SlideShare a Scribd company logo
1 of 31
Download to read offline
Management information system
INTRODUCTION
Information systems and organizations influence one
another. Information systems are built by managers
to serve the interests of the business firm. At the
same time, the organization must be aware of and
open to the influences of information systems to
benefit from new technologies.
The interaction between information technology and
organization’s structure, business processes, politics,
culture, surrounding environment and management
decisions.
LEARNING OBJECTIVES
• Identify and describe important features of
organizations that managers need to know about in
order to build and use information systems
successfully.
• Demonstrate how Porter’s competitive forces
model helps companies develop competitive
strategies using information systems.
• Explain how the value chain and value web
models help businesses identify opportunities for
strategic information system applications.
CONT...
• Demonstrate how information systems help
businesses use synergies, core competencies, and
network-based strategies to achieve competitive
advantage.
• Assess the challenges posed by strategic
information systems and management solutions.
TWO WAY RELATIONSHIP
BETWEEN ORGANIZATIONS AND
INFORMATION TECHNOLOGY
This complex two-way
relationship is
mediated by many
factors, not the least of
which are the decisions
made—or not made—
by managers. Other
factors mediating the
relationship include the
organizational culture,
structure, politics,
business processes, and
environment.
FEATURES OF
ORGANIZATIONS
• Organizational politics
• Divergent viewpoints lead to political
struggle, competition, and conflict
• Political resistance greatly hampers
organizational change
CONT.....
• Organizational culture:
• Encompasses set of assumptions that define
goal and product
• What products the organization should
produce
• How and where it should be produced
• For whom the products should be produced
CONT.....
• Organizational environments:
• Organizations and environments have a
reciprocal relationship
• Organizations are open to, and dependent
on, the social and physical environment
• Organizations can influence their environments
• Environments generally change faster than
organizations
• Information systems can be an instrument of
environmental scanning, act as a lens
INFORMATION SYSTEM TO ACHIEVE
COMPETITIVE ADVANTAGE
• Why do some firms become leaders in their
industry?
• Michael Porter’s competitive forces model
• Provides general view of firm, its
competitors, and environment
• Five competitive forces shape fate of firm
1. Traditional competitors
2. New market entrants
3. Substitute products and services
4. Customers
5. Suppliers
PORTERS COMPETITIVE
FORCES MODEL
CONT...
• Traditional competitors
• All firms share market space with competitors
who are continuously devising new
products, services, efficiencies, switching costs
• New market entrants
• Some industries have high barriers to entry, e.g.
computer chip business
• New companies have new equipment, younger
workers, but little brand recognition
CONT....
• Substitute products and services
• Substitutes customers might use if your prices
become too high, e.g. iTunes substitutes for
CDs
• Customers
• Can customers easily switch to competitor’s
products.
• Suppliers
• Market power of suppliers when firm cannot
raise prices as fast as suppliers
INFORMATION SYSTEMS TO ACHIEVE
COMPETITIVE ADVANTAGE
• Four generic strategies for dealing with
competitive forces, enabled by using IT
• Low-cost leadership
• Product differentiation
• Focus on market niche
• Strengthen customer and supplier intimacy
INFORMATION SYSTEMS TO ACHIEVE
COMPETITIVE ADVANTAGE
• Low-cost leadership
• Produce products and services at a lower price
than competitors while enhancing quality and
level of service
• Examples: Wal-Mart
• Product differentiation
• Enable new products or services, greatly
change customer convenience and experience
• Examples: Google, Nike, Apple
INFORMATION SYSTEMS TO ACHIEVE
COMPETITIVE ADVANTAGE
• Focus on market niche
• Use information systems to enable a focused
strategy on a single market niche; specialize
• Example: Hilton Hotels
• Strengthen customer and supplier
intimacy
• Use information systems to develop strong ties
and loyalty with customers and suppliers;
increase switching costs
• Example: Netflix, Amazon
BUSINESS VALUE CHAIN MODEL
• The Value Chain is a systematic approach to
examining the development of competitive
advantage.
• The chain consists of a series of activities that
create and build value. They culminate in the total
value delivered by an organization.
• The process through which we add value to the
products.
• An inter related series of processes that produces a
service or product to the satisfaction of customers.
• Each activity in a process should add value to the
preceding activities.
BUSINESS VALUE CHAIN MODEL
This figure
provides
examples of
systems for both
primary and
support activities
of a firm and of
its value partners
that can add a
margin of value
to a firm’s
products or
services
VALUE CHAIN
Primary activities:
Inbound Logistics:
• Here goods are received from a company's suppliers. They
are stored until they are needed on the
production/assembly line. Goods are moved around the
organization.
Operations:
• This is where goods are manufactured or assembled.
Individual operations could include room service in an
hotel, packing of books/videos/games by an online
