Chapter 1 The role of information systems in business today Information systems are the foundation for conducting business today In many industries survival and even existence is difficult without extensive use of information technology No longer can we imagine going to work and conducting bus ID: 736070
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Slide1
Information Systems in Global Business Today
Chapter 1Slide2
The role of information systems in business today
Information systems are the foundation for conducting business today. In many industries, survival and even existence is difficult without extensive use of information technology. No longer can we imagine going to work and conducting business without them. As a society we have come to rely extensively on the use of information appliances such as cell phones,
BlackBerrys
, handhelds and other hardware. Communicating and conducting business is increasingly being carried out through the use of e mail, online conferencing and international teleconferencing. Internet technologies have become essential business tools.Slide3
What’s new in management information systems
In the technology area there are three interrelated changes:
T
he emerging mobile digital platform ( think
iPhones
, BB, and tiny Web-surfing
netbooks
)
The growth of online software as a service
The growth in “cloud computing” where more and more business software runs over the Internet. Slide4
Management information system (
Mis
)
Change
Impact
Cloud
computing platform emerges as a major business area of innovation
A flexible collection of computers
on the Internet begins to perform tasks.
Growth
in software as a service
Major business applications are now delivered online
A mobile digital
platform emerges to compete with the PC as a business system
Apple opens its
iPhone
software to developers, and then opens an applications store on iTunes where business users can download hundreds of applications.
Managers adopt online collaboration and social networking software to improve coordination,
collaboration and knowledge sharing
Google
Apps, Google Sites, Microsoft’s Windows
Sharepoint
ServicesSlide5
Change
Impact
Virtual
meetings proliferate
Managers adopt
telepresence
video conferencing
and Web conferencing
Web 2.0 applications
are widely adopted by firms
Web based services
enable employees to interact as online communities using blogs etc
Telework
gains momentum in the workplace
The
internet,
woreless
laptops,
iPhones
and
BlackBerrys
make it possible for growing numbers of people to work away from the traditional office.
Outsourcing
production
Firms learn to use
the new technologies to outsource production work to low wage countries.Slide6
Globalization challenges and opportunities: a flattened world
A growing percentage of the economy of India and other advanced countries in South East Asia depends on imports and exports, Foreign trade, as a percentage of GDP was over 25% in 2006, up from 14.1% percent in 1990-91.
It’s not just goods that move across borders. So to do jobs, some of them high level jobs that pay well and require a college degree.
On the plus side, a recent
Nasscom
- CRISIL report, “The Rising Tide- Output and Employment Linkages of IT-
ITeS
,” says the industry is expected to create about 11 million jobs by 2010, and employment in information systems and the other service occupations listed above, has expanded in sheer numbers, wages, productivity and quality of workSlide7
A good discussion of six important business objectives, why businesses have become so dependant on information systems today and the importance of these systems for the survival of a firm: Operational excellence, new product and business models
and Competitive
A
dvantage Survival
.Slide8
What does globalization have to do with management information systems
?
That’s simple: everything.
The emergence of the Internet into a full blown international communications system has drastically reduced the costs of operating and transacting on a global scale.Slide9
Emerging digital firm
Digital Firm: All of the organization’s significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.
Business processes: It refers to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.Slide10
Digital firm
In the emerging fully digital firm:
Significant business relationships are digitally enabled and mediated
Core business processes are accomplished through digital networks
Key corporate assets are managed digitally
Digital firms offer greater flexibility in organization and management
Time shifting (24/7), space shifting (eBay, General Motors)Slide11
Why businesses have become so dependant on is?
Operational Excellence
New Products, Services, and Business Models
Customer and Supplier Intimacy
Improved decision making
Competitive Advantage
SurvivalSlide12
What is an information system?
An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization
By information we mean data that have been shaped into a form that is meaningful and useful to human beings. Data, in contrast, are streams of raw facts representing events occurring in organizations or the physical environment before they have been organized.Slide13
Data and information
Raw data from the super market can be processed to get useful informationSlide14
Functions of an information system
Regulatory Agencies
Stock Holders
Competitors
Suppliers
CustomersSlide15
Dimensions of information systems
The three themes; management, organizations and technology
Understanding the interaction between these factors and the information systems is known as information system literacy.
Knowing how to optimize the relationship between technology, organizations, and management is the purpose of this course.Slide16
Information systems are more than computersSlide17
Levels in a firm
Senior management makes long term strategic decisions about products and services as well as ensures financial performance of the firm
Middle management carries out the programs and plans of their seniors
Operating management is responsible for daily activities of a businessSlide18Slide19
Major business function
Function
Purpose
Sales and marketing
Selling the organization’s products and services
Manufacturing and production
Producing
and delivering
Finance and Accounting
Managing financial assets and maintaining financial records
Human resources
Attracting,
developing and maintaining the labor force and maintaining employee recordsSlide20
Management
Management’s job is to make sense out of the many situations faced by organizations, make decisions, and formulate action plans to solve organization problems
Technology
Computer Hardware
Computer Software
Data Management Technology
Networking and telecommunications technologySlide21
Network: It links two or more computers to share data or resources, such as a printer
Internet: It is the world’s most widely used network
Intranets: Internal corporate networks based on Internet technology. Private intranets extended to authorized users outside the organization are called extranets
WWW: Provided by the Internet that uses universally accepted standards of storing, retrieving, formatting, and displaying information in a page format on the net.Slide22
Contemporary approaches to information systems
MIS
Computer Science
Operations Research
Sociology
Economics
Psychology
Management ScienceSlide23
An overview of complementary assets
The study of information systems deals with issues and insights contributed from technical and behavioral disciplines. The disciplines that contribute to the technical approach are computer science, management science, and operations research, the disciplines contributing to the behavioral approach are psychology, sociology and economicsSlide24
Technical Approach
After all, everything in a computer is ultimately reduced to a zero or a one. So using the technical approach, you could say that 2+2=4
Behavioral Approach
The behavioral approach on the other hand, takes into account the very nature of human beings. Nothing is totally black and white.
Neither approach is better than the otherSlide25
Socio technical systems
Throughout this book you will find a rich story with four main actors: suppliers of hardware and software (the technologists); business firms making investments and seeking to obtain value from the technology; managers and employees seeking to achieve business value (and other goals); and the contemporary legal, social, and cultural context (the firm’s environment)
The study of MIS arose in the 1970s to focus on the use of computer based information systems in business firms and government agencies.Slide26
A sociotechnical
perspective on information systems
Technology
Alternative 1
Alternative 2
Alternative 3
Alternative 1
Alternative 2
Alternative 3
Final Design
Of Technology
Final Design
Of
Organization
Organization