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Foundations of Information Systems

1.4 The Global Importance of Information Systems

Foundations of Information Systems1.4 The Global Importance of Information Systems

Learning Objectives

By the end of this section, you will be able to:

  • Describe why information systems should be global
  • Discuss global innovation and its importance
  • Describe global initiatives in IS

The field of IS is and has been an important component in globalization, or the process of businesses and other organizations operating around the world. This includes the international sales of goods and services, as well as the exchange of ideas across international borders.

Why Information Systems Should Be Global

The global marketplace is an important resource worldwide. Countries trade goods and services, offering businesses around the world opportunities for growth and profit maximization. Organizations of all types in both the private and public sectors use globalization as a means to share information and resources, including technological knowledge.

IS supports globalization by providing the resources that organizations need to achieve success in the global marketplace. This includes enabling global communication and information sharing, as well as supporting the processes to manage data compiled from sources throughout the world. IS also gives organizations the tools to function at any time of day, eliminating the need for different time zones to be an obstacle in global operations. In addition, IS helps organizations develop the frameworks they need for strategic planning and decision-making on a global scale.

You will learn more about globalization and the role of IS in promoting global operations in Chapter 11 Global Information Systems which covers strategic and global information systems. This will include a look at the role of culture in IS, as well as IT, and the risks associated with the use of global data and systems sharing. For now, it is important to recognize IS as a vital tool for globalization.

Global Innovations

One role of IS is to support and promote global innovation, which refers to the processes used to collaborate across international borders in designing and developing new goods and services for the global marketplace. Global innovation also focuses on international collaboration to develop solutions for global problems and challenges, such as climate change. For example, the World Meteorological Organization (WMO) helps governments and other organizations throughout the world track climate change and gather the information needed to make decisions, set policies, and take action to combat the impacts of climate change.

Organizations use processes such as business analysis, problem-solving, and decision-making for global innovation, and these same processes are used for internal and local issues. With global innovation, these organizational processes have a broader scope as they are applied to the global marketplace and this is covered in-depth in Chapter 11 Global Information Systems. In addition, Chapter 10 Emerging Technologies and Frontiers of Information Systems explores topics relevant to global innovation including emerging technology, the evolving frontiers of IS, and the future of technology and its impacts on IS.

Future Technology

Artificial Intelligence: Theory in Action

Technology changes rapidly, and IS professionals must stay abreast of technological advances, understanding the impact that these have on IS. For example, consider artificial intelligence. AI has many potential benefits for IS, including improvements in efficiency for the processes to gather, store, and manage data. AI also presents a number of serious challenges such as privacy concerns as AI often gathers data without the individual’s consent. AI is rapidly evolving and will be an important part of the future of IS. The advent of AI also provides an example of why continuing education is so important. With continuing education, IS professionals can ensure that they are prepared to handle the future, regardless of what technological changes and challenges face them.

Global Initiatives in Information Systems

As technology advances throughout the world, IS must continue to evolve. The key topics IS professionals are following include artificial intelligence, machine learning, 5G and the Internet of Things, edge computing, and blockchain.

  • The ability of machines and computers to act, reason, and learn, continuing to develop and evolve, is called artificial intelligence. AI has various applications for IS. For example, AI can help process and manage data, making IS more efficient. This includes automating processes and reducing errors, ensuring that organizations have more accurate and reliable data for decision-making and other purposes. AI also can help organizations detect security threats and identify security issues more quickly, making it easier to protect an organization’s information.
  • The type of AI that allows machines to imitate human thought by improving and learning from experiences without explicit instructions or programming is called machine learning. ML also is evolving and changing the way IS is managed. For example, ML promotes more efficient and accurate processing of the data analytics and documentation needed in IS. As with AI, ML also can help with cybersecurity.
  • During the advancement of 5G, the fifth generation of cellular network technology, and the Internet of Things (IoT), the network that connects everyday physical objects to the internet, enabling them to collect and share data with other devices or systems, IS is experiencing changes, such as the faster exchange of information and greater network connectivity. IoT also helps with real-time data collection and automation, which can improve the information available for IS.
  • The distributed computing framework that allows data storage closer to the source of data, rather than a centralized cloud or server, is called edge computing. It is continually advancing, giving IS greater options for storing and processing data.
  • The shared ledger that records transactions and is maintained through linked computers in a peer-to-peer network is called blockchain. Originally developed in 2008 for Bitcoin, it allows information systems more ways to store and share data with increased efficiency and security.

As technology advances, IS faces more risks, and this creates additional challenges to cybersecurity. Cybercriminals and cyberattacks are on the rise. According to the Federal Bureau of Investigation, 2023 saw a record number of complaints about cybercrimes, with over 880,000 complaints and financial losses exceeding $12.5 billion. This was a 10 percent increase in complaints and a 22 percent increase in financial losses compared to the previous year.4 Fighting cybercrime and developing better cybersecurity to handle technological advances is an important global initiative for IS professionals throughout the world.

Footnotes

  • 4Internet Crime Complaint Center, Internet Crime Report (Federal Bureau of Investigation, 2023), https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf
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