retailer, or the final tune for a new car's engine
VALUE CHAIN
• Outbound Logistics:
• The goods are now finished, and they need to be sent
along the supply chain to wholesalers, retailers or the final
consumer.
• Marketing and Sales:
• In true customer orientated fashion, at this stage the
organization prepares the offering to meet the needs of
targeted customers. This area focuses strongly upon
marketing communications and the promotions mix.
• Service:
• This includes all areas of service such as installation, after-
sales service, complaints handling, training and so on.
VALUE CHAIN
Support Activities:
• Procurement:
• The initial area. It means purchasing. This function is
responsible for all purchasing of goods, services and
materials. The aim is to secure the lowest possible
price for purchases of the highest possible quality.
Technology Development:
• Technology is an important source of competitive
advantage. Companies need to innovate to reduce
costs and to protect and sustain competitive
advantage. This could include production
technology, Internet marketing activities, lean
manufacturing, Customer Relationship Management
(CRM), and many other technological developments.
VALUE CHAIN
Human Resource Management (HRM):
• Employees are an expensive and vital resource. An
organization would manage recruitment and s
election, training and development, and rewards and
remuneration. The mission and objectives of the
organization would be driving force behind the HRM
strategy.
Firm Infrastructure:
• This activity includes and is driven by corporate or
strategic planning. It includes the Management Information
System (MIS), and other mechanisms for planning and
control such as the accounting department.
SIX STRATEGIC BUSINESS OBJECTIVES
OF INFORMATION SYSTEM
 OPERATIONAL EXCELLENCE
 NEW PRODUCT ,SERVICES,AND BUSINESS
MODELS
 CUSTOMER AND SUPPLIER INTIMACY
 IMPROVED DECISION MAKING
 COMPETITIVE ADVANTAGE
 SURVIVAL
BUSINESS STRATEGIC
OBJECTIVES
• Operational excellence:
• Improvement of efficiency to attain higher
profitability
• Information systems, technology an important
tool in achieving greater efficiency and
productivity
• E.g. Wal-Mart’s Retail Link system links
suppliers to its 5289 stores wordlwide for
superior replenishment system
BUSINESS STRATEGIC
OBJECTIVES
• New products, services, and business models:
• Business model: describes how company
produces, delivers, and sells product or service
to create wealth
• Information systems and technology are a
major enabling tool for new
products, services, business models
• E.g. Apple’s iPod, iTunes transformed the old
business model of music distribution from CDs into
online
• Netflix’s Internet-based DVD rentals vs rental stores
BUSINESS STRATEGIC
OBJECTIVES
• Customer and supplier intimacy:
• Serving customers well leads to customers
returning, which raises revenues and profits
• E.g. High-end hotels that use computers to track
customer preferences (room temperature, TV
channels) and use IS to monitor and customize
environment
• Intimacy with suppliers allows them to provide
vital inputs, which lowers costs
• E.g. J . C. Penney’s information system which links
shirt sales records at each store to contract
manufacturer in Hong Kong. Supplier produces
(quantity, style, color, size) based on the sales
records and delivers directly to stores; no inventory
storage costs for J.C.Penney, lower price to
customer
BUSINESS STRATEGIC
OBJECTIVES
• Improved decision-making
• Without accurate information:
• Managers must use forecasts, best guesses, luck
• Leads to:
• Overproduction/underproduction of goods and
services
• Misallocation of resources
• Poor response times
• Poor outcomes raise costs, lose customers
• E.g. Verizon’s (phone company) Web-based digital
dashboard to provide managers with real-time data on
customer complaints, network performance, line
outages, etc. Fast response through immediate
allocation of repair resources
BUSINESS STRATEGIC
OBJECTIVES
• Competitive advantage
• Delivering better performance
• Charging less for superior products
• Responding to customers and suppliers in real time
• Often achieved through one of first four strategic
business objectives
• E.g. Dell: Consistent profitability over 25 years; Dell
remains one of the most efficient producer of PCs in
world (mass customization)
• But Dell has lost some of its advantages to fast
followers– HP (competitive advantage is not
sustainable)
BUSINESS STRATEGIC
OBJECTIVES
• Survival
• Information systems and technologies as a necessity
for businesses to survive
• Driven by:
• Industry-level changes, e.g. the introduction of
ATMs by one bank forces other banks to follow
• firms need IS capability to respond to these
requirements
INFORMATION SYSTEMS CAN
IMPROVE OVERALL PERFORMANCE
OF BUSINESS UNITS BY PROMOTING
• Synergies:
• When output of some units used as inputs to
others, or organizations pool markets and expertise.
• E.g. : united western bank merger with IDBI .
• Core competencies:
• Activity for which firm is world-class leader.
• Relies on knowledge, experience, and sharing this
across business units.
• E.g. Procter & Gamble’s uses an intranet known as
Innovation Net to help people working on similar
problems share ideas and expertise.
CONT....
• Network-based strategies:
• The availability of internet and networking technologies
has provided advantage of firm’s abilities to network
with each other.
• Include use of:
• Network economics
• Virtual company model
• Business ecosystems
Management information system

