Laudon Mis12 Ppt01INTRO-L

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Dr. George O. Ofori-Dwumfuo, PhD, FBCS, JPMethodist University College GhanaInformation Technology Dept.

E-mail: [email protected] Tel: 024-488-5024

Management Information SystemsMBA – MIS Programme

mailto:[email protected]

mailto:[email protected]



Course Objectives

• Provide an understanding of – IS and underlying IT – Impact of IS on organisations – Implementation and management of IS – IS and global organisations

• Provide awareness of IS in your role as a

professional• Enable student evaluate common businessproblems and identify information technologysolution that could help an organization



Course Objectives (cntd)

• This course aims to provide managers who aretypically computer 'end- users‘ with an understandingof the management issues associated with ICT.

• The course explores aspects of ICT that aresignificant to corporate information systemsmanagement, including

– the integration of computer technologies, – business process re-engineering, – social and ethical issues, – and emerging issues relating to information

technology especially with regard to the role ofthe Internet and the digital firm in the modern

business.



Week Topic

1 Information Systems In Business Today

2 E-Business, Collaboration and Ethical Issues

3 Information Systems, Organisations and Strategy

4 IT Infrastructure and Emerging Technologies

5 Databases, Business Intelligence And Decision-Making6 Telecommunications, the Internet and Wireless Technology

7 Securing Information Systems

8 ---- I A ----

9 Operational Excellence, Customer Intimacy And Knowledge Management

10 E-Commerce: Digital Markets, Digital Goods

11 Building Information Systems

12Managing Projects and Global Systems

Management Information SystemsMBA – MIS Programme



Grading

Your grade will be determined as follows:

• Interim Assessment 30%• Examination 70%



Text Books

• Laudon, K.C. & Laudon, J.P. (2011). ManagementInformation Systems: Managing the Digital Firm , 12thEdition. Upper Saddle River, New Jersey: Prentice-HallInternational, Inc.

• Gerald V. Post, David L Anderson (2006). ManagementInformation Systems Solving Business Problems WithInformation Technology, 4 th Edition. McGraw Hill.

• Bocij, P., Chaffey, D., Greaseley, A., and Hickie, S. (2003).Business Information Systems: Technology, Development,and Management for e-business. 2nd Ed. Prentice-Hall



Apologies!!!

• This course is based mainly on the above-cited (ever-popular) book by Laudon and Laudon.

• The book is based mainly on what happens relating

to MIS outside of Ghana (mainly the USA).• Consequently, examples and scenarios are drawn

from that foreign environment.•

We hereby apologize for the lack of MIS relatedexamples from our Ghanaian environment.• We shall however be glad to get students furnishing

us with local examples.



Why Study this course

• Managers cannot survive today without technology.• As computers and software become more and more

powerful and take over an increasing number of jobs.•

You need to be the manager who knows how to usetechnology to move the company forward.• You do not want to be the manager who is replaced

by the technology



Management Information SystemsMANAGING THE DIGITAL FIRM, 12 TH EDITION

INFORMATION SYSTEMS INBUSINESS TODAY

Chapter 1



Management Information Systems

• The Role of Information Systems in BusinessToday

•

Perspectives on Information Systems• Contemporary Approaches to Information

Systems

Subtopics

© Prentice Hall 201110

CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY



Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY

• Information systems are transforming business – Increase in wireless technology use, Web sites – Increased business use of Web technologies – Various digital platforms allow more distributed

work, decision-making, and collaboration• Globalization opportunities

– Internet has drastically reduced costs of operating onglobal scale

– Presents both challenges and opportunities

The Role of Information Systems in Business Today






Information Technology Capital Investment

Information technology capital investment, defined as hardware, software, and communications equipment,grew from 32 percent to 52 percent of all invested capital between 1980 and 2009.

