ISYS111 Chapter Notes - Chapter 2: Jetstar Airways, Human Resource Management, Cost Leadership
ISYS111: FUNDAMENTALS OF BUSINESS INFORMATION SYSTEMS, WEEK 2
Learning Outcomes:
Explain the role, major types, functions, key elements and components of information systems in business
and other types of organisation (LO1)
Demonstrate practical skills in the major functions of spreadsheet, database and ePortfolio software (LO5)
Essential Question:
How can a business use their information systems strategically?
Notes:
Business environment:
• Business environment – the combination of social, legal, economic, physical and political factors in
which businesses conduct their operations
Three major types of business pressures:
1. Market pressures – generated by the global economy, intense competition and the changing
nature of the workforce/customers
• Globalisation – the integration and interdependence of social, economic, cultural and ecological
facets of life, made possible by rapid advances in technology
• Changing nature of the workplace – the workplace is becoming more diversified, with
increasing numbers of women, single parents and people with disabilities being employed;
change also enable people to work from home
• Customers – consumer sophistication and expectations increase as customers become more
knowledgeable about the products and services they acquire
2. Technology pressures
• Technological innovation and obsolescence – new and improved technologies rapidly create or
support substitutes for products and alternative service options
• Information overload – the amount of free information available on the internet
o Managers must be able to access, navigate and utilise the information and data available
3. Societal, political and legal pressures
• Social responsibility – efforts need to be undertaken by the business to solve social problems
• Compliance with government regulations – the process of becoming and remaining compliant
is expensive and time consuming
• Protection against terrorist attacks – IT can help protect businesses by providing security
systems and possibly identifying patterns of behaviour associated with terrorist activities,
including cyberattacks
• Ethical issues – information ethics relates specifically to standards of right and wrong in
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Organisational responses:
• Strategic systems – provide organisations with advantages that enable them to increase their
market share and profits, to better negotiate with suppliers, and to prevent competitors from
entering their markets
• Customer focus – providing good customer service can make the difference between attracting and
keeping customers and losing them to competitors
• Made-to-order – producing customised products and services; changing mass production to mass
customisation in order to fit the needs and preferences of individual customers
• Mass production – produces large amounts of the same item
• E-commerce – process of buying, selling and transferring products, services or information via
computer networks (the internet)
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