SBM4301 Report: Analyzing Innovation in Information Systems

This report provides an analysis of innovation and technological trends in modern information systems (IS). It begins by defining information systems and highlighting their sociotechnical components, then discusses the concept of innovation and its technological extensions. The report identifies key trends in IS innovation, including the increasing importance of tech solutions for communication, cybersecurity enhancements, personalized marketing, social media advertising, and the rise of artificial intelligence. The core of the report focuses on cloud computing as a significant technological innovation, detailing its services (IaaS, PaaS, SaaS), benefits (cost reduction, improved agility, scalability), and impact on businesses, including financial institutions. It explains the advantages of cloud computing, such as reduced IT infrastructure costs and increased efficiency and scalability, while also acknowledging potential challenges. The report emphasizes the role of cloud computing in virtualization, data management, and providing access to a wide range of resources, ultimately concluding that cloud computing enhances operational speeds and efficiency for modern organizations.

Running head: INNOVATION AND NEW TECHNOLOGIES
INNOVATION AND NEW TECHNOLOGIES
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
Analysis of the current trends in IS innovation..............................................................5
Particular technological innovation that is implemented in information system.......5
Conclusion......................................................................................................................8
References......................................................................................................................9

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Introduction
Information systems are considered to be sociotechnical, formal systems of the
organizations that are mainly designed for the purpose of collecting, processing, storing and
distributing relevant information. From the sociotechnical perspective information based
systems consist of four major components that include, people, task, technology and structure
(Anderson 2016). A computer based information system is considered to be a system that is
composed of the computers and peoples that is able to process or interpret the information.
Information systems is defined as an academic study of the systems with reference to the
complementary networks and information based on software and hardware which people and
the organizations use for collecting, filtering, processing, creating and distributing data as
well (Azar and Ciabuschi 2017).
The report will be based on the analysis of innovation and technological trends that
are implemented as a part of the information systems in modern organizations. The impact of
different trends on the use of technology in the information systems will be discussed in the
report in detail. One major trend related to IS innovation will also be identified and analysed
in the report in order to understand its impact on the information systems that are used in
modern organizations.
Innovation can be defined as a new idea, new imagination or a creative thought that is
in the form of a method or device. Innovation can also be viewed as the implementation of
solutions which are able to meet the new requirements, existing the market needs and the
unarticulated needs. This type of innovation can take place through provision of the
processes, products, technologies, services, governments, society and market. Innovation can
also be defined as the process of production, assimilation and exploitation of the value-added

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novelty based on social and economic perspectives. The enlargement and renewal of services,
products and markets are all a part of innovation (Bogers, Chesbrough and Moedas 2018).
Technological innovation is considered to be an extended version of process of
innovation. Technological innovation is able to add some major steps that are implemented in
the process of development of new services and products in the market that can address the
needs and solve the problems that are faced by the organization. Technological innovation on
the other hand mainly focusses on different technological aspects of a particular service or
product instead of covering entire business model of the company (Cascio and Montealegre
2016).
Technology has been able to play a major role in proper development of the
operations of small and large business organizations. The efficiency levels and growth of the
business is influenced by the proper implementation of technology. The different trends in
modern business environment are as follows,
 Tech solutions have become necessary in the modern business organizations in
order to develop communication. The levels of communication that are
developed among the employees of modern organizations are considered to be
important for linking different platforms. The proper unification of different
platforms is able to save time for the organization, that in turn is able to
increase the levels of efficiency (Del Giudice 2016).
 Cyber security is another major factor that has an impact on the usage of
technology in the information systems of different organizations. Technology
is being used widely in order to enhance the levels of cyber security in modern
organizations. The use of technology has been able to play a major role in
improving cyber security in an effective manner (Eggers and Park 2018).

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 Personalized marketing and the social media influencers have been able to
play a major role in development of a viable avenue for formation of proper
connection with the customers and also showcasing the products. The business
organizations need to be dynamic in the ways by which marketing related
operations are completed. The collaboration with influencers is considered to
be an important aspect that is related to the proper connection that is
developed with the customers. The authenticity levels in advertisements is
required in order to convince the consumers. Personalized marketing h is able
to support the development communication with the customers and
understanding their needs as well (Hashem et al. 2015).
 Social media advertisements are also considered to be a major part of the
current trends that prevail in the modern business environment. The
organizations can use the different social media platforms in order to develop
an effective communication with the customers. The relationships that are
developed by the organization with customers are an important part of the
position that is formed by them in the industry (Nagy, Schuessler and
Dubinsky 2016).
 Artificial intelligence has gained major levels of importance in the current
business environment. The personalized experiences that are provided that are
provided to the customers are affected in a positive manner by the
implementation of artificial intelligence. The efficiency of business operations
is increased with support that is provided by artificial intelligence (Palacios-
Marqués, Merigó and Soto-Acosta 2015).
The different IT based trends have come into existence currently in order to improve
the levels of growth of the organizations. The speed of operations and efficiency of the