FIGURE 1-1





• In the emerging, fully digital firm – Significant business relationships are digitally

enabled and mediated – Core business processes are accomplished through

digital networks – Key corporate assets are managed digitally

•

Digital firms offer greater flexibility in organizationand management – Time shifting (business at any time), – space shifting (business at any place)






• There is growing interdependence between abilityto use IT and ability to implement corporatestrategies and achieve corporate goals

• Business firms invest heavily in information systemsto achieve six strategic business objectives:1. Operational excellence2. New products, services, and business models

3. Customer and supplier intimacy4. Improved decision making5. Competitive advantage6. Survival






• Operational excellence: – Improvement of efficiency to attain higher

profitability – Information systems, technology an

important tool in achieving greaterefficiency and productivity

– Eg: Walmart’s RetailLink informationsystem links suppliers to stores for superiorreplenishment system






• New products, services, and businessmodels:

–

Business model: describes how companyproduces, delivers, and sells product or service tocreate wealth

– Information systems and technology are a majorenabling tool for new products, services,business models

• Examples: Apple’s iPod, iTunes, iPhone, iPad,Google’s Android OS, and Netflix






• Customer and supplier intimacy: – Serving customers well leads to customers

returning, which raises revenues and profits•

Example: High-end hotels that use computers totrack customer preferences and use to monitorand customize environment

– Better communication with suppliers lowers costs – Intimacy with suppliers allows them to provide

vital inputs, which lowers costs• Example: J.C.Penney’s information system which

links sales records to contract manufacturer






• Improved decision making – Without accurate information:

• Managers must use forecasts, best guesses, luck•

Leads to: – Overproduction, underproduction of goods and services – Misallocation of resources – Poor response times

• Poor outcomes raise costs, lose customers – More accurate data leads to better decisions – Example: Verizon’s Web -based digital dashboard to

provide managers with real-time data on customer

complaints, network performance, line outages, etc.






• Competitive advantage – Delivering better performance

– Charging less for superior products

– Responding to customers and suppliers in realtime

– Examples: Apple, Walmart, UPS






• Survival of business – Information technologies as necessity of business –

May be:• Industry- level changes, e.g. Citibank’s

introduction of ATMs• Governmental regulations requiring record-

keeping – Examples: Toxic Substances Control Act, Sarbanes-

Oxley Act







The Interdependence Between Organizations and Information Technology

In contemporary systems there is a growing interdependence between a firm’s information systems and itsbusiness capabilities. Changes in strategy, rules, and business processes increasingly require changes inhardware, software, databases, and telecommunications. Often, what the organization would like to dodepends on what its systems will permit it to do.

Figure 1.2





• Information system: – Set of interrelated components – Collect, process, store, and distribute information – Support decision making, coordination, and control

• Information vs. data – Data are streams of raw facts – Information is data shaped into meaningful form

Perspectives on Information Systems






Data and Information

Raw data from a supermarket checkout counter can be processed and organized to produce meaningfulinformation, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for aspecific store or sales territory.

Figure 1.3





• Three activities of information systemsproduce information organizations need

1. Input: Captures raw data from organization orexternal environment

2. Processing: Converts raw data into meaningfulform

3. Output: Transfers processed information topeople or activities that use it






• Feedback: – Output returned to appropriate members of

organization to help evaluate or correct input stage• Computer/Computer program vs.

information system – Computers and software are technical foundation

and tools, similar to the materials and tools used tobuild a house



f





Functions of anInformation System

An information systemcontains information about anorganization and itssurrounding environment.Three basic activities —input,processing, and output —produce the informationorganizations need. Feedbackis output returned toappropriate people or activitiesin the organization to evaluateand refine the input.Environmental actors, such ascustomers, suppliers,competitors, stockholders, andregulatory agencies, interactwith the organization and itsinformation systems.

Figure 1.4


f





Information SystemsAre More ThanComputers

Using information systemseffectively requires an

understanding of theorganization, management,and information technologyshaping the systems. Aninformation system createsvalue for the firm as anorganizational andmanagement solution tochallenges posed by theenvironment.

