A good example of the benefits of business information systems is the success of Walmart. Since its inception, the massive retail corporation has led the industry in adapting new information technology to business use. Show
Walmart “was a pioneer in barcode scanning and analyzing point of sale information, which was housed in massive data warehouses,” according to data professional Anthony B. Smoak. “Walmart launched its own satellite network in the mid-1980s, which led to profound business practice impacts with respect to its supply chain management process. Strategic systems … enabled data integration and sharing between Walmart and its suppliers. These systems also enabled the concept of vendor-managed inventory,” Smoak writes. The retail giant is at the forefront of a field that offers value to many types of businesses. Since the onset of the Internet Age, the importance of information in business cannot be overstated. Harvard Business Review editor Nicholas Carr even likened information technology to a new, necessary commodity, like electricity, in his 2003 article, “IT Doesn’t Matter.” A decade and a half later, companies that don’t invest heavily in business information technology may struggle to stay afloat. Defining What Information Systems Can Do for BusinessInformation systems, in the business sense of the term, are complementary networks and interconnected components that amass, disseminate, and otherwise make data useful to bolster management’s decision-making processes. Information systems have evolved over time, requiring redefinitions as new technologies (Web 2.0, for example) have proliferated. Information systems are not just technological, however. “Besides the components of hardware, software, and data, which have long been considered the core technology of information systems, it has been suggested that one other component should be added: communication,” writes researcher Dave Bourgeois. “An information system can exist without the ability to communicate—the first personal computers were standalone machines that did not access the internet. However, in today’s hyper-connected world, it is an extremely rare computer that does not connect to another device or network,” Bourgeois continues. To integrate communication, Bourgeois suggests adding people and process to the traditional hardware, software, and data components of information systems. Business executives in nearly every industry have discovered that the processes they use, particularly the “as-a-service” cloud analytics services, and the active participation of customers who want to customize their experiences more each year are inseparable from business information systems. Once all the elements are integrated, every information system plays several roles for businesses with varying degrees of importance depending on a company’s needs. Tech writer Julie Davoren details them on Chron.com as follows:
As information systems become more entrenched in the world of business, companies’ managerial staffs and executives are expected to familiarize themselves thoroughly with business information systems and what they have to offer. Accordingly, many MBA classes have added information technology to their curriculum. Information systems are complementary networks that make data useful to corporate decision-making. Management Information Systems CapabilitiesManagers of business departments that benefit from information systems need to know the basic capabilities of information technology, data analytics, and business intelligence systems. Management information systems use all of these capabilities in a way tailored to managerial and executive decision-making. Tech writer Ian Linton breaks information system capabilities down into categories in an AZ Central article:
Managers can also take advantage of information systems that are specifically designed for business functions that affect their department or position. Marketing information systems, product subsystems, sales forecasting, and product design systems all generate information that is invaluable to managers. About WSU’s Online Master of Business Administration ProgramWashington State University’s Carson College of Business offers one of the top-ranked MBA programs in the nation. WSU’s online MBA degree program is designed to equip students with the tactics, knowledge, skills, and strategies used by today’s most high-profile business leaders. By the time they graduate, MBA students should be familiar with new technologies, such as information systems, and also the tried-and-true business skills that have long produced effective and productive business leaders. The program offers several MBA concentrations—marketing, finance, hospitality business management, international business, and general MBA. For more information, visit WSU’s online MBA website. Why information systems are so essential?Information systems are important to businesses because they process data from the businesses' input to generate information that is crucial for managing operations.
Why are information systems essential in business today describe four trends in the global business environment that have made information systems so important?Six reasons why information systems are so important for business today include: (1) Operational excellence (2) New products, services, and business models (3) Customer and supplier intimacy (4) Improved decision making (5) Competitive advantage (6) Survival Information systems are the foundation for conducting ...
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