Until now we have not mentioned information systems. But from the brief review of
business functions, entities, and environments, you can see the critical role that information
plays in the life of a business. Up until the mid-1950s, firms managed all this information
and information flow with paper records. During the past 50 years, more and more business
information and the flow of information among key business actors in the environment has
been computerized.
• Businesses invest in information systems as a way to cope with and manage their
internal production functions and to cope with the demands of key actors in their
environments. Specifically, firms invest in information systems for the following business
objectives:
1. To achieve operational excellence (productivity, efficiency, agility)
2. To develop new products and services
3. To attain customer intimacy and service (continuous marketing, sales, and service;
customization and personalization)
4. To improve decision making (accuracy and speed)
5. To achieve competitive advantage
6. To ensure survival