Figure 1.5


M I f i S




• Organizational dimension of informationsystems

– Hierarchy of authority, responsibility• Senior management• Middle management• Operational management• Knowledge workers• Data workers• Production or service workers



M I f i S





Levels in a Firm

Business organizations arehierarchies consisting of threeprincipal levels: seniormanagement, middlemanagement, and operational

management. Informationsystems serve each of theselevels. Scientists andknowledge workers often workwith middle management.

Figure 1.6


M I f i S




• Organizational dimension of informationsystems (cont.)

– Separation of business functions• Sales and marketing• Human resources• Finance and accounting•

Manufacturing and production – Unique business processes – Unique business culture – Organizational politics



M t I f ti S t




• Management dimension of informationsystems

–

Managers set organizational strategy forresponding to business challenges – In addition, managers must act creatively:

• Creation of new products and services• Occasionally re-creating the organization



M t I f ti S t




• Technology dimension of informationsystems

–

Computer hardware and software – Data management technology – Networking and telecommunications technology

• Networks, the Internet, intranets and extranets,World Wide Web

– IT infrastructure: provides platform that systemis built on



M g t I f ti S t




• Business perspective on informationsystems:

–

Information system is instrument for creatingvalue – Investments in IT will result in superior returns:

• Productivity increases• Revenue increases• Superior long-term strategic positioning







• Business information value chain – Raw data acquired and transformed through

stages that add value to that information – Value of information system determined in part by

extent to which it leads to better decisions,greater efficiency, and higher profits

• Business perspective: – Calls attention to organizational and

managerial nature of information systems








The Business Information Value Chain

From a business perspective, information systems are part of a series of value-adding activities for acquiring,transforming, and distributing information that managers can use to improve decision making, enhanceorganizational performance, and, ultimately, increase firm profitability.

Figure 1-7







Variation in ReturnsOn InformationTechnologyInvestmentAlthough, on average,

investments in informationtechnology produce returns farabove those returned by otherinvestments, there isconsiderable variation acrossfirms.

Figure 1.8






• Investing in IT does not guarantee goodreturns

•

Considerable variation in the returns firmsreceive from systems investments• Factors:

–

Adopting the right business model – Investing in complementary assets

(organizational and management capital)







• Complementary assets: – Assets required to derive value from a

primary investment – Firms supporting technology investments

with investment in complementary assetsreceive superior returns

– E.g.: invest in technology and the people tomake it work properly







• Complementary assets include: – Organizational assets, e.g.

• Appropriate business model• Efficient business processes

– Managerial assets, e.g.• Incentives for management innovation•

Teamwork and collaborative work environments – Social assets, e.g.

• The Internet and telecommunications infrastructure• Technology standards







Contemporary Approaches to Information Systems

ContemporaryApproaches toInformation Systems

The study of informationsystems deals with issues and

insights contributed fromtechnical and behavioraldisciplines.

Figure 1.9






• Technical approach – Emphasizes mathematically based models –

Computer science, management science,operations research• Behavioral approach

–

Behavioral issues (strategic business integration,implementation, etc.) – Psychology, economics, sociology







• Management Information Systems – Combines computer science, management science,

operations research and practical orientation withbehavioral issues

• Four main actors – Suppliers of hardware and software – Business firms – Managers and employees – Firm’s environment (legal, social, cultural context)







• Approach of this book:Sociotechnical view• Optimal organizational performance

achieved by jointly optimizing bothsocial and technical systems used inproduction

• Helps avoid purely technologicalapproach








A Sociotechnical Perspective on Information Systems

In a sociotechnical perspective, the performance of a system is optimized when both the technology and theorganization mutually adjust to one another until a satisfactory fit is obtained.

Figure 1-10






• Discuss your views on: – Perspectives on Information

Systems – Contemporary Approaches to

Information Systems – The Role of Information

Systems in Your CompanyToday

GROUP DISCUSSION

Documents

Laudon Mis12 Ppt01INTRO-L