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8/14/2019 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
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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
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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.
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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
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Grading
Your grade will be determined as follows:
• Interim Assessment 30%• Examination 70%
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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
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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.
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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
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Management Information SystemsMANAGING THE DIGITAL FIRM, 12 TH EDITION
INFORMATION SYSTEMS INBUSINESS TODAY
Chapter 1
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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
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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
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
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
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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)
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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.
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• Competitive advantage – Delivering better performance
– Charging less for superior products
– Responding to customers and suppliers in realtime
– Examples: Apple, Walmart, UPS
The Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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 Role of Information Systems in Business Today
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
The Role of Information Systems in Business Today
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
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
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
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Perspectives on Information Systems
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
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Perspectives on Information Systems
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
© Prentice Hall 201127
M I f i S
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• Organizational dimension of informationsystems
– Hierarchy of authority, responsibility• Senior management• Middle management• Operational management• Knowledge workers• Data workers• Production or service workers
Perspectives on Information Systems
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M I f i S
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Perspectives on Information Systems
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
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M I f i S
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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M t I f ti S t
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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M t I f ti S t
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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M g t I f ti S t
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Perspectives on 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
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Perspectives on Information Systems
Variation in ReturnsOn InformationTechnologyInvestmentAlthough, on average,
investments in informationtechnology produce returns farabove those returned by otherinvestments, there isconsiderable variation acrossfirms.
Figure 1.8
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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)
Perspectives on Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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
Perspectives on Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Contemporary Approaches to Information Systems
ContemporaryApproaches toInformation Systems
The study of informationsystems deals with issues and
insights contributed fromtechnical and behavioraldisciplines.
Figure 1.9
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• Technical approach – Emphasizes mathematically based models –
Computer science, management science,operations research• Behavioral approach
–
Behavioral issues (strategic business integration,implementation, etc.) – Psychology, economics, sociology
Contemporary Approaches to Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• 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)
Contemporary Approaches to Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• Approach of this book:Sociotechnical view• Optimal organizational performance
achieved by jointly optimizing bothsocial and technical systems used inproduction
• Helps avoid purely technologicalapproach
Contemporary Approaches to Information Systems
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
Contemporary Approaches to Information Systems
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
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Management Information Systems
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Management Information SystemsCHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY
• Discuss your views on: – Perspectives on Information
Systems – Contemporary Approaches to
Information Systems – The Role of Information
Systems in Your CompanyToday
GROUP DISCUSSION