Managing the digital firm


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Managing the digital firm

  1. 1. Management Information Systems - Chapter 1 By: Prof. Y. Peter Chiu 2 / 2009
  2. 2. Chapter 1 Managing the Digital Firm <ul><li>1.1 Why Information Systems ? </li></ul><ul><li>1.2 Contemporary Approaches to </li></ul><ul><li>Information System </li></ul><ul><li>1.3 Toward the Digital Firm: The New Role of Information Systems in Organizations </li></ul><ul><li>1.4 Learning to Use Information Systems: New Opportunities with Technology </li></ul>
  3. 3. 1.1 Why Information Systems <ul><li>Four powerful worldwide changes have altered the business environment : </li></ul><ul><li>Emergence of the Global Economy </li></ul><ul><li>Transformation of Industrial Economies </li></ul><ul><li>Transformation of the Business Enterprise </li></ul><ul><li>The Emerging Digital Firm </li></ul>
  4. 4. <ul><li>Management & control in a global marketplace </li></ul><ul><li>Competition in world markets </li></ul><ul><li>Global work groups </li></ul><ul><li>Global delivery systems </li></ul>1.1 Why Information Systems <ul><li>Globalization </li></ul>
  5. 5. <ul><li>Knowledge- and information-based economies </li></ul><ul><li>New products and services </li></ul><ul><li>Knowledge : A central productive and strategic asset </li></ul><ul><li>Time-based competition </li></ul><ul><li>Shorter product life </li></ul><ul><li>Turbulent environment </li></ul><ul><li>Limited employee knowledge base </li></ul>1.1 Why Information Systems <ul><li>Transformation of Industrial Economies </li></ul>
  6. 6. <ul><li>Fig 1-1: The growth of the information economy </li></ul>
  7. 7. <ul><li>Flattening </li></ul><ul><li>Decentralization </li></ul><ul><li>Flexibility </li></ul><ul><li>Location Independence </li></ul><ul><li>Low Transaction & Coordination Costs </li></ul><ul><li>Empowerment </li></ul><ul><li>Collaborative work and teamwork </li></ul>1.1 Why Information Systems <ul><li>Transformation of the Enterprise </li></ul>
  8. 8. <ul><li>Digitally enabled relationships with customers, suppliers, and employees </li></ul><ul><li>Core business processes accomplished via digital networks </li></ul><ul><li>Digital management of key corporate assets </li></ul><ul><li>Rapid sensing and responding to environmental changes </li></ul>1.1 Why Information Systems <ul><li>Emergence of the Digital Firm </li></ul>
  9. 9. 1.1 Why Information Systems <ul><li>Emergence of the Global Economy </li></ul><ul><li>Transformation of Industrial Economies </li></ul><ul><li>Transformation of the Business Enterprise </li></ul><ul><li>The Emerging Digital Firm </li></ul>
  10. 10. <ul><li>Fig 1-3: Function of an information system </li></ul>
  11. 11. Using information system effectively requires an understanding of the Organization , Management , Information Technology <ul><li>Fig 1-4 </li></ul>
  12. 12. Organization <ul><li>People </li></ul><ul><li>Structure </li></ul><ul><li>Operating procedures </li></ul><ul><li>Politics </li></ul><ul><li>Culture </li></ul>◆
  13. 13. Major Organizational Functions <ul><li>Sales & Marketing </li></ul><ul><li>Manufacturing </li></ul><ul><li>Finance </li></ul><ul><li>Accounting </li></ul><ul><li>Human Resources </li></ul>
  14. 14. Major Organizational Functions
  15. 15. Management <ul><li>set the organizational strategy </li></ul><ul><li>allocate the financial resources </li></ul><ul><li>allocate the human resources </li></ul><ul><li>coordinate the work </li></ul><ul><li>leadership </li></ul><ul><li>create new products or new services </li></ul><ul><li>re-create organization from time to time </li></ul>
  16. 16. Technology <ul><li>tools to managers </li></ul><ul><li>glue that holds the organization together </li></ul><ul><li>Computer hardware </li></ul><ul><li>Computer software </li></ul><ul><li>Storage technology </li></ul><ul><li>Telecommunications technology </li></ul><ul><li>Information technology Infrastructure </li></ul>
  17. 17. 1.2 Contemporary Approaches to Information Systems <ul><li>Technical approach </li></ul><ul><li>Behavioral approach </li></ul>
  18. 18. <ul><li>Fig 1-5: Contemporary approaches to information system . </li></ul>
  19. 19. Technical approach <ul><li>Theories of computability </li></ul><ul><li>Methods of computation </li></ul><ul><li>Methods of efficient data storage and </li></ul><ul><li>access </li></ul><ul><li>Models for decision making </li></ul><ul><li>Management practices </li></ul><ul><li>Computer science </li></ul><ul><li>Management science </li></ul>
  20. 20. Technical approach <ul><li>Mathematical techniques for optimizing selected parameters of organizations, such as transportation , inventory control , etc. </li></ul><ul><li>Operations research </li></ul>
  21. 21. Behavioral Approach <ul><li>Sociology </li></ul><ul><li>Psychology </li></ul><ul><li>Economics </li></ul><ul><li>Development of systems </li></ul><ul><li>System affect individual, groups, and organization. </li></ul><ul><li>How human decision makers perceive and use formal information . </li></ul><ul><li>Impacts to firm and within markets </li></ul><ul><li>- on control </li></ul><ul><li>- cost structures </li></ul>
  22. 22. Socio-Technical Systems SOURCE: Liker, et al, 1987 Figure 1-6
  23. 23. <ul><li>Optimize systems performance: </li></ul><ul><li>Technology and organization </li></ul><ul><li>Organizations mutually adjust to one another until fit is satisfactory </li></ul>Socio-Technical Systems ◆
  24. 24. 1.3 Toward the Digital Firm: The New Role of I.S. in Organizations <ul><li>The widening scope of I.S. </li></ul><ul><li>The network revolution and the internet </li></ul><ul><li>New options for organizational design: The Digital Firm and the Collaborative Enterprise </li></ul><ul><li>The Digital Firm: E-commerce, E-business, and New Digital Relationships </li></ul>▲ 2
  25. 25. <ul><li>Fig 1-7: The interdependence between organizations and information systems </li></ul>1.3.1 The widening scope of I.S.