More Related Content

What's hot

Operations and competitiveness
Operations and competitivenessOperations and competitiveness
Operations and competitivenessAditya Mehta
 
Value chain analysis
Value chain analysisValue chain analysis
Value chain analysisKamal Singh
 
02 operations performance_Operations Management
02 operations performance_Operations Management02 operations performance_Operations Management
02 operations performance_Operations ManagementBrent Weeks
 
Chapter 1-operations-as-a-competitive-weapon
Chapter 1-operations-as-a-competitive-weaponChapter 1-operations-as-a-competitive-weapon
Chapter 1-operations-as-a-competitive-weaponmeerabyaseen
 
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyStrategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
 
Unit 5 E-BUSINESS OPERATIONS AND PROCESSES
Unit 5 E-BUSINESS OPERATIONS AND PROCESSESUnit 5 E-BUSINESS OPERATIONS AND PROCESSES
Unit 5 E-BUSINESS OPERATIONS AND PROCESSESNishant Pahad
 
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING  pter 007 instru...PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING  pter 007 instru...
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...Zamri Yahya
 
L 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etcL 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etcSudhir Upadhyay
 
Strategic information system, csvtu bhilai
Strategic information system, csvtu bhilaiStrategic information system, csvtu bhilai
Strategic information system, csvtu bhilaiNarender Chintada
 
Introduction to operations management fms
Introduction to operations management fmsIntroduction to operations management fms
Introduction to operations management fmsKinshook Chaturvedi
 
Mubarak Adma Proposal Rev.01 Ma
Mubarak Adma Proposal Rev.01 MaMubarak Adma Proposal Rev.01 Ma
Mubarak Adma Proposal Rev.01 Mamubarak79
 
Synthesis Of Business Functions
Synthesis Of Business FunctionsSynthesis Of Business Functions
Synthesis Of Business FunctionsMrirfan
 
BPM for Manufacturing (Business Process-Centric Manufacturing) v4
BPM for Manufacturing (Business Process-Centric  Manufacturing) v4BPM for Manufacturing (Business Process-Centric  Manufacturing) v4
BPM for Manufacturing (Business Process-Centric Manufacturing) v4Sudhir(SMACI) Menon
 

What's hot (20)

Driving the E-Commerce Revolution
Driving the E-Commerce RevolutionDriving the E-Commerce Revolution
Driving the E-Commerce Revolution
 
Operations and competitiveness
Operations and competitivenessOperations and competitiveness
Operations and competitiveness
 
Driving eCommerce Revolution
Driving eCommerce RevolutionDriving eCommerce Revolution
Driving eCommerce Revolution
 
Value chain analysis
Value chain analysisValue chain analysis
Value chain analysis
 
Selling chain management
Selling chain managementSelling chain management
Selling chain management
 
02 operations performance_Operations Management
02 operations performance_Operations Management02 operations performance_Operations Management
02 operations performance_Operations Management
 
Akashdeepsinghjandu9
Akashdeepsinghjandu9Akashdeepsinghjandu9
Akashdeepsinghjandu9
 
