MIS 02334 Lecture Notes - Lecture 1: Health Insurance Portability And Accountability Act, Citibank, Information System
19 Sep 2016
School
Department
Course
Professor
Chapter 1: Business Information Systems in Your Career
How Information Systems are Transforming Business
Currently, about one-third of US household do not have a landline
Internet advertising is growing around 7% per year, with Google online ad
revenues surpassing $50 billion in 2012
As of July 2014, there are at least 3.32 billion pages indexed on the Web
Businesses are required to store more data for longer periods; businesses must
keep email messages for 5 years
Business Objectives of Information Systems
Operational excellence
Improved operational efficiency results in higher profitability
Information systems and technologies help to improve higher levels of
efficiency and productivity
Ex. Wal-Mart provides digital links between its suppliers and stores
New products, services and business models
Information systems and technologies enable firms to create new
products services and business models
A business model includes how a company produces, delivers, and sells
its products and services to create wealth
Ex. The music, travel, and newspaper industries have seen drastic
changes in business models
Customer and Supplier intimacy
Customers who are served well become repeat customers who purchase
more
Close relationships with suppliers result in lower costs
Ex. Mandarin Oriental in Manhattan uses IS to keep track of customers’
preferences
Improved decision making
A company’s bottom line can be hurt by managers being swamped with
data that are neither timely nor helpful, forcing them to use guesswork
Real-time data have improved the ability of managers to make decisions
Ex. Web-Based digital dashboard
Competitive Advantage
Achieving the previously mentioned business objectives often leads to
competitive advantage
Survival
Businesses may need to invest in information systems out of necessity
Necessity arises from keeping with competitors
Necessity also arises from federal and state regulations
Ex. CitiBank introduced ATMs, HIPAA regulations
Information Technology vs. Information Systems
Information Technology is the hardware and software a business uses to achieve
its objectives
Information systems consists of interrelated components (people, technology,
business processes) working together to collect, process, store, and
Document Summary
Chapter 1: business information systems in your career. Currently, about one-third of us household do not have a landline. Internet advertising is growing around 7% per year, with google online ad revenues surpassing billion in 2012. As of july 2014, there are at least 3. 32 billion pages indexed on the web. Businesses are required to store more data for longer periods; businesses must keep email messages for 5 years. Information systems and technologies help to improve higher levels of e ciency and productivity. Wal-mart provides digital links between its suppliers and stores. Information systems and technologies enable rms to create new products services and business models. A business model includes how a company produces, delivers, and sells its products and services to create wealth. The music, travel, and newspaper industries have seen drastic changes in business models. Customers who are served well become repeat customers who purchase more. Close relationships with suppliers result in lower costs.
