The role of information Systems in Business Today Operational Excellence Improved efficiency results in higher profits Information systems and technologies help improve efficiency and productivity. · Example:Wa|-Mart Power of combining information systems and best business practices to achieve operational efficiency-and over $400 billion in sales in 2008 Most efficient store in world as result of digital links between suppliers and stores
Operational Excellence: • Improved efficiency results in higher profits. • Information systems and technologies help improve efficiency and productivity. Example: Wal-Mart • Power of combining information systems and best business practices to achieve operational efficiency—and over $400 billion in sales in 2008 • Most efficient store in world as result of digital links between suppliers and stores The Role of Information Systems in Business Today
The role of information Systems in Business Today New Products, Services, and Business Models: Information systems and technologies enable firms to create new products, services, and business models Business model: how a company produces delivers and sells its products and services Example: Music industry Drastic changes in business models in recent years Apple: Successful innovations--iPod, iPhone, and So on
• Information systems and technologies enable firms to create new products, services, and business models • Business model: how a company produces, delivers, and sells its products and services • Example: Music industry • Drastic changes in business models in recent years • Apple: Successful innovations—iPod, iPhone, and so on New Products, Services, and Business Models: The Role of Information Systems in Business Today
The role of information Systems in Business Today Customer and Supplier Intimacy: Customers who are served well become repeat customers who purchase more. Mandarin Oriental hotel Uses IT to foster an intimate relationship with its customers, keeping track of preferences, and so on Close relationships with suppliers result in lower costs JCPenney IT to enhance relationship with supplier in Hong Kong
• Customers who are served well become repeat customers who purchase more. • Mandarin Oriental hotel • Uses IT to foster an intimate relationship with its customers, keeping track of preferences, and so on • Close relationships with suppliers result in lower costs. • JCPenney • IT to enhance relationship with supplier in Hong Kong Customer and Supplier Intimacy: The Role of Information Systems in Business Today
The role of information Systems in Business Today Improved Decision Making: If managers rely on forecasts, best guesses, and luck, they will misallocate employees, services, and inventory Real-time data improves ability of managers to make decisions Verizon: Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages
• If managers rely on forecasts, best guesses, and luck, they will misallocate employees, services, and inventory • Real-time data improves ability of managers to make decisions. • Verizon: Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages Improved Decision Making: The Role of Information Systems in Business Today