Management Information Systems - Class Note # 1

1. Management Information Systems - Class Note # 1 Prof. Yuan-Shyi Peter Chiu Feb. 2012

2. Chapter 1Managing the Digital Firm • 1.1Why Information Systems？ • 1.2Contemporary Approaches to Information System • 1.3Toward the Digital Firm:The New Role of Information Systems in Organizations • 1.4Learning to Use Information Systems: New Opportunities with Technology

3. 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

4. 1.1 Why Information Systems • Globalization • Management & control in a global marketplace • Competition in world markets • Global work groups • Global delivery systems

5. 1.1 Why Information Systems • Transformation of Industrial Economies • 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

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

7. 1.1 Why Information Systems • Transformation of the Enterprise • Flattening • Decentralization • Flexibility • Location Independence • Low Transaction & Coordination Costs • Empowerment • Collaborative work and teamwork

8. 1.1 Why Information Systems • Emergence of the Digital Firm • 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

9. 1.1 Why Information Systems • Emergence of the Global Economy • Transformation of Industrial Economies • Transformation of the Business Enterprise • The Emerging Digital Firm

10. Fig 1-3: Function of an information system

11. Using information system effectively requires an understanding of the Organization , Management , Information Technology Fig 1-4

12. Organization • People • Structure • Operating procedures • Politics • Culture ◆

13. Major Organizational Functions • Sales & Marketing • Manufacturing • Finance • Accounting • Human Resources

14. Major Organizational Functions

15. 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

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

17. 1.2 Contemporary Approaches to Information Systems • Technical approach • Behavioral approach

18. Fig 1-5: Contemporary approaches to information system.

19. Technical approach • Computer science • Theories of computability • Methods of computation • Methods of efficient data storage and access • Models for decision making • Management practices • Management science

20. Technical approach • Mathematical techniques for optimizing selected parameters of organizations, such as transportation, inventory control, etc. • Operations research

21. Behavioral Approach • 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 • Sociology • Psychology • Economics

22. Figure 1-6 SOURCE: Liker, et al, 1987 Socio-Technical Systems

23. Socio-Technical Systems Optimize systems performance: • Technology and organization • Organizations mutually adjust to one another until fit is satisfactory ◆

24. 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

25. 1.3.1 The widening scope of I.S. Fig 1-7: The interdependence between organizations and information systems

26. 1.3.1 The widening scope of I.S. Fig 1-8: The widening scope of information systems .

27. Information Systems • It affects the organization and its employees, and how they can make business more competitive and efficient . • It has become essential for creatingcompetitive firms, managingglobal corporations, and providinguseful products and services to customers.

28. 1.3.2 The network revolution and the internet What you can do on the internet? • Communicate & collaborate • Access information • Participate in discussions • Supply information • Find entertainment • Exchange business transactions

30. 1.3.2 The network revolution and the internet 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.

31. 1.3.3 New Options for Organizational DesignThe 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 ▲1

32. Figure 1-9 1.3.3 New Options for Organizational Design Flattening Organizations Information Systems

33. Figure 1-10 1.3.3 New Options for Organizational Design Redesigned Work Flow For Insurance Underwriting

34. 1.3.4 The Digital Firm Electronic market E-commerce, E-business, and New Digital Relationships • A marketplace that is created by computer and communication technologies that link many buyers and sellers .

35. 1.3.4 The Digital Firm 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

36. 1.3.4 The Digital Firm Electronic Business Intranet • An internal network based onInternetandWorld Wide Webtechnology and standards. • The use of the Internet and other digital technology for organizational communication and coordination and the management of the firm.

37. Figure 1-11

38. 1.4 Learning to Use Information Systems: New 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

39. Figure 1-12 Information Architecture and Information Technology Infrastructure

40. 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? ~ THE END ~