Week 01 - Topic 01 - Information Systems in the 2010s

John von Neumann Institute - Vietnam National University Ho Chi Minh CityInformation Technology for ManagersBMIT5103 Information Technology for ManagersBMIT5103

Week 01 - Topic 01

INFORMATION SYSTEMS IN THE 2010s

BMIT5103 Course

Information Technology for Managers

Dr. Huy Nguyen


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STUDY GUIDE

TOPIC 01Information Systems in the 2010s

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Learning outcomes:

1. Role of IT in optimising performance;

2. Why the business value of IT is determined by people, business

processes & organisational culture;

3. Role of IT in BPM & the performance measurement process;

4. Strategic planning process, SWOT analysis & competitive models;

5. How IT impacts your career & the positive outlook for IS management

careers.


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Topics overview:

1. Importance of being an agile enterprise;

2. Capability of IT in improving profitability by enabling ways to connect

with & push content through social networks & mobile devices;

3. Factors which determine the business value of IT & IS;

4. BPM cycle & its challenges;

5. Support of IT in enabling an organisation to respond towards business

pressure;

6. SWOT analysis & strategic planning analysis;

7. Porters competitive forces & value chain model;

8. Importance of learning IT.


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No Focus areas Assigned readings

1 Positioning IT to optimise performance Chapter 1, pp 5 - 8

2 Core concepts of IS & IT Chapter 1, pp 8 - 11

3Business performance management &

measurementChapter 1, pp 12 - 15

4 Strategic planning & competitive models Chapter 1, pp 16 - 21

5 Why IT is important to your career & IT careers Chapter 1, pp 22 - 24


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AGENDA

Positioning IT to optimise performance

Core concepts of IS & IT

Business performance management & measurement

Strategic planning & competitive models

Why IT is important to your career & IT careers

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POSITIONING IT TO OPTIMISE PERFORMANCE

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Characteristics of an agile organisation;

Opportunities created by the mass migration of users from PCs to

mobile devices;

Ways to assess the value of an innovation;

Doing business with a comprehensive business model.


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AGILITY & MOBILITY

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Identify and capture opportunities more quickly than rivals;

Adapt rapidly because of struggling economic recoveries andadvances in mobile technology;

IT in the hands of customers:

Adapt to market conditions and gain a competitive edge;

Mobile market opportunities:

Connect with public and private networks, to access digital content fromanywhere at any time, and to get work done.


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BUSINESS INNOVATION & DISRUPTION OF

THE STATUS QUO

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Value of innovation:

Generates new profit pools;

Increases demand for products and services;

Attracts new customers;

Opens new markets;

Sustains the business for years to come.

Transforms those IT commodities into competitive assets;

Improve employee performance and profit margins.


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BUSINESS MODELS

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Method of doing business by which a company can generate sales

revenue and profit to sustain itself;

How the company creates or adds value in terms of the goods or

services the company produces;

A comprehensive business model includes:

Products and services;

Business process;

Customers;

Resources;

Supply chain;

Business partners;

Revenue model.


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CORE CONCEPTS OF IS & IT

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Generic definition & four basic functions of an IS;

Components of an IS;

Major capabilities of IS & supported business objectives.


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GENERIC DEFINITION & FOUR BASIC

FUNCTIONS OF AN IS

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Collect, process, store, analyze, and distribute information for aspecific purpose or objective;

Basic functions:

Input;

Processing;

Output;

Storage.


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COMPONENTS OF AN IS

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Hardware;

Software;

Data;

Network;

Procedures;

People.


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MAJOR CAPABILITIES OF IS & SUPPORTED

BUSINESS OBJECTIVES

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Major capabilities:

Perform high-speed, high-volume, numerical computations;

Provide fast, accurate communication and collaboration unrestricted by time andlocation;

Store huge amounts of information that is accessible via private networks and theInternet;

Automate semiautomatic business processes and manually done tasks;

Enable automation of routine decision making and facilitate complex decision making.

Supported business objectives:

Improve productivity (productivity is a measurement or the ratio of inputs to outputs);

Reduce costs and waste;

Improve the ability to make informed decisions;

Facilitate collaboration;

Enhance customer relationships;

Develop new analytic capabilities;

Provide feedback on performance.


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BUSINESS PERFORMANCE MANAGEMENT &

MEASUREMENT

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Definition of performance management & ways to manage

performance;

Performance management process;

Business environmental pressures & their impact;

Organisational responses to pressure & opportunities;

Green IT to reduce carbon & energy footprints;

Ethical issues.


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BUSINESS PERFORMANCE MANAGEMENT & MEASUREMENT

DEFINITION OF PERFORMANCE MANAGEMENT

& WAYS TO MANAGE PERFORMANCE

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Requirements to manage performance:

Measurable;

Right indicators.

