Managers and business firms invest in information technology and systems because they provide real economic value to the business. The decision to build or maintain an information system assumes that the returns on this investment will be superior to other investments in buildings, machines, or other assets. These superior returns will be expressed as increases in productivity, as increases in revenues (which will increase the firm’s stock market value), or perhaps as superior long-term strategic positioning of the firm in certain markets (which produce superior revenues in the future).
We can see that from a business perspective, an information system is an important instrument for creating value for the firm. Information systems enable the firm to increase its revenue or decrease its costs by providing information that helps managers make better decisions or that improves the execution of business processes.
We can see that from a business perspective, an information system is an important instrument for creating value for the firm. Information systems enable the firm to increase its revenue or decrease its costs by providing information that helps managers make better decisions or that improves the execution of business processes.
Using a handheld computer called a Delivery Information Acquisition Device (DIAD), UPS drivers automatically capture customers’ signatures along with pickup, delivery, and time card information. UPS information systems use these data to track packages while they are being transported.
Every business has an information value chain, illustrated in Figure 1.7, in which raw information is systematically acquired and then transformed through various stages that add value to that information. The value of an information system to a business, as well as the decision to invest in any new information system, is, in large part, determined by the extent to which the system will lead to better management decisions, more efficient business processes, and highe firm profitability. Although there are other reasons why systems are built, their primary purpose is to contribute to corporate value.
From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability. The business perspective calls attention to the organizational and managerial nature of information systems. An information system represents an organizational and management solution, based on information technology, to a challenge or problem posed by the environment.
The diagram shows how the Ponsse wood production firm systems solved the business problem presented
by the need to integrate its production and manufacturing processes.
Every business has an information value chain, illustrated in Figure 1.7, in which raw information is systematically acquired and then transformed through various stages that add value to that information. The value of an information system to a business, as well as the decision to invest in any new information system, is, in large part, determined by the extent to which the system will lead to better management decisions, more efficient business processes, and highe firm profitability. Although there are other reasons why systems are built, their primary purpose is to contribute to corporate value.
From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability. The business perspective calls attention to the organizational and managerial nature of information systems. An information system represents an organizational and management solution, based on information technology, to a challenge or problem posed by the environment.
The diagram shows how the Ponsse wood production firm systems solved the business problem presented
by the need to integrate its production and manufacturing processes.
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| figure 1.7 |
From a business perspective, information systems are part of a series of value-adding activities for acquiring,
transforming, and distributing information that managers can use to improve decision making, enhance organizationa performance, and, ultimately, increase firm profitability.
These systems provide a solution that takes advantage of new interactive digital technology and opportunities created by a host of technologies such as GPS. The firm developed new ways to coordinate production, manufacturing, and sales. The diagram also illustrates how management, technology, and organizational elements work together to create system solutions.
transforming, and distributing information that managers can use to improve decision making, enhance organizationa performance, and, ultimately, increase firm profitability.
These systems provide a solution that takes advantage of new interactive digital technology and opportunities created by a host of technologies such as GPS. The firm developed new ways to coordinate production, manufacturing, and sales. The diagram also illustrates how management, technology, and organizational elements work together to create system solutions.
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