Management Information Systems
Course Objective
1) Explore how information systems can make businesses more
competitive, e...
Management Information Systems
4) Discuss how your firm can benefit from conducting business
electronically using Internet...
Management Information Systems
7) Provide opportunity to understand how your firm can benefit from
information systems for...
Management Information Systems
10) How to measure the business benefits of these investments and how to
make sure that the...
Chapter 1

Information systems in
Global Business Today

1.5

© 2006 by Prentice Hall
Management Information Systems
Chapter 1 Information systems in Global Business Today
OBJECTIVES – chapter 1

• Explain wh...
Management Information Systems
Chapter 1 Information systems in Global Business Today
OBJECTIVES (Continued)

• Define an ...
Management Information Systems
Chapter 1 Information systems in Global Business Today

What is information system
The orga...
Management Information Systems
Chapter 1 Information systems in Global Business Today
1.1 The Role of Information systems ...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1Information systems in Global Business Today
The Role of Information systems in bu...
Management Information Systems
Chapter 1 Information systems in Global Business Today
The Role of Information systems in b...
Management Information Systems
Chapter 1 Information systems in Global Business Today
1.2 PERSPECTIVES ON INFORMATION SYST...
Management Information Systems
Chapter 1 Information systems in Global Business Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
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Management Information Systems
Chapter 1 Information systems in Global Business
Today
PERSPECTIVES ON INFORMATION SYSTEMS
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Management Information Systems
Chapter 1 Information systems in Global Business Today
1.3 CONTEMPORARY APPROACHES TO INFOR...
Management Information Systems
Chapter 1 Information systems in Global Business Today
CONTEMPORARY APPROACHES TO INFORMATI...
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Mis10 ch01 ppt

