The document discusses how information systems can create business value when supported by complementary assets. It describes the business information value chain where raw data is transformed through various stages to add value and help with decision making, efficiency, and profits. While information technology investments do not guarantee returns, firms that also invest in complementary organizational, managerial, and social assets are more likely to see superior returns from their technology investments. These complementary assets include appropriate business processes, management innovation, teamwork environments, infrastructure, and technology standards.

1. Presentation of
Management
Information
System
Business Information Value Chain and
Complementary Assets

2. Business perspective on information
systems:
Information system is instrument for creating
value
Investments in information technology will
result in superior returns:
Productivity increases
Revenue increases
Superior long-term strategic positioning
shobuj_ctg09@hotmai.com 2

3. Business information value chain
o Raw data acquired and transformed
through stages that add value to that
information
o Value of information system determined in
part by extent to which it leads to better
decisions, greater efficiency, and higher
profits
Business perspective: Calls attention to
organizational and managerial nature of
information systems
shobuj_ctg09@hotmai.com 3

4. The Business Information Value Chain
Data
collection &
storage
Transformation
into B. System
Dissemination
Firm
profitabilit
y &
strategic
position
planning Coordinating Controlling
Modeling &
Decision
Making
Supply
chain Mgt.
Enterprise
Mgt.
Customer
Mgt.
Knowledge
Mgt.
Business Processes
Information Process Activities
Management Activitiesshobuj_ctg09@hotmai.com 4

5. Variation in Returns on
Information Technology Investment
I RI R
I R I R
shobuj_ctg09@hotmai.com 5

6. 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
Investing in complementary assets (organizational
and management capital)
shobuj_ctg09@hotmai.com 6

7. Complementary assets:
Assets required to derive value from a
primary investment
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
shobuj_ctg09@hotmai.com 7

8. Complementary assets
include:
Organizational investments, e.g.
 Appropriate business model
 Efficient business processes
Managerial investments, e.g.
 Incentives for management innovation
 Teamwork and collaborative work environments
Social investments, e.g.
 The Internet and telecommunications infrastructure
 Technology standards
shobuj_ctg09@hotmai.com 8

9. Question or Query
shobuj_ctg09@hotmai.com 9

10. Thank You Everybody
• Presented by-
Abdul Motaleb Shobuj
ID- 1126
FBA, USTC
shobuj_ctg09@hotmai.com 10