1. (I) Digital firm is one in which nearly all of the organization’s important business relationships with customers, suppliers, employees and other external partners carried out electronically. In firms which are operating digitally, the core business processes are completed through digital networks and step across whole organization.
(II) It is because digital firm is more flexible than traditional firm. In digital firms, the right idea is that by allowing business to be conducted at any time (time shifting) and any place (space shifting). Digital firms are completely suited for global operations that take place in distant locations and very different time zones.

2. Information systems are so essential today. In many industries, it is inconceivable that without substantial investments in information systems. Information technology plays a critical role in increasing productivity and efficiency. Furthermore, it pushes firms to create new products, services and business model. In order to have a good relationship with both customers and suppliers, using IT can help to keep track of guests’ preferences and serve customers and suppliers well, which will lead to raise revenues and lower cost. Making decision accurately is very important; otherwise poor outcomes will raise costs and lose customers. In that time, information systems and technologies have made it possible for managers to use real-time data from the marketplace and can quickly allocate repair resources to affected areas. If firms use IT to achieve one or more of business objectives, it means they have already achieved a competitive advantage that their competitors cannot match. Therefore, information systems and technologies are very useful to achieve the six strategic business objectives.

3. (I)The information system is composed by the computer hardware, networking and telecommunications equipment, computer software, information resources, information users and regulations to deal with the flow of information for the purpose of human-computer integration system. Its five basic functions are input, storage, process, output, and control. It also provides feedback to meet an objective.
(II) Information systems cover services related to hardware and software computing. Hardware is the physical devices included in the network, computers and peripherals. Software includes applications and databases. Technology is a term used to cover all the hardware and software used in information systems.

(III) For example, UPS invests heavily in information systems technology to make its business more efficient and customer oriented. It uses an array of IT including bar code scanning systems, wireless networks and many different pieces of software for tracking packages etc…
Technology helps to achieve the strategic business objectives and enables data to seamlessly flow throughout UPS and helps streamline the workflow at UPS.

4. Firstly, we use computer to search the books we want, if that is not borrowed by others, and then we can select the books we want. After that we give our ID card to administrator of library, he inputs our personal information to register that we borrow that book. This is the process of borrowing the book from library.
Input : the data of student ID card, such as student’s name, ID number, the name of the book.
Process: computers store these data and process them to record who borrow the book
Output: the date we borrow the book and the due day we should return it back.