Chapter 1, Problem 1RQ

Program Plan Intro

Information Systems:

An information system is a system which provides the necessary information to an organization to achieve the goals.

• It monitors the transactions details, provides the required information to decision makers, and provides necessary documents to the customers.
• The main components in the information system are people, data, procedures, hardware, and software.
• The main function of information system is to accept and process the input data, and then stores the retrieved information and distributes it across the organization.

Explanation of Solution

Importance of information systems in managing business:

Information systems help in developing and managing today businesses by coordinating with one another to collect data from various sources and process it.

• Sharing the collected information with the associates helps in decision making and to control, organize the business in a proper way.
• It helps in coordinating the people who are involved in the business to promote their products and improve their revenue.
• People from different parts of the world can come together to perform successful business, because of ease of communication among them.
• The company can move into e-commerce market by providing online services to the customers.

Hence, information systems help in building a new business and make it successful by providing solutions for various challenges that the company may face.

Six reasons for the importance of information systems:

• Operational Excellence – Information systems are helpful in guiding the business operations efficiently and effectively.
• Relationship among customers and suppliers – Information systems provide instant response for the customer queries and develop good relationship among them, which in turn develops the business.
• New business model, products and services – Information systems helps in developing new business models to promote business and stepping on to new ventures.
• Competitive advantage – A well-developed information system will help the business to fend off the competitors by fulfilling the objectives.
• Improved decision making – Information systems are very helpful for managers in the organization to take appropriate decisions when it is needed.
• Survival – Surviving in the competitive market is the objective for any business organization. Information systems are very much beneficial for the business to overcome the challenges and fend off competition.

Challenges and opportunities of Globalization:

Doing the business internationally or the process involved to conducting the business internationally is called globalization. This gives immense opportunity for business organizations to step afoot in unexplored regions.

• Globalization is a process; it integrates the international interchange of products, worldviews, ideas and culture.
• The web and telecommunication technology makes it possible.
• The total world market place is interconnected without the consideration of national boundaries and time zone.
• Due to the globalization, the goods and services are identical or nearly identical in all locations.
• The challenges present in the globalization are people involved in the business need to develop good communication skills based on the location.
• Globalization creates jobs for various people involved in the business.