Week 7

·         Explore traditional businesses that have moved to digital firm and how globalization has changed their way to do business

Today almost all businesses have moved from traditional to digital firms. This is due to the advancement of information technology. A combination of IT innovations and a changing domestic and global business environment makes the role of IT in business even more important for managers than just a few years ago. The internet revolution is not something that happened and then burst, but instead has turned out to be an ongoing, powerful source of new technologies with significant business implications for much of this century.

There are five factors to consider when assessing the growing impact of IT in business firms both today and over the next ten years.

·         Internet growth and technology convergence

·         Transformation of the business enterprise

·         Growth of globally connected economy (globalization)

·         Growth of knowledge and information based economies

·         Emergence of the digital firm

When speaking of globalization, today, information systems provide the communication and analytic power that firms need to conduct trade and manage businesses on a global scale. Communicating with distributors and suppliers, operating 24 hours a day in different national environments, coordinating global work teams and servicing local and international reporting needs is a major business challenge that requires powerful information system responses.  Globalization and information technology also bring new threats to domestic business firms. Because of global communication and management systems, customers now can shop in a worldwide market place, obtaining price and quality information reliably 24 hours a day.

Therefore, to become competitive participants in international markets, firms need powerful information and communication systems. These are the effects of globalization and how it has change the world of doing businesses.