GROUP2_Management Information System Report
- 1. Business Perspective and Business Process Prepared by: Group 2
- 2. DISCUSSION DIGITAL FIRMS Five paramount changes on Management Information Systems BUSINESS PROCESS TABLE OF CONTENTS 01 03 02 04
- 3. INTRODUCTION Information systems and technologies are transforming the global business environment. Global firms and governments spent trillions on information systems hardware, software, and telecommunications equipment. In addition, they spent billions on business and management consulting and services—much of which involves redesigning firms’ business operations to take advantage of these new technologies.
- 4. Topics to be covered: • Smartphone and Media Statistics DISCUSSION 01
- 5. Smartphone and Media Statistics According to Statista, the current number of smartphone users in the world today is 6.378 billion, and this means 80.76% of the world’s population owns a smartphone. This figure is up considerably from 2016 when there were only 3.668 billion users, 49.40% of that year’s global population.
- 7. According to GSMA real-time intelligence data, there are now over 10.47 Billion mobile connections worldwide, which surpasses the current world population of 7.89 Billion implied by UN digital analyst estimates. This data means there are 2.58 billion more mobile connections than people worldwide. It’s important to state that not every person in the world has a mobile device. We’re talking mobile connections that come from people with multiple devices, and a fraction with dual SIM’s or other integrated devices like cars SOURCE: GSMA.
- 8. The adoption of smart cell phones isn’t the same in every country or region around the globe. Below we show the latest smartphone penetration data, showing population versus the number of smartphone users by country. • Highest number of users: China is leading with the most physical smartphone users at 918.45 million only due to population size, with 63.80% market penetration • Lowest number of users: Thailand has the lowest number of smartphone users at 37.88 million, with 54.30% market penetration • Highest market penetration: The United States has the highest smartphone penetration, with 81.60% of its population owning a smartphone, totaling 270 million. • Lowest market penetration: Pakistan has the lowest user to population ratio at 18.40%, with 40.59 million.
- 10. Shifts in stock market valuations are a proxy of the relative Covid-19 financial impact and potential longer- term implications for different sectors. Zoom has become the poster child of 2020 as the go-to platform for people and businesses seeking to maintain contact. By contrast, retail, tourism, and airlines have been devastated; Marriot and IAG (owner of British Airways) have lost around 80% of their value.
- 11. In developing and emerging countries, phones and tablets are the primary means of access to the internet. As of 2021, billions of people use social networks, with Facebook accounting for 2.85 billion people alone. Messaging services like WhatsApp, Facebook Messenger, and Twitter collectively have over 3 billion monthly users. Smartphones, social networking, texting, e-mailing, and webinars have all become essential tools of business because that’s where the customers, suppliers, and colleagues can be reached.
- 13. 1. IT Innovations 2. New Business Models 3. E-commerce Expanding 4. Management Changes 5. Changes in Firms and Organizations
- 14. IT Innovations A continuing stream of information technology innovations is transforming the traditional business world.
- 15. New Business Models For instance, the emergence of online video services like Netflix for streaming, Apple iTunes, Amazon, and many others for downloading video has forever changed how premium video is distributed and even created. Netflix has currently attracted more than 192.95 million paid subscribers worldwide to what it calls the “Internet TV” revolution.
- 16. E-commerce Expanding As internet access and adoption are rapidly increasing worldwide, the number of digital buyers keeps climbing every year. E-commerce is changing how firms design, produce, and deliver their products and services. E-commerce has reinvented itself again, disrupting the traditional marketing and advertising industry and putting major media and content firms in jeopardy.
- 17. Management Changes The management of business firms has changed: With new mobile smartphones, high- speed wireless Wi-Fi networks, and tablets, remote salespeople on the road are only seconds away from their managers’ questions and oversight. Business is going mobile, along with consumers. Managers on the move are in direct, continuous contact with their employees
- 18. Changes in Firms and Organizations Compared to industrial organizations of the previous century, new fast-growing twenty- first- century business firms put less emphasis on hierarchy and structure and more emphasis on employees taking on multiple roles and tasks and collaborating with others on a team.
- 19. Topics to be covered: • Six Strategic Business Objectives of Information Systems DIGITAL FIRMS 03
- 20. DIGITAL FIRM A digital firm can be defined along several dimensions. It is one in which nearly all of the organization’s significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations.
- 21. Six Strategic Business Objectives of Information Systems • Operational Excellence • New Products, Services, and Business Models • Customer and Supplier Intimacy • Improved Decision Making • Competitive Advantage • Survival
- 22. Operational Excellence Businesses continuously seek to improve the efficiency of their operations in order to achieve higher profitability.
- 23. New Products, Services, and Business Models Information systems and technologies are a major enabling tool for firms to create new products and services as well as entirely new business models.
- 24. Customer and Supplier Intimacy When a business really knows its customers and serves them well, the customers generally respond by returning and purchasing more. This raises revenues and profits
- 25. Improved Decision Making Many business managers operate in an information fog bank, never really having the right information at the right time to make an informed decision
- 26. Competitive Advantage When firms achieve one or more of these business objectives—operational excellence; new products, services, and business models; customer/supplier intimacy; and improved decision making—chances are they have already achieved a competitive advantage.
- 27. Survival Business firms also invest in information systems and technologies because they are necessities of doing business.
- 29. What is Business Process? Business processes refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.
- 30. Example s
- 31. Systems for Different Managing Groups Transaction Processing Systems Systems for Business Intelligence Systems for Linking the Enterprise
- 32. Transaction Processing Systems Operational managers need systems that keep track of the elementary activities and transactions of the organization, such as sales, receipts, cash deposits, payroll, credit decisions, and the flow of materials in a factory.
- 34. Systems for Business Intelligence Firms also have business intelligence systems that focus on delivering information to support management decision making. Business intelligence is a contemporary term for data and software tools for organizing, analyzing, and providing access to data to help managers and other enterprise users make more informed decisions.
- 36. Systems for Business Intelligence Other types of business intelligence systems support more: Decision-support systems (DSS) focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance. Executive support systems (ESS) help senior management make these decisions. They address nonroutine decisions requiring judgment, evaluation, and insight because there is no agreed- on procedure for arriving at a solution.
- 37. Systems for Linking the Enterprise One solution is to implement enterprise applications, which are systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management. Enterprise applications help businesses become more flexible and productive by coordinating their business processes more closely and integrating groups of processes, so they focus on efficient management of resources and customer service.
- 38. Systems for Linking the Enterprise Four major enterprise applications: enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems.
- 39. Enterprise Resource Planning Systems Firms use enterprise systems, also known as enterprise resource planning (ERP) systems, to integrate business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources into a single software system.
- 40. Supply Chain Management Systems A firm’s supply chain is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers.
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