SlideShare a Scribd company logo
1 of 94
Download to read offline
Unit	
  403:	
  Managing	
  Informa2on	
  Systems	
  	
  
	
  
Sweta Sud
Chifley Adjunct Fellow
	
  
Know your facilitator
•  Instrumentation and Controls Engineer
•  MBA in Systems and Marketing
•  Master Project Manager
•  Post Graduate Diploma in IT Management
•  Certified Information Systems Auditor
•  Managed MIS Projects for
ü  GM-Opel Astra (Holden) Car Manufacturing Automation Plant
ü  Tata Indica, NANO (TELCO) Manufacturing Plant
ü  Shopfloor Information Management Systems
ü  Dubai Duty Free Transaction System
ü  Dubai Municipality
ü  SAP India, Singapore, Thailand, Taiwan, Indonesia Integration
ü  ABB Sydney – Electrical Plants Automation Projects
MIS
What Business are you in?
Why MIS?
In this Unit..
Week	
  1	
  
• First	
  workshop	
  
• Topic	
  1,2,3	
  
Week	
  2	
  
• Read	
  the	
  Study	
  guide	
  
• Read	
  the	
  e-­‐book	
  	
  
Week	
  3	
  
• 2nd	
  workshop	
  
• Topic	
  4,5,6	
  
Week	
  4	
  
• Do	
  the	
  assignment	
  	
  
Week	
  5	
  
• 3rd	
  workshop	
  
• Topic	
  7,8,9,10	
  
Week	
  6	
  
• Exam	
  on	
  4th	
  September	
  
Today’s Agenda
0	
  
• Starts	
  08:30	
  am	
  
• MIS	
  –	
  your	
  understanding	
  
• Ac2vi2es	
  and	
  discussions	
  
• Morning	
  tea@10:00	
  
1	
  
• Managing	
  IS	
  to	
  seize	
  new	
  strategic	
  opportuni2es	
  	
  
• Lunch	
  @	
  12:30pm	
  –	
  01:30	
  pm	
  
2	
  
• Case	
  Study	
  Discussion	
  2me	
  1:30	
  to	
  02:00	
  pm	
  
• Managing	
  using	
  a	
  systems	
  approach	
  	
  
• Evening	
  Tea@	
  2:30pm	
  
3	
  
• Informa2on	
  systems	
  and	
  strategy	
  
• Session	
  closes	
  04:00	
  pm	
  	
  
Unit-403, Workshop1
E-­‐BOOK	
  
Managing and Using Information Systems: A
Strategic Approach
by Keri Pearlson & Carol Saunders	
  
Roman	
  Empire	
  
Mughal	
  Empire	
  
Renaissance	
  
OXoman	
  Empire	
  
Social	
  Developent	
  
Index	
  
Ibraham	
  
Buddha	
  
Confucius	
  
Plato	
  
life	
  of	
  alexander	
  
Jesus	
  
Zero	
  
Mohammad`	
  
Black	
  Death	
  
Columbus	
  
Calculus	
  
World	
  popula2on	
  
‘000	
  
0	
  
100	
  
200	
  
300	
  
400	
  
500	
  
600	
  
700	
  
0	
  
1000	
  
2000	
  
3000	
  
4000	
  
5000	
  
6000	
  
7000	
  
8000	
  
What’s	
  the	
  most	
  significant	
  event	
  in	
  Human	
  History	
  
What	
  do	
  future	
  Jobs	
  look	
  like	
  
Customer	
  Service	
  Vs.	
  Siri	
  
Machines	
  replacing	
  skills	
  
More	
  output	
  at	
  lower	
  costs	
  
Google	
  chairman	
  predicts	
  the	
  
whole	
  world	
  will	
  be	
  on	
  the	
  Web	
  
by	
  2020.	
  	
  	
  	
  	
  	
  CNN	
  	
  June	
  2013	
  
"For	
  every	
  person	
  online,	
  there	
  
are	
  two	
  who	
  are	
  not,"	
  Eric	
  
Schmidt	
  
Major	
  shies	
  in	
  the	
  demand	
  for	
  skills	
  
Economy-­‐wide	
  measures	
  of	
  rou2ne	
  and	
  non-­‐rou2ne	
  task	
  input	
  (US)	
  
40	
  
45	
  
50	
  
55	
  
60	
  
65	
  
1960	
   1970	
   1980	
   1990	
   2002	
  
Rou2ne	
  manual	
  
Nonrou2ne	
  manual	
  
Rou2ne	
  cogni2ve	
  
Nonrou2ne	
  analy2c	
  
Nonrou2ne	
  interac2ve	
  
	
  (Levy	
  and	
  Murnane,	
  2010)	
  
Meantaskinputaspercentilesofthe1960taskdistribution
Dilemma	
  facing	
  schools:	
  
The	
  skills	
  that	
  are	
  easiest	
  to	
  teach	
  and	
  test	
  are	
  
also	
  the	
  ones	
  that	
  are	
  easiest	
  to	
  digi?se,	
  
automate	
  and	
  outsource	
  
18	
  
TOPIC	
  1:	
  Managing	
  IS	
  to	
  seize	
  new	
  
strategic	
  opportuni2es	
  	
  
Analyse	
  the	
  impact	
  that	
  IS	
  has	
  on	
  
organisa2ons	
  	
  
and	
  the	
  consequent	
  changes	
  that	
  
have	
  occurred	
  to	
  the	
  role	
  of	
  
business	
  managers.	
  
	
  
18	
  
Objec2ve	
  
1.  Explain	
  why	
  managing	
  informa2on	
  is	
  
important	
  in	
  today's	
  business	
  world	
  
2.  Define	
  concepts	
  from	
  the	
  hierarchy	
  of	
  data	
  
and	
  IS,	
  as	
  dis2nct	
  from	
  IT	
  
3.  Describe	
  the	
  major	
  challenges	
  facing	
  today's	
  
business	
  and	
  IS	
  manager	
  
4.  Analyse	
  and	
  report	
  on	
  an	
  organisa2on's	
  IT-­‐
investment	
  profile	
  	
  
19	
  
A	
  Business	
  View	
  
•  IT	
  is	
  a	
  cri2cal	
  resource.	
  
•  IT	
  is	
  over	
  50%	
  of	
  capital	
  goods	
  dollars	
  spent	
  in	
  
the	
  US.	
  
– Over	
  $3,800	
  a	
  year	
  per	
  capita.	
  
– High	
  growth	
  firms	
  invest	
  more	
  in	
  IT.	
  
•  Business	
  managers	
  decide	
  resource	
  alloca2on.	
  
20	
  
Par2cipa2ng	
  in	
  Informa2on	
  Decisions	
  
•  Business	
  managers	
  “must”	
  be	
  involved	
  in	
  
informa2on	
  decisions.	
  
21	
  
Par2cipa2ng	
  in	
  Informa2on	
  Decisions	
  
•  Business	
  managers	
  “must”	
  be	
  involved	
  in	
  
informa2on	
  decisions.	
  
•  .	
  	
  IS	
  …	
  
–  is	
  a	
  cri2cal	
  resource.	
  
–  enables	
  change	
  in	
  how	
  people	
  work	
  together.	
  
–  is	
  integrated	
  with	
  almost	
  every	
  aspect	
  of	
  business.	
  
–  enables	
  business	
  opportuni2es	
  and	
  new	
  strategies.	
  
–  can	
  be	
  used	
  to	
  combat	
  business	
  challenges	
  from	
  
22	
  
People	
  and	
  Technology	
  
•  People	
  and	
  Technology	
  work	
  together.	
  
– Technology	
  is	
  cri2cal.	
  
– Workers	
  rely	
  heavily	
  on	
  technology.	
  
•  Managers	
  must	
  know	
  how	
  to	
  mesh	
  both.	
  
– Examine	
  long-­‐term	
  and	
  short-­‐term	
  consequences.	
  
– Manage	
  change	
  carefully.	
  
•  Technology	
  changes	
  rapidly.	
  
23	
  
Is	
  IT	
  a	
  cost	
  centre?	
  
Can	
  IS	
  create	
  new	
  strategic	
  Business	
  
Opportuni2es?	
  	
  
(Apply	
  product	
  vs.	
  market	
  Matrix	
  
24	
  
Business	
  Goals	
  
•  IS	
  must	
  support	
  business	
  goals.	
  
– It	
  is	
  not	
  an	
  end	
  but	
  a	
  means	
  to	
  an	
  end.	
  
– Support	
  and	
  strategic	
  focus.	
  
•  Toys	
  R	
  Us	
  IT	
  debacle.	
  
– Must	
  meet	
  user	
  needs.	
  
– Must	
  be	
  able	
  to	
  support	
  business	
  transac2ons.	
  
25	
  
Organiza2onal	
  Systems	
  
•  IT	
  must	
  support	
  organiza2onal	
  systems	
  
– The	
  people,	
  work	
  processes,	
  and	
  structure.	
  
•  Carefully	
  consider	
  the	
  consequences	
  of	
  
making	
  an	
  IS	
  change.	
  
– How	
  will	
  this	
  impact	
  the	
  way	
  work	
  is	
  done?	
  
– Will	
  the	
  people	
  accept	
  this	
  new	
  technology?	
  
– What	
  changes	
  may	
  need	
  to	
  be	
  made	
  in	
  the	
  
structure	
  of	
  the	
  organiza2on?	
  
26	
  
WHAT	
  SKILLS	
  ARE	
  NEEDED	
  TO	
  
PARTICIPATE	
  EFFECTIVELY	
  IN	
  
INFORMATION	
  TECHNOLOGY	
  
DECISIONS?	
  
27	
  
Basic	
  Skills	
  Needed	
  
•  Myth	
  -­‐	
  technical	
  exper2se	
  is	
  not	
  needed	
  to	
  
par2cipate.	
  
