ITC 5301 III CS

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Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Analyze the use of information systems in business. 1.1 Analyze how information systems are transforming business.

2. Examine emerging trends in information technology for organizations.

2.1 Discuss how globalization has flattened the world.

5. Critique core information systems applications from a business perspective. 5.1 Explain the importance of collaboration and information sharing for businesses.

Required Unit Resources Chapter 1: Information Systems in Global Business Today Chapter 2: Global E-business and Collaboration Chapter 12: Chapter Case, Big Data and the Internet of Things Drive Precision Agriculture Unit Lesson

What Are Information Systems? Why are information systems important to business? First, let’s gain an understanding of what information systems are. Your eTextbook defines an information system as

a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products. (Laudon & Laudon, 2022, p. 14)

We can use an example to help define information systems a bit more. Let’s consider the first Chapter Case in Chapter 12 of your eTextbook titled “Big Data and the Internet of Things Drive Precision Agriculture, which looks at how farms are becoming digital farms. In this example, farmers are using information systems to help them make decisions about what types of crops to plant, where to plant the crops, and how much to plant. The system will gather and analyze the data, which will provide farmers with the ability to determine what kinds of crops to plant for maximum yield, the right kind of fertilizer to use, how much to use, and how much water will be needed to grow the crops. Much of this information also comes from historical data collected by farmers, such as historic crop yields, typical soil conditions, and other agricultural data. After analyzing the data, a recommendation is sent to the farmer who then uploads the data into computerized farming equipment. The system also keeps the farmer apprised of any changes to soil and weather conditions, assisting the farmer in growing and managing his or her crops (Laudon & Laudon, 2022). Information systems have changed the way that farmers operate their businesses. Data gathered from historical data, weather stations, aircraft, computerized tractors, and other types of automated and remote devices provide vital data to farmers about crop conditions, potential problems, and recommendations on how to manage their crops as they grow. Information systems have provided farmers with valuable data for growing and harvesting large crops successfully for increased profits (Laudon & Laudon, 2022).

UNIT I STUDY GUIDE Global Information Systems, E-Business, and Collaboration

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Embracing Technology: Smart Stores Reinvent the Retail Space It is important to understand that information systems are not an extravagance; rather, they are vital to the survival of any business (Laudon & Laudon, 2022). Now, let’s examine Acrelec, a French digital signage company, the futuristic retail store, to better understand why successful businesses must continually evolve and embrace technology. To improve customer value and increase its competitive edge, Acrelec employed technological improvements and upgrades to increase its success in the retail market. The way they did this was to collect data about customer shopping patterns, store layout efficiency, staffing levels, and purchasing transaction histories. Collecting the data provided Acrelec with a way to anticipate customer demands and predict future customer behavior. The store also uses object-recognition cameras to know when a customer’s car arrives and where it is parked. Smart shelves with different types of sensors, 3D cameras, microphones, and RFID readers are used to automate shopping operations. When shoppers connect to Smart Shelf using their mobile apps, the checkout is automatic when they exit the store (Laudon & Laudon, 2022). We have started to see other stores, such as Pepsi, Walmart, and Albertsons, begin to use Smart Shelf systems to give physical stores the same benefits of the online experience (Laudon & Laudon, 2022). Today, retail stores and groceries are extremely competitive and with a low-profit margin. This means that there is a high risk of significant profit losses if the company cannot increase or maintain sales for a healthy profit. Customer loyalty is extremely important to help maintain sales. Technology also plays a part in providing customers with certain conveniences that drive customer loyalty, such as curbside and online shopping as well as in-store pickup services (Laudon & Laudon, 2022).

Globalization in a Flattened World It is important for organizations to anticipate and prepare for the future by studying emerging trends and innovative technologies. Today, businesses have become dependent on information systems for their survival. Many businesses operate globally, and globalization has affected just about every country in the world (Laudon & Laudon, 2022). What is globalization? Well, there are many definitions of globalization, but almost everyone can agree that the evolution of the Internet has provided a way for organizations to conduct business on a global scale. Customers can purchase goods and services from just about anywhere and at any time via the Internet, and companies can conduct communications with other businesses around the world in real time. Companies that produce goods and services can outsource to other countries to save on costs and boost profits. Customers no longer need to visit local stores to purchase products and services because they can shop online using the Internet for just about anything, at any time, from anywhere, and have their purchased items delivered to their homes (Laudon & Laudon, 2022). The Internet has become an international communications system, which allows businesses to conduct business transactions cheaply and efficiently on a global scale. However, this also means that jobs can move from one location to another, including overseas, which can result in the loss of jobs. Workers will need to continually educate themselves and learn new skills that will keep their jobs from being outsourced overseas (Laudon & Laudon, 2022). As COVID-19 continues to ravage the world, working from home has become the new normal. According to Laudon & Laudon (2022), before the pandemic, only about 4% of the U.S. workforce worked from home at least half the time. According to a recent MIT report, now 34% of the American workforce is working from home (Lowy, 2020, as cited in Laudon & Laudon, 2022). This is possible thanks to advances in information technology, including broadband Internet, laptop computers, tablets, smartphones, email, messaging, and video conferencing tools.

