Chapter-1 (MIS) : Introduction of MIS in present days
- 1. Management Information Systems Chapter-1 INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY
- 2. Information Systems Information System (IS): A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. Set of interrelated components Collect, process, store, and distribute information Support decision making, coordination, and control 2
- 3. How information systems are transforming business Increase in wireless technology use, Web sites Increased business use of Web 2.0 technologies (user-generated content, usability, and interoperability.) Cloud computing, mobile digital platform allow more distributed work, decision-making, and collaboration 3
- 4. Web2.0 4
- 5. Cloud computing The practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. 5
- 6. Globalization opportunities The process by which businesses or other organizations develop international influence or start operating on an international scale. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Internet has drastically reduced costs of operating on global scale Presents both challenges and opportunities 6
- 8. 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 8
- 9. Objective of IS Investment • Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals • Business firms invest heavily in information systems to achieve six strategic business objectives: 1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival 9
- 10. Importance of information – Without accurate information: • Managers must use forecasts, best guesses, luck • Leads to: – Overproduction, underproduction of goods and services – Misallocation of resources – Poor response times • Poor outcomes raise costs, lose customers 10
- 11. The Interdependence Between Organizations and Information Technology 11
- 14. Organizational dimension of information systems – Hierarchy of authority, responsibility • Senior management • Middle management • Operational management • Knowledge workers • Data workers • Production or service workers 14
- 15. Organizational dimension of information systems (cont.) 15
- 16. 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 politics 16
- 17. Management dimension of information systems – Managers set organizational strategy for responding to business challenges – In addition, managers must act creatively: • Creation of new products and services • Occasionally re-creating the organization 17
- 18. Technology dimension of information systems – Computer hardware and software – Data management technology – Networking and telecommunications technology • Networks, the Internet, intranets and extranets, World Wide Web – IT infrastructure: provides platform that system is built on 18
- 19. Business 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 19
- 20. Business perspective on information systems (cont.) • 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, and higher profits • Business perspective: – Calls attention to organizational and managerial nature of information systems 20
- 21. The Business Information Value Chain 21
- 22. Variation in Returns On Information Technology Investment 22
- 23. Business perspective on information systems (cont.) • Investing in information technology does not guarantee good returns • Considerable variation in the returns firms receive from systems investments • Factors: – Adopting the right business model – Investing in complementary assets (organizational and management capital) 23
- 24. Complementary assets Assets required to derive value from a primary 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 24
- 25. Complementary assets (cont.) • Complementary assets include: – Organizational assets, e.g. • Appropriate business model • Efficient business processes – Managerial assets, e.g. • Incentives for management innovation • Teamwork and collaborative work environments – Social assets, e.g. • The Internet and telecommunications infrastructure • Technology standards 25
- 26. Contemporary Approaches to Information Systems 26
- 27. Contemporary Approaches to Information Systems • Technical approach – Emphasizes mathematically based models – Computer science, management science, operations research • Behavioral approach – Behavioral issues (strategic business integration, implementation, etc.) – Psychology, economics, sociology 27
- 28. Management Information Systems • Management Information Systems – Combines computer science, management science, operations research and practical orientation with behavioral issues • Four main actors – Suppliers of hardware and software – Business firms – Managers and employees – Firm’s environment (legal, social, cultural context) 28
- 29. Contemporary Approaches to Information Systems Approach of this book: Sociotechnical view Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production Helps avoid purely technological approach 29
- 30. A Sociotechnical Perspective on Information Systems 30