•  Managerial	
  role	
  and	
  skills	
  needed	
  (Fig	
  I.2):	
  
– Visionary	
  –	
  crea2vity,	
  curiosity,	
  confidence,	
  focus	
  
on	
  business	
  solu2ons,	
  flexibility.	
  
– Informa2onal	
  and	
  Interpersonal	
  –	
  
communica2on,	
  informa2on	
  gathering,	
  
interpersonal	
  skills.	
  
– Structured	
  –	
  project	
  management,	
  analy2cal	
  skills,	
  
organiza2onal	
  skills,	
  planning	
  skills.	
  
28	
  
BASIC	
  ASSUMPTIONS	
  
•  Managers	
  must	
  know	
  about	
  both	
  using	
  and	
  
managing	
  informa2on.	
  
•  Managers	
  must	
  be	
  knowledgeable	
  
par2cipants	
  in	
  IS	
  decisions.	
  
– The	
  general	
  manager	
  must	
  have	
  a	
  basic	
  
understanding	
  of	
  the	
  business	
  and	
  technology	
  
issues	
  related	
  to	
  IS.	
  
•  Technology	
  of	
  today	
  is	
  different	
  from	
  the	
  
technology	
  of	
  yesterday.	
  
29	
  
•  The	
  role	
  of	
  the	
  general	
  manager	
  and	
  IS	
  
manager	
  are	
  dis2nct.	
  
– The	
  GM	
  must	
  have	
  a	
  basic	
  understanding	
  of	
  IS	
  to	
  
make	
  decisions	
  that	
  may	
  have	
  significant	
  
implica2ons	
  for	
  the	
  business.	
  
– The	
  IS	
  manager	
  must	
  have	
  general	
  business	
  
knowledge	
  and	
  a	
  more	
  in	
  depth	
  knowledge	
  of	
  IS	
  
to	
  support	
  its	
  func2on.	
  
30	
  
Management	
  Assump2ons	
  
•  Four	
  key	
  ac2vi2es	
  of	
  the	
  classic	
  view	
  of	
  
management	
  (Fig	
  I.3).	
  
– Planning	
  
– Organizing	
  
– Leading	
  
– Controlling	
  
•  Classic	
  view	
  is	
  seen	
  as	
  more	
  of	
  a	
  tac2cal	
  
approach	
  to	
  management.	
  
31	
  
•  The	
  Mintzberg	
  model	
  describes	
  management	
  
in	
  behavioral	
  terms	
  (Fig	
  I.4	
  –	
  page	
  25).	
  
– Interpersonal	
  
– Informa2onal	
  
– Decisional	
  	
  
Mintzberg	
  Model	
  
32	
  
Figure	
  I.5	
  	
  Hierarchical	
  View	
  of	
  the	
  firm.	
  
33	
  
Func2onal	
  View	
  
•  Func2onal	
  View	
  of	
  the	
  business	
  
– Based	
  on	
  the	
  func2ons	
  people	
  perform.	
  
– Informa2on	
  flows	
  ver2cally	
  in	
  the	
  organiza2on.	
  
– Some2mes	
  informa2on	
  flows	
  across	
  the	
  
organiza2on.	
  
– Accoun2ng,	
  Opera2ons,	
  Marke2ng,	
  Sales	
  and	
  
Support.	
  
– Execu2ve	
  Management	
  receives	
  the	
  informa2on	
  
and	
  distributes	
  as	
  need	
  arrives.	
  	
  
– See	
  Figure	
  I.5	
  
34	
  
Figure	
  I.6	
  Process	
  View	
  of	
  the	
  Firm:	
  The	
  Value	
  Chain	
  
35	
  
Process	
  View	
  
•  This	
  model	
  sees	
  the	
  business	
  by	
  the	
  processes	
  
it	
  performs	
  to	
  achieve	
  its	
  goals.	
  
•  Porter	
  describes	
  business	
  in	
  terms	
  of	
  its	
  
primary	
  and	
  support	
  ac2vi2es.	
  
– Primary	
  –	
  inbound	
  and	
  outbound	
  logis2cs,	
  
opera2ons,	
  marke2ng	
  and	
  sales.	
  
– Support	
  –	
  HR,	
  technology,	
  procurement,	
  
infrastructure.	
  
•  Ac2vi2es	
  are	
  linked	
  together	
  to	
  form	
  a	
  chain	
  –	
  
the	
  value	
  chain	
  (fig	
  I.6).	
  
36	
  
Data	
  Hierarchy	
  
Wisdom	
  
Understanding	
  
Knowledge	
  
Informa2on	
  
Data	
  
37	
  
Informa2on	
  Hierarchy	
  
•  Data,	
  Informa2on,	
  and	
  Knowledge	
  are	
  not	
  
interchangeable	
  terms.	
  
– Data	
  –	
  set	
  of	
  specific	
  objec2ve	
  facts	
  or	
  
observa2ons	
  (inventory	
  contains	
  100	
  widgets).	
  
– Informa2on	
  –	
  data	
  endowed	
  with	
  relevance	
  and	
  
purpose	
  (75%	
  of	
  widgets	
  were	
  purchased	
  by	
  
customers	
  in	
  December)	
  –	
  see	
  fig	
  I.8.	
  
– Knowledge	
  -­‐	
  	
  informa2on	
  that	
  has	
  been	
  
synthesized	
  and	
  contextualized	
  to	
  provide	
  value.	
  
38	
  
Data Information Knowledge
Definition Simple
Observations of the
sate of the world
Data endowed
with relevance
and purpose
Info from the
human mind
(includes
reflection, etc)
Characteristic • Easily structured
•  “ captured
•  “ transferred
• Often quantified
• Mere facts
• Requires unit of
analysis
• Data that has
been processed
• Human mediation
necessary
• Hard to structure
• Difficult to capture
on machines
• Often tacit
• Hard to transfer
Example Daily inventory
reports of all
inventory items sent
to CEO of large
manufacturing
company
Daily inventory
report of items
below economic
order quality
levels sent to
inventory manager
(IM)
IM knows which
items need to be
reordered in light
of related potential
problems
39	
  
Top Management Middle
Management
Supervisory &
Lower-Level
Management
Time Horizon Long: years Medium: weeks,
months, years
Short: day to day
Level of
Detail
Highly aggregated
Less accurate
More predicted
Summarized
Integrated
Often financial
Very detailed
Very accurate
Often
nonfinancial
Orientation Primarily external Primarily internal
with limited
external
Internal
Decision Extremely
judgmental
Uses creativity and
analytic skills
Relatively
judgmental
Heavy reliance
on rules
Figure	
  I.8	
  Informa2on	
  Characteris2cs	
  across	
  Hierarchical	
  Levels	
  
40	
  
What’s	
  the	
  difference	
  between	
  IS	
  
and	
  IT?	
  
41	
  
Figure	
  I.9	
  	
  System	
  Hierarchy	
  
Management
Information Systems
People Technology Process
42	
  
System	
  Hierarchy	
  
•  Informa2on	
  systems	
  are	
  comprised	
  of	
  three	
  
main	
  elements:	
  
– Technology	
  
– People	
  
– Process	
  
•  Infrastructure	
  –	
  everything	
  that	
  supports	
  the	
  
flow	
  of	
  processing	
  informa2on	
  
– Hardware,	
  soeware,	
  data,	
  and	
  components.	
  
•  Architecture	
  –	
  strategy	
  implicit	
  in	
  these	
  
components.	
  	
  
Ac2vity	
  1.2	
  Tom	
  Peters	
  
ACTIVITY	
  1.2—SIMPLIFYING	
  SYSTEMS	
  
Having	
  watched	
  the	
  Tom	
  Peters	
  video,	
  reflect	
  on	
  whether	
  
or	
  not	
  your	
  organisa2on	
  ac2vely	
  encourages	
  con2nuous	
  
improvement	
  of	
  systems.	
  	
  
What	
  would	
  you	
  do	
  to	
  implement	
  a	
  program	
  where	
  your	
  
people	
  can	
  make	
  it	
  easier	
  to	
  achieve	
  your	
  core	
  business	
  
objec2ves	
  through	
  simplifying	
  systems?	
  .	
  
ORGANISATIONAL	
  NEEDS	
  AND	
  
INVESTMENT	
  	
  
•  Enterprise	
  Resource	
  Planning	
  systems	
  (ERP)	
  
systems	
  	
  
•  data-­‐warehousing	
  and	
  data-­‐mining	
  systems	
  
•  Groupware	
  
•  group	
  support	
  systems	
  
•  Intranets	
  
•  e-­‐commerce	
  and	
  e-­‐business	
  services	
  and	
  
tools.	
  	
  
How	
  much	
  to	
  invest	
  and	
  where?	
  
Gibson	
  and	
  Nolan:	
  Stages	
  of	
  Growth	
  
Stage	
  1:	
  Ini?a?on	
  
simple	
  administra2ve	
  func2ons	
  such	
  as	
  automa2on	
  of	
  payroll	
  or	
  general	
  ledger	
  func2ons.	
  low	
  
expenditures,	
  liXle	
  user	
  involvement.	
  
Stage	
  2:	
  Contagion	
  
broader-­‐ranging	
  uses	
  of	
  IT,..	
  As	
  usage	
  grows,	
  there	
  is	
  a	
  lack	
  of	
  general	
  control.	
  Budgets	
  grow	
  rapidly;	
  
the	
  focus	
  is	
  on	
  the	
  machine;	
  IT	
  use	
  is	
  plagued	
  by	
  crises.	
  
Stage	
  3:	
  Control	
  
	
  2ghter	
  controls	
  are	
  necessary	
  	
  
upgrading	
  system	
  documenta2on,	
  	
  
budget	
  reviews	
  and	
  full	
  charge-­‐out	
  of	
  IT	
  costs	
  to	
  user	
  departments.	
  
	
  Integra2on	
  of	
  incompa2ble	
  systems	
  and	
  user	
  frustra2on	
  become	
  common	
  themes.	
  
