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The Information System Revolution: Managing The Digital Firm
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The Information System Revolution: Managing The Digital Firm The Information System Revolution: Managing The Digital Firm Presentation Transcript

  • Even Semester 2002/2003 Lecture #2THE INFORMATION SYSTEMS REVOLUTION: MANAGING THE DIGITAL FIRM Lecturer: Muhammad Salman, ST, M.InfoTech
  • Management : Glory of the Past  Hierarchical  Functional President Decomposition (specific Task/Jobs) Director Director Director  Top to Bottom  Procedure Oriented – conservative Manager  In Big Organization - Sluggish Sup Sup Sup Staf StafMIS Lecture #2 - 2003 Slide - 2
  • Today’s Management  Specific  Flat Organization tasks, flexible, small unit Manager  Quick response to changes Chief-1 Chief-2  Freedom to decide  Networking to achieve efficiency  Position (Job) finds the “Brain”  Before : Brain is looking for JobMIS Lecture #2 - 2003 Slide - 3
  • Management Paradigms OLD NEW Rely on Structures Flexible Rely on Procedures Organization, adaptive Rely on Planning procedures Single “ownership” for Total Quality Staffing Commitments Rely on rigid Job Flexible but Secured Description Staffing (networking) Tight Superior Control Adaptive Job Description Self ControlMIS Lecture #2 - 2003 Slide - 4
  • Management Practices OLD NEW Skilled Person find a Corporation find new corporation to work skilled Staffs No knowledge “banks” Aware of knowledge Local/Regional market “banks” Internal “look” of Inf. Regional/Global market Processing Comprehensive “look” – (report, ledger, payrol to face global l,etc) competitionMIS Lecture #2 - 2003 Slide - 5
  • The Information Society  Internet  E-Commerce  E-Business  E-Government  Distance Learning  Distance Working  Work with Information  Ethics in Information SocietyMIS Lecture #2 - 2003 Slide - 6
  • THE CHANGING BUSINESS ENVIRONMENT  GLOBALIZATION  INDUSTRIAL ECONOMIES  TRANSFORMATION OF THE ENTERPRISE * MIS Lecture #2 - 2003 Slide - 7
  • GLOBALIZATION  MANAGEMENT & CONTROL  COMPETITION IN WORLD MARKETS  GLOBAL WORK GROUPS  GLOBAL DELIVERY SYSTEMS * MIS Lecture #2 - 2003 Slide - 8
  • INDUSTRIAL ECONOMIES  KNOWLEDGE-BASED ECONOMIES  PRODUCTIVITY  NEW PRODUCTS & SERVICES  KNOWLEDGE AS AN ASSET  TIME-BASED COMPETITION  SHORTER PRODUCT LIFE  TURBULENT ENVIRONMENT  LIMITED EMPLOYEE KNOWLEDGE BASE * MIS Lecture #2 - 2003 Slide - 9
  • TRANSFORMATION OF ENTERPRISE  FLATTENING  DECENTRALIZATION  FLEXIBILITY  LOCATION INDEPENDENCE  LOW TRANSACTION COSTS  EMPOWERMENT  COLLABORATIVE WORK * MIS Lecture #2 - 2003 Slide - 10
  • EMERGENCE OF THE DIGITAL FIRM DIGITALLY-ENABLED RELATIONSHIPS WITH CUSTOMERS, SUPPLIERS, EMPLOYEES CORE BUSINESS PROCESSES VIA DIGITAL NETWORKS DIGITAL MANAGEMENT OF KEY ASSETS RAPID SENSING & RESPONDING TO CHANGE * MIS Lecture #2 - 2003 Slide - 11
  • LABOR FORCE COMPOSITION 1900-199770%60% % SERVICE50% % WHITE COLLAR40% % BLUE COLLAR30% % FARMING20%10%0% YEARMIS Lecture #2 - 2003 Slide - 12
  • SYSTEM INPUT PROCESS OUTPUT FEEDBACKMIS Lecture #2 - 2003 Slide - 13
