Final answer:
Information systems have grown in importance due to globalization, which increases global competition; communication technology, which improves business operations; internet and e-commerce, which change consumer patterns; the shift to an information economy, focusing on digital goods; and advanced MIS, which support managing large-scale operations.
Step-by-step explanation:
The role of information systems in competitive business environments has been significantly enhanced by several technology and business trends. Here are five noteworthy ones:
- Globalization: Companies now compete on a global scale due to the connectivity provided by the internet, which allows businesses to reach customers worldwide and increases competition from all corners of the globe.
- Communication technology: Advances in email, video conferencing, and real-time messaging have revolutionized the way businesses communicate internally and externally, enabling more streamlined operations and customer engagement.
- Internet and E-commerce: The growth of online shopping and services has created new markets and transformed existing ones, allowing firms to operate online wholly or partially and changing consumer buying patterns.
- Information Economy: With the digitization of products such as music and films and the growth of online industries, businesses have shifted from traditional manufacturing to valuing and trading information and digital goods.
- Management Information Systems (MIS): Improved MIS help firms manage complex operations seamlessly across various locations, contributing to the potential growth in firm size and market control.
These trends underscore the dual possibility of a future business environment with more small competitors able to reach wider markets or a scenario where large firms dominate due to economies of scale and technological supremacy.