Chapter 1, Problem 1RQ

Explanation of Solution

Information system provides a new way in business:

• Information system including computers, mobile handled and digital mobile devices are become the essential part of business nowadays.
• Using information system one can improve the client side relationship.
• The information system provides new way of communication for all the business. The new technologies like Email, online conferencing, the web and the Internet.
• The increased communication with clients leads to better client support and decreased the cost of other communication.

Explanation of Solution

Three major trends of information system:

• The new part of information system includes the big data, digital platform and cloud computing.
  • Big data is used to analyse, process and exact the knowledgeable information from the complex and large sets of data.
  • Today digital platforms are used to establish the end-to-end business between client and the provider. Digital platforms achieves improved experience for customers, partners, and employees.
  • One can use the hardware and software to deliver a service over a network is referred as cloud computing. Cloud computing is an on-demand self-service and provides pay-per use concept.

Explanation of Solution

Digital firm characteristics:

• Digital firm is organization or company in which they are establishing their business.
• The core business process accomplished by digital networks which also leads to significant relationship with employers, customers, and suppliers.
• The key characteristics of digital firm as follows.
  • Digital firm enables the faster decision making using the availability of data.
  • They have quick response to customer needs.
  • Digital firm offers flexible and effective management.

Explanation of Solution

Challenges in Globalization:

• Providing service in business become a challenge when it comes to globalization.
• Marketing for less expensive goods leads to decrease in revenue.
• Employers need to update themselves based on the technology their use.

Opportunities in Globalization:

• Customers can get 24/7 service from their business partners or suppliers.
• Reduced operational cost and transactions global size can be achieved through the information system.
• Customers need not depend on the local businesses.

Explanation of Solution

Six reasons to prove information systems are important:

• Customer and supplier intimacy.
  • Through communication the customer and supplier intimacy can be improved.
• New business models, products and services.
  • Using business tools and information system one can create their new business models, products and provide new services.
• Decision making
  • Decision making became easier because availability of data are increased.
• Competitive advantage
  • Information technology provides competence to react to the challenges and this also helps to achieve competitive advantage.
• Operational excellence
  • One can achieve higher profitability in business using operational excellence of information system.
• Survival
  • Using information system one can reduce unnecessary expenditure, it will increase their survival of them.