1、1.,*,1,Chapter,Information Systems in Global Business Today,LEARNING OBJECTIVES,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Understanding the effects of information systems on business and their relationship to globalization.,Explain why information systems
2、 are so essential in business today.,Define an information system and describe its management,organization,and technology components.,Define complementary assets and explain how they ensure that information systems provide genuine value to an organization.,Describe the different academic disciplines
3、 used to study information systems and explain how each contributes to our understanding of them.,Explain what is meant by a,sociotechnical,systems perspective.,LEARNING OBJECTIVES(Continued),Management Information Systems,Chapter 1 Information Systems in Global Business Today,CASE STUDY,:NBA Teams
4、Make a Slam Dunk with Information Technology,Problem:,Lack of hard data usable in decision-making processes,costly and competitive market.,Solutions:Developed a new system,designed to collect and organize data using video clips of games.,Synergy Sports Technology,tags video of each game with hundred
5、s of descriptive categories and allows coaches and players to stream game footage from the Web.,Demonstrates ITs role in innovation and improving business processes.,Illustrates how the Web has allowed businesses to use new tools to analyze critical data.,Management Information Systems,Chapter 1 Inf
6、ormation Systems in Global Business Today,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,Information Technology Capital Investment,Figure 1-1,Information technology investment,defined as hardware,software,and co
7、mmunications equipment,grew from 32%to 51%between 1980 and 2008.,Source,:Based on data in U.S.Department of Commerce,Bureau of Economic Analysis,National Income and Product Accounts,2008.,The Role of Information Systems in Business Today,1.1.1 How information systems are transforming business,Increa
8、se in wireless technology use,Web sites,Shifts in media and advertising,New federal security and accounting laws,1.1.2 New contents of IS,1.1.3 Globalization,opportunities,Internet has drastically reduced costs of operating on global scale,Presents both challenges and opportunities,Management Inform
9、ation Systems,Chapter 1 Information Systems in Global Business Today,1.1.4 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,Greater fle
10、xibility in organization and management(Time shifting,space shifting),Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,Read the Interactive Session and then discuss the following questions:,What are the advantages
11、 of using videoconferencing technologies?What are the disadvantages?,What is,telepresence,and what sorts of companies are best suited to use it as a communications tool?,What kinds of companies could benefit from using videoconferencing?Are there any companies that might not derive any benefits from
12、 this technology?,Virtual Meetings:Smart Management,The Role of Information Systems in Business Today,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,Management Information Systems,Chapter 1 Information Systems i
13、n Global Business Today,The Interdependence Between Organizations and Information Technology,In contemporary systems there is a growing interdependence between a firms information systems,and its business capabilities.Changes in strategy,rules,and business processes increasingly require changes in h
14、ardware,software,databases,and telecommunications.Often,what the organization would like to do depends on what its systems will permit it to do.,Figure 1-2,1.1.5 Business firms invest heavily in information systems to achieve six strategic business objectives:,Operational excellence,New products,ser
15、vices,and business models,Customer and supplier intimacy,Improved decision making,Competitive advantage,Survival,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,1.Operational excellence,Improvement of efficiency
16、to attain higher profitability,Information systems,technology an important tool in achieving greater efficiency and productivity,Wal-Marts RetailLink system links suppliers to stores for superior replenishment system,Management Information Systems,Chapter 1 Information Systems in Global Business Tod
17、ay,The Role of Information Systems in Business Today,2.New products,services,and business models,Business model:describes how company produces,delivers,and sells product or service to create wealth,Information systems and technology a major enabling tool for new products,services,business models,Exa
18、mples:Apples iPod,iTunes,and iPhone,Netflixs Internet-based DVD rentals,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,3.Customer and supplier intimacy,Serving customers well leads to customers returning,which r
19、aises revenues and profits,Example:High-end hotels that use computers to track customer preferences and use to monitor and customize environment,Intimacy with suppliers allows them to provide vital inputs,which lowers costs,Example:J.C.Penneys information system which links sales records to contract
20、 manufacturer,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,4.Improved decision making,Without accurate information:,Managers must use forecasts,best guesses,luck,Leads to:,Overproduction,underproduction of goo
21、ds and services,Misallocation of resources,Poor response times,Poor outcomes raise costs,lose customers,Example:Verizons Web-based digital dashboard to provide managers with real-time data on customer complaints,network performance,line outages,etc.,Management Information Systems,Chapter 1 Informati
22、on Systems in Global Business Today,The Role of Information Systems in Business Today,5.Competitive advantage,Delivering better performance,Charging less for superior products,Responding to customers and suppliers in real time,Example:Toyota and TPS(Toyota Production System)enjoy a considerable adva
23、ntage over competitors information systems are critical to the implementation of TPS,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,6.Survival,Information technologies as necessity of business,May be:,Industry-l
24、evel changes,e.g.Citibanks introduction of ATMs,Governmental regulations requiring record-keeping,Examples:Toxic Substances Control Act,Sarbanes-Oxley Act,Management Information Systems,Chapter 1 Information Systems in Global Business Today,The Role of Information Systems in Business Today,Informati
25、on system:,Set of interrelated components,Collect,process,store,and distribute information,Support decision making,coordination,and control,Information vs.data,Data are streams of raw facts,Information is data shaped into meaningful form,Perspectives on Information Systems,Management Information Sys
