Chapter 1. How to manage the digital world?

In the digital world, information systems are very important. These systems are used by many organizations to manage their activities in the digital world. One of the largest technology companies in the world is Apple. It is a very profitable company with many different popular products. Over the years Apple has become a very successful company and is not only a vendor of hardware but it also stores information of the people who are using the products. The personal information of the user is stored in the cloud and can be used to predict the future behavior of the user. This access to private information can be risky and one should be aware of it.

What are the information systems of today?

The most important components of the information systems (IS) are computers. These can be laptops, cameras, smartphones etc. Information systems are used by many organizations to record purchases, to optimize the supply chain and many more. Because of the increased global competition, firms had to find a way to do things faster, better and at lower cost. This can be achieved by using information systems. Through these systems new markets were more easily accessed.

Because of the changes in technology new ways of working and socializing have developed over the last few years. People are no longer bound to a stationary PC but can now do their work wherever there is a phone signal. Because of cloud computing, like Dropbox and Gmail, people can access their email, files pictures from any device. The technology changes also affect our social life. For socializing and communication people nowadays really need mobility and connectivity.

In 1959 Peter Drucker argued that information technology (IT) would become more and more important. He defined a knowledge worker as a professional who is relatively well educated and who creates and modifies knowledge as a fundamental part of his/her job. These workers have great career opportunities and are paid more than other workers. According to Drucker, the number of knowledge workers would increase over time and this would lead to a knowledge society. Many call this knowledge society the digital world. Some argue that there is a digital divide. Meaning that people who have access to IT have an advantage over people who do not have access.

According to Alvin Toffler there are three waves of change. The first is the wave of agriculture and handwork. The second wave is the industrial revolution. The information wave is the third wave. In developed societies people make use of IT. There are five trends in IT that have an effect on the shape of organizations and society:

• Mobile
  One of the biggest trends is the increased use of the mobile phone. It is replacing the PC.
• Social media
• The internet of things
  Several products (computer, sensors) are interconnected with each other. Because of this connection they can share information/data over the internet.
• Cloud computing
• Big data
  For firms information is power. Therefore, organizations collect
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Chapter 4. What is the e-commerce?

For conducting business electronically on a global basis the Internet and the Web are well suited. The e-commerce via the web has created many opportunities for marketing.

What is the electronic business?

The electric commerce (EC) is defined as the exchange of services, goods and money supported by communication technologies, especially the Internet. The exchange occurs between firms, between firms and customers and between customers. The online market has become a major part of the global economy nowadays. Therefore, it has become a strategic necessity for companies to be on the Web.

Business-to-consumer (B2C) EC is defined as the transactions between consumers and businesses. However, EC is also used by organizations to conduct business. They make use of business-to-business (B2B) EC, in which there are transactions between business and business partners like intermediaries or suppliers. There are also transactions that do not involve firms. This EC is called consumer-to-consumer (C2C) EC, like eBay. Another form is consumer-to-business (C2B) EC. With C2B consumers offer products, services and labor to companies.

The mobile commerce (m-commerce) is defined as an electronic transaction or information interaction that is made using a wireless, mobile device and mobile networks. This transaction must lead to the transfer of real value in exchange for goods, services or information. The m-commerce trend is the result of the increased use of the mobile devices.

Through social media, organizations try to influence the social networks of their visitors to create a relationship or create other value. This has become a trend and is referred to as social commerce. Because of the Internet and the different trends, organizations have more data and can better understand each individual consumer.

E-government is defined as the use of information systems to provide organizations, citizens and other governmental agencies with information about public services and to enable interaction with the government. We can consider three different relationships when it comes to e-government:

• Government-to-citizens (G2C) EC
  This includes interactions between local, state and federal governments and their citizens.
• Government-to-business (G2B) EC
  This includes business relationships with all levels of government.
• Government-to-government (G2G) EC
  This includes electronic interactions between different levels of a government within a country or interactions between countries.

What is business-to-consumer EC?

Because of the global marketplace, companies face increased competition in all markets. Therefore, they have to position themselves to be able to compete in the EC area.

E-tailing is defined as the online sales of goods and services. There are several different strategies a company can use:

• Brick-and-mortar business strategy
  The company decides to operate solely in the physical market. The business activities are approached in a traditional way by using physical locations like retail stores. Companies using this strategy do not sell their products or services online.
• Click-and-mortar business strategy (also called bricks-and-clicks business strategy)
  Companies using this strategy choose to extend their traditional offline retail channels by using the Internet. So they use both EC and physical locations.
• Click-only strategy
  These companies conduct
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Chapter 6. How can information systems be used to enhance business intelligence?

High quality and timely information are very important for the effective management of a company. This can be provided by several different information systems.

What is business intelligence?

Business intelligence is defined as the use of information systems to collect and analyze data and information to improve making good business decisions. The data and information can be both internal and external. Companies use business intelligence to gain or sustain a competitive advantage. Business processes occur at different organization levels and they are highly interconnected.

To monitor and control its business processes a company needs accurate and integrated information. This information is necessary to realize the strategic goals of the organization. Companies that make decisions that can be backed up with verifiable data are called data-driven organizations. Such organizations are measurably more profitable and productive than companies that are not data-driven.

Modern organizations face challenges from external factors, but these factors can also create opportunities. Examples of such external factors are globalization, societal changes and governmental regulations. The business environment is very complex and business intelligence can help organizations to better make decisions in this environment. Business intelligence can help by collecting and analyzing internal and external data more effectively.

If a company is able to effectively manage their data then this will increase the organizational performance of the company. However, many organizations are not able to harness the value of Big data. Big data is data which has high volume, velocity and variety. The trends in social and mobile field have led to an enormous amount of potential data.

The large volume of data enables companies to make decisions that are based on more factors. However, managing an storing such large amount is a challenge for companies. Companies obtain data at a very high rate. Useful data can have several forms:

• Structured data, like transaction data, which can be fitted in a spreadsheet or database
• Semistructured data, sensor data and like clickstreams
• Unstructured data, like video and audio data

For many companies it remains hard to successfully use Big data.

First, organizations did not have the right tools and information to plan their future continuously. Since the environment is nowadays changing very fast it is important that companies can react quickly and this requires new ways of planning. Many companies that are successful use a continuous planning process. With such a process, companies continuously analyze and monitor information and data. This continuously planning can only be executed because of accurate and timely business intelligence.

The most important assets for an organization are data and knowledge since these are crucial for business processes and gaining business intelligence. The database is used to place dynamic and customized information on their Web pages. At many Web sites of companies, customers can view product catalogs and place orders. On the Web site customers can find information on all products, there is a web page for each product.

There are electronic.....read more