Stage	
  4:	
  Integra?on	
  
user-­‐oriented	
  steering	
  commiXees,	
  	
  
financial	
  planning	
  for	
  applica2ons,	
  	
  
	
  charge-­‐back	
  systems.	
  
5:	
  Data	
  administra?on	
  
data	
  is	
  a	
  corporate	
  resource	
  
Focus	
  on	
  informa2on	
  systems,	
  rather	
  than	
  informa2on	
  technology.	
  
Stage	
  6:	
  Maturity	
  
data	
  administra2on.	
  Organisa2ons	
  use	
  their	
  data	
  resources	
  to	
  develop	
  compe22ve	
  and	
  
opportunis2c	
  applica2ons,	
  not	
  simply	
  applica2ons	
  to	
  make	
  their	
  own	
  internal	
  opera2ons	
  more	
  
efficient.	
  	
  
The	
  aim	
  is	
  to	
  develop	
  data-­‐resource	
  management	
  strategic	
  planning.	
  
47	
  
Summary	
  
•  Business	
  managers	
  “must”	
  be	
  involved	
  in	
  
informa2on	
  decisions.	
  
•  IT	
  is	
  a	
  cri2cal	
  resource.	
  
•  People	
  and	
  Technology	
  work	
  together.	
  
•  Certain	
  key	
  skills	
  are	
  needed.	
  
•  Data,	
  Informa2on,	
  and	
  Knowledge	
  are	
  
dis2nct.	
  
48	
  
THE	
  CASE	
  FOR	
  PARTICIPATING	
  IN	
  
DECISIONS	
  ABOUT	
  INFORMATION	
  
SYSTEMS	
  
49	
  
CASE	
  STUDY	
  1:	
  	
  
•  Amazon.com	
  has	
  garnered	
  a	
  leadership	
  posi2on	
  in	
  the	
  online	
  
world	
  by	
  leveraging	
  their	
  new	
  business	
  model.	
  	
  See	
  
www.amazon.com	
  	
  
–  Expanded	
  market	
  offerings.	
  
–  Increased	
  customiza2on	
  and	
  personaliza2on	
  
–  Smarter	
  storage	
  
–  Cost	
  cuxng.	
  
50	
  
CASE	
  STUDY	
  2:	
  
•  Google	
  has	
  become	
  the	
  leader	
  in	
  the	
  search	
  engine	
  market	
  
through	
  innova2on,	
  simplicity,	
  and	
  by	
  adding	
  new	
  features.	
  	
  	
  	
  
–  See	
  www.google.com	
  	
  
–  Their	
  mission	
  statement	
  can	
  be	
  found	
  at	
  
hXp://www.google.com/corporate/	
  	
  
The	
  informa2on	
  facts	
  of	
  life	
  
If	
  informa2on	
  is	
  
power	
  and	
  money,	
  
people	
  won't	
  share	
  it	
  
easily.	
  
TOPIC	
  2:	
  Managing	
  using	
  a	
  systems	
  
approach	
  	
  
Analyse	
  IS	
  and	
  its	
  management	
  using	
  a	
  
number	
  of	
  analysis	
  approaches	
  	
  
53	
  
Objec2ves	
  
1.  define	
  the	
  terms	
  'system'	
  and	
  'informa2on	
  
system'	
  in	
  a	
  management	
  context	
  	
  
2.  explain	
  the	
  difference	
  between	
  tradi2onal	
  
and	
  object-­‐oriented	
  approaches	
  to	
  systems	
  
analysis	
  	
  
3.  produce	
  a	
  basic	
  data-­‐flow	
  diagram	
  	
  
4.  Produce	
  a	
  basic	
  en2ty–rela2onship	
  diagram	
  
54	
  
1.	
  System	
  ?	
  
A	
  group	
  of	
  	
  
•  interac2ng,	
  
•  	
  interrelated,	
  or	
  
•  	
  interdependent	
  	
  
elements	
  forming	
  a	
  complex	
  whole.	
  	
  
55	
  
1.	
  Informa2on	
  System	
  ?	
  
•  An	
  informa2on	
  system	
  (IS)	
  can	
  be	
  defined	
  in	
  a	
  
very	
  broad	
  way	
  as	
  the	
  collec2on	
  of	
  
informa2on	
  technology,	
  procedures	
  and	
  
people	
  responsible	
  for	
  the	
  capture,	
  
movement,	
  management	
  and	
  distribu2on	
  of	
  
data	
  and	
  informa2on.	
  	
  
56	
  
1.	
  System	
  Analysis?	
  
'Systems	
  analysis	
  and	
  design'	
  is	
  a	
  set	
  of	
  
principles,	
  a	
  method	
  by	
  which	
  we	
  can	
  consider,	
  
design	
  and	
  implement	
  informa2on	
  systems	
  .	
  
1.  Tradi2onal	
  Approach	
  
2.  Object	
  oriented	
  Approach	
  	
  	
  
57	
  
Tradi2onal	
  Approach	
  
	
  
1.  Flow	
  chart	
  
2.  Data	
  flow	
  diagrams	
  
3.  En2ty	
  Rela2onship	
  diagrams	
  	
  
DFD	
  for	
  ??	
  
60	
  
OOP	
  Approach	
  
	
  
1.  Objects	
  
2.  Instances	
  
3.  Classes,	
  Subclasses	
  
61	
  
How	
  to	
  develop	
  IS	
  for	
  your	
  organiza2on?	
  
	
  
1.  Plan	
  (Strategy)	
  
2.  Analyse	
  (Business)	
  
3.  Design	
  (IT,	
  system)	
  
4.  Implement	
  (Development	
  and	
  cutover)	
  
62	
  
Key	
  Characteris2cs	
  
	
  
•  It	
  is	
  user	
  driven	
  
•  It	
  is	
  data	
  focused	
  
•  It	
  is	
  automated	
  
•  It	
  uses	
  models	
  
•  It	
  uses	
  formal	
  structured	
  techniques	
  
•  It	
  treats	
  the	
  full	
  Systems	
  Planning	
  Life	
  cycle-­‐	
  Integrated	
  
whole	
  
•  It	
  is	
  a	
  Reduc2onist	
  Approach	
  
•  It	
  builds	
  a	
  corporate	
  knowledge	
  base	
  	
  
63	
  
Real	
  World	
  Example	
  
•  Na2onal	
  Linen	
  Service	
  was	
  facing	
  poor	
  
earnings	
  due	
  to	
  increased	
  compe22on	
  and	
  a	
  
weak	
  economy.	
  
•  They	
  created	
  a	
  strategic	
  systems	
  department	
  
to	
  increase	
  compe22veness.	
  
•  A	
  new	
  system	
  was	
  implemented,	
  BOSS,	
  that	
  
deleted	
  expired	
  customer	
  contracts	
  hur2ng	
  
their	
  boXom	
  line.	
  
•  The	
  unintended	
  consequences	
  of	
  the	
  system	
  
were	
  not	
  taken	
  into	
  account.	
  
The	
  informa2on	
  facts	
  of	
  life	
  
Managers	
  prefer	
  to	
  get	
  
informa2on	
  from	
  people	
  
rather	
  than	
  computers;	
  
people	
  add	
  value	
  to	
  raw	
  
informa2on	
  by	
  
interpre2ng	
  it	
  and	
  adding	
  
context.	
  
TOPIC	
  3:Informa2on	
  systems	
  and	
  
strategy	
  	
  
Iden2fy	
  the	
  elements	
  that	
  combine	
  to	
  form	
  an	
  
informa2on	
  vision	
  and	
  informa2on	
  	
  
technology	
  (IT)	
  architecture	
  	
  
66	
  
Objec2ves	
  
•  define	
  'mission	
  statement'	
  and	
  'vision	
  statement',	
  and	
  enumerate	
  the	
  
differences	
  between	
  them	
  	
  
•  explain	
  how	
  organisa2ons	
  can	
  use	
  IS	
  to	
  gain	
  strategic	
  and	
  compe22ve	
  
advantage,	
  and	
  iden2fy	
  poten2ally	
  useful	
  IS	
  applica2ons	
  for	
  your	
  own	
  
organisa2on	
  	
  
•  explain	
  how	
  SIS	
  can	
  change	
  the	
  nature	
  of	
  a	
  business	
  or	
  industry	
  when	
  it	
  is	
  
used	
  as	
  an	
  instrument	
  to	
  change	
  the	
  balance	
  of	
  power	
  between	
  the	
  
business	
  and	
  its	
  compe2tors,	
  customers	
  and/or	
  suppliers	
  
•  iden2fy	
  and	
  evaluate	
  some	
  of	
  the	
  poten2al	
  risks,	
  as	
  well	
  as	
  the	
  
opportuni2es,	
  which	
  strategic	
  systems	
  can	
  create	
  	
  
•  explain	
  how	
  interorganisa2onal	
  systems,	
  especially	
  e-­‐business,	
  can	
  be	
  
used	
  to	
  provide	
  beXer	
  service	
  for	
  customers.	
  	
  
67	
  
Do	
  you	
  have	
  a	
  WriXen	
  Strategy	
  	
  
•  Vision	
  	
  
•  Mission	
  
•  Strategy	
  
•  Corporate	
  Plan	
  
A	
  plan	
  ar2cula2ng	
  where	
  a	
  business	
  seeks	
  to	
  go	
  and	
  
how	
  it	
  expects	
  to	
  get	
  there.	
  It	
  is	
  the	
  means	
  by	
  which	
  a	
  
business	
  communicates	
  its	
  goals.	
  	
  
	
  
Wal-­‐Mart:	
  
	
  "To	
  give	
  ordinary	
  folk	
  the	
  chance	
  to	
  buy	
  the	
  same	
  thing	
  as	
  rich	
  
people.”	
  
