TECHNOLOGICAL ADVANCES

Technological Advances

Technological Advances

Thesis Statement

The communication and information system has played a major role in the rise of the postmodern era.

Introduction

Globalization of the world's business economies very much improves the worth of information to the companies and provides original opportunities to businesses. Globalization as well as information technology also brings new threats to domestic business firms. In order to become a profitable player in a worldwide market, firms have taken up powerful information and communication systems.

Discussion

In a knowledge and information based economy, information technology and systems take on great importance. For instance, information technology constitutes for more than 70 percent of the invested capital in service industries like finance, insurance, and real estate (Fischer, 2003). This means that managers' decisions about information technology will be the most common investment decision.

Productivity of employees depends greatly on the quality of information systems serving them. Management decisions about information technology are critically important to the survival of a firm (Perraton, 2001). Consider also that the growing power of information technology makes possible new services of great economic value.

Consider that credit cards, overnight package delivery, and worldwide reservation systems are examples of services that are based on new information technologies. Information systems have many uses. They not only help you track inventory but also help you make decisions on where to open another store and assist in forecasting how much money it will cost to maintain it. There are many examples of how information systems not only benefit the investor but also the customer (Fischer, 2003).

For example, UPS competes globally with information technology. UPS delivers over three billion packages a day to more than 185 countries. All this would not be possible without an accurate information system. UPS has invested 1 to 1.8 billion dollars on information technology alone from 1992 to 1996 (Perraton, 2001). This technology has helped UPS boost customer service while keeping costs low and streamlining its overall operations. UPS does this by using a hand-held computer called a Delivery Information Acquisition Device (DIAD) (Gilpin, 2000).

UPS drivers automatically capture customers' signatures along with pickup, delivery, and timecard information on these computers (Rupert, 2000). These computers are then placed into an adapter attached to each UPS truck. The adapters then transmit to the main UPS computer network through cellular access. From the main computer network any information can be accessed.

Another example on the critical role of information systems is the world stockless inventory and ordering system. This is an information system that locks in customers and satisfaction (Went, 2000). Participating organizations become unwilling to switch to another supplier because of the systems convenience and low cost.

The world renowned companies consume nearly two-thirds of all communication and information products. Buying this system has made the world a full line supplier for all organization needs (Fischer, 2003).

The world has gone one step further by giving all the buyers a computer to connect directly to their main network. Customers no longer have to call to place an order; all that is required ...