The Critical Role of Information Systems
Today’s information systems are both technical and social in nature. Management must understand the importance of information within the organization. It is management’s job to understand how information is collected, processed, and distributed. We are all extremely affected by information systems and must be willing to understand and work with them. Our global economy does not allow us to depend on face to face transactions like in the 1980’s. Today, few managers can ignore the importance and impact of how information is handled by their organization. Information systems play a critical role in today’s business organization and society (Laudon 5).
Since the emergence of the global economy, the success of firms today and in the future depends on their ability to operate globally. The American economy depends on imports and exports. Foreign trade, both imports and exports accounts for a little over 25 percent of goods and services produced in the United States, and even more in countries like Japan and Germany. This percentage is currently and will continue to grow in the future (5).
Globalization of the world’s industrial economies greatly enhances the value of information to the firm and offers new opportunities to businesses. Today, information systems provide the communication and analytic power that firms need to conduct trades and manage businesses on a global scale. Globalization and information technology also brings new threats to domestic business firms. This is brought on by the customer’s ability to shop in a worldwide marketplace, obtaining the price and quality information reliably, 24 hours a day. The worldwide market place brings competition to a higher level than ever before, forcing all businesses to play a part in this global economy. In order to become a profitable player in a worldwide market firms, need powerful information and communication systems (5).
Many countries are experiencing the third economic revolution. These countries include the United States, Japan, Germany and other major industrial powers. This revolution, which is now in progress, is transforming itself into a knowledge and information based service economy. This revolution began at the turn of the century and by 1976 the number of white-collar workers employed in o...
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...ws them to replenish inventory very fast, Wal-Mart does not spend as much money on stock pilling inventory as its competitors. Wal-Mart only spends 15 percent of sales in overhead while Sears spends 30 percent and Kmart spends 21 percent. Again, this is only possible because of the use of information systems.
As you can see information systems are far more than just input, process, and output machines. Managers and society must understand that these systems provide solutions to business challenges and must be willing to change with the new technology. Information systems can help in the day to day task at work and at home. We no longer have to depend on only one firm or corporation to buy material we need. We can shop the global market 24 hours a day to find the best price and quality. With the increased global competition, companies will have to use information systems in order to survive in today’s market place.
Work Cited
Laudon, Kenneth C., and Jane P. Laudon. Management Information Systems.
New Jersey: Prentice-Hall Inc., 1996
Removing the Warehouse from Cost-Conscious Hospitals. New York: Times, 1991
Wilson, Linda. “Stand and Deliver.” Information Week April. 1992
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Palvia P., Palvia S. & E. Roche (1996) Global Information Technology and Systems Management. Ivy League Publishing
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