Post on 15-Nov-2014
CHAPTER 2
Information Systems: Concepts and Management
CHAPTER OUTLINE
2.1 Types of Information Systems
2.2 Competitive Advantage and Strategic Information Systems
2.3 Why Are Information Systems Importantto Organizations and Society?
2.4 Managing Information Resources
LEARNING OBJECTIVES
Describe the components of computer-based information systems.
Describe the various types of information systems by breadth of support.
Identify the major information systems that support each organizational level.
Describe strategic information systems (SISs), and explain their advantages.
Learning Objectives (continued)
Describe porter’s competitive forces model and his value chain model, and explain how IT helps companies improve their competitive positions.
Describe five strategies that companies can use to achieve competitive advantage in their industries.
Describe how information resources are managed, and discuss the roles of the information systems department and the end users.
Chapter Opening Case
Upstream activities: exploration and production
Downstream activities: refining, marketing, transportation, sales
2.1 Types of Information Systems
Computer-based information systems (CBIS) use computer technology to perform some or all of their tasks and are composed of: Hardware Software A Database A Network Procedures People
Information Systems Inside Your Organization
Information Technology Outside Your Organization
Application Programs
An application program is a computer program designed to support a specific task, a business process or another application program.
Breadth of Support of Information Systems
Functional area information systems Enterprise resource planning systems Transaction processing systems Interorganizational information systems
Information Systems Support for Organization Employees
Office automation systems Functional area information systems Business intelligence systems Expert Systems Dashboards
2.2 Competitive Advantage andStrategic Information Systems
Competitive Advantage Strategic Information Systems (SIS)
Porter’s Competitive Forces Model
The best-known framework for analyzing competitiveness is Michael Porter’s competitive forces model (Porter, 1985).
Porter’s Competitive Forces Model
Porter’s Competitive Forces Model
Threat of entry of new competitors is high when it is easy to enter a market and low when significant barriers to entry exist.
A barrier to entry is a product or service feature that customers expect from organizations in a certain industry.
For most organizations, the Internet increases the threat that new competitors will enter a market.
Porter’s Competitive Forces Model
The bargaining power of suppliers is high when buyers have few choices and low when buyers have many choices.
Internet impact is mixed. Buyers can find alternative suppliers and compare prices more easily, reducing power of suppliers.
On the other hand, as companies use the Internet to integrate their supply chains, suppliers can lock in customers.
Porter’s Competitive Forces Model
The bargaining power of buyers is high when buyers have many choices and low when buyers have few choices.
Internet increases buyers’ access to information, increasing buyer power.
Internet reduces switching costs, which are the costs, in money and time, to buy elsewhere. This also increases buyer power.
Porter’s Competitive Forces Model
The threat of substitute products or services is high when there are many substitutes for an organization’s products or services and low where there are few substitutes.
Information-based industries are in the greatest danger from this threat (e.g., music, books, software). The Internet can convey digital information quickly and efficiently.
Porter’s Competitive Forces Model
The rivalry among firms in an industry is high when there is fierce competition and low when there is not.
Porter’s Value Chain Model
This model identifies specific activities where organizations can use competitive strategies for greatest impact. Primary activities Support activities
Porter’s Value Chain Model
Strategies for Competitive Advantage
Cost Leadership
Differentiation
Innovation
Operational Effectiveness
Customer-orientation
2.3 Why are Information Systems Important to Organizations & Society
IT will reduce the number of middle managers.
IT will change the manager’s job. IT impacts employees at work. IT provides quality-of-life improvements.
Ergonomic Products
When ergonomics doesn’t work
When all else fails…….
Enabling People with Disabilities to Work with Computers
The Robot Revolution
See Invasion of the Humanoid Robots
The Robot Revolution
See video of Big Dog robot in action
The Robot Revolution (continued)
Honda’s ASIMO robot
See video of ASIMO in action
See ASIMO commercial
DeLaval Voluntary Milking System
Improvements in Health Care
Improvements in Health Care (continued)
The Pill Cam: Wireless endoscopy
The daVinci Surgical Robot
The robot
The surgeon’s console
The daVinci Surgical Robot (continued)
The daVinci robot in use
Medical Simulation
Two physicians perform a procedure on a simulated human (mannequin)
Managing Information Resources
Which IT Resources are Managed and By Whom?
The Role of the IS Department
Traditional Major IS Functions
Managing systems development and systems project management
Managing computer operations Staffing, training, developing IS skills Providing technical services Infrastructure planning, development, control
New (Consultative) IS Functions
Initiating and designing strategic information systems Incorporating the Internet and e-commerce into the business Managing system integration Educating non-IS managers about IT Educating IS staff about the business Supporting end-user computing Partnering with executives Managing outsourcing Innovate Ally with vendors and IS departments in other organizations
Supporting End Users
One form of end-user support is the help desk, where
IS staffers help users troubleshoot problems with their systems.
This video shows the first help desk.
Chapter Closing Case
Todd Pacific Shipyards
Wireless PDA