Essay One: How Are Information Systems Transforming Business and What Is Their Relationship to Globalization?
Information Systems and Business
A comparison of the way business was conducted one hundred years ago, and the manner in which business is conducted today proves a stark difference. There are very many changes within the business and also in its surrounding. However, by far the largest change has been technological. The scope of this change as well as the magnitude results from the wide spread of application of technology. Since new technology is applied both within the business as well as outside, it has led to major improvements ranking it as among the major changes in business over the past few years.[Click Essay Writer to order your essay]
The advent of technology has brought with it improved efficiency in managing the workings of a business. This has largely been possible through the continual development of information systems and their integration into the business world. At the most basic, an information system represents the totality of components – usually computerized – of a business that interact with one another for efficiency of the business operation. These components will usually handle operations such as collection, organization, storage, recovery and processing of all relevant information pertinent to the business (Kroenke, 2015). The advantage of these systems is in their ability to enable better decision making in the business by simplifying numerous amounts of data and enabling better visualization and analysis (Singh, 2007).
Information systems impact to management. From the definition provided by Kroenke (2015, pp. 10-11) and the extended explanation by Singh (2007, pp. 30-32), it is evident that information systems have transformed businesses. From a managerial perspective, the biggest impact of information systems has been in enabling better analysis of the huge amount of data generated by the business. The computerized information systems allow for better visualization of business data that can easily be processed into meaningful information. Such enables the management to make better decisions backed by data and figures. In similar light, better, flexible, and timely forecasts are made once the managers have a record of historical information. The managers are, therefore, able to effectively carry out their role of maximizing shareholder value, and present them with comprehensive and meaningful reports (Information Resources Management Association, 2010, pp. 352-353)
Information systems impact to employees. For employees, the introduction of business information systems presents an opportunity for increased innovation. Since the core and repetitive tasks are handled by the information system, other tasks requiring mental aptitude and innovation may now be allocated more resources and time. Therefore, the employees are able to grow as individuals and professionals, and ultimately enjoy better remuneration from their time and achievements. [“Write my essay for me?” Get help here.]
Information systems impact to customers. Once a given business integrates the right information system, they are able to relate better with their clients. The implemented systems enable more efficient shopping experiences for customers – both online and at brick and mortar stores. There is better arrangement of goods, better inventory management to ensure there is always stock, and better communication and feedback presentation. This allows for an experience that leaves the customer willing to come back.
The Relationship between Business Information Systems and Globalization
While some businesses will have their products will have their products made in their backyards, or at a store near them, most of today’s enterprises will source products from countries far away. To ensure smooth continuity of the business, and sufficient levels of inventory, there needs to be an efficient means of communication between the manufacturer, distributor and seller. While a telephone call may put things right, there is the task of managing and tracking the goods, which will be left to the mercy of other people. To curb this, the installation of a proper business information system should help straighten matters.
The use of technology has influenced the interconnectedness of not only individuals, but also between businesses, as well as between businesses and individuals. People are now able to share information with others across the globe, purchase something online and have it shipped to a friend or relative across the world, store their documents on the cloud, and work for an individual thousands of miles away. This has been made possible through platforms created by companies such as Apple Inc. Microsoft Corporation, Amazon among others (Beynon-Davies, 2013).[Need an essay writing service? Find help here.]
Essay Two: How Has Internet Technology Changed Business Models?
For the most part, there is a drastic shift in the general business models adopted by companies in the recent past. A large factor behind this shift has been the widespread adaptation of computers and the internet by businesses. This new approach to doing business has led to changes in almost all business operations. From storage of files, to the core logistical operations, contact with clients and even finding new business opportunities across the globe (Kaplan, 2012).
On one front, the use of internet technology has enabled a more level playing ground between businesses. An example is the use of ecommerce to sell a business’ merchandise online. This new platform, has drastically reduced the differences between the traditionally recognized large players and the smaller ones. In addition, entry limitations have been lowered and therefore almost any willing entrepreneur can enter into any business they wish. The offshoring of manufacturing processes to eastern nations has also aided in reducing the required capital assets.
These factors come together to create better business opportunities and together reduce the economies of scale. This new notion has enabled smaller businesses to compete better with their larger counterparts. As such, the ‘big boys’ have had to re-evaluate their approach to business and adopt a strategic shift in the business model of choice.
Storage and Communication
The models of business that were used to enhance communication, both within and to the outside of the business, have rapidly changed over the recent past. The same can be said for the methods of storage. The introduction of computers have eased the way in which companies communicate with their clients. While in the past there was a heavy reliance on letters, nowadays the systems have adopted the use of email, text messages and online portals. Storage has also changed drastically from dependence on manual filing to electronic filing. This new systems have the advantage of faster access, longer and in some cases infinite lifespan of files, better and faster access to documents – that can be accessed from anywhere through an internet connection.
Changing Sales and Advertising Business Models
While businesses traditionally depended on people to go out and find new clients for the businesses, today’s businesses have to adopt new models that take advantage of the newly available resources. Since it is cheaper to advertise and market online, businesses have had to alter their operational models to embrace the new opportunities. Since none can operate without the other, businesses have to create a model that enables the utilization of both avenues to advertise and sell their merchandise both in brick and mortar stores as well as online e-commerce stores.
Speedy Decisions to Encounter a Speedy Lifestyle
The internet has brought with it numerous paid and open source applications, software, platforms and facilities that speed up the pace of decision making in a business. However, these new resources do not provide an opportunity for laxity. This is mainly because of the fast paced lifestyle of the population – of which the business has to match. As such, the business will always seek people who are proactive and think on their toes. Therefore, the business of human resource employment and deployment also have to shift so as to align with the new environmental requirements the business faces.
Scalability and Agility
In the past, once a business made a model, they would probably use that model for decades without a change in their operations. The firm would maintain and possibly grow their profitability and business health. However, this is not possible with the fast paced business and technological cycles taking place nowadays. Which each change of technology, a business will need to alter their primary model in order to have a cutting edge above the competition. This will usually result in a larger user base and more sales, which will translate to profits and better performance for the company in question (Kaplan, 2012).
Beynon-Davies, P. (2013). Business information systems (2nd ed.). New York, NY: Palgrave Macmillan.
Information Resources Management Association. (2010). Enterprise information systems: concepts, methodologies, tools, and applications: Concepts, methodologies, tools and applications. Calgary, AB: IGI.
Kaplan, S. (2012). The business model innovation factory: How to stay relevant when the world is changing. Hoboken, NJ: Wiley.
Kroenke, D. M. (2015). MIS essentials. Upper Saddle River, NJ: Pearson Education Publishers.
Singh, S. R. (2007). Information system management. New Delhi: APH Publishing.