	
  
3M:	
  	
  
"To	
  solve	
  unsolved	
  problems	
  innova?vely.”	
  
	
  
Walt	
  Disney:	
  "To	
  make	
  people	
  happy.”	
  
	
  
How	
  to	
  Write	
  Strategy	
  Statement	
  
What	
  is	
  this	
  missing?	
  
72	
  
The	
  Impact	
  of	
  IS	
  
•  The	
  Informa2on	
  Systems	
  Strategy	
  Triangle	
  is	
  a	
  
simple	
  framework	
  for	
  understanding	
  the	
  impact	
  of	
  IS	
  
on	
  organiza2ons.	
  
•  Successful	
  firms	
  have	
  an	
  overriding	
  business	
  
strategy.	
  
•  This	
  business	
  strategy	
  drives	
  both	
  Organiza2onal	
  and	
  
Informa2on	
  strategy.	
  
•  All	
  decisions	
  are	
  driven	
  by	
  the	
  firm’s	
  business	
  
objec2ves.	
  
73	
  
Figure	
  1.1	
  	
  	
  The	
  Informa2on	
  Systems	
  Strategy	
  Triangle	
  
74	
  
IS	
  Strategy	
  Triangle	
  
•  Business	
  Strategy	
  drives	
  all	
  other	
  strategies.	
  
•  Organiza2onal	
  and	
  Informa2on	
  Strategy	
  are	
  then	
  
dependent	
  upon	
  the	
  Business	
  Strategy.	
  
•  Changes	
  in	
  any	
  strategy	
  requires	
  changes	
  in	
  the	
  
others	
  to	
  maintain	
  balance.	
  	
  
•  IS	
  Strategy	
  is	
  affected	
  by	
  the	
  other	
  strategies	
  a	
  firm	
  
uses.	
  	
  
•  IS	
  strategy	
  always	
  involves	
  consequences.	
  
BRIEF	
  OVERVIEW	
  OF	
  BUSINESS	
  
STRATEGY	
  FRAMEWORKS	
  
76	
  
Generic	
  Strategies	
  Framework	
  
•  Michael	
  Porter	
  describes	
  how	
  businesses	
  can	
  
build	
  a	
  sustainable	
  compe22ve	
  advantage.	
  
•  He	
  iden2fied	
  three	
  primary	
  strategies	
  for	
  
achieving	
  compe22ve	
  advantage:	
  
– Cost	
  leadership	
  –	
  lowest-­‐cost	
  producer.	
  
– Differen2a2on	
  –	
  product	
  is	
  unique.	
  
– Focus	
  –	
  limited	
  scope.	
  
77	
  
Figure	
  1.2	
  	
  Three	
  strategies	
  for	
  achieving	
  compe22ve	
  advantage.	
  
78	
  
Using	
  Informa2on	
  Resources	
  to	
  	
  Influence	
  
Compe22ve	
  Forces	
  
•  Porter’s	
  five	
  forces	
  model	
  show	
  the	
  major	
  forces	
  
that	
  shape	
  the	
  compe22ve	
  environment	
  of	
  the	
  
firm.	
  
1.  Threat	
  of	
  New	
  Entrants:	
  new	
  firms	
  that	
  may	
  enter	
  a	
  companies	
  
market.	
  
2.  Bargaining	
  Power	
  of	
  Buyers:	
  the	
  ability	
  of	
  buyers	
  to	
  use	
  their	
  
market	
  power	
  to	
  decrease	
  a	
  firm’s	
  compe22ve	
  posi2on	
  	
  
3.  Bargaining	
  Power	
  of	
  Suppliers:	
  the	
  ability	
  suppliers	
  of	
  the	
  inputs	
  of	
  
a	
  product	
  or	
  service	
  to	
  lower	
  a	
  firm’s	
  compe22ve	
  posi2on	
  	
  
4.  Threat	
  of	
  Subs?tutes:	
  providers	
  of	
  equivalent	
  or	
  superior	
  
alterna2ve	
  products	
  
5.  Industry	
  Compe?tors:	
  current	
  compe2tors	
  for	
  the	
  same	
  product.	
  
•  Figure	
  2.2	
  and	
  2.3	
  show	
  this	
  model	
  in	
  detail.	
  
79	
  
Figure	
  2.2	
  	
  Five	
  compe22ve	
  forces	
  with	
  poten2al	
  	
  
strategic	
  use	
  of	
  informa2on	
  resources.	
  
80	
  
Porter’s	
  Compe22ve	
  Advantage	
  
•  Remember	
  that	
  a	
  companies	
  overall	
  business	
  
strategy	
  will	
  drive	
  all	
  other	
  strategies.	
  	
  	
  
•  Porter	
  defined	
  these	
  compe22ve	
  advantages	
  to	
  
represent	
  various	
  business	
  strategies	
  found	
  in	
  the	
  
marketplace.	
  
•  Cost	
  leadership	
  strategy	
  firms	
  include	
  Walmart,	
  
Suzuki,	
  Overstock.com,	
  etc.	
  
•  Differen2a2on	
  strategy	
  firms	
  include	
  Coca	
  Cola,	
  
Progressive	
  Insurance,	
  Publix,	
  etc.	
  
•  Focus	
  strategy	
  firms	
  include	
  the	
  Ritz	
  Carlton,	
  
MarrioX,	
  etc.	
  
81	
  
Framework Key Idea Application to Information Systems
Porter’s
generic
strategies
framework
Firms achieve
competitive
advantage through
cost leadership,
differentiation, or
focus.
Understanding which strategy is chosen by
a firm is critical to choosing IS to
complement that strategy.
D’Aveni’s
hyper-
competition
model
Speed and
aggressive moves
and countermoves
by a firm create
competitive
advantage
The 7 Ss give the manager suggestions on
what moves and countermoves to make.
IS are critical to achieve the speed needed
for these moves.
Figure	
  1.5	
  	
  Summary	
  of	
  key	
  strategy	
  frameworks.	
  
82	
  
Understanding	
  Organiza2on	
  Strategy	
  
To	
  understand	
  organiza2onal	
  strategy	
  we	
  must	
  
answer	
  the	
  following	
  ques2ons:	
  
1.	
  What	
  are	
  the	
  important	
  structures	
  and	
  repor2ng	
  
rela2onships	
  within	
  the	
  organiza2on?	
  
2.	
  What	
  are	
  the	
  characteris2cs,	
  experiences,	
  and	
  skill	
  
levels	
  of	
  the	
  people	
  within	
  the	
  organiza2on?	
  
3.	
  What	
  are	
  the	
  key	
  business	
  processes?	
  
4.	
  What	
  control	
  systems	
  are	
  in	
  place?	
  
5.	
  What	
  is	
  the	
  culture	
  of	
  the	
  organiza2on?	
  
	
  
83	
  
Framework Key Idea Usefulness in IS Discussions
Business
Diamond
There are 4 key
components of an
organization: business
processes, values and
beliefs, management
control systems, and
tasks and structures.
Using IS in an organization will affect
each of these components. Use this
framework to identify where these
impacts are likely to occur
Managerial
levers
Organizational
variables, control
variables, and cultural
variables are the levers
managers can use to
affect change in their
organizations
This is a more detailed model than
the Business diamond and gives
specific areas where IS can be used
to manage the organization and to
change it
Figure	
  1.8	
  	
  Summary	
  of	
  organiza2onal	
  strategy	
  frameworks	
  
BRIEF	
  OVERVIEW	
  OF	
  
INFORMATION	
  SYSTEMS	
  
STRATEGY	
  
85	
  
IS	
  Strategy	
  
•  The	
  plan	
  an	
  organiza2on	
  uses	
  in	
  providing	
  
informa2on	
  services.	
  
•  IS	
  allows	
  business	
  to	
  implement	
  its	
  business	
  strategy.	
  
•  IS	
  helps	
  determine	
  the	
  company’s	
  capabili2es.	
  
•  Four	
  key	
  IS	
  infrastructure	
  components	
  are	
  key	
  to	
  IS	
  
strategy	
  (Figure	
  1.9)	
  
•  These	
  key	
  components	
  are	
  sufficient	
  to	
  allow	
  the	
  	
  
general	
  manager	
  to	
  assess	
  cri2cal	
  IS	
  issues.	
  
86	
  
What Who Where
Hardware List of physical
components of the
system
Individuals who use it
Individuals who
manage it
Physical location
Software List of programs,
applications, and
utilities
Individuals who use it
Individuals who
manage it
What hardware it
resides upon and
where that hardware
is located
Networking Diagram of how
hardware and
software
components are
connected
Individuals who use
it/ Individuals who
manage it/
Company service
obtained from
Where the nodes are
located, where the
wires and other
transport media are
located
Data Bits of information
stored in the system
Individuals who use it
Individuals who
manage it
Where the
information resides
Figure	
  1.9	
  	
  Informa2on	
  systems	
  strategy	
  matrix.	
  
87	
  
Competitive Force IT Influence on Competitive Force
Threat of New Entrants Can be lowered if there are barriers to entry.
Sometimes IS can be used to create barriers to entry
Bargaining Power of Buyers Can be high if it’s easy to switch. Switching costs are
increased by giving buyers things they value in
exchange such as lower costs or useful information
Bargaining Power of Suppliers Forces is strongest when there are few firms to
choose from, quality is inputs is crucial or the volume
of purchases is insignificant to the supplier
Threat of Substitute Products Depends on buyers’ willingness to substitute and the
level of switching costs buyer’s face
Industrial Competitors Rivalry is high when it is expensive to leave and
industry, the industry’s growth rate is declining, or
products have lost differentiation
Figure	
  2.3	
  	
  Applica2on	
  of	
  five	
  compe22ve	
  forces	
  model.	
  
How	
  Important	
  is	
  SIS	
  for	
  you?	
  
What	
  is	
  the	
  impact	
  if	
  SIS?	
  