SERVICES MARKETING
SERVICES MARKETINGSERVICES MARKETING
SERVICES MARKETING
 
Introduction
IntroductionIntroduction
Introduction
 
Chapter 1-operations-as-a-competitive-weapon
Chapter 1-operations-as-a-competitive-weaponChapter 1-operations-as-a-competitive-weapon
Chapter 1-operations-as-a-competitive-weapon
 
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyStrategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
 
Unit 5 E-BUSINESS OPERATIONS AND PROCESSES
Unit 5 E-BUSINESS OPERATIONS AND PROCESSESUnit 5 E-BUSINESS OPERATIONS AND PROCESSES
Unit 5 E-BUSINESS OPERATIONS AND PROCESSES
 
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING  pter 007 instru...PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING  pter 007 instru...
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...
 
L 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etcL 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etc
 
Strategic information system, csvtu bhilai
Strategic information system, csvtu bhilaiStrategic information system, csvtu bhilai
Strategic information system, csvtu bhilai
 
Introduction to operations management fms
Introduction to operations management fmsIntroduction to operations management fms
Introduction to operations management fms
 
Mubarak Adma Proposal Rev.01 Ma
Mubarak Adma Proposal Rev.01 MaMubarak Adma Proposal Rev.01 Ma
Mubarak Adma Proposal Rev.01 Ma
 
Value chain strategy 180315
Value chain strategy 180315Value chain strategy 180315
Value chain strategy 180315
 
Synthesis Of Business Functions
Synthesis Of Business FunctionsSynthesis Of Business Functions
Synthesis Of Business Functions
 
BPM for Manufacturing (Business Process-Centric Manufacturing) v4
BPM for Manufacturing (Business Process-Centric  Manufacturing) v4BPM for Manufacturing (Business Process-Centric  Manufacturing) v4
BPM for Manufacturing (Business Process-Centric Manufacturing) v4
 

Viewers also liked

Growing Your Range Poultry Business: An Entrepreneur's Toolbox
Growing Your Range Poultry Business: An Entrepreneur's ToolboxGrowing Your Range Poultry Business: An Entrepreneur's Toolbox
Growing Your Range Poultry Business: An Entrepreneur's ToolboxGardening
 
Ps presentation sponsring och finansiering berghs 2014 24e mars
Ps presentation sponsring och finansiering   berghs 2014 24e marsPs presentation sponsring och finansiering   berghs 2014 24e mars
Ps presentation sponsring och finansiering berghs 2014 24e marsInteraktiva Möten
 
Natural Livestock Feasibility Study
Natural Livestock Feasibility StudyNatural Livestock Feasibility Study
Natural Livestock Feasibility StudyGardening
 
Worm Wicking Beds for Drought Gardening
Worm Wicking Beds for Drought Gardening Worm Wicking Beds for Drought Gardening
Worm Wicking Beds for Drought Gardening Gardening
 
Colorado Potato Beetle: Organic Control Options
Colorado Potato Beetle: Organic Control OptionsColorado Potato Beetle: Organic Control Options
Colorado Potato Beetle: Organic Control OptionsGardening
 
Companion Planting: Basic Concepts & Resources
Companion Planting: Basic Concepts & ResourcesCompanion Planting: Basic Concepts & Resources
Companion Planting: Basic Concepts & ResourcesGardening
 
Edamame: Vegetable Soybean
Edamame: Vegetable SoybeanEdamame: Vegetable Soybean
Edamame: Vegetable SoybeanGardening
 
Sweet Corn: Organic Production
Sweet Corn: Organic ProductionSweet Corn: Organic Production
Sweet Corn: Organic ProductionGardening
 
Final Health Impact Assessment - 2014
Final Health Impact Assessment - 2014Final Health Impact Assessment - 2014
Final Health Impact Assessment - 2014StopHermosaBeachOil
 
Insect IPM in Apples: Kaolin Clay
Insect IPM in Apples: Kaolin ClayInsect IPM in Apples: Kaolin Clay
Insect IPM in Apples: Kaolin ClayGardening
 
Organic Standards for All Organic Operations: Highlights of the USDA's Nation...
Organic Standards for All Organic Operations: Highlights of the USDA's Nation...Organic Standards for All Organic Operations: Highlights of the USDA's Nation...
Organic Standards for All Organic Operations: Highlights of the USDA's Nation...Gardening
 
Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...
Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...
Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...kolbygoodman
 
Pork: Marketing Alternatives
Pork: Marketing AlternativesPork: Marketing Alternatives
Pork: Marketing AlternativesGardening
 
Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка»
Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка» Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка»
Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка» metodist4560
 
Value-Added Dairy Options
Value-Added Dairy OptionsValue-Added Dairy Options
Value-Added Dairy OptionsGardening
 
Enterprise Budgets and Production Costs for Organic Production
Enterprise Budgets and Production Costs for Organic ProductionEnterprise Budgets and Production Costs for Organic Production
Enterprise Budgets and Production Costs for Organic ProductionGardening
 

Viewers also liked (20)

Dairy Beef
Dairy Beef Dairy Beef
Dairy Beef
 
Growing Your Range Poultry Business: An Entrepreneur's Toolbox
Growing Your Range Poultry Business: An Entrepreneur's ToolboxGrowing Your Range Poultry Business: An Entrepreneur's Toolbox
Growing Your Range Poultry Business: An Entrepreneur's Toolbox
 
Ps presentation sponsring och finansiering berghs 2014 24e mars
Ps presentation sponsring och finansiering   berghs 2014 24e marsPs presentation sponsring och finansiering   berghs 2014 24e mars
Ps presentation sponsring och finansiering berghs 2014 24e mars
 
Natural Livestock Feasibility Study
Natural Livestock Feasibility StudyNatural Livestock Feasibility Study
Natural Livestock Feasibility Study
 
Worm Wicking Beds for Drought Gardening
Worm Wicking Beds for Drought Gardening Worm Wicking Beds for Drought Gardening
Worm Wicking Beds for Drought Gardening
 
Colorado Potato Beetle: Organic Control Options
Colorado Potato Beetle: Organic Control OptionsColorado Potato Beetle: Organic Control Options
Colorado Potato Beetle: Organic Control Options
 
Companion Planting: Basic Concepts & Resources
Companion Planting: Basic Concepts & ResourcesCompanion Planting: Basic Concepts & Resources
Companion Planting: Basic Concepts & Resources
 
Edamame: Vegetable Soybean
Edamame: Vegetable SoybeanEdamame: Vegetable Soybean
Edamame: Vegetable Soybean
 
Sweet Corn: Organic Production
Sweet Corn: Organic ProductionSweet Corn: Organic Production
Sweet Corn: Organic Production
 
Coma
ComaComa
Coma
 
Final Health Impact Assessment - 2014
Final Health Impact Assessment - 2014Final Health Impact Assessment - 2014
Final Health Impact Assessment - 2014
 
timber
timbertimber
timber
 
Insect IPM in Apples: Kaolin Clay
Insect IPM in Apples: Kaolin ClayInsect IPM in Apples: Kaolin Clay
Insect IPM in Apples: Kaolin Clay
 
Organic Standards for All Organic Operations: Highlights of the USDA's Nation...
Organic Standards for All Organic Operations: Highlights of the USDA's Nation...Organic Standards for All Organic Operations: Highlights of the USDA's Nation...
Organic Standards for All Organic Operations: Highlights of the USDA's Nation...
 
Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...
Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...
Making the Most Out of Your Next Job Fair by Kolby Goodman, Career Coach TheJ...
 
Pork: Marketing Alternatives
Pork: Marketing AlternativesPork: Marketing Alternatives
Pork: Marketing Alternatives
 
Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка»
Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка» Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка»
Игра «Умники и умницы» по сказке Л.И.Куликова «Золотая бабочка»
 
Value-Added Dairy Options
Value-Added Dairy OptionsValue-Added Dairy Options
Value-Added Dairy Options
 
Enterprise Budgets and Production Costs for Organic Production
Enterprise Budgets and Production Costs for Organic ProductionEnterprise Budgets and Production Costs for Organic Production
Enterprise Budgets and Production Costs for Organic Production
 
Planning and Recruitment
Planning and Recruitment Planning and Recruitment
Planning and Recruitment
 

Similar to Management information system

lecture 1 information systems and business strategy
lecture 1  information systems and business strategylecture 1  information systems and business strategy
lecture 1 information systems and business strategyNorazila Mat
 
Management information system
Management information systemManagement information system
Management information systemM Qasim Ali
 
