Chapter 1

Information Systems in Global Business Today

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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today LEARNING OBJECTIVES

Explain why information systems are so essential in business today. Define an information system from both a technical and a business perspective. Identify and describe the three dimensions of information systems.

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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today LEARNING OBJECTIVES (Continued)

Assess the complementary assets required for information technology to provide value to a business. Identify and describe contemporary approaches to the study of information systems and distinguish between computer literacy and information systems literacy.

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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today
IPL teams strike Gold with Information Technology

Problem: : Traditional cricket game failed to provide all the details associated with every play, Lack of hard data usable in decisionmaking processes, costly and competitive market. Solutions: Developed a new system designed to collect and organize data using video clips of games, (sports mechanics) by Ramki Sports Mechanics has made it possible to collect and organize finegrained statistical data to relate the data to associated video clips Each game is dissected and tagged, play by play, using hundreds of descriptive categories and these data are linked to high resolution videos .

Helps coaches to analyze the strengths and weaknesses of individual players

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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today

How information systems are transforming business

IT capital investment defined by hardware, software, and communication equipment grew from 35 to 54 percent of all invested capital. Information systems are the foundation for conducting business today. In many industries, survival and even existence is difficult without extensive use of information technology.

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2007 by Prentice Hall

The Role of Information Systems in Business Today

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.
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Management Information Systems

Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today

Information Technology Capital Investment

Information technology investment, defined as hardware, software, and communications equipment, grew from 34% to 50% between 1980 and 2004.
Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2006.

Figure 1-1
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2007 by Prentice Hall

The Role of Information Systems in Business Today Whats New in MIS? Technology
Cloud Computing More powerful, energy efficient computer processing and storage devices Growth in software as a service (SaaS) Netbooks emerge as a growing presence in the PC marketplace

Management
Managers adopt online collaborations Social networking software to improve cocordination, collaboration, and knowledge sharing Managers have smartphonesand mobile internet devices Virtual meeting prolferation

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The Role of Information Systems in Business Today Whats New in MIS? Organizations Web 2.0 applications are widely adopted Telework gains momentum in workplace Outsourcing productions

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2007 by Prentice Hall

The Role of Information Systems in Business Today

Globalization opportunities
Avoid markets for goods and services which can be produced offshore much less expensively What does globalization have to do with management IS? The answer is : EVERYTHING.

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The Role of Information Systems in Business Today

The Emerging digital firm Digital Firm: nearly all the significant business relationships with customers, suppliers, and employees are digitally enabled. Core business processes are accomplished through digital networks spanning.

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2007 by Prentice Hall

 Core business processes

Set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these are organized and coordinated . Examples: developing a new product, generating and fulfilling an order, creating a marketing plan, and hiring an employee.

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 Key corporate assets- intellectual property, core competencies, and financial and human assets

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The Role of Information Systems in Business Today

Strategic business objectives of information systems

1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival

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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today The Role of Information Systems in Business Today

The Interdependence Between Organizations and Information Technology

Figure 1-2
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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

What is an information system?

Difference between IT and IS

Dimensions of information systems
Organizations

Management
Technology

It isnt just a technology: A Business perspective on information systems Complementary assets: Organizational capital and the right business model
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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

Data and Information

Figure 1-3
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2007 by Prentice Hall

FUNCTION OF AN INFORMATION SYSTEMS

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2007 by Prentice Hall

Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

Information Systems Are More Than Computers

Using information systems effectively requires an understanding of the organization, management, and information 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
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ORGANIZATION

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FUNCTION Sales and Marketing Manufacturing and Production Finance and Accounting Human resources

PURPOSE
Selling the organization product and services
Producing and delivering products and services Managing the organization financial assets and records Attracting, developing and maintaining the labor force; maintaining employees records
2007 by Prentice Hall

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Key Elements of an Organization People Structure Operating Procedures Politics Culture

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MANAGEMENT
Managers job is to :
Make decisions Formulate action plans Perceive environment challenges Set organizational strategies for these challenges Allocate financial and human resources But they must also create new products and sevices recreate organization from time to time

IS can play a powerful role in helping managers design and deliver new products and services.

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TECHNOLOGY
Computer hardware Computer software Data management technology (storage facility) Networking and telecommunications technology Networks the Internet-most widely used network intranets and extranets World Wide Web- service provided by the Internet for strong, displaying, formatting and retrieving data IT infrastructure

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Management Information Systems

Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems

UPS Competes Globally with Information Technology Read the Interactive 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 happen if these systems were not available?
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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

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Management Information Systems

Chapter 1 Information Systems in Global Business Today Contemporary Approaches to Information Systems

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 - takes into account the

very nature of human beings. Nothing is totally black and white. Therefore the behavioral approach to the same equation would be 2 + 2 = maybe 4 or perhaps 3.5 to 5.5, but well have to put it before the committee and see what the last quarters figures say.
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2007 by Prentice Hall

 Neither approach is better than the other, depending on the situation. Neither approach is more right than the other, depending on the situation. Approach of this text: Sociotechnical systems
Combination of two approaches-responsibility of information belongs to both techies and non techies Optimize systems performance: Technology and organization Organizations mutually adjust to one another until fit is satisfactory

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2007 by Prentice Hall