  1. 1. Management Information Systems Course Objective 1) Explore how information systems can make businesses more competitive, efficient, and profitable. 2) Gain an understanding of the role of various types of information systems in organizations. 3) Understand how to use information systems strategically and how systems can help you make better decisions. 1.1 © 2006 by Prentice Hall
  2. 2. Management Information Systems 4) Discuss how your firm can benefit from conducting business electronically using Internet technology. 5) Explore many decisions about using hardware and software to improve the performance of your firm. 6) Gain an understanding of how to organize your company’s data so that they can be easily accessed and utilized. 1.2 © 2006 by Prentice Hall
  3. 3. Management Information Systems 7) Provide opportunity to understand how your firm can benefit from information systems for knowledge management. 8) Gain appreciation as a manager that you will be asked to make many different kinds of decisions. You will want to know how you can use information systems to improve your decision making, whether you are working along or in a group. 9) Discuss the ways to use new information systems to improve the performance of your firm, via helping your organization build a new information system. 1.3 © 2006 by Prentice Hall
  4. 4. Management Information Systems 10) How to measure the business benefits of these investments and how to make sure that these systems work successfully in your organization. 11) Understand how you can ensure that your firm’s systems are reliable and secure. 12) Gain tools to know what special issues must be addressed when developing and managing international information systems. 1.4 © 2006 by Prentice Hall
  5. 5. Chapter 1 Information systems in Global Business Today 1.5 © 2006 by Prentice Hall
  6. 6. Management Information Systems Chapter 1 Information systems in Global Business Today OBJECTIVES – chapter 1 • Explain why information systems are so important today for business and management • Evaluate the role of information systems in today’s competitive business environment • Assess the impact of the Internet and Internet technology on business and government 1.6 © 2006 by Prentice Hall
  7. 7. Management Information Systems Chapter 1 Information systems in Global Business Today OBJECTIVES (Continued) • Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems literacy 1.7 © 2006 by Prentice Hall
  8. 8. Management Information Systems Chapter 1 Information systems in Global Business Today What is information system The organized collection,processing, transmission and dissemination of computerized information in accordance with defined procedures for making decisions time to time in an organization. Information system use both technology and knowledge of business to enable the company and its partners to respond instantly to changes. 1.8 © 2006 by Prentice Hall
  9. 9. Management Information Systems Chapter 1 Information systems in Global Business Today 1.1 The Role of Information systems in business today Why Information Systems Matter There are four reasons why IT makes a difference to the success of a business: • 1 Capital management • 2 Foundation of doing business • 3 Productivity • 4 Strategic opportunity and advantage 1.9 © 2006 by Prentice Hall
  10. 10. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 1 Capital Management: • IT is the largest single component of capital investment in the United States. • Managers and business students need to know how to invest this capital wisely. • The success of your business in the future may well depend on how you make IT investment decisions. 1.10 © 2006 by Prentice Hall
  11. 11. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today Information Technology Capital Investment 1.11 Source: Based on the data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, Tables 5.2 and 5.8, 2004. © 2006 by Prentice Hall
  12. 12. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 2 Foundation of doing business: • Most businesses today could not operate without extensive use of information systems and technologies. • IT can increase market share. • IT can help a business become a high-quality, low-cost producer. • IT is vital to the development of new products. 1.12 © 2006 by Prentice Hall
  13. 13. 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 Systems 1.13 Figure 1-2 © 2006 by Prentice Hall
  14. 14. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 3 Productivity: • IT is one of the most important tools managers have to increase productivity and efficiency of businesses. • It is estimated that IT has increased productivity in the economy. • Investment in IT plays a critical role in increasing the productivity of firms. 1.14 © 2006 by Prentice Hall
  15. 15. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 4 Strategic Opportunity and Advantage: • Create competitive advantage: IT makes it possible to develop competitive advantages. • New Business Models: Dell Computer has built its competitive advantage on an IT enabled build-toorder business model that other firms have not been able to imitate. 1.15 © 2006 by Prentice Hall
  16. 16. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today Strategic Opportunity and Advantage: (continued) • Create new services: eBay has developed the largest auction trading platform for millions of individuals and businesses. Competitors have not been able to imitate its success. • Differentiate yourself from your competitors: Amazon has become the largest book retailer in the United States on the strength of its huge online inventory and recommender system. It has no rivals in size and scope. 1.16 © 2006 by Prentice Hall
  17. 17. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today How Much Does IT Matter? • Amazon, eBay, Dell, Wal-Mart and Apple's iTunes are just a few firms that have built and maintained technology-based advantages. 1.17 © 2006 by Prentice Hall
  18. 18. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today How Much Does IT Matter? • Competitive advantage derives not from the technology, but on how businesses use the technology. • Innovations in business processes, management and organization are not easily copied from one firm to another. 1.18 © 2006 by Prentice Hall
  19. 19. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today Why IT Now? Digital Convergence and the Changing Business Environment Growing impact of IT in business firms can be assessed from the following five factors: • 1.Internet growth and technology convergence • 2.Transformation of the business enterprise 1.19 © 2006 by Prentice Hall
  20. 20. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today Why IT Now? Digital Convergence and the Changing Business Environment (Continued) • 3.Growth of a globally connected economy • 4.Growth of knowledge and information-based economies • 5.Emergence of the digital firm 1.20 © 2006 by Prentice Hall
  21. 21. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 1.The Internet and Technology Convergence: • Growth of the Internet: 120 million online users in the United States, 500 million global users • The Internet is bringing about a convergence of telecommunications and computing: VoIP telephones. 1.21 © 2006 by Prentice Hall
  22. 22. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today The Internet and Technology Convergence: (continued) • Growth in e-business, e-commerce, and egovernment • Internet is bringing about rapid changes in markets and market structure: financial services and banking such as eTrade.com. • The Internet is making many traditional business models obsolete: the corner music store and video store. 1.22 © 2006 by Prentice Hall
  23. 23. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 2.Transformation of the Business Enterprise: • Flattening • Decentralization • Flexibility 1.23 © 2006 by Prentice Hall
