Business information value chain

Business information value chain

• Business information value chain
• Raw data acquired and transformed through stages that add value to that information
• Value of information system determined in part by extent to which it leads to better:
• 1- decisions, 2- greater efficiency, 3- higher profits
• Business perspective: Calls attention to organizational and managerial nature of information systems

• Perspectives on Information Systems

• Management Information Systems
• Chapter 1 Information Systems in Global Business Today

• Perspectives on Information Systems

• Management Information Systems
• Chapter 1 Information Systems in Global Business Today

• From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability.

• Figure 1-7

• The Business Information Value Chain

• Management Information Systems
• Chapter 1 Information Systems in Global Business Today

• Value creation

• Value Creation

• Perspectives on Information Systems

• Management Information Systems
• Chapter 1 Information Systems in Global Business Today

• Although, on average, investments in information technology produce returns far above those returned by other investments, there is considerable variation across firms.

• Figure 1-8

• Variation in Returns on Information Technology Investment