  26. 26. <ul><li>Fig 1-8: The widening scope of information systems . </li></ul>1.3.1 The widening scope of I.S.
  27. 27. Information Systems <ul><li>It affects the organization and its employees, and how they can make business more competitive and efficient . </li></ul><ul><li>It has become essential for creating competitive firms , managing global corporations , and providing useful products and services to customers. </li></ul>
  28. 28. What you can do on the internet? <ul><li>Communicate & collaborate </li></ul><ul><li>Access information </li></ul><ul><li>Participate in discussions </li></ul><ul><li>Supply information </li></ul><ul><li>Find entertainment </li></ul><ul><li>Exchange business transactions </li></ul>1.3.2 The network revolution and the internet
  29. 30. INTERNET <ul><li>International network of networks that is a collection of hundreds of thousands of private and public networks. </li></ul>World Wide Web (WWW) <ul><li>A system with universally accepted standards for storing, retrieving, formatting, and displaying information in a networked environment. </li></ul>1.3.2 The network revolution and the internet
  30. 31. 1.3.3 New Options for Organizational Design The Digital Firm and the Collaborative Enterprise <ul><li>Flattening Organizations and the Changing Management Processes </li></ul><ul><li>Separating Work from Location </li></ul><ul><li>Reorganizing Work Flows </li></ul><ul><li>Increasing Flexibility of Organizations </li></ul><ul><li>Redefining Organizational Boundaries </li></ul>▲ 1
  31. 32. Flattening Organizations Information Systems 1.3.3 New Options for Organizational Design Figure 1-9
  32. 33. Redesigned Work Flow For Insurance Underwriting 1.3.3 New Options for Organizational Design Figure 1-10
  33. 34. Electronic market <ul><li>A marketplace that is created by computer and communication technologies that link many buyers and sellers . </li></ul>E-commerce, E-business, and New Digital Relationships 1.3.4 The Digital Firm
  34. 35. Electronic Commerce <ul><li>The process of buying and selling goods and services electronically involving transactions using the internet, networks, and other digital technologies. </li></ul><ul><li>Internet Links Buyers, Sellers </li></ul><ul><li>Lower Transaction Costs </li></ul><ul><li>Goods & Services Advertised, Bought, Exchanged Worldwide </li></ul><ul><li>Business-to-Business Transactions Increasing </li></ul>1.3.4 The Digital Firm
  35. 36. Electronic Business <ul><li>The use of the Internet and other digital technology for organizational communication and coordination and the management of the firm. </li></ul>Intranet <ul><li>An internal network based on Internet and World Wide Web technology and standards . </li></ul>1.3.4 The Digital Firm
  36. 37. Figure 1-11
  37. 38. 1.4 Learning to Use Information Systems: New Opportunities with Technology <ul><li>Strategic: competitive & effective </li></ul><ul><li>Globalization: multinational info </li></ul><ul><li>Info architecture: support goals </li></ul><ul><li>Investment: value of information </li></ul><ul><li>Responsibility & control: ethics </li></ul>Challenge of Information Systems: Key Management Issues
  38. 39. Figure 1-12 Information Architecture and Information Technology Infrastructure
  39. 40. HOMEWORK Chap. 1 #1 Describe four trends in the global business environment that have made information systems so important. #2 What are the organization, management, and technology dimensions of information systems? #3 Name and describe major organizational functions. #4 Distinguish major disciplines of the behavior and the technical approach to information systems. #5 Describe briefly what information systems are. #6 Describe some of the major changes that information systems are bringing to organizations. #7 Define E-Commerce, E-Business, and Intranet. #8 What are the key management challenges involved in building, operating, and maintaining information systems today? ~ THE END ~
  40. 41. <ul><li>◆ 期末報告主題範疇 ◆ </li></ul><ul><li>商用軟體介紹 e.g. PowerPoint, Excel, Access , .. , etc. </li></ul><ul><li>2. 工工專業軟體介紹 e.g. Lindo, Project, SAS , .. , etc. </li></ul><ul><li>3. 企業 I.T. 應用個案介紹 </li></ul><ul><li>e.g. 7-11, 台積電 , Cisco, etc. </li></ul><ul><li>4. 其他應用系統介紹 </li></ul><ul><li>e.g. CRM, 6σ , KM, WBT , 央圖系統 , 朝陽圖系統 , .. , etc. </li></ul>
  41. 42. ◆ 期末報告大綱 ◆ 1. 軟體、系統介紹 (1) 簡介 (2) 基本功能介紹 (3) 進階功能介紹 (4) 實例示範 (5) 結語 2. 企業 I.T. 應用個案介紹 (1) 企業簡介 (2) I.T. 應用介紹 (3) I.T. 應用成效 (4) 結語 Topic must be confirmed no later than week of 3/30
  42. 43. Term Project topics: 1. Introduction to “Excel” 2. “Access” 3. “Visio” 4. “PowerPoint” 5. Others …