E-business and Globalization: The Case of United Parcel Service (UPS) Let’s now examine UPS and how it competes globally with information technology (IT). UPS uses a tracking system that monitors the shipping of packages all over the world. This package tracking system inputs package information such as signatures, pickup and delivery information, location data, billing, and other types of packaging documentation. Another component of the tracking system is processing. This is where the information gathered from the input process is transferred to a central computer where it is kept so it can

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be retrieved later. The tracking system also produces output such as package delivery and pickup data, package location data, customer data, and reports (Laudon & Laudon, 2022). If UPS were not able to manage the shipping of its packages, it would not be a global leader in the package delivery business. It would not be able to compete against its competitors without technology, specifically its package tracking system. Without this information system, UPS might be able to deliver packages but not efficiently or as quickly as it does today, especially to far-reaching countries. Also, without the system, it would cost customers more to send packages, packages would take longer to get to their destination, and there would be an increase in packages that are lost or do not reach their intended destination (Laudon & Laudon, 2022).

Collaboration and Sharing of Information Collaboration is the sharing of information between people, businesses, and other entities to achieve a goal. Some businesses use social networking platforms to encourage collaboration with customers, employees, and suppliers. Collaboration and social business are vital to organizations because more jobs are becoming interactive; they require face-to-face communication with coworkers, other employees, customers, and suppliers. This is especially true in the service industry where coordination and collaboration are required. Organizations are also becoming less hierarchical and more collaborative in nature, which encourages group diversity for developing processes, completing tasks, and producing innovative ideas. The scope of organizations is changing because of globalization; many organizations have businesses in other localities and, in some cases, in other parts of the world (Laudon & Laudon, 2022). Internet-based collaboration provides nearly limitless avenues for online storage, information sharing, and audio-video tools for real-time communications. As organizational hierarchy devolves to a more collaborative culture, employees are rewarded as a group instead of as individuals, and managers become more responsible for team development and team performance. This new organizational structure will assist businesses in getting things done in a new way (i.e., through collaboration) (Laudon & Laudon, 2022).

Embracing Social Business: The Case of ABB Now, let’s examine how enterprise social networking helps ABB, a pioneering technology leader, become more innovative and grow. The following example illustrates how a company can embrace social business tools to help reduce costs while increasing education and training to its employees in over 100 countries. Before the company embraced social business tools, it was operating in an information silo. Its intranet was outdated and could not handle the massive amount of data its employees had amassed. As a result, employees began storing data in various locations, such as file servers, wikis, and other external knowledge platforms, making the sharing of information difficult, ineffective, and inefficient. The company needed a centralized knowledge platform to support dynamic knowledge sharing and to empower its employees to work closer together (Laudon & Laudon, 2022). By implementing a social media platform, ABB employees had a centralized resource for accessing and storing information. Employees would be able to use the tools for effective collaboration on projects and share information and ideas among one another. As a result, collaboration became more effective and productive, which improved employee engagement and reduced costs. The knowledge platform also improved employee morale, and many employees felt more engaged with the business (Laudon & Laudon, 2022).

Summary In this unit, we examined how technology and information systems are transforming business and why they are vital to the survival of a business. We discussed what an information system is and how it provides value to an organization. We then examined globalization and how it is affecting nearly every country in the world, increasing the presence of technology. We also explored how organizations are competing globally using information systems and how collaboration tools can be used to communicate and share ideas with others for increased business value. In Unit II, you will evaluate case studies from Chapters 1 through 4 in your eTextbook. To prepare for the case study assignment in Unit II, ensure that you review the Chapter Cases “UPS Competes Globally with

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Information Technology” in Chapter 1 and “The City of Mississauga Goes Digital in Chapter 2 of your eTextbook.

Reference Laudon, K. C., & Laudon, J. L. (2022). Management information systems: Managing the digital firm (17th ed.).

Pearson. Suggested Unit Resources In order to access the following resources, click the links below. To reinforce the concepts from this unit, you are encouraged to review the following:

• Chapter 1 PowerPoint Presentation (PDF for Chapter 1 PowerPoint presentation)

• Chapter 2 PowerPoint Presentation (PDF for Chapter 2 PowerPoint presentation)

The following video cases mentioned in your eTextbook augment the information presented in the assigned chapter readings. You are encouraged to review the Chapter 1 and 2 video cases linked below. A transcript can be accessed for each video within the YouTube player by clicking on the three dots below the video title on the right. Closed-captioning can be turned on by clicking the “cc” icon at the bottom of each video. Fusion Logistics. (2015, January 16). UPS package flow technology—DIAD [Video]. YouTube.

https://www.youtube.com/watch?v=aS97ypMwAgg Data Center Locations. (2015, June 15). Facebook data center [Video]. YouTube.

https://www.youtube.com/watch?v=_r97qdyQtIk Googlegreen, (2011, May 23). Google data center efficiency best practices: Power efficiency [Video].

YouTube. http://www.youtube.com/watch?v=voOK-1DLr00 Infrastructure Masons. (2016, July 6). Triton unveiled [Video]. YouTube.

https://www.youtube.com/watch?v=HcD47Y-TQQw Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. Review the following case study, CEMEX: Becoming a Social Business with IBM Software, which discusses how IBM Social Business tools empower different types of businesses to become more social and collaborative. There is a link within the case study to an accompanying video. (A transcript can be accessed for the video within the YouTube player by clicking on the three dots below the video title on the right. Closed- captioning can be turned on by clicking the “cc” icon at the bottom of the video.) After watching the video and reviewing the case study, answer the video case questions at the end.