  • FUNCTIONS OF AN INFORMATION SYSTEM ENVIRONMENT Customers Suppliers ORGANIZATION INFORMATION SYSTEM INPUT PROCESS OUTPUT FEEDBACK Regulatory Stockholders Competitors Agencies MIS Lecture #2 - 2003 Slide - 14
  • DATA & INFORMATION DATA: STREAMS OF RAW FACTS REPRESENTING EVENTS SUCH AS BUSINESS TRANSACTIONS INFORMATION: CLUSTERS OF FACTS MEANINGFUL & USEFUL TO HUMAN BEINGS IN PROCESSES SUCH AS MAKING DECISIONS * MIS Lecture #2 - 2003 Slide - 15
  • COMPUTER-BASED INFORMATION SYSTEMS (CBIS) FORMAL SYSTEMS FIXED DEFINITIONS OF DATA, PROCEDURES COLLECTING, STORING, PROCESSING, DISS EMINATING, USING DATA * MIS Lecture #2 - 2003 Slide - 16
  • INFORMATION SYSTEMS ORGANIZATIONS TECHNOLOGY INFORMATION SYSTEMS MANAGEMENTMIS Lecture #2 - 2003 Slide - 17
  • ORGANIZATIONS PEOPLE: Managers, knowledge workers, data workers, production or service workers STRUCTURE: Organization chart, groups of specialists, products, geography * MIS Lecture #2 - 2003 Slide - 18
  • ORGANIZATIONS OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for action POLITICS: Power to persuade, get things done CULTURE: Customs of behavior * MIS Lecture #2 - 2003 Slide - 19
  • MAJOR BUSINESS FUNCTIONS  SALES & MARKETING  MANUFACTURING  FINANCE  ACCOUNTING  HUMAN RESOURCES * MIS Lecture #2 - 2003 Slide - 20
  • COMPUTER TECHNOLOGY  HARDWARE  SOFTWARE  STORAGE  COMMUNICATIONS  NETWORKS * MIS Lecture #2 - 2003 Slide - 21
  • APPROACHES TO INFO SYSTEMS TECHNICAL APPROACHES COMPUTER OPERATIONS SCIENCE RESEARCH MANAGEMENT SCIENCE MIS SOCIOLOGY PSYCHOLOGY POLITICAL SCIENCEBEHAVIORAL APPROACHESMIS Lecture #2 - 2003 Slide - 22
  • SOCIOTECHNICAL PERSPECTIVEOPTIMIZE SYSTEM PERFORMANCE:TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE ANOTHER UNTIL FIT IS SATISFACTORY * SOURCE: Liker, et al, 1987 MIS Lecture #2 - 2003 Slide - 23
  • SYSTEM INTERDEPENDENCE INTERDEPENDENCE HARDWARE BUSINESS SOFTWARE DATABASE Strategy Rules TELE- Procedures COMMUNICATIONS ORGANIZATION INFORMATION SYSTEM MIS Lecture #2 - 2003 Slide - 24
  • SCOPE OF INFO SYSTEMS 1950s: TECHNICAL CHANGES 60s-70s: MANAGERIAL CONTROL 80s-90s: INSTITUTIONAL CORE ACTIVITIES GROWING IMPORTANCE * MIS Lecture #2 - 2003 Slide - 25
  • WHAT YOU CAN DO ON THE INTERNET  COMMUNICATE & COLLABORATE  ACCESS INFORMATION  DISCUSS  OBTAIN INFORMATION  ENTERTAIN  TRANSACT BUSINESS * MIS Lecture #2 - 2003 Slide - 26
  • NEW OPTIONS FOR ORGANIZATIONAL DESIGN FLATTENING ORGANIZATIONS SEPARATING WORK FROM LOCATION REORGANIZING WORK-FLOWS INCREASING FLEXIBILITY REDEFINING ORGANIZATIONAL BOUNDARIES * MIS Lecture #2 - 2003 Slide - 27
  • THE DIGITAL FIRM ELECTRONIC COMMERCE ELECTRONIC BUSINESS ELECTRONIC MARKET: Information system links buyers & sellers to exchange information, products, services, pay ments * MIS Lecture #2 - 2003 Slide - 28
  • ELECTRONIC COMMERCE  INTERNET LINKS BUYERS, SELLERS  LOWERS TRANSACTION COSTS  GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED WORLDWIDE  BUSINESS-TO-BUSINESS TRANSACTIONS INCREASING *MIS Lecture #2 - 2003 Slide - 29
  • ELECTRONIC BUSINESS INTRANET: Business builds private, secure network E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE: Extends effective communication & control EXTRANET: Extension of Intranet to authorized external users *MIS Lecture #2 - 2003 Slide - 30
  • MIS Lecture #2 - 2003 Slide - 31