Digital firms and objectives of IS

1. Digital Firms and objectives of
Information System
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2. Digital Firms
The digital firm is a general term for organizations that have enabled core business relationships with employees,
customers, suppliers and other external partners through digital networks.
these digital networks are supported by enterprise class technology platforms that have been leveraged within an
organization to support critical business functions and services
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3. Some examples:
Some examples of these technology platforms are, Customer relationship management, supply chain management,
enterprise resource planning, knowledge management system, enterprise content management, and warehouse
management system among others
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4. Purpose of these technology platform
To digitally enable seamless integration and information exchange within the organization to employees and outside
the organization to customers, suppliers, and other business partners.
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5. Origin of “digital Firm”
The term "The Digital Firm" originated as a concept in a series of Management Information System books authored
by Ken Laudon and it provides a new way to describe organizations that operate differently than the traditional brick
and mortar business as a result of broad sweeping changes in technology and global markets
Digital firms place an emphasis on the digitization of business processes and services through sophisticated
technology and information systems.
These information systems create opportunities for digital firms to decentralize operations, accelerate market
readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of
business functions.
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6. Advantages of digital firms
Through digital networks and information system, the digital firm is able to operate core business service and
functions continuously and more efficiently.
This digital enablement of business processes creates highly dynamic information systems allowing for more efficient
and productive management of an organization.
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Additionally, digital enablement of core business functions and services provides an organization with opportunities
to:
Operate business continuously ("Time Shifting")
Operate business in a global workplace("Space shifting")
Adapt business strategies to meet market demands
Create business value from technology investments
 Drive efficiency improvements in inventory and supply chain
Enhance the management of customer relationship
Improve organizational productivity
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8. Emergence of Digital Firms
Digitally-enabled relationships with customers, suppliers, and employees
Core business processes accomplished via digital networks
digital management of key corporate assets
rapid sensing and responding to environmental changes
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9. Importance of MIS
Management Information System is always management oriented and keeps in view every level of management and
gets the desired information.
Integrated – refers to how different components(sub systems) are actually tied up together. eg: different
departments of organization linked together.
Useful for planning– as every organization makes log-term and short-term plans with the help of information like
sales & production, capital investments, stocks etc management can easily plan..
Effective Management Information System helps the management to know deviations of actual performance from
pre-set targets and control things.
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10. It’s important for increasing efficiency.
MIS provides updated results of various departments to management.
MIS is highly computerized so it provides accurate results.
MIS adds to the intelligence, alertness, awareness of managers by providing them information in the form of
progress and review reports of an ongoing activity.
Helps managers in decision- making.
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11. Objectives of MIS
The objective of MIS is to provide information for decision making on planning, initiating, organizing,
and controlling the operations of the subsystems of the firm and to provide a synergistic organization in the
process.
It facilitates the decisions-making process by furnishing information in the proper time frame. This helps the
decision-maker to select the best course of action.
MIS provide requisite information at each level of management to carry out their functions.
MIS provide a system of people, computers, procedures, and interactive query facilities, documents for
collecting, and storing, retrieving and transmitting information to the users.
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12. Business prospective of information system
From a business perspective, an information system is an organizational and management solution, based on
information technology, to a challenge posed by the environment.
IS emphasizes the organizational and managerial nature of information systems:
To fully understand information systems,
A manager must understand the broader organization,
Management, and information technology dimensions of systems
Their power to provide solutions to challenges and problems in the business environment.
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IS problems are surveyed and classified.
IS problems is classified into several perspectives whose relevance in coping with the problems is discussed.
Research perspectives focusing on IS operations environment, IS development process, IS development
organization, IS development methods, and IS theories are distinguished.
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14. References
https://www.sciencedirect.com/science/article/abs/pii/0963868794900124
https://www.ukessays.com/essays/information-technology/emergence-of-the-digital-firm-information-technology-
essay.php
https://www.uniassignment.com/essay-samples/information-technology/business-perspective-on-information-
systems-information-technology-essay.php
http://csit.merospark.com/third-semester/importance-and-objective-of-management-information-system-mis/
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