26、tems,Chapter 1 Information Systems in Global Business Today,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information,such as
27、the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.,Figure 1-3,Data and Information,Information system:,Three activities produce information organizations need,Input,:Captures raw data from organization or external environmen
28、t,Processing,:Converts raw data into meaningful form,Output,:Transfers processed information to people or activities that use it,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Perspectives on Information Systems,Management In
29、formation Systems,Chapter 1 Information Systems in Global Business Today,An information system contains information about an organization and its surrounding environment.Three basic activitiesinput,processing,and outputproduce the information organizations need.Feedback is output returned to appropr
30、iate people or activities in the organization to evaluate and refine the input.Environmental actors,such as customers,suppliers,competitors,stockholders,and regulatory agencies,interact with the organization and its information systems.,Figure 1-4,Functions of an Information System,Feedback,:,Output
31、 returned to appropriate members of organization to help evaluate or correct input stage,Computer/Computer program vs.information system,Computers and software are technical foundation and tools,similar to the material and tools used to build a house,Perspectives on Information Systems,Management In
32、formation Systems,Chapter 1 Information Systems in Global Business Today,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Using information systems effectively requires an understanding of the organization,management,and inform
33、ation technology shaping the systems.An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.,Figure 1-5,Information Systems Are More Than Computers,Organizational dimension of information systems,Hierarchy of authority,res
34、ponsibility,Senior management,Middle management,Operational management,Knowledge workers,Data workers,Production or service workers,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Perspectives on Information Systems,Management
35、 Information Systems,Chapter 1 Information Systems in Global Business Today,Business organizations are hierarchies consisting of three principal levels:senior management,middle management,and operational management.Information systems serve each of these levels.Scientists and knowledge workers often
36、 work with middle management.,Figure 1-6,Levels in a Firm,Organizational dimension of information systems(cont.),Separation of business functions,Sales and marketing,Human resources,Finance and accounting,Manufacturing and production,Unique business processes,Unique business culture,Organizational p
37、olitics,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Management dimension of information systems,Managers set organizational strategy for responding to business challenges,In addition,managers must act creatively:,Creation
38、of new products and services,Occasionally re-creating the organization,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Technology dimension of information systems,Computer hardware and software,Data management technology,Netwo
39、rking and telecommunications technology,Networks,the Internet,intranets and extranets,World Wide Web,IT infrastructure:provides platform that system is built on,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Read the Interact
40、ive Session:Technology,and then discuss the following questions:,What are the inputs,processing,and outputs of UPSs package tracking system?,What technologies are used by UPS?How are these technologies related to UPSs business strategy?,What problems do UPSs information systems solve?What would happ
41、en if these systems were not available?,UPS Competes Globally with Information Technology,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Dimensions of UPS tracking system,Organizational:,Procedures for tracking packages and m
42、anaging inventory and provide information,Management:,Monitor service levels and costs,Technology:,Handheld computers,bar-code scanners,networks,desktop computers,etc.,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,1.2.3 Busi
43、ness perspective on information systems,Information system is instrument for creating value,Investments in information technology will result in superior returns:,Productivity increases,Revenue increases,Superior long-term strategic positioning,Perspectives on Information Systems,Management Informat
44、ion Systems,Chapter 1 Information Systems in Global Business Today,Business information value chain,Raw data acquired and transformed through stages that add value to that information,Value of information system determined in part by extent to which it leads to better decisions,greater efficiency,an
45、d higher profits,Business perspective,:Calls attention to organizational and managerial nature of information systems,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Perspectives on Information Systems,Management Information S
46、ystems,Chapter 1 Information Systems in Global Business Today,From a business perspective,information systems are part of a series of value-adding activities for acquiring,transforming,and distributing information that managers can use to improve decision making,enhance organizational performance,an
47、d,ultimately,increase firm profitability.,Figure 1-7,The Business Information Value Chain,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,Although,on average,investments in information technology produce returns far above thos
48、e returned by other investments,there is considerable variation across firms.,Figure 1-8,Variation in Returns on Information Technology Investment,Investing in information technology does not guarantee good returns,Considerable variation in the returns firms receive from systems investments,Factors:
49、Adopting the right business model,Investing in complementary assets(organizational and management capital),Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Business Today,1.2.4 Complementary assets,Assets required to derive value from a prim
50、ary investment,Firms supporting technology investments with investment in complementary assets receive superior returns,E.g.:invest in technology,and,the people to make it work properly,Perspectives on Information Systems,Management Information Systems,Chapter 1 Information Systems in Global Busines