Performance measurement process:

Decide on desired performance levels;

Determine how to attain the performance levels;

Periodically assess where the organization stands with respect to its goals,

objectives, and measures;

Adjust performance and/or goals.

Business environmental pressures;

Impact of business environment factors;

Green IT to reduce carbon and energy footprints;

Ethical issues.


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BUSINESS PERFORMANCE MANAGEMENT & MEASUREMENT

BUSINESS ENVIRONMENTAL PRESSURES &

THEIR IMPACT

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STRATEGIC PLANNING & COMPETITIVE MODELS

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Definition of strategic analysis (SWOT);

Strategic planning;

Porters competitive forces model & strategies;

Adaptive & innovative organisations;

IS & IT failures.


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DEFINITION OF STRATEGIC ANALYSIS (SWOT)

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Scanning and review of the political, social, economic, and technicalenvironment of the organization;

Rules to perform a SWOT analysis:

Be realistic about the strengths and weaknesses of your organization;

Be realistic about the size of the opportunities and threats;

Be specific and keep the analysis simple, or as simple as possible;

Evaluate your companys strengths and weaknesses in relation to thoseof competitors (better than or worse than competitors);

Expect conflicting views because SWOT is subjective, forward-looking,and based on assumptions.


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STRATEGIC PLANNING

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Strategy responds:

What is the long-term direction of our business?

What is the overall plan for deploying our resources?

What trade-offs are necessary? What resources will it need to share?

What is our position vis--vis competitors?

How do we achieve competitive advantage over rivals in order toachieve or maximize profitability?


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PORTERS COMPETITIVE FORCES MODEL & STRATEGIES

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Basic of Competitive forces model:

Profit = Total revenue Total cost

Profit margin = Selling price Cost of the item


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PORTERS VALUE CHAIN MODEL

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ADAPTIVE & INNOVATIVE ORGANISATIONS

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Value chain => value system => value network;

Real-time, on-demand IT support;

Innovation and creativity;

Information systems failures.


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WHY IT IS IMPORTANT TO YOUR CAREER & IT

CAREERS

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IT defines & creates businesses & markets;

IT as a career;

Earning in the IT field;

IT job prospects.


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WHY IT IS IMPORTANT TO YOUR CAREER & IT CAREERS

IT AS A CAREER

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Nature of IS and IT work;

Typical IT careers:

CTO;

CIO;

IT architect;

IT manager;

IT project manager

Careers aligned between business and IT work:

Enterprise architect;

Business architect, data architect


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WHY IT IS IMPORTANT TO YOUR CAREER & IT CAREERS

MANAGEMENT ISSUES

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Recognizing opportunities for using IT and Web-based systems forstrategic advantage and threats associated with not using them;

Who will build, operate, and maintain the information systems?

How much IT?

What social networking activities should be pursued?

How important is IT?

Globalization;

Ethics and social issues.


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Content summary:

- Positioning IT to optimise performance:

Characteristics of an agile organisation;

Opportunities created by the mass migration of users from PCs to mobile devices;

Ways to assess the value of an innovation;

Doing business with a comprehensive business model.

- Core concepts of IS & IT:

Generic definition & four basic functions of an IS;

Components of an IS;

Major capabilities of IS & supported business objectives.


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Content summary (cont.):

- Business performance management & measurement:

Definition of performance management & ways to manage performance;

Performance management process;

Business environmental pressures & their impact;

Organisational responses to pressure & opportunities;

Green IT to reduce carbon & energy footprints;

Ethical issues.

- Strategic planning & competitive models:

Definition of strategic analysis (SWOT);

Strategic planning;

Porters competitive forces model & strategies;

Adaptive & innovative organisations;

IS & IT failures.


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Content summary (cont.):

- Why IT is important to your career & IT careers:

IT defines & creates businesses & markets;

IT as a career;

Earning in the IT field;

IT job prospects.


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Study questions:

1. Explain the characteristics of an agile organisation;

2. Describe a business model and give one example;

3. Describe the building blocks of an IS;

4. Describe the impact of the business environment & describe ways for

an organisation to respond;

5. Explain Porters five forces model & give an example of each force;

6. Why IT is a major enabler of business performance & success;

7. How mobile technology has influenced opportunities for entrepreneurs;

8. How innovation can lead to profitable growth for businesses;

9. How green IT impacts the bottom line;

10. Why IS might fail.


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THANK YOU FOR YOUR ATTENTION !

NEXT TOPIC: IT INFRASTRUCTURE & SUPPORT SYSTEMS

Documents

Week 01 - Topic 01 - Information Systems in the 2010s