Significance	
  of	
  	
  SIS	
  	
  
Digicel	
  Edge	
  Vs.	
  3G	
  
Digicel	
  3G	
  Vs.	
  4G	
  
Jus2fying	
  SIS	
  –	
  Cost	
  Benefit	
  Analysis	
  
92	
  
Figure	
  1.1	
  	
  	
  The	
  Informa2on	
  Systems	
  Strategy	
  Triangle	
  
The	
  informa2on	
  facts	
  of	
  life	
  
There's	
  no	
  such	
  thing	
  as	
  
informa2on	
  overload;	
  if	
  
informa2on	
  is	
  really	
  useful,	
  	
  
our	
  appe2te	
  for	
  it	
  is	
  insa2able.	
  	
  
Next Workshop – 15th August
Week	
  1	
  
• First	
  workshop	
  
• Topic	
  1,2,3	
  
Week	
  2	
  
• Read	
  the	
  Study	
  guide	
  
• Read	
  the	
  e-­‐book	
  	
  
Week	
  3	
  
• 2nd	
  workshop	
  
• Topic	
  4,5,6	
  
Week	
  4	
  
• Do	
  the	
  assignment	
  	
  
Week	
  5	
  
• 3rd	
  workshop	
  
• Topic	
  7,8,9,10	
  
Week	
  6	
  
• Exam	
  on	
  4th	
  September	
  

More Related Content

Viewers also liked

Presentatie shared leadership
Presentatie shared leadershipPresentatie shared leadership
Presentatie shared leadershipMichael Makowski
 
The other team-models - beyond forming and storming
The other team-models - beyond forming and stormingThe other team-models - beyond forming and storming
The other team-models - beyond forming and stormingMichael Mahlberg
 
The Behavioral Economics Guide 2016
The Behavioral Economics Guide 2016The Behavioral Economics Guide 2016
The Behavioral Economics Guide 2016blaiq
 
Outline for Behavioral Economics Course Component
Outline for Behavioral Economics Course ComponentOutline for Behavioral Economics Course Component
Outline for Behavioral Economics Course ComponentRussell James
 
Behavioral Economics and Decision Making
Behavioral Economics and Decision MakingBehavioral Economics and Decision Making
Behavioral Economics and Decision Makingneerupaharia
 
Visual Thinking for Brainstorming, Planning, Learning, Collaborating, Harvesting
Visual Thinking for Brainstorming, Planning, Learning, Collaborating, HarvestingVisual Thinking for Brainstorming, Planning, Learning, Collaborating, Harvesting
Visual Thinking for Brainstorming, Planning, Learning, Collaborating, HarvestingGiulia Forsythe
 
Behavioural Economics
Behavioural EconomicsBehavioural Economics
Behavioural EconomicsEton College
 
Behavioral economics in 22 slides - showing that we are irrational
Behavioral economics in 22 slides - showing that we are irrationalBehavioral economics in 22 slides - showing that we are irrational
Behavioral economics in 22 slides - showing that we are irrationalKurt Nelson, PhD
 
15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...
15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...
15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...Board of Innovation
 
Six behavioral economics lessons for the workplace
Six behavioral economics lessons for the workplace Six behavioral economics lessons for the workplace
Six behavioral economics lessons for the workplace Deloitte United States
 

Viewers also liked (13)

Presentatie shared leadership
Presentatie shared leadershipPresentatie shared leadership
Presentatie shared leadership
 
Leaderhip
LeaderhipLeaderhip
Leaderhip
 
The other team-models - beyond forming and storming
The other team-models - beyond forming and stormingThe other team-models - beyond forming and storming
The other team-models - beyond forming and storming
 
team formation
team formationteam formation
team formation
 
Models for forming teams
Models for forming teamsModels for forming teams
Models for forming teams
 
The Behavioral Economics Guide 2016
The Behavioral Economics Guide 2016The Behavioral Economics Guide 2016
The Behavioral Economics Guide 2016
 
Outline for Behavioral Economics Course Component
Outline for Behavioral Economics Course ComponentOutline for Behavioral Economics Course Component
Outline for Behavioral Economics Course Component
 
Behavioral Economics and Decision Making
Behavioral Economics and Decision MakingBehavioral Economics and Decision Making
Behavioral Economics and Decision Making
 
Visual Thinking for Brainstorming, Planning, Learning, Collaborating, Harvesting
Visual Thinking for Brainstorming, Planning, Learning, Collaborating, HarvestingVisual Thinking for Brainstorming, Planning, Learning, Collaborating, Harvesting
Visual Thinking for Brainstorming, Planning, Learning, Collaborating, Harvesting
 
Behavioural Economics
Behavioural EconomicsBehavioural Economics
Behavioural Economics
 
Behavioral economics in 22 slides - showing that we are irrational
Behavioral economics in 22 slides - showing that we are irrationalBehavioral economics in 22 slides - showing that we are irrational
Behavioral economics in 22 slides - showing that we are irrational
 
15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...
15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...
15 Lessons from Behavioural Economics - by @tjalve @boardofinno - Board of In...
 
Six behavioral economics lessons for the workplace
Six behavioral economics lessons for the workplace Six behavioral economics lessons for the workplace
Six behavioral economics lessons for the workplace
 

Similar to Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

CIT 3122 IS Governance Lecture 3.pptx
CIT 3122 IS Governance Lecture 3.pptxCIT 3122 IS Governance Lecture 3.pptx
CIT 3122 IS Governance Lecture 3.pptxanthonywanjohi5
 
Management Imperatives To Make IT Business-Smart
Management Imperatives To Make IT Business-SmartManagement Imperatives To Make IT Business-Smart
Management Imperatives To Make IT Business-Smartvinaya.hs
 
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdfArtificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdfssuser13fb76
 
Digital Talent: not just know how to use technology
Digital Talent: not just know how to use technologyDigital Talent: not just know how to use technology
Digital Talent: not just know how to use technologySeta Wicaksana
 
Digital Workplace in the Connected Organization
Digital Workplace in the Connected OrganizationDigital Workplace in the Connected Organization
Digital Workplace in the Connected OrganizationChange Agents Worldwide
 
Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...
Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...
Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...Livingstone Advisory
 
Digital Strategies for Employee Engagement
Digital Strategies for Employee EngagementDigital Strategies for Employee Engagement
Digital Strategies for Employee EngagementStephan Schillerwein
 
13099838 management-information-system-unit1-part2
13099838 management-information-system-unit1-part213099838 management-information-system-unit1-part2
13099838 management-information-system-unit1-part2Ngaire Taylor
 
Information Management unit 1 introduction
Information Management unit 1 introductionInformation Management unit 1 introduction
Information Management unit 1 introductionGanesha Pandian
 
The CIOs Agenda In Turbulent Times By Tariq Elsadik
The CIOs Agenda In Turbulent Times   By Tariq ElsadikThe CIOs Agenda In Turbulent Times   By Tariq Elsadik
The CIOs Agenda In Turbulent Times By Tariq ElsadikTariq Elsadik
 
IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...
IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...
IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...360 BSI
 
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't TransformationPeter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't TransformationitSMF UK
 

Similar to Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014 (20)

CIT 3122 IS Governance Lecture 3.pptx
CIT 3122 IS Governance Lecture 3.pptxCIT 3122 IS Governance Lecture 3.pptx
CIT 3122 IS Governance Lecture 3.pptx
 
Management Imperatives To Make IT Business-Smart
Management Imperatives To Make IT Business-SmartManagement Imperatives To Make IT Business-Smart
Management Imperatives To Make IT Business-Smart
 
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdfArtificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
 
Chapter 01 intro
Chapter 01 introChapter 01 intro
Chapter 01 intro
 
Digital Talent: not just know how to use technology
Digital Talent: not just know how to use technologyDigital Talent: not just know how to use technology
Digital Talent: not just know how to use technology
 
Conference kuala lumpur1
Conference kuala lumpur1Conference kuala lumpur1
Conference kuala lumpur1
 
Thriving in the world of Big Data
Thriving in the world of Big DataThriving in the world of Big Data
Thriving in the world of Big Data
 
Digital Workplace in the Connected Organization
Digital Workplace in the Connected OrganizationDigital Workplace in the Connected Organization
Digital Workplace in the Connected Organization
 
Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...
Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...
Your Leadership Brand - The CIO as Business Strategist driving innovation. CI...
 
E-Commerce Air Asia
E-Commerce Air AsiaE-Commerce Air Asia
E-Commerce Air Asia
 
MIS 201 ch1.ppt
MIS 201 ch1.pptMIS 201 ch1.ppt
MIS 201 ch1.ppt
 
Digital Strategies for Employee Engagement
Digital Strategies for Employee EngagementDigital Strategies for Employee Engagement
Digital Strategies for Employee Engagement
 
13099838 management-information-system-unit1-part2
13099838 management-information-system-unit1-part213099838 management-information-system-unit1-part2
13099838 management-information-system-unit1-part2
 
Information Management unit 1 introduction
Information Management unit 1 introductionInformation Management unit 1 introduction
Information Management unit 1 introduction
 
EA @ UCLan
EA @ UCLanEA @ UCLan
EA @ UCLan
 
The CIOs Agenda In Turbulent Times By Tariq Elsadik
The CIOs Agenda In Turbulent Times   By Tariq ElsadikThe CIOs Agenda In Turbulent Times   By Tariq Elsadik
The CIOs Agenda In Turbulent Times By Tariq Elsadik
 
IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...
IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...
IT Governance: Governance & Management of Enterprise IT, 25 - 28 October 2015...
 
