Lecture 2 MGMT 6180 - © 2012 Houman Younessi What ARE Information Systems?

Lecture 2

MGMT 6180 - © 2012 Houman Younessi

What ARE Information Systems?

Lecture 2


Strategic INFORMATION SYSTEMS Management

Information

Data

Information

Insight

Facts

Knowledge

Wisdom

Although Information Systems are called “information” systems, they have to operate at the “data” level also, AND they are being set up and used at

the “insight” level.

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This patient is a carrier of Familial Hyperinsulinism

Perhaps he/she wishes to think hard about having a child with another FHI patient

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System

A system is an integrated set of parts that produces emergent properties.

A systems may be:

NaturalA ConceptAn automaton A human activity Any mix of the four above

An information system is a mix of concepts, human activities and potentially automation

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Information System

An information system does not need to involve (certainly not electronic) computers.

It is important to distinguish between Information Systems and Information Technology

Information Technology is the technology that supports an information system when the latter includes automation. It provides the “automation”.

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Information System

When Information Systems are used as a persistent component of achieving organizational aims, they are often called Management Information Systems.

The term “management” refers to the activity of leading an organization to its objectives and not to individuals at higher levels of organizational hierarchy with bigger desks.

So a “Management Information System” may help on the factory floor, on the loading docks, in the research laboratory or anywhere else where such systems assist the attainment of organization objective.

It will be of such an information system that we will speak.

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Information System

No information or insight, therefore no knowledge or wisdom will be possible without initially gathering data to secure facts.

The obtaining, retaining, organizing, manipulating, presenting, archiving and discarding data however is a very labor intensive task that lends itself very well to automation.

Automation has become a progressively important and remains an almost integral part of any modern “Management Information

System”

We will concentrate on information systems that are significantly supported by automation (i.e. information technology)

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Information System

So, a strategic management information system is a system that uses a formalized

set of inter-related procedures, technologies and concepts (e.g. a

system) to provide the organization potentially (where used) at all levels and all functions with appropriate information

(and progressively, insight) based on data from both internal and external sources, to enable timely and effective decision

making for planning, directing or controlling the organization towards its

strategic goal.

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Information System

Thus all information systems may be “strategic” or not. That an information system is strategic is NOT a feature of the system itself but of how it is used.

If the link between how the system as used and the goal of the organization as intended is obscure, the system is likely not being used in (an at least efficiently) strategic

fashion

Example: Production of an invoice

The relationship of producing an invoice to the overall strategic goal of the system may be obscure (as it usually is), as such it cannot be used as a strategic tool. It becomes an operation and, as such, the invoice production system becomes an operation information system. Once we know clearly how it relates to the strategic aims, we can control how, when, to whom, where etc. the invoice may be addressed. This may (or may not be), strategically important.

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Information System

So, an information system is strategic if the relationship between its function and the overall goal of the organization is clear. But how clear, is clear?

One important function (perhaps the most important function) of information systems are to make this link as clear as possible.

This does not mean that the CEO will look at individual invoices every day. But it does mean that there should be a clear and easily traceable way for information of interest to the CEO (say next quarter’s revenue forecasts) and invoices in the pipeline (if that is what is needed).

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Information System

Despite volumes written in the literature claiming the contrary,

Information Systems CANNOT give you a strategic edge

People (Decisions) Can

People who:

Champion and commission them, Design them, Operate them, “Client” them

Therefore it is ABSOLUTELY CRITICAL to understand the human aspects of an information

system(even before we

understand the technology side)

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Information System

Any human activity system, including all information systems have at most the following three categories of stakeholders:

Owners,

Actors,

Clients

Those who can initiate or stop the system

Those who design or operate the system

The beneficiaries or the victims of the system

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Information System

At the highest level of a typical strategic information system

Owners: Board/CXO

Clients: users, customers, suppliers, government, etc.

Actors: the IS department

Organization(the StrategicIS System)

but looks can be deceiving

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Owners: Board/CXOPolicy on priorities

BudgetMonitoring

Clients:NeedsPreferencesReactionEconomic influence

Actors: The IS departmentOptionsDesignsCost/benefitOperation



Information System

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Owners: Board/CXOIll-Informed about IS

Uneasy and uncertainReluctant to get involved

Clients:ImpatientExpectations to highUnwilling (or too eager) to participateTechnology mismatch (incompatible technology between us and them)

Actors: The IS departmentOperational outlook (lack of strategic vision)

Defensive (of the IS department)

Conservative (not willing to explore new technology)



Information SystemDifficult to Initiate and

manage

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Information System

Main Critical Success Factors are:

Vision, commitment and backing of OWNERS Patience and cooperation of CLIENTS Competence, vision and courage of ACTORS

Let us take a plunge

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Information System

This course discusses not only how Information Systems can assist

organizations in achieving their strategic goals, but also how to formulate and

execute strategies of effectively managing them.

Documents

Lecture 2 MGMT 6180 - © 2012 Houman Younessi What ARE Information Systems?