Understanding the Effects of Is on Business and Their Relationship to Globalization.

1. Understanding the effects of IS on business and their relationship to globalization.

Information systems are a set of interrelated components which collect, process, store and distribute information. Information systems also help to support in decision making, coordination and also control, analysis and visualization in an organizations. In addition to supporting decision making, information systems may also help managers and workers to analyze problems, visualize complex subjects and create new products.

Information systems have changed the way of businesses recently such as the wireless communications which including the computers and mobile hand-held computing devices, could help to keep managers, employees, customers , suppliers and business partners connected in every way possible. Email, online conferencing, the web and the internet are providing new and diverse lines of communications for all businesses whether it is small or large businesses. Through this increased of communications channels and decrease cost of the communications, customers are demanding more of businesses in terms of service and product at lower cost.

They are three major new information system trends that are influencing the way businesses interact with employees, customers, suppliers and business partners including the emerging mobile digital platforms, growth of online software and also growth of cloud computing.

Digital term is usually for organizations that have enabled core business relationship with employees, customers, suppliers and other external partners through digital networks. The characteristics of digital firm are such as significant business relationships with customers, suppliers and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks spanning the entire organizations or linking multiple organizations. Key corporate assets such as intellectual property, core competencies and financial and human assets are managed through digital means. They sense and respond to their environments far more rapidly than traditional firms. They offer extraordinary opportunities for more flexible global organizations and management, practicing time-shifting and space-shifting.

Business firm invest heavily in information system to achieve business objectives which are operational excellence, new products, services and business models, customers and supplier intimacy, improved decision making, competitive advantage and also survival. These are the reason why information system are so important for running and managing a business today.

Operational excellence helps to improve in efficiency which could help to attain higher business profitability. Information systems are technology important tool in achieving greater efficiency and productivity.