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modern organizations are also enhanced with the help of modern technologies. Emerging
technologies mainly include different types of technologies that include, information
technology, educational technology, nanotechnology, cognitive science, robotics, artificial
intelligence and robotics (Ratten 2016).
Analysis of the current trends in IS innovation
Particular technological innovation that is implemented in information system
As discussed by Rittinghouse and Ransome (2017), cloud computing is a major trend
that is able to affect the information systems of the organizations and enhance the operating
speeds as well. The proper utilization of computing services is considered to be an important
factor that affect the software and hardware of the organizations. The services of computing
devices are provided to the users with the help of a network. Cloud computing is able to
provide three major types of services that include, Infrastructure as a Service (IaaS), Platform
as a Service (PaaS), Software as a Service (SaaS) (Sharma et al. 2016). Some of significant
benefits that are offered by cloud computing are,
Cloud computing is able to reduce the IT infrastructure related costs of the
organizations.
Cloud computing can promote the concept based on virtualization that further
enables the storage device and server that can be utilized in different
organizational operations.
Cloud computing is able to make the maintenance of the hardware and
software easy to be installed and it is not needed on the computers of different
end users (Astri 2015).
According to Chang, Kuo and Ramachandran (2016), cloud computing can also be
defined as the on-demand based availability of resources that are a part of the computer

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systems that can also include, computing power and data storage. The users are also able to
manage the computing systems with the support that is provided by the management of the
organizations. The data centres that are developed by the organizations are used by the
consumers over the internet with the proper implementation of cloud computing. The large
cloud based computers that are currently used by the organizations are used by the
organization in different locations from the central servers (Chou 2015). The close
connection of users with the cloud computing activities is able to support in the development
of edge server. Clouds can be limited to a single organization or they can also be used by
different organizations that are a part of the developed cloud. Cloud computing mainly relies
on the proper sharing of the resources in order to achieve the economies of scale and levels of
coherence as well (Hashem et al. 2015).
Cloud computing can be based on the proper usage of different services like, the
software development based platforms, software and storage, servers and over the internet as
well. The sharing of services is able to affect the ways by which the organizations can
develop clouds with the help of the internet access. Cloud computing is based on different
characteristics that are as follows,
Back-end of an application is managed completely by the cloud vendors.
The users pay only for the services that are used by the consumers.
The services are scalable in nature (Ratten 2016).
As discussed by Hashem et al. (2015), the advancements that are currently taking
place in cloud computing have an impact on the ways by which virtualization is used by the
modern organizations. The ability that has been developed based on pay on demand and the
scale is considered to be a result of the cloud computing vendors. The requirements related to
storage are considered to be an important aspect that are related to the cloud computing based

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activities. The organizations can however face some major issues after the implementation of
cloud computing. Banks have started using cloud computing in order to enhance the speed of
operations and levels of efficiency as well (Astri 2015).
According to Chang, Kuo and Ramachandran (2016), the applications related to cloud
computing are helpful in sharing the photos to different users who are able to support the
critical operations of the business organizations. The cloud services based platform also
offers rapid access to the low cost and flexible IT based resources. The requirement of capital
and levels investments is quite low and the organizations are also able to maintain the
operations with the low levels of capital (Cascio and Montealegre 2016). The management of
software and hardware is supported in a huge manner by the implementation of cloud
computing. The size and type of computing resources have to support the development of
new ideas that are required in order to operate IT department. The access to different
resources is increased due to the proper implementation of cloud computing (Chou 2015).
Cloud computing is able to provide the organizations with access to the high levels of
storage, servers, databases and the broad set of applications as well. The cloud service
provider is like the Amazon Web Services mainly owns and maintains network-connected
hardware which is required for different application services.
The different benefits that are provided by the usage of cloud computing are as
follows,
Agility – The cloud allows organizations in order to innovate faster and
increase the focus on the valuable IT based resources for the development of
applications that can differentiate the business and also transform the
experiences of the customers. The proper management of data centres and
infrastructure of the organizations is also possible with the support that is

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provided by proper cloud computing. The organizations will also be able to
access a wide range of technology like, computing, storage, analytics, machine
learning and database with the help of cloud computing (Bogers, Chesbrough
and Moedas 2018).
Deploying globally within minutes – Cloud computing can also provide
support in order to deploy the resources on a global basis with the help of a
few clicks. This also means that the company can satisfy the customers at
minimal levels of costs.
Elasticity – The business operations can be handled by the management with
at the peak activity levels with the implementation of cloud computing. The
needs of consumers can be fulfilled in a flexible manner with the usage of
proper resources (Hashem et al. 2015).
Cost savings – The capital requirement and investments in the implementation
of cloud computing are low and the organizations are also able to enhance the
levels of profitability in the process.
Amazon Web Services are able to provide major cloud computing based services to
organizations that are a part of different industries. The efficiency and operating speeds of the
organizations can be increased effectively with the help of usage of cloud computing
(Rittinghouse and Ransome 2017).
Conclusion
The report can be concluded by stating that technologies have become a major part of
the proper development of information systems that are implemented in the modern business
organizations. The proper usage of disruptive technology is able to provide flexibility and
huge amounts of resources to the organizations. The high access to technologies can play a

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major role in the ways by which the organizations are able to maintain their profitability
levels and provide proper services to the customers as well.

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References
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