• Knowledge worker: Less structured work that involves processing or
acting on information. Creates, receives, processes, or interprets
information.
Strategic, big picture view
Process-oriented thinking
Information, technology literacy
Communication, collaboration, team based work

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 Originations – hierarchy / pyramid structure
Middle management carries out the programs
Senior management makes long-range strategic
and plans of senior management, and
decisions about products and services as well
operational management is responsible for
as ensures financial performance of the firm.
monitoring the daily activities of the business.

Knowledge workers, such as engineers,

scientists, or architects, design products or
services and create new knowledge for the Production or service workers actually produce
firm, whereas data workers, such as secretaries the product and deliver the service
or clerks, assist with scheduling and
communications at all levels of the firm.

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Management
• Management’s job is to make sense out of the many situations faced
by organizations, make decisions, and formulate action plans to solve
organizational problems.
• Managers perceive business challenges in the environment, they set
the organizational strategy for responding to those challenges, and
they allocate the human and financial resources to coordinate the
work and achieve success.
• Throughout, they must exercise responsible leadership. The business
information systems described in this book reflect the hopes, dreams,
and realities of real-world managers

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Information Technology
1) Computer hardware is the physical equipment used for input, processing, and
output activities in an information system. It consists of the following: computers of
various sizes and shapes (including mobile handheld devices); various input, output,
and storage devices; and telecommunications devices that link computers together.
2) Computer software consists of the detailed, preprogrammed instructions that
control and coordinate the computer hardware components in an information
system
3) Data management technology consists of the software governing the
organization of data on physical storage media.
4) Networking and telecommunications technology, consisting of both physical
devices and software, links the various pieces of hardware and transfers data from
one physical location to another.
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Information Technology
5) The World Wide Web is a service provided by the Internet that uses universally
accepted standards for storing, retrieving, formatting, and displaying information
in a page format on the Internet. Web pages contain text, graphics, animations,
sound, and video and are linked to other web pages.
All of these technologies, along with the people required to run and manage
them, represent resources that can be shared throughout the organization and
constitute the firm’s information technology (IT) infrastructure.
The IT infrastructure provides the foundation, or platform, on which the firm can
build its specific information systems.
Each organization must carefully design and manage its IT infrastructure so that
it has the set of technology services it needs for the work it wants to accomplish
with information systems.
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 38

Business value
• Every business has an
information value
chain, in which raw
information is
systematically acquired
and then transformed
through various stages
that add value to that
information.
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Complementary assets
• Investing in information technology does not by itself guarantee good
returns. What accounts for this variation among firms?
• The concept of complementary assets. Information technology
investments alone cannot make organizations and managers more
effective unless they are accompanied by supportive values,
structures, and behavior patterns in the organization and other
complementary assets. Business firms need to change how they do
business before they can really reap the advantages of new
information technologies.

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Complementary assets
New business models, new business processes, management behavior,
organizational culture, or training, receive superior returns, whereas
those firms failing to make these complementary investments receive
less or no returns on their information technology investments.

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