Session-1-MIS-Shahid Khan.pptx
Session-1-MIS-Shahid Khan.pptxSession-1-MIS-Shahid Khan.pptx
Session-1-MIS-Shahid Khan.pptxShahid Khan
 
[2019] week07 enterprise systems
[2019] week07   enterprise systems[2019] week07   enterprise systems
[2019] week07 enterprise systemsAnisah Herdiyanti
 
Lecture_2_Competing_with_Information_and_Communication_Technology.pdf
Lecture_2_Competing_with_Information_and_Communication_Technology.pdfLecture_2_Competing_with_Information_and_Communication_Technology.pdf
Lecture_2_Competing_with_Information_and_Communication_Technology.pdfDebelaTekabe
 
ROLE OF IT IN BUSINESS
ROLE OF IT IN BUSINESSROLE OF IT IN BUSINESS
ROLE OF IT IN BUSINESShuma sh
 
Supply Chain Solutions - Where does the future lie?
Supply Chain Solutions - Where does the future lie?Supply Chain Solutions - Where does the future lie?
Supply Chain Solutions - Where does the future lie?Nikhil Kejriwal
 
Implementing supply chain management
Implementing supply chain managementImplementing supply chain management
Implementing supply chain managementAmadeoDorlus
 
Strategy Basecamp's IT Diagnostic - Six Steps to Improving Your Technology
Strategy Basecamp's IT Diagnostic - Six Steps to Improving Your TechnologyStrategy Basecamp's IT Diagnostic - Six Steps to Improving Your Technology
Strategy Basecamp's IT Diagnostic - Six Steps to Improving Your TechnologyPaul Osterberg
 

Similar to Management information system (20)

lecture 1 information systems and business strategy
lecture 1  information systems and business strategylecture 1  information systems and business strategy
lecture 1 information systems and business strategy
 
E commerce
E commerce E commerce
E commerce
 
Management information system
Management information systemManagement information system
Management information system
 
RowanDay2.pptx
RowanDay2.pptxRowanDay2.pptx
RowanDay2.pptx
 
Information systems, organizations, and strategy
Information systems,  organizations, and strategyInformation systems,  organizations, and strategy
Information systems, organizations, and strategy
 
Session-1-MIS-Shahid Khan.pptx
Session-1-MIS-Shahid Khan.pptxSession-1-MIS-Shahid Khan.pptx
Session-1-MIS-Shahid Khan.pptx
 
[2019] week07 enterprise systems
[2019] week07   enterprise systems[2019] week07   enterprise systems
[2019] week07 enterprise systems
 
RowanDay3.pptx
RowanDay3.pptxRowanDay3.pptx
RowanDay3.pptx
 
Lecture_2_Competing_with_Information_and_Communication_Technology.pdf
Lecture_2_Competing_with_Information_and_Communication_Technology.pdfLecture_2_Competing_with_Information_and_Communication_Technology.pdf
Lecture_2_Competing_with_Information_and_Communication_Technology.pdf
 
Chap007
Chap007Chap007
Chap007
 
ROLE OF IT IN BUSINESS
ROLE OF IT IN BUSINESSROLE OF IT IN BUSINESS
ROLE OF IT IN BUSINESS
 
Entrepreneurship
EntrepreneurshipEntrepreneurship
Entrepreneurship
 
E Marketing
E   MarketingE   Marketing
E Marketing
 
E-Commerce
E-CommerceE-Commerce
E-Commerce
 
Supply Chain Solutions - Where does the future lie?
Supply Chain Solutions - Where does the future lie?Supply Chain Solutions - Where does the future lie?
Supply Chain Solutions - Where does the future lie?
 
17452194 e-marketing
17452194 e-marketing17452194 e-marketing
17452194 e-marketing
 
Chap008
Chap008Chap008
Chap008
 
Implementing supply chain management
Implementing supply chain managementImplementing supply chain management
Implementing supply chain management
 
M-5.pptx
M-5.pptxM-5.pptx
M-5.pptx
 
Strategy Basecamp's IT Diagnostic - Six Steps to Improving Your Technology
Strategy Basecamp's IT Diagnostic - Six Steps to Improving Your TechnologyStrategy Basecamp's IT Diagnostic - Six Steps to Improving Your Technology
Strategy Basecamp's IT Diagnostic - Six Steps to Improving Your Technology
 

