• New products, services, and business models
  • Customer and supplier intimacy
  • Improved decision-making
  • Learning objectives




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    The Role of Information Systems in Business Today

    Operational excellence:

    • Operational excellence:
      • Improvement of efficiency to attain higher profitability
      • Information systems, technology an important tool in achieving greater efficiency and productivity
      • E.g. Wal-Mart’s RetailLink system links suppliers to stores for superior replenishment system

    Management Information Systems
    Chapter 1 Information Systems in Global Business Today
    The Role of Information Systems in Business Today

    New products, services, and business models:

    • New products, services, and business models:
      • Business model: describes how company produces, delivers, and sells product or service to create wealth
      • Information systems and technology a major enabling tool for new products, services, business models
        • E.g. Apple’s iPod, iTunes and Netflix’s Internet-based DVD rentals

    Management Information Systems
    Chapter 1 Information Systems in Global Business Today
    The Role of Information Systems in Business Today

    Customer and supplier intimacy:

    • Customer and supplier intimacy:
      • Serving customers well leads to customers returning, which raises revenues and profits
        • E.g. High-end hotels that use computers to track customer preferences and use to monitor and customize environment
      • Intimacy with suppliers allows them to provide vital inputs, which lowers costs
        • E.g. J.C.Penney’s information system which links sales records to contract manufacturer

    Management Information Systems
    Chapter 1 Information Systems in Global Business Today
    The Role of Information Systems in Business Today

    Improved decision-making

    • Improved decision-making
      • Without accurate information:
        • Managers must use forecasts, best guesses, luck
        • Leads to:
          • Overproduction, underproduction of goods and services
          • Misallocation of resources
          • Poor response times
        • Poor outcomes raise costs, lose customers
      • E.g. Verizon’s Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc.


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