ROLE OF CIO
ROLE OF CIOROLE OF CIO
ROLE OF CIO
 
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't TransformationPeter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
Peter Hubbard: Don't Get Stuck in a Silo – Going Digital isn't Transformation
 
Ch07
Ch07Ch07
Ch07
 

Recently uploaded

Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfsanyamsingh5019
 
भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,Virag Sontakke
 
Hybridoma Technology ( Production , Purification , and Application )
Hybridoma Technology  ( Production , Purification , and Application  ) Hybridoma Technology  ( Production , Purification , and Application  )
Hybridoma Technology ( Production , Purification , and Application ) Sakshi Ghasle
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)eniolaolutunde
 
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Celine George
 
internship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developerinternship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developerunnathinaik
 
Presiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha electionsPresiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha electionsanshu789521
 
ENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptx
ENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptxENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptx
ENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptxAnaBeatriceAblay2
 
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions  for the students and aspirants of Chemistry12th.pptxOrganic Name Reactions  for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptxVS Mahajan Coaching Centre
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionSafetyChain Software
 
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTiammrhaywood
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxiammrhaywood
 
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxIntroduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxpboyjonauth
 
Painted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaPainted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaVirag Sontakke
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfSoniaTolstoy
 
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting DataJhengPantaleon
 
Pharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdfPharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdfMahmoud M. Sallam
 

Recently uploaded (20)

Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
 
भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,
 
Hybridoma Technology ( Production , Purification , and Application )
Hybridoma Technology  ( Production , Purification , and Application  ) Hybridoma Technology  ( Production , Purification , and Application  )
Hybridoma Technology ( Production , Purification , and Application )
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)
 
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
 
internship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developerinternship ppt on smartinternz platform as salesforce developer
internship ppt on smartinternz platform as salesforce developer
 
Presiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha electionsPresiding Officer Training module 2024 lok sabha elections
Presiding Officer Training module 2024 lok sabha elections
 
ENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptx
ENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptxENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptx
ENGLISH5 QUARTER4 MODULE1 WEEK1-3 How Visual and Multimedia Elements.pptx
 
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions  for the students and aspirants of Chemistry12th.pptxOrganic Name Reactions  for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
 
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPTECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
ECONOMIC CONTEXT - LONG FORM TV DRAMA - PPT
 
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSDStaff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
 
9953330565 Low Rate Call Girls In Rohini Delhi NCR
9953330565 Low Rate Call Girls In Rohini  Delhi NCR9953330565 Low Rate Call Girls In Rohini  Delhi NCR
9953330565 Low Rate Call Girls In Rohini Delhi NCR
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
 
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdfTataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
 
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxIntroduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptx
 
Painted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaPainted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of India
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
 
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data_Math 4-Q4 Week 5.pptx Steps in Collecting Data
_Math 4-Q4 Week 5.pptx Steps in Collecting Data
 
Pharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdfPharmacognosy Flower 3. Compositae 2023.pdf
Pharmacognosy Flower 3. Compositae 2023.pdf
 

Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

  • 1. Unit  403:  Managing  Informa2on  Systems       Sweta Sud Chifley Adjunct Fellow  
  • 2.
  • 3. Know your facilitator •  Instrumentation and Controls Engineer •  MBA in Systems and Marketing •  Master Project Manager •  Post Graduate Diploma in IT Management •  Certified Information Systems Auditor •  Managed MIS Projects for ü  GM-Opel Astra (Holden) Car Manufacturing Automation Plant ü  Tata Indica, NANO (TELCO) Manufacturing Plant ü  Shopfloor Information Management Systems ü  Dubai Duty Free Transaction System ü  Dubai Municipality ü  SAP India, Singapore, Thailand, Taiwan, Indonesia Integration ü  ABB Sydney – Electrical Plants Automation Projects
  • 4. MIS What Business are you in? Why MIS?
  • 5. In this Unit.. Week  1   • First  workshop   • Topic  1,2,3   Week  2   • Read  the  Study  guide   • Read  the  e-­‐book     Week  3   • 2nd  workshop   • Topic  4,5,6   Week  4   • Do  the  assignment     Week  5   • 3rd  workshop   • Topic  7,8,9,10   Week  6   • Exam  on  4th  September  
  • 6. Today’s Agenda 0   • Starts  08:30  am   • MIS  –  your  understanding   • Ac2vi2es  and  discussions   • Morning  tea@10:00   1   • Managing  IS  to  seize  new  strategic  opportuni2es     • Lunch  @  12:30pm  –  01:30  pm   2   • Case  Study  Discussion  2me  1:30  to  02:00  pm   • Managing  using  a  systems  approach     • Evening  Tea@  2:30pm   3   • Informa2on  systems  and  strategy   • Session  closes  04:00  pm     Unit-403, Workshop1
  • 7. E-­‐BOOK   Managing and Using Information Systems: A Strategic Approach by Keri Pearlson & Carol Saunders  
  • 8. Roman  Empire   Mughal  Empire   Renaissance   OXoman  Empire   Social  Developent   Index   Ibraham   Buddha   Confucius   Plato   life  of  alexander   Jesus   Zero   Mohammad`   Black  Death   Columbus   Calculus   World  popula2on   ‘000   0   100   200   300   400   500   600   700   0   1000   2000   3000   4000   5000   6000   7000   8000  
  • 9. What’s  the  most  significant  event  in  Human  History  
  • 10. What  do  future  Jobs  look  like  
  • 13. More  output  at  lower  costs  
  • 14. Google  chairman  predicts  the   whole  world  will  be  on  the  Web   by  2020.            CNN    June  2013   "For  every  person  online,  there   are  two  who  are  not,"  Eric   Schmidt  
  • 15. Major  shies  in  the  demand  for  skills   Economy-­‐wide  measures  of  rou2ne  and  non-­‐rou2ne  task  input  (US)   40   45   50   55   60   65   1960   1970   1980   1990   2002   Rou2ne  manual   Nonrou2ne  manual   Rou2ne  cogni2ve   Nonrou2ne  analy2c   Nonrou2ne  interac2ve    (Levy  and  Murnane,  2010)   Meantaskinputaspercentilesofthe1960taskdistribution Dilemma  facing  schools:   The  skills  that  are  easiest  to  teach  and  test  are   also  the  ones  that  are  easiest  to  digi?se,   automate  and  outsource   18  
  • 16.
  • 17. TOPIC  1:  Managing  IS  to  seize  new   strategic  opportuni2es     Analyse  the  impact  that  IS  has  on   organisa2ons     and  the  consequent  changes  that   have  occurred  to  the  role  of   business  managers.    
  • 18. 18   Objec2ve   1.  Explain  why  managing  informa2on  is   important  in  today's  business  world   2.  Define  concepts  from  the  hierarchy  of  data   and  IS,  as  dis2nct  from  IT   3.  Describe  the  major  challenges  facing  today's   business  and  IS  manager   4.  Analyse  and  report  on  an  organisa2on's  IT-­‐ investment  profile    
  • 19. 19   A  Business  View   •  IT  is  a  cri2cal  resource.   •  IT  is  over  50%  of  capital  goods  dollars  spent  in   the  US.   – Over  $3,800  a  year  per  capita.   – High  growth  firms  invest  more  in  IT.   •  Business  managers  decide  resource  alloca2on.  
  • 20. 20   Par2cipa2ng  in  Informa2on  Decisions   •  Business  managers  “must”  be  involved  in   informa2on  decisions.  
  • 21. 21   Par2cipa2ng  in  Informa2on  Decisions   •  Business  managers  “must”  be  involved  in   informa2on  decisions.   •  .    IS  …   –  is  a  cri2cal  resource.   –  enables  change  in  how  people  work  together.   –  is  integrated  with  almost  every  aspect  of  business.   –  enables  business  opportuni2es  and  new  strategies.   –  can  be  used  to  combat  business  challenges  from  
  • 22. 22   People  and  Technology   •  People  and  Technology  work  together.   – Technology  is  cri2cal.   – Workers  rely  heavily  on  technology.   •  Managers  must  know  how  to  mesh  both.   – Examine  long-­‐term  and  short-­‐term  consequences.   – Manage  change  carefully.   •  Technology  changes  rapidly.  
  • 23. 23   Is  IT  a  cost  centre?   Can  IS  create  new  strategic  Business   Opportuni2es?     (Apply  product  vs.  market  Matrix  
  • 24. 24   Business  Goals   •  IS  must  support  business  goals.   – It  is  not  an  end  but  a  means  to  an  end.   – Support  and  strategic  focus.   •  Toys  R  Us  IT  debacle.   – Must  meet  user  needs.   – Must  be  able  to  support  business  transac2ons.  
  • 25. 25   Organiza2onal  Systems   •  IT  must  support  organiza2onal  systems   – The  people,  work  processes,  and  structure.   •  Carefully  consider  the  consequences  of   making  an  IS  change.   – How  will  this  impact  the  way  work  is  done?   – Will  the  people  accept  this  new  technology?   – What  changes  may  need  to  be  made  in  the   structure  of  the  organiza2on?  
  • 26. 26   WHAT  SKILLS  ARE  NEEDED  TO   PARTICIPATE  EFFECTIVELY  IN   INFORMATION  TECHNOLOGY   DECISIONS?  
  • 27. 27   Basic  Skills  Needed   •  Myth  -­‐  technical  exper2se  is  not  needed  to   par2cipate.   •  Managerial  role  and  skills  needed  (Fig  I.2):   – Visionary  –  crea2vity,  curiosity,  confidence,  focus   on  business  solu2ons,  flexibility.   – Informa2onal  and  Interpersonal  –   communica2on,  informa2on  gathering,   interpersonal  skills.   – Structured  –  project  management,  analy2cal  skills,   organiza2onal  skills,  planning  skills.  
  • 28. 28   BASIC  ASSUMPTIONS   •  Managers  must  know  about  both  using  and   managing  informa2on.   •  Managers  must  be  knowledgeable   par2cipants  in  IS  decisions.   – The  general  manager  must  have  a  basic   understanding  of  the  business  and  technology   issues  related  to  IS.   •  Technology  of  today  is  different  from  the   technology  of  yesterday.  
  • 29. 29   •  The  role  of  the  general  manager  and  IS   manager  are  dis2nct.   – The  GM  must  have  a  basic  understanding  of  IS  to   make  decisions  that  may  have  significant   implica2ons  for  the  business.   – The  IS  manager  must  have  general  business   knowledge  and  a  more  in  depth  knowledge  of  IS   to  support  its  func2on.  
  • 30. 30   Management  Assump2ons   •  Four  key  ac2vi2es  of  the  classic  view  of   management  (Fig  I.3).   – Planning   – Organizing   – Leading   – Controlling   •  Classic  view  is  seen  as  more  of  a  tac2cal   approach  to  management.  
  • 31. 31   •  The  Mintzberg  model  describes  management   in  behavioral  terms  (Fig  I.4  –  page  25).   – Interpersonal   – Informa2onal   – Decisional     Mintzberg  Model  
  • 32. 32   Figure  I.5    Hierarchical  View  of  the  firm.  
  • 33. 33   Func2onal  View   •  Func2onal  View  of  the  business   – Based  on  the  func2ons  people  perform.   – Informa2on  flows  ver2cally  in  the  organiza2on.   – Some2mes  informa2on  flows  across  the   organiza2on.   – Accoun2ng,  Opera2ons,  Marke2ng,  Sales  and   Support.   – Execu2ve  Management  receives  the  informa2on   and  distributes  as  need  arrives.     – See  Figure  I.5  
  • 34. 34   Figure  I.6  Process  View  of  the  Firm:  The  Value  Chain  
  • 35. 35   Process  View   •  This  model  sees  the  business  by  the  processes   it  performs  to  achieve  its  goals.   •  Porter  describes  business  in  terms  of  its   primary  and  support  ac2vi2es.   – Primary  –  inbound  and  outbound  logis2cs,   opera2ons,  marke2ng  and  sales.   – Support  –  HR,  technology,  procurement,   infrastructure.   •  Ac2vi2es  are  linked  together  to  form  a  chain  –   the  value  chain  (fig  I.6).  
  • 36. 36   Data  Hierarchy   Wisdom   Understanding   Knowledge   Informa2on   Data  
  • 37. 37   Informa2on  Hierarchy   •  Data,  Informa2on,  and  Knowledge  are  not   interchangeable  terms.   – Data  –  set  of  specific  objec2ve  facts  or   observa2ons  (inventory  contains  100  widgets).   – Informa2on  –  data  endowed  with  relevance  and   purpose  (75%  of  widgets  were  purchased  by   customers  in  December)  –  see  fig  I.8.   – Knowledge  -­‐    informa2on  that  has  been   synthesized  and  contextualized  to  provide  value.  
  • 38. 38   Data Information Knowledge Definition Simple Observations of the sate of the world Data endowed with relevance and purpose Info from the human mind (includes reflection, etc) Characteristic • Easily structured •  “ captured •  “ transferred • Often quantified • Mere facts • Requires unit of analysis • Data that has been processed • Human mediation necessary • Hard to structure • Difficult to capture on machines • Often tacit • Hard to transfer Example Daily inventory reports of all inventory items sent to CEO of large manufacturing company Daily inventory report of items below economic order quality levels sent to inventory manager (IM) IM knows which items need to be reordered in light of related potential problems
  • 39. 39   Top Management Middle Management Supervisory & Lower-Level Management Time Horizon Long: years Medium: weeks, months, years Short: day to day Level of Detail Highly aggregated Less accurate More predicted Summarized Integrated Often financial Very detailed Very accurate Often nonfinancial Orientation Primarily external Primarily internal with limited external Internal Decision Extremely judgmental Uses creativity and analytic skills Relatively judgmental Heavy reliance on rules Figure  I.8  Informa2on  Characteris2cs  across  Hierarchical  Levels  
  • 40. 40   What’s  the  difference  between  IS   and  IT?  
  • 41. 41   Figure  I.9    System  Hierarchy   Management Information Systems People Technology Process
  • 42. 42   System  Hierarchy   •  Informa2on  systems  are  comprised  of  three   main  elements:   – Technology   – People   – Process   •  Infrastructure  –  everything  that  supports  the   flow  of  processing  informa2on   – Hardware,  soeware,  data,  and  components.   •  Architecture  –  strategy  implicit  in  these   components.    
  • 43. Ac2vity  1.2  Tom  Peters   ACTIVITY  1.2—SIMPLIFYING  SYSTEMS   Having  watched  the  Tom  Peters  video,  reflect  on  whether   or  not  your  organisa2on  ac2vely  encourages  con2nuous   improvement  of  systems.     What  would  you  do  to  implement  a  program  where  your   people  can  make  it  easier  to  achieve  your  core  business   objec2ves  through  simplifying  systems?  .  
  • 44. ORGANISATIONAL  NEEDS  AND   INVESTMENT     •  Enterprise  Resource  Planning  systems  (ERP)   systems     •  data-­‐warehousing  and  data-­‐mining  systems   •  Groupware   •  group  support  systems   •  Intranets   •  e-­‐commerce  and  e-­‐business  services  and   tools.    
  • 45. How  much  to  invest  and  where?  
  • 46. Gibson  and  Nolan:  Stages  of  Growth   Stage  1:  Ini?a?on   simple  administra2ve  func2ons  such  as  automa2on  of  payroll  or  general  ledger  func2ons.  low   expenditures,  liXle  user  involvement.   Stage  2:  Contagion   broader-­‐ranging  uses  of  IT,..  As  usage  grows,  there  is  a  lack  of  general  control.  Budgets  grow  rapidly;   the  focus  is  on  the  machine;  IT  use  is  plagued  by  crises.   Stage  3:  Control    2ghter  controls  are  necessary     upgrading  system  documenta2on,     budget  reviews  and  full  charge-­‐out  of  IT  costs  to  user  departments.    Integra2on  of  incompa2ble  systems  and  user  frustra2on  become  common  themes.   Stage  4:  Integra?on   user-­‐oriented  steering  commiXees,     financial  planning  for  applica2ons,      charge-­‐back  systems.   5:  Data  administra?on   data  is  a  corporate  resource   Focus  on  informa2on  systems,  rather  than  informa2on  technology.   Stage  6:  Maturity   data  administra2on.  Organisa2ons  use  their  data  resources  to  develop  compe22ve  and   opportunis2c  applica2ons,  not  simply  applica2ons  to  make  their  own  internal  opera2ons  more   efficient.     The  aim  is  to  develop  data-­‐resource  management  strategic  planning.  