Recently uploaded

Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 

Recently uploaded (20)

Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 

Management information system

  • 2. INTRODUCTION Information systems and organizations influence one another. Information systems are built by managers to serve the interests of the business firm. At the same time, the organization must be aware of and open to the influences of information systems to benefit from new technologies. The interaction between information technology and organization’s structure, business processes, politics, culture, surrounding environment and management decisions.
  • 3. LEARNING OBJECTIVES • Identify and describe important features of organizations that managers need to know about in order to build and use information systems successfully. • Demonstrate how Porter’s competitive forces model helps companies develop competitive strategies using information systems. • Explain how the value chain and value web models help businesses identify opportunities for strategic information system applications.
  • 4. CONT... • Demonstrate how information systems help businesses use synergies, core competencies, and network-based strategies to achieve competitive advantage. • Assess the challenges posed by strategic information systems and management solutions.
  • 5. TWO WAY RELATIONSHIP BETWEEN ORGANIZATIONS AND INFORMATION TECHNOLOGY This complex two-way relationship is mediated by many factors, not the least of which are the decisions made—or not made— by managers. Other factors mediating the relationship include the organizational culture, structure, politics, business processes, and environment.
  • 6. FEATURES OF ORGANIZATIONS • Organizational politics • Divergent viewpoints lead to political struggle, competition, and conflict • Political resistance greatly hampers organizational change
  • 7. CONT..... • Organizational culture: • Encompasses set of assumptions that define goal and product • What products the organization should produce • How and where it should be produced • For whom the products should be produced
  • 8. CONT..... • Organizational environments: • Organizations and environments have a reciprocal relationship • Organizations are open to, and dependent on, the social and physical environment • Organizations can influence their environments • Environments generally change faster than organizations • Information systems can be an instrument of environmental scanning, act as a lens
  • 9. INFORMATION SYSTEM TO ACHIEVE COMPETITIVE ADVANTAGE • Why do some firms become leaders in their industry? • Michael Porter’s competitive forces model • Provides general view of firm, its competitors, and environment • Five competitive forces shape fate of firm 1. Traditional competitors 2. New market entrants 3. Substitute products and services 4. Customers 5. Suppliers
  • 11. CONT... • Traditional competitors • All firms share market space with competitors who are continuously devising new products, services, efficiencies, switching costs • New market entrants • Some industries have high barriers to entry, e.g. computer chip business • New companies have new equipment, younger workers, but little brand recognition
  • 12. CONT.... • Substitute products and services • Substitutes customers might use if your prices become too high, e.g. iTunes substitutes for CDs • Customers • Can customers easily switch to competitor’s products. • Suppliers • Market power of suppliers when firm cannot raise prices as fast as suppliers
  • 13. INFORMATION SYSTEMS TO ACHIEVE COMPETITIVE ADVANTAGE • Four generic strategies for dealing with competitive forces, enabled by using IT • Low-cost leadership • Product differentiation • Focus on market niche • Strengthen customer and supplier intimacy
  • 14. INFORMATION SYSTEMS TO ACHIEVE COMPETITIVE ADVANTAGE • Low-cost leadership • Produce products and services at a lower price than competitors while enhancing quality and level of service • Examples: Wal-Mart • Product differentiation • Enable new products or services, greatly change customer convenience and experience • Examples: Google, Nike, Apple
  • 15. INFORMATION SYSTEMS TO ACHIEVE COMPETITIVE ADVANTAGE • Focus on market niche • Use information systems to enable a focused strategy on a single market niche; specialize • Example: Hilton Hotels • Strengthen customer and supplier intimacy • Use information systems to develop strong ties and loyalty with customers and suppliers; increase switching costs • Example: Netflix, Amazon
  • 16. BUSINESS VALUE CHAIN MODEL • The Value Chain is a systematic approach to examining the development of competitive advantage. • The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization. • The process through which we add value to the products. • An inter related series of processes that produces a service or product to the satisfaction of customers. • Each activity in a process should add value to the preceding activities.
  • 17. BUSINESS VALUE CHAIN MODEL This figure provides examples of systems for both primary and support activities of a firm and of its value partners that can add a margin of value to a firm’s products or services
