Management Information Systems - Class Note # 1

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Management Information Systems - Class Note # 1

Prof. Yuan-Shyi Peter Chiu Feb. 2012

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Chapter 1

Managing the Digital Firm 1.1 Why Information Systems？ 1.2 Contemporary Approaches to Information System

1.3 Toward the Digital Firm: The New Role of Information Systems

in Organizations

1.4 Learning to Use Information Systems: New Opportunities with Technology

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1.1 Why Information Systems

Four powerful worldwide changes have altered the business environment ：

Emergence of the Global Economy

Transformation of Industrial Economies

Transformation of the Business Enterprise

The Emerging Digital Firm

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Management & control in a global marketplace

Competition in world markets

Global work groups

Global delivery systems

Globalization


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Knowledge- and information-based economies

New products and services

Knowledge ： A central productive and strategic asset

Time-based competition Shorter product life Turbulent environment Limited employee knowledge base



6Fig 1-1: The growth of the information economy

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Flattening Decentralization Flexibility Location Independence Low Transaction & Coordination Costs Empowerment Collaborative work and teamwork

Transformation of the Enterprise


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Digitally enabled relationships with customers, suppliers, and employees

Core business processes accomplished via digital networks

Digital management of key corporate assets Rapid sensing and responding to environmental

changes

Emergence of the Digital Firm


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Emergence of the Global Economy


Transformation of the Business Enterprise

The Emerging Digital Firm

10Fig 1-3: Function of an information system

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Using information system effectively requires an understanding of the Organization , Management , Information Technology

Fig 1-4

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Organization

People Structure Operating procedures Politics Culture

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Major Organizational Functions

Sales & Marketing Manufacturing Finance Accounting Human Resources

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Major Organizational Functions

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Management

set the organizational strategy allocate the financial resources allocate the human resources coordinate the work leadership create new products or new services re-create organization from time to time

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Technology

tools to managers glue that holds the organization together Computer hardware Computer software Storage technology Telecommunications technology Information technology Infrastructure

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1.2 Contemporary Approaches to Information Systems

Technical approach Behavioral approach

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Fig 1-5: Contemporary approaches to information system.

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Technical approach

Theories of computability Methods of computation Methods of efficient data storage and access

Models for decision making Management practices

Computer science

Management science

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Technical approach

Mathematical techniques for optimizing selected parameters of organizations, such as transportation, inventory control, etc.

Operations research

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Behavioral Approach

Sociology

Psychology

Economics

Development of systems System affect individual, groups,

and organization.

How human decision makers perceive

and use formal information .

Impacts to firm and within markets － on control － cost structures

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Socio-Technical Systems

SOURCE: Liker, et al, 1987Figure 1-6

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Optimize systems performance:

Technology and organization

Organizations mutually adjust to one another until fit is satisfactory

Socio-Technical Systems

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1.3 Toward the Digital Firm:The New Role of I.S. in Organizations

The widening scope of I.S. The network revolution and the internet

New options for organizational design: The Digital Firm and the Collaborative

Enterprise

The Digital Firm: E-commerce, E-business, and New Digital

Relationships▲2

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Fig 1-7: The interdependence between organizations and information systems

1.3.1 The widening scope of I.S.1.3.1 The widening scope of I.S.

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Fig 1-8: The widening scope of information systems .

1.3.1 The widening scope of I.S.1.3.1 The widening scope of I.S.

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Information Systems

It affects the organization and its employees, and how they can make business more competitive and efficient .

It has become essential for creating competitive firms, managing global corporations, and providing useful products and services to customers.

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What you can do on the internet?

Communicate & collaborate

Access information

Participate in discussions

Supply information

Find entertainment

Exchange business transactions

1.3.2 The network revolution and the internet1.3.2 The network revolution and the internet

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INTERNET

International network of networks that is a collection of hundreds of thousands of private and public networks.

World Wide Web (WWW)

A system with universally accepted standards for storing, retrieving, formatting, and displaying information in a networked environment.

1.3.2 The network revolution and the internet1.3.2 The network revolution and the internet

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1.3.3 New Options for Organizational Design1.3.3 New Options for Organizational Design

The Digital Firm and the Collaborative Enterprise

Flattening Organizations and the Changing Management Processes

Separating Work from Location

Reorganizing Work Flows

Increasing Flexibility of Organizations

Redefining Organizational Boundaries

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32Figure 1-9

Flattening Organizations Information Systems


33Figure 1-10

Redesigned Work Flow For Insurance Underwriting


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E-commerce, E-business, and New Digital Relationships

Electronic market

A marketplace that is created by computer

and communication technologies that link

many buyers and sellers .

1.3.4 The Digital Firm1.3.4 The Digital Firm

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Electronic Commerce The process of buying and selling goods and

services electronically involving transactions

using the internet, networks, and other digital

technologies.

Internet Links Buyers, Sellers

Lower Transaction Costs

Goods & Services Advertised, Bought, Exchanged

Worldwide

Business-to-Business Transactions Increasing


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Intranet An internal network based on Internet and

World Wide Web technology and standards.

Electronic Business The use of the Internet and other digital

technology for organizational communication and coordination and the management of the firm.


37Figure 1-11

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1.4 Learning to Use Information Systems: 1.4 Learning to Use Information Systems: New Opportunities with TechnologyNew Opportunities with Technology

Challenge of Information Systems:Key Management Issues

Strategic: competitive & effective Globalization: multinational info Info architecture: support goals Investment: value of information Responsibility & control: ethics

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Figure 1-12

Information Architecture and Information Technology Infrastructure

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HOMEWORK Chap. 1 HOMEWORK Chap. 1 #1 Describe four trends in the global business environment

that have made information systems so important.

#2 What are the organization, management, and technology dimensions of information systems?

#3 Name and describe major organizational functions.

#4 Distinguish major disciplines of the behavior and the technical approach to information systems.

#5 Describe briefly what information systems are.

#6 Describe some of the major changes that information systems are bringing to organizations.

#7 Define E-Commerce, E-Business, and Intranet.

#8 What are the key management challenges involved in building, operating, and maintaining information systems today?

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Management Information Systems - Class Note # 1