1. What is the role of information systems in today's competitive business environment? Information systems have become essential for helping organizations deal with changes in global economies and the business enterprise. Information systems provide firms with communication and analytic tools for conducting trade and managing businesses on a global scale. Information systems are the foundation of new knowledge-based products and services in knowledge economies and help firms manage their knowledge assets. Information systems make it possible for businesses to adopt flatter, more decentralized structures and more flexible arrangements of employees and management. Organizations are trying to become more competitive and efficient by transforming themselves into digital firms where nearly all core business processes and relationships with customers, suppliers, and employees are digitally enabled.