  • 18. VALUE CHAIN Primary activities: Inbound Logistics: • Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organization. Operations: • This is where goods are manufactured or assembled. Individual operations could include room service in an hotel, packing of books/videos/games by an online retailer, or the final tune for a new car's engine
  • 19. VALUE CHAIN • Outbound Logistics: • The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer. • Marketing and Sales: • In true customer orientated fashion, at this stage the organization prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix. • Service: • This includes all areas of service such as installation, after- sales service, complaints handling, training and so on.
  • 20. VALUE CHAIN Support Activities: • Procurement: • The initial area. It means purchasing. This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. Technology Development: • Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments.
  • 21. VALUE CHAIN Human Resource Management (HRM): • Employees are an expensive and vital resource. An organization would manage recruitment and s election, training and development, and rewards and remuneration. The mission and objectives of the organization would be driving force behind the HRM strategy. Firm Infrastructure: • This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS), and other mechanisms for planning and control such as the accounting department.
  • 22. SIX STRATEGIC BUSINESS OBJECTIVES OF INFORMATION SYSTEM  OPERATIONAL EXCELLENCE  NEW PRODUCT ,SERVICES,AND BUSINESS MODELS  CUSTOMER AND SUPPLIER INTIMACY  IMPROVED DECISION MAKING  COMPETITIVE ADVANTAGE  SURVIVAL
  • 23. BUSINESS STRATEGIC OBJECTIVES • Operational excellence: • Improvement of efficiency to attain higher profitability • Information systems, technology an important tool in achieving greater efficiency and productivity • E.g. Wal-Mart’s Retail Link system links suppliers to its 5289 stores wordlwide for superior replenishment system
  • 24. BUSINESS STRATEGIC OBJECTIVES • New products, services, and business models: • Business model: describes how company produces, delivers, and sells product or service to create wealth • Information systems and technology are a major enabling tool for new products, services, business models • E.g. Apple’s iPod, iTunes transformed the old business model of music distribution from CDs into online • Netflix’s Internet-based DVD rentals vs rental stores
  • 25. BUSINESS STRATEGIC OBJECTIVES • Customer and supplier intimacy: • Serving customers well leads to customers returning, which raises revenues and profits • E.g. High-end hotels that use computers to track customer preferences (room temperature, TV channels) and use IS to monitor and customize environment • Intimacy with suppliers allows them to provide vital inputs, which lowers costs • E.g. J . C. Penney’s information system which links shirt sales records at each store to contract manufacturer in Hong Kong. Supplier produces (quantity, style, color, size) based on the sales records and delivers directly to stores; no inventory storage costs for J.C.Penney, lower price to customer
  • 26. BUSINESS STRATEGIC OBJECTIVES • Improved decision-making • Without accurate information: • Managers must use forecasts, best guesses, luck • Leads to: • Overproduction/underproduction of goods and services • Misallocation of resources • Poor response times • Poor outcomes raise costs, lose customers • E.g. Verizon’s (phone company) Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc. Fast response through immediate allocation of repair resources
  • 27. BUSINESS STRATEGIC OBJECTIVES • Competitive advantage • Delivering better performance • Charging less for superior products • Responding to customers and suppliers in real time • Often achieved through one of first four strategic business objectives • E.g. Dell: Consistent profitability over 25 years; Dell remains one of the most efficient producer of PCs in world (mass customization) • But Dell has lost some of its advantages to fast followers– HP (competitive advantage is not sustainable)
  • 28. BUSINESS STRATEGIC OBJECTIVES • Survival • Information systems and technologies as a necessity for businesses to survive • Driven by: • Industry-level changes, e.g. the introduction of ATMs by one bank forces other banks to follow • firms need IS capability to respond to these requirements
  • 29. INFORMATION SYSTEMS CAN IMPROVE OVERALL PERFORMANCE OF BUSINESS UNITS BY PROMOTING • Synergies: • When output of some units used as inputs to others, or organizations pool markets and expertise. • E.g. : united western bank merger with IDBI . • Core competencies: • Activity for which firm is world-class leader. • Relies on knowledge, experience, and sharing this across business units. • E.g. Procter & Gamble’s uses an intranet known as Innovation Net to help people working on similar problems share ideas and expertise.
  • 30. CONT.... • Network-based strategies: • The availability of internet and networking technologies has provided advantage of firm’s abilities to network with each other. • Include use of: • Network economics • Virtual company model • Business ecosystems