  • 47. 47   Summary   •  Business  managers  “must”  be  involved  in   informa2on  decisions.   •  IT  is  a  cri2cal  resource.   •  People  and  Technology  work  together.   •  Certain  key  skills  are  needed.   •  Data,  Informa2on,  and  Knowledge  are   dis2nct.  
  • 48. 48   THE  CASE  FOR  PARTICIPATING  IN   DECISIONS  ABOUT  INFORMATION   SYSTEMS  
  • 49. 49   CASE  STUDY  1:     •  Amazon.com  has  garnered  a  leadership  posi2on  in  the  online   world  by  leveraging  their  new  business  model.    See   www.amazon.com     –  Expanded  market  offerings.   –  Increased  customiza2on  and  personaliza2on   –  Smarter  storage   –  Cost  cuxng.  
  • 50. 50   CASE  STUDY  2:   •  Google  has  become  the  leader  in  the  search  engine  market   through  innova2on,  simplicity,  and  by  adding  new  features.         –  See  www.google.com     –  Their  mission  statement  can  be  found  at   hXp://www.google.com/corporate/    
  • 51. The  informa2on  facts  of  life   If  informa2on  is   power  and  money,   people  won't  share  it   easily.  
  • 52. TOPIC  2:  Managing  using  a  systems   approach     Analyse  IS  and  its  management  using  a   number  of  analysis  approaches    
  • 53. 53   Objec2ves   1.  define  the  terms  'system'  and  'informa2on   system'  in  a  management  context     2.  explain  the  difference  between  tradi2onal   and  object-­‐oriented  approaches  to  systems   analysis     3.  produce  a  basic  data-­‐flow  diagram     4.  Produce  a  basic  en2ty–rela2onship  diagram  
  • 54. 54   1.  System  ?   A  group  of     •  interac2ng,   •   interrelated,  or   •   interdependent     elements  forming  a  complex  whole.    
  • 55. 55   1.  Informa2on  System  ?   •  An  informa2on  system  (IS)  can  be  defined  in  a   very  broad  way  as  the  collec2on  of   informa2on  technology,  procedures  and   people  responsible  for  the  capture,   movement,  management  and  distribu2on  of   data  and  informa2on.    
  • 56. 56   1.  System  Analysis?   'Systems  analysis  and  design'  is  a  set  of   principles,  a  method  by  which  we  can  consider,   design  and  implement  informa2on  systems  .   1.  Tradi2onal  Approach   2.  Object  oriented  Approach      
  • 57. 57   Tradi2onal  Approach     1.  Flow  chart   2.  Data  flow  diagrams   3.  En2ty  Rela2onship  diagrams    
  • 59.
  • 60. 60   OOP  Approach     1.  Objects   2.  Instances   3.  Classes,  Subclasses  
  • 61. 61   How  to  develop  IS  for  your  organiza2on?     1.  Plan  (Strategy)   2.  Analyse  (Business)   3.  Design  (IT,  system)   4.  Implement  (Development  and  cutover)  
  • 62. 62   Key  Characteris2cs     •  It  is  user  driven   •  It  is  data  focused   •  It  is  automated   •  It  uses  models   •  It  uses  formal  structured  techniques   •  It  treats  the  full  Systems  Planning  Life  cycle-­‐  Integrated   whole   •  It  is  a  Reduc2onist  Approach   •  It  builds  a  corporate  knowledge  base    
  • 63. 63   Real  World  Example   •  Na2onal  Linen  Service  was  facing  poor   earnings  due  to  increased  compe22on  and  a   weak  economy.   •  They  created  a  strategic  systems  department   to  increase  compe22veness.   •  A  new  system  was  implemented,  BOSS,  that   deleted  expired  customer  contracts  hur2ng   their  boXom  line.   •  The  unintended  consequences  of  the  system   were  not  taken  into  account.  
  • 64. The  informa2on  facts  of  life   Managers  prefer  to  get   informa2on  from  people   rather  than  computers;   people  add  value  to  raw   informa2on  by   interpre2ng  it  and  adding   context.  
  • 65. TOPIC  3:Informa2on  systems  and   strategy     Iden2fy  the  elements  that  combine  to  form  an   informa2on  vision  and  informa2on     technology  (IT)  architecture    
  • 66. 66   Objec2ves   •  define  'mission  statement'  and  'vision  statement',  and  enumerate  the   differences  between  them     •  explain  how  organisa2ons  can  use  IS  to  gain  strategic  and  compe22ve   advantage,  and  iden2fy  poten2ally  useful  IS  applica2ons  for  your  own   organisa2on     •  explain  how  SIS  can  change  the  nature  of  a  business  or  industry  when  it  is   used  as  an  instrument  to  change  the  balance  of  power  between  the   business  and  its  compe2tors,  customers  and/or  suppliers   •  iden2fy  and  evaluate  some  of  the  poten2al  risks,  as  well  as  the   opportuni2es,  which  strategic  systems  can  create     •  explain  how  interorganisa2onal  systems,  especially  e-­‐business,  can  be   used  to  provide  beXer  service  for  customers.    
  • 67. 67   Do  you  have  a  WriXen  Strategy     •  Vision     •  Mission   •  Strategy   •  Corporate  Plan   A  plan  ar2cula2ng  where  a  business  seeks  to  go  and   how  it  expects  to  get  there.  It  is  the  means  by  which  a   business  communicates  its  goals.      
  • 68. Wal-­‐Mart:    "To  give  ordinary  folk  the  chance  to  buy  the  same  thing  as  rich   people.”    
  • 69. 3M:     "To  solve  unsolved  problems  innova?vely.”    
  • 70. Walt  Disney:  "To  make  people  happy.”    
  • 71. How  to  Write  Strategy  Statement   What  is  this  missing?  
  • 72. 72   The  Impact  of  IS   •  The  Informa2on  Systems  Strategy  Triangle  is  a   simple  framework  for  understanding  the  impact  of  IS   on  organiza2ons.   •  Successful  firms  have  an  overriding  business   strategy.   •  This  business  strategy  drives  both  Organiza2onal  and   Informa2on  strategy.   •  All  decisions  are  driven  by  the  firm’s  business   objec2ves.  
  • 73. 73   Figure  1.1      The  Informa2on  Systems  Strategy  Triangle  
  • 74. 74   IS  Strategy  Triangle   •  Business  Strategy  drives  all  other  strategies.   •  Organiza2onal  and  Informa2on  Strategy  are  then   dependent  upon  the  Business  Strategy.   •  Changes  in  any  strategy  requires  changes  in  the   others  to  maintain  balance.     •  IS  Strategy  is  affected  by  the  other  strategies  a  firm   uses.     •  IS  strategy  always  involves  consequences.  
  • 75. BRIEF  OVERVIEW  OF  BUSINESS   STRATEGY  FRAMEWORKS  
  • 76. 76   Generic  Strategies  Framework   •  Michael  Porter  describes  how  businesses  can   build  a  sustainable  compe22ve  advantage.   •  He  iden2fied  three  primary  strategies  for   achieving  compe22ve  advantage:   – Cost  leadership  –  lowest-­‐cost  producer.   – Differen2a2on  –  product  is  unique.   – Focus  –  limited  scope.  
  • 77. 77   Figure  1.2    Three  strategies  for  achieving  compe22ve  advantage.  
  • 78. 78   Using  Informa2on  Resources  to    Influence   Compe22ve  Forces   •  Porter’s  five  forces  model  show  the  major  forces   that  shape  the  compe22ve  environment  of  the   firm.   1.  Threat  of  New  Entrants:  new  firms  that  may  enter  a  companies   market.   2.  Bargaining  Power  of  Buyers:  the  ability  of  buyers  to  use  their   market  power  to  decrease  a  firm’s  compe22ve  posi2on     3.  Bargaining  Power  of  Suppliers:  the  ability  suppliers  of  the  inputs  of   a  product  or  service  to  lower  a  firm’s  compe22ve  posi2on     4.  Threat  of  Subs?tutes:  providers  of  equivalent  or  superior   alterna2ve  products   5.  Industry  Compe?tors:  current  compe2tors  for  the  same  product.   •  Figure  2.2  and  2.3  show  this  model  in  detail.  
  • 79. 79   Figure  2.2    Five  compe22ve  forces  with  poten2al     strategic  use  of  informa2on  resources.  
  • 80. 80   Porter’s  Compe22ve  Advantage   •  Remember  that  a  companies  overall  business   strategy  will  drive  all  other  strategies.       •  Porter  defined  these  compe22ve  advantages  to   represent  various  business  strategies  found  in  the   marketplace.   •  Cost  leadership  strategy  firms  include  Walmart,   Suzuki,  Overstock.com,  etc.   •  Differen2a2on  strategy  firms  include  Coca  Cola,   Progressive  Insurance,  Publix,  etc.   •  Focus  strategy  firms  include  the  Ritz  Carlton,   MarrioX,  etc.  
  • 81. 81   Framework Key Idea Application to Information Systems Porter’s generic strategies framework Firms achieve competitive advantage through cost leadership, differentiation, or focus. Understanding which strategy is chosen by a firm is critical to choosing IS to complement that strategy. D’Aveni’s hyper- competition model Speed and aggressive moves and countermoves by a firm create competitive advantage The 7 Ss give the manager suggestions on what moves and countermoves to make. IS are critical to achieve the speed needed for these moves. Figure  1.5    Summary  of  key  strategy  frameworks.  
  • 82. 82   Understanding  Organiza2on  Strategy   To  understand  organiza2onal  strategy  we  must   answer  the  following  ques2ons:   1.  What  are  the  important  structures  and  repor2ng   rela2onships  within  the  organiza2on?   2.  What  are  the  characteris2cs,  experiences,  and  skill   levels  of  the  people  within  the  organiza2on?   3.  What  are  the  key  business  processes?   4.  What  control  systems  are  in  place?   5.  What  is  the  culture  of  the  organiza2on?    
  • 83. 83   Framework Key Idea Usefulness in IS Discussions Business Diamond There are 4 key components of an organization: business processes, values and beliefs, management control systems, and tasks and structures. Using IS in an organization will affect each of these components. Use this framework to identify where these impacts are likely to occur Managerial levers Organizational variables, control variables, and cultural variables are the levers managers can use to affect change in their organizations This is a more detailed model than the Business diamond and gives specific areas where IS can be used to manage the organization and to change it Figure  1.8    Summary  of  organiza2onal  strategy  frameworks  
  • 84. BRIEF  OVERVIEW  OF   INFORMATION  SYSTEMS   STRATEGY  
  • 85. 85   IS  Strategy   •  The  plan  an  organiza2on  uses  in  providing   informa2on  services.   •  IS  allows  business  to  implement  its  business  strategy.   •  IS  helps  determine  the  company’s  capabili2es.   •  Four  key  IS  infrastructure  components  are  key  to  IS   strategy  (Figure  1.9)   •  These  key  components  are  sufficient  to  allow  the     general  manager  to  assess  cri2cal  IS  issues.  
  • 86. 86   What Who Where Hardware List of physical components of the system Individuals who use it Individuals who manage it Physical location Software List of programs, applications, and utilities Individuals who use it Individuals who manage it What hardware it resides upon and where that hardware is located Networking Diagram of how hardware and software components are connected Individuals who use it/ Individuals who manage it/ Company service obtained from Where the nodes are located, where the wires and other transport media are located Data Bits of information stored in the system Individuals who use it Individuals who manage it Where the information resides Figure  1.9    Informa2on  systems  strategy  matrix.  
  • 87. 87   Competitive Force IT Influence on Competitive Force Threat of New Entrants Can be lowered if there are barriers to entry. Sometimes IS can be used to create barriers to entry Bargaining Power of Buyers Can be high if it’s easy to switch. Switching costs are increased by giving buyers things they value in exchange such as lower costs or useful information Bargaining Power of Suppliers Forces is strongest when there are few firms to choose from, quality is inputs is crucial or the volume of purchases is insignificant to the supplier Threat of Substitute Products Depends on buyers’ willingness to substitute and the level of switching costs buyer’s face Industrial Competitors Rivalry is high when it is expensive to leave and industry, the industry’s growth rate is declining, or products have lost differentiation Figure  2.3    Applica2on  of  five  compe22ve  forces  model.  
  • 88. How  Important  is  SIS  for  you?  
  • 89. What  is  the  impact  if  SIS?  
  • 90. Significance  of    SIS     Digicel  Edge  Vs.  3G   Digicel  3G  Vs.  4G  
  • 91. Jus2fying  SIS  –  Cost  Benefit  Analysis  
  • 92. 92   Figure  1.1      The  Informa2on  Systems  Strategy  Triangle  
  • 93. The  informa2on  facts  of  life   There's  no  such  thing  as   informa2on  overload;  if   informa2on  is  really  useful,     our  appe2te  for  it  is  insa2able.    
  • 94. Next Workshop – 15th August Week  1   • First  workshop   • Topic  1,2,3   Week  2   • Read  the  Study  guide   • Read  the  e-­‐book     Week  3   • 2nd  workshop   • Topic  4,5,6   Week  4   • Do  the  assignment     Week  5   • 3rd  workshop   • Topic  7,8,9,10   Week  6   • Exam  on  4th  September