Management Information Systems

5678 WordsNov 26, 201223 Pages
Management Information Systems MANAGING THE DIGITAL FIRM Chapter 1 Managing the Digital Firm Kenneth C. Laudon Jane P. Laudon 9th edition PEARSON Prentice Hall 2006 www.prenhall.com/laudon Chapter 1 Managing the Digital Firm Objectives: After reading this chapter, you will be able to: 1. Explain why information systems are so important today for business and management. 2. Evaluate the role of information systems in today’s competitive business environment. 3. Assess the impact of the Internet and Internet technology on business and government. 4. Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems…show more content…
For a while it seemed as though the middleman was going out of business because of the new direct connections between customers and merchants. While this is true in some industries, new opportunities are springing up for the middleman in other areas. We'll look at this issue in more detail later. Amazon.com, the largest retailer on the Internet selling books and CDs, lost millions of dollars a year and yet is one of the best success stories in electronic commerce. It's fiercest rival, Barnes & Noble Books, has also spent millions of dollars converting its traditional retailing operations to the Internet. Unfortunately, Barnes & Noble's efforts at e-commerce are considered somewhat of a failure. Why? Because Barnes & Noble hasn't fully changed its core processes to accommodate the requirements of doing business on the Web. It's net-centered retailing efforts are still considered secondary to its traditional bricks-and-mortar operations. Please don't think e-commerce and e-business are going away because of the stock market problems in late 2000 and early 2001. In fact, it's just the opposite. When Jeff Bezos, CEO of Amazon.com was asked what he had learned from the dot-com crash he replied, "The company is not the stock. The clearest way I can describe it is that back in the year 1999, when the stock market was booming and Amazon stock prices were booming, we had about 14 million customers buy from us in that year. In 2000, when the stock was busting, we
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