Beruflich Dokumente
Kultur Dokumente
Text Book:
Management
Information Systems: Managing the Digital Farm by Ken Laudon, Jane Laudon and Rajanish Dass, 11/e, Pearson Publication, 2010
Information Systems by James A ORrien, George M Marakas and Ramesh Behl, 9/e, McGraw Hill, 2010
Reference Material:
Management
Information Systems by Mahadeo Jaiswal and Monika Mital, Oxford Univ. Press, 2011 Decision Support and Business Intelligence Systems by Efraim Turban, Ramesh Sharda and Dursun Delen, 9/e, Pearson Publication, 2011 Information Technology Management by Henry C. Lucas, Jr. Tata McGraw-Hill Publication, 2011 Harvard Business Publication
Sessions Plan
Information system and its impact in business in todays scenarios Classification of types of information systems in an organization: Operational, MIS, DSS, ESS, ES Information Systems, Organizations and Strategies Emerging Technologies: Virtualization, Cloud Computing, SOA, BPM, Telecommunication and Wireless Technologies Enterprise Systems ERP, CRM, SCM, etc Data Management Systems: RDBMS, Data Warehousing, OLAP, Data Quality etc.
LEARNING OBJECTIVES
Explain why knowledge of information systems is important for business professionals and identify five key areas of information systems knowledge.
Give examples to illustrate how the IT Driven business applications can support a firms business processes, managerial decision making, and strategies for competitive advantage.
Information Systems in
LEARNING OBJECTIVES
Understanding the effects of information systems on business and their relationship to globalization. Explain why information systems are so essential in business today. Define an information system and describe its management, organization, and technology components.
Cricket is fast-paced, high-energy sport, high-stack with big business opportunity Each team in IPL pays their players ranging from 20 lakh to 2 crore per year Objective: Elegant performance for most of the players leads to more wins implies more money business opportunities for the team.
Problem: Lack of historical and statistical data match-wise, country-wise, player-wise hard data usable in decision-making processes, costly and competitive market.
A Company called Sport Mechanics providing the solution for requirement. 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 hundreds 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.
RECENT NEWS
IT Wave / Infrastructure IT and Communication resources are more Virtual, Visual, Social, Mobile and Video enabled than before
have allowed MIT to use their Open Courseware through NPTEL (National Programme for Technology Enhanced Learning)
Increase in wireless technology use, Web sites Resource Optimization (ERP and SCM) Shifts in media and advertising New federal security and accounting laws
Globalization opportunities Internet has drastically reduced costs of operating on global scale Presents both challenges and opportunities
Information technology investment, defined as hardware, software, and communications 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.
Significant business relationships with customers, suppliers and employees are digitally enabled and mediated Core business processes are accomplished through digital networks within or across organizations Key corporate i.e., IP, Financial, Human assets etc. are managed digitally
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:
Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival
Operational excellence:
Improvement of efficiency 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
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
Examples: Apples iPod, iTunes, and iPhone, Netflixs Internet-based DVD rentals
Serving customers well leads to customers returning, which raises revenues and profits
Example: High-end hotels that use computers to track customer preferences like room temperature, check-in time, frequent dialed number, television channels etc. 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 manufacturer
Overproduction, underproduction of goods and services Misallocation of resources Poor response times
Example: Verizons Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc.
Operational excellence:
Improvement of efficiency to attain higher profitability Enabled by technology Serving customers raises revenues and profits Better communication with suppliers lowers costs More accurate data leads to better decisions
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 advantage over competitors information systems are critical to the implementation of TPS
Survival
Information
technologies as necessity of
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 hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
Implement Business Strategies to obtain Business Goal Business Operation for optimize resources and performances Extended Business Operation for customer support and increase profitability & loyalty Business Analytics for smarter and predictive business
Information system:
Set of interrelated components Collect, process, store, and distribute information Support decision making, coordination, control operations, analyze problems, new product ans services
Data are streams of raw facts Information is data shaped into meaningful form
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
Processing:
Output:
Feedback:
Output returned to appropriate members of organization to help evaluate or correct input stage
Computers and software are technical foundation and tools, similar to the material and tools used to build a house
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 appropriate 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.
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.
management Middle management Operational management Knowledge workers Data workers Production or service workers
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 work with middle management.
Sales and marketing, Human resources, Finance and accounting, Manufacturing and production etc.
Unique
positions with different specialties, concerns and perspective. Leads to diverge viewpoints of resources, rewards and punishments - conflicts
Make decisions, formulate action plan Managers set organizational strategy for responding to business challenges Allocates all resources and coordinate work for success In addition, managers must act creatively:
Organizational:
Procedures for tracking packages and managing inventory and provide information
Management:
Technology:
Information system is instrument for creating value Investments in information technology will result in superior returns:
Productivity
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
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, and, ultimately, increase firm profitability.
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 Supportive values, structures and behavior pattern Investing in complementary assets (organizational and management capital)
Complementary assets:
Assets
required to derive value from a primary investment like for Automobiles requires investment in highway, roads, petrol pump, service points etc. 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
The study of information systems deals with issues and insights contributed from technical and behavioral disciplines.
Behavioral approach Behavioral issues (strategic business integration, implementation, etc.) Psychology, economics, sociology
Contemporary Approaches to
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 Firms environment (legal, social, cultural context)
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
NEW IN MIS
Change Technology
Cloud Computing Growth of SaaS Mobile Digital Platform Dynamic and Agile Business Need Effective Business Model Solution Penetrations
Business Impact
Management
Online Collaboration and Social Networking BI
Mobile Tools Smartphones, Mobile Internet Devices
Virtual Meeting
Organization
Web 2.0 Collaboration and Online Community
Outsourcing Production
Telework in the workplace
Q&A