  24. 24. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today Transformation of the Business Enterprise (Continued): • Location independence • Low transaction and coordination costs • Empowerment • Collaborative work and teamwork 1.24 © 2006 by Prentice Hall
  25. 25. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 3. Globalization: • Management and control in a global marketplace • Competition in world markets • Global workgroups • Global delivery systems 1.25 © 2006 by Prentice Hall
  26. 26. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today 4. Rise of the Information Economy: • From Industrial economies to Knowledge and information-based economies • New products and services • Knowledge as a central productive and strategic asset 1.26 © 2006 by Prentice Hall
  27. 27. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today Rise of the Information Economy (Continued): • Time-based competition • Shorter product life • Limited employee knowledge base 1.27 © 2006 by Prentice Hall
  28. 28. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today The Growth of the Information Economy 1.28 Source: U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 2003, Table 615; and Historical Statistics of the United States, Colonial Times to 1970, Vol. 1, Series D, pp. 182-232. Figure 1-3 © 2006 by Prentice Hall
  29. 29. Management Information Systems Chapter 1Information systems in Global Business Today The Role of Information systems in business today 5. Emergence of the Digital Firm: • Digitally enabled relationships with customers, suppliers, and employees • Core business processes accomplished using digital networks • Agile sensing and responding to environmental changes 1.29 • Seamless flow of information within the firm, and with strategic partners © 2006 by Prentice Hall
  30. 30. Management Information Systems Chapter 1 Information systems in Global Business Today The Role of Information systems in business today The Emerging Digital Firm Search Engine marketing E-Mail marketing Affiliate marketing 1.30 Figure 1-4 © 2006 by Prentice Hall
  31. 31. Management Information Systems Chapter 1 Information systems in Global Business Today 1.2 PERSPECTIVES ON INFORMATION SYSTEMS What Is an Information System? Technology perspective: A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization 1.31 © 2006 by Prentice Hall
  32. 32. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS What is an Information System? (Continued) • Data: Streams of raw facts representing events such as business transactions • Information: Clusters of facts meaningful and useful to human beings in the processes such as making decisions 1.32 © 2006 by Prentice Hall
  33. 33. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Data and Information 1.33 Figure 1-5 © 2006 by Prentice Hall
  34. 34. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Functions of an Information System 1.34 Figure 1-6 © 2006 by Prentice Hall
  35. 35. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS A Business Perspective on Information Systems Business firm invest in Information system because they provide real economic value to the business. Returns on investment is superior than building,manufacturing unit. The superior returns will be expressed as increase in productivity, as increase in revenue(increase in stock market value), as long-term-positioning of the firm 1.35 © 2006 by Prentice Hall
  36. 36. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS The Business Information Value Chain 1.36 Figure 1-7 © 2006 by Prentice Hall
  37. 37. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS • Information systems literacy: Broad-based understanding of information systems that includes behavioural knowledge about organizations, management and individuals using information systems as well as technical knowledge about computers 1.37 • Computer literacy: Knowledge about information technology, focusing on understanding how computer technologies work © 2006 by Prentice Hall
  38. 38. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Information Systems Are More than Computers 1.38 Figure 1-8 © 2006 by Prentice Hall
  39. 39. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Dimensions of Information Systems Three Important Dimensions of Information Systems • 1 Organizations • 2 Managers • 3 Technology You will need to understand and balance these dimensions of information systems in order to create business value. 1.39 © 2006 by Prentice Hall
  40. 40. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS 1 The Organizational Dimension of Information Systems • People • Structure • Business processes • Culture • Politics 1.40 © 2006 by Prentice Hall
  41. 41. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS 2 The Management Dimension of Information Systems Managers are: • Sense makers • Decision makers • Planners • Innovators of new processes • Leaders: set agendas 1.41 © 2006 by Prentice Hall
  42. 42. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS 3 The Technology Dimension of Information Systems Information technology is one of the tools managers use to cope with change: • Hardware: Physical equipment • Software: Detailed preprogrammed instructions • Storage: Physical media for storing data and the software 1.42 © 2006 by Prentice Hall
  43. 43. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS The Technology Dimension of Information Systems (Continued) • Communications technology: Transfers data from one physical location to another • Networks: Links computers to share data or resources Managers need to know enough about information technology to make intelligent decisions about how to use it for creating business value. 1.43 © 2006 by Prentice Hall
  44. 44. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Complementary Assets: are those assets required to derive value from a primary investment 1. Organizational complementary assets 2. Managerial complementary assets 3. Social Investment 1.44 © 2006 by Prentice Hall
  45. 45. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Organizational capital: • Supportive business culture that values efficiency and effectiveness • Efficient business processes, decentralization of authority • Highly distributed decision rights • A strong information system (IS) development team 1.45 © 2006 by Prentice Hall
  46. 46. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Variation in Returns on Information Technology Investment 1.46 Source: Based on Erik Brynjolfsson and Lorin M. Hitt, “Beyond Computation: Information Technology, Organizational Transformation and Business Performance.” Journal of Economic Perspectives 14, no. 4 (Fall 2000). Used with permission of the American Economic Association. Figure 1-9 © 2006 by Prentice Hall
  47. 47. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Management Capital: Strong senior mgt support for technical investment Incentive Systems Teamwork & Collaborative work environments Training Programs Management culture that values flexibility and knowledge 1.47 © 2006 by Prentice Hall
  48. 48. Management Information Systems Chapter 1 Information systems in Global Business Today PERSPECTIVES ON INFORMATION SYSTEMS Social Capital: not made by firm but other firms and government The internet and telecommunication infrastructure Networks Regulations and laws Presence of technology and service firms in adjacent market 1.48 © 2006 by Prentice Hall
  49. 49. Management Information Systems Chapter 1 Information systems in Global Business Today 1.3 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS Sociotechnical Systems Optimize systems performance: • Technology and organization • Technology and Organizations mutually adjust to one another until fit is satisfactory 1.49 © 2006 by Prentice Hall
  50. 50. Management Information Systems Chapter 1 Information systems in Global Business Today CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS A Sociotechnical Perspective on Information Systems 1.50 Figure 1-11 © 2006 by Prentice Hall
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