Mgt Info Systems - Session 2

8/13/2019 Mgt Info Systems - Session 2

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Management

Information SystemsSESSION 2 - STRATEGIC INFORMATION SYSTEMS


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Assignment

Case Study

You are the Senior Manager of a major wireless telecommprovider. Your main competitor in this industry haannounced that they will be releasing a new generatiservice that will significantly increase internet access

wireless devices (e.g. smartphones, tablets)

In the last Board Meeting, you were chosen to determinyour company should also consider deploying a similar snew generation service is based on an entirely new technas such will require customers to buy new wireless devices


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Assignment

The Board has a few concerns:

High cost associated with replacement of IT equipment and syst Will this new technology be readily adopted by customers

Is this the technology of the future?

Will the competitor be stealing your customers?

Requirements:Submit a report of 1500 words for the Board discussing the benefits of ysuggested plan of action and risks associated to it.

How long to wait?

Adopt / Ignore the new technology

What information will you look at for the basis of your decision


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Assignment

Being a senior manager, you have access to various resou corporate database

Information on billing, customers

Marketing team

Information on the IT infrastructure

DEADLINE: 16thNovember 2013


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Evolution of IS

The earliest IS developed in the 1960s

Evolution from local business environmto emerging interconnected ones

Enterprises with blurred boundaries anincreasing interconnections


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Evolution of Information Systems

Eras of IS: Data Processing (1960s +)

Management Information Systems (1970s +)

Strategic Information Systems - SIS (

Inter-organisational Operating Syste/ Extended Business Networks(1990s


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Data Processing Era

Automate business processes

Focus on Processing predefined transact

Purchase Orders, Customer Orders, Payroll

Limitations: Only processing transaction data

Did not meet information needs of managers

hoc reports


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MIS Era

Data stored across the organisation +flexible and user friendly tools

Development of IS that support manadecision making

New capabilities of IS

Enquiry (searching database)

Analysis (what-if scenarios)


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SIS Era

Aim:

improving an organisations competitive

changing the way business is conducted

Establishing links to business partners and SIS

Flexible, externally focused, driven by busrequirements and customer requirements


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IOS / Extended Business Networks

Extend between two or more organiswith distinct structures, strategies, busprocesses, IT infrastructure

Added complexity: important allianclinkages to suppliers and business par


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Key Characteristics of SIS

Significantly changes business performance Contributes to attaining a strategic goal (e

increase sales volume by a percentage)

Fundamentally changes the way the organdoes business

Dealing with suppliers, customer

Changing the way it competes

e.g. a supermarket developing a cyberstore (ASDSainsburys)


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Objectives, Decisions andInformation

InformationManager

How do we determine what informationa

manager needs?

Informationdetermined by decisions

How do we determine what decisionsneed tobe taken?

Decisionsdetermined by Objectives

ObjectivesDecisionsInformation Needs


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Objectives, Decisions andInformation

Example

Objectiveis to increase net profit by 50%

Decisions?

Which products should be emphasised?

Do we buy the product externally?

Where do we get the informationto formulatethe decisions?

From MIS

E.g. How well each product is selling


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Levels of Decision Making

Decision

Strategic (Top management)

Tactical (Middle management)

Operational (Lower level management)


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Strategic

Establish objectives for organisation andrange plans to attain objective

e.g. decision on location of plants, sourcapital, which products to produce


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Tactical

Implement decisions made at strategic lev

Allocate resources to pursue organisation o

e.g. plant layout, budget allocation, personnel cproduction scheduling


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Operational

Executing specific tasks and assuring they are

out effectively and efficiently

e.g. accepting/rejecting, determining inventory reo

and quantity, assigning jobs to workers


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Characteristics of Levels of DecisionMaking

Characteristic Operational Tactical Strat

Degree ofjudgement

Low Moderate High

Planning

Decisions

Few About Half Mos

Problem Variety Low Moderate High

Time Horizon Days Months Year


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Characteristics of Information

Information

Characteristic

Operational Tactical Strate

Dependence on IS High Low Low t

Dependence onInfo Summarisation

Very low Moderate High

Need for computergraphics

Low Moderate High

Use of Real Timeinfo

Very high High Mode

Use of Predictiveinfo

Low High Very


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Decision Support Systems (DSS)

In the past, MIS have provided routine,structured and anticipated types of info

Less successful in providing unstructured

decisions

DSS

An extension of MIS

Set of computer tools to allow decision ma

retrieve info for unstructured decisions


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Components of a DSS

Language System

Procedurallanguage

Non ProceduralLanguage

Problem Processing

System

ManagementScience Models

Graphics Spreadsheet Financial

Functions

Knowledge Syst

Expert System DBMS

Allows users tointeract with DSS

PerformProcessing Tasks

Provides dataAI capabilitiethe DSS


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Components of a DSS

Procedural language: User provides logicasolve problem

Non-procedural language: User specifiescharacteristics of the problem (query) ; DS

determines logical steps to provide info

Management Science models: regressionanalysis

Expert system: provides advice and expla

advice where necessary


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Benefits of Expert System

Improve Consistency and Accuracy of de

Documentation of the Rationale

Documents

Mgt Info Systems - Session 2