Final answer:
Borders is an example of a company that failed to update its information systems, which contributed to its inability to survive after the 2008-2009 economic recession. Borders' delayed entry into digital sales and e-commerce compared to competitors was a key factor in its downfall. This illustrates the vital importance of technology in maintaining business competitiveness.
Step-by-step explanation:
An example of a company that failed to survive due to the unwillingness or inability to update its information systems is Borders. Borders was a prominent bookstore chain that went out of business after the 2008-2009 economic recession.
The company's failure is often attributed to its delayed response to the digital transformation of the book industry. Unlike its competitors, Borders failed to develop its own e-commerce platform and digital book formats in time, which left it unable to compete with online retailers and digital marketplaces.
This situation underscores the importance of technological innovation in business. Many organizations depend heavily on their information systems and, when companies neglect their digital strategies or cannot adapt to new technologies quickly, they risk falling behind and become susceptible to negative impacts on their customers and revenues. This happened to Borders and led to their eventual demise.
Poor corporate governance and decision-making can also contribute to such failures. For instance, when companies make poor design decisions early on, it may hinder their ability to meet customer needs effectively.
Additionally, the intentional development of products with short lifespans by manufacturers, known as planned obsolescence, compels businesses and consumers alike to keep up with technological innovation, further highlighting the significant role of up-to-date information systems.