The Critical Role of informati

The Critical Role of informati The Critical Role of Information Systems Today?s information systems are both technical and social in nature. Management must understand the importance of information within the organization. It is management?s job to understand how information is collected, processed, and distributed. We are all extremely affected by information systems and must be willing to understand and work with them. Our global economy does not allow us to depend on face to face transactions like in the 1980?s. Today, few managers can ignore the importance and impact of how information is handled by their organization. Information systems play a critical role in today?s business organization and society (Laudon 5).Since the emergence of the global economy, the success of firms today and in the future depends on their ability to operate globally. The American economy depends on imports and exports. Foreign trade, both imports and exports accounts for a little over 25 percent of goods and services produced in th e United States, and even more in countries like Japan and Germany.Financial Management SystemThis percentage is currently and will continue to grow in the future (5).Globalization of the world?s industrial economies greatly enhances the value of information to the firm and offers new opportunities to businesses. Today, information systems provide the communication and analytic power that firms need to conduct trades and manage businesses on a global scale. Globalization and information technology also brings new threats to domestic business firms. This is brought on by the customer?s ability to shop in a worldwide marketplace, obtaining the price and quality information reliably, 24 hours a day. The worldwide market place brings competition to a higher level than ever before, forcing all businesses to play a part in this global economy. In order to become a profitable player in a worldwide market firms, need powerful information...