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Transcript of 06_MIS8Ch01
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1.1 2003 by Prentice Hall
11
MANAGING THEMANAGING THE
DIGITAL FIRMDIGITAL FIRM
Chapter
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1.2 2003 by Prentice Hall
What is the role of information systems inWhat is the role of information systems in
todays competitive business environment?todays competitive business environment?
What exactly is an information system?What exactly is an information system?
What do managers need to know aboutWhat do managers need to know about
information systems?information systems?
How are information systems transformingHow are information systems transforming
organizations and management?organizations and management?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
OBJECTIVES
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1.3 2003 by Prentice Hall
How has the Internet and Internet technologyHow has the Internet and Internet technology
transformed business?transformed business?
What are the major management challengesWhat are the major management challenges
to building and using information systems?to building and using information systems?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
OBJECTIVES
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1.4 2003 by Prentice Hall
1. Design competitive and effective systems1. Design competitive and effective systems
2. Understand system requirements of2. Understand system requirements of
global business environmentglobal business environment
3. Create information architecture that3. Create information architecture that
supports organizations goalsupports organizations goal
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
MANAGEMENTCHALLENGES
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4. Determine business value of information4. Determine business value of information
systemssystems
5. Design systems people can control,5. Design systems people can control,
understand and use in a socially, ethicallyunderstand and use in a socially, ethically
responsible mannerresponsible manner
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
MANAGEMENTCHALLENGES
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1.6 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
The Competitive Business Environment and the Emerging Digital Firm
WHY INFORMATIONSYSTEMS?
Four powerful worldwide changes thatFour powerful worldwide changes that
have altered the business environment:have altered the business environment:
1.1. Emergence of the Global EconomyEmergence of the Global Economy
2.2. Transformation ofIndustrial EconomiesTransformation ofIndustrial Economies
3.3.T
ransformation of theB
usinessE
nterpriseT
ransformation of theB
usinessE
nterprise4.4. The Emerging Digital FirmThe Emerging Digital Firm
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1.7 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
WHY INFORMATIONSYSTEMS?
Emergence of the Global EconomyEmergence of the Global Economy
Management and control in a globalManagement and control in a globalmarketplacemarketplace
Competition in world marketsCompetition in world markets
Global work groupsGlobal work groups
Global delivery systemsGlobal delivery systems
The Competitive Business Environment and the Emerging Digital Firm
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1.8 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
WHY INFORMATIONSYSTEMS?
Transformation ofIndustrial EconomiesTransformation ofIndustrial Economies
KnowledgeKnowledge-- and informationand information--basedbased
economieseconomies
ProductivityProductivity
New products and servicesNew products and services
Knowledge: a central productive andKnowledge: a central productive andstrategic assetstrategic asset
The Competitive Business Environment and the Emerging Digital Firm
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1.9 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
WHY INFORMATIONSYSTEMS?
Transformation ofIndustrial EconomiesTransformation ofIndustrial Economies
TimeTime--based competitionbased competition
Shorter product lifeShorter product life
Turbulent environmentTurbulent environment
Limited employee knowledge baseLimited employee knowledge base
The Competitive Business Environment and the Emerging Digital Firm
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1.10 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Figure 1-1
Labor Force Composition 1900-1997
WHY INFORMATIONSYSTEMS?
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1.11 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
WHY INFORMATIONSYSTEMS?
Transformation of the Business EnterpriseTransformation of the Business Enterprise
FlatteningFlattening
DecentralizationDecentralization
FlexibilityFlexibility
Location independenceLocation independence
Low transaction and coordination costsLow transaction and coordination costs
EmpowermentEmpowerment
Collaborative work and teamworkCollaborative work and teamwork
The Competitive Business Environment and the Emerging Digital Firm
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1.12 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
WHY INFORMATIONSYSTEMS?
Emergence of the Digital FirmEmergence of the Digital Firm
DigitallyDigitally--enabled relationships withenabled relationships withcustomers, suppliers, and employeescustomers, suppliers, and employees
Core business processes accomplishedCore business processes accomplishedvia digital networksvia digital networks
Digital management of key corporateDigital management of key corporateassetsassets
Rapid sensing and responding toRapid sensing and responding toenvironmental changesenvironmental changes
The Competitive Business Environment and the Emerging Digital Firm
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1.13 2003 by Prentice Hall
A set of interrelated components that collectA set of interrelated components that collect
(or retrieve), process, store, and distribute(or retrieve), process, store, and distribute
information to support decision making andinformation to support decision making andcontrol in an organizationcontrol in an organization
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
What Is an Information System?
WHY INFORMATIONSYSTEMS?
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1.14 2003 by Prentice Hall
Data:Data: Streams of raw facts representingStreams of raw facts representingevents such as business transactionsevents such as business transactions
Information:Information: Clusters of facts that areClusters of facts that aremeaningful and useful to human beings inmeaningful and useful to human beings in
the processes such as making decisionsthe processes such as making decisions
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
What Is an Information System?
WHY INFORMATIONSYSTEMS?
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1.15 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Figure 1-2
Data and Information
WHY INFORMATIONSYSTEMS?
What Is an Information System?
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1.16 2003 by Prentice Hall
INPUT OUTPUTPROCESS
FEEDBACK
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Activities in an Information System
WHY INFORMATIONSYSTEMS?
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1.17 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Functions of an Information System
WHY INFORMATIONSYSTEMS?
Figure 1-3
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1.18 2003 by Prentice Hall
Rely on computer hardware andRely on computer hardware and
softwaresoftware
Processing and disseminatingProcessing and disseminating
informationinformation
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Computer-Based Information System (CBIS)
WHY INFORMATIONSYSTEMS?
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1.19 2003 by Prentice Hall
Fixed definitions of data, proceduresFixed definitions of data, procedures
Collecting, storing, processing,Collecting, storing, processing,
disseminating, using datadisseminating, using data
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Formal Systems
WHY INFORMATIONSYSTEMS?
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1.20 2003 by Prentice Hall
An organizational and managementAn organizational and management
solutionsolution
Based on information technologyBased on information technology
To a challenge posed by theTo a challenge posed by the
environmentenvironment
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
ABusiness Perspective on Information Systems
WHY INFORMATIONSYSTEMS?
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1.21 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Information Systems
ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY
MANAGEMENTMANAGEMENT
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
Figure 1-4
WHY INFORMATIONSYSTEMS?
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1.23 2003 by Prentice Hall
Sales and marketingSales and marketing
ManufacturingManufacturing
FinanceFinance
AccountingAccounting
Human resourcesHuman resources
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
MajorBusiness Functions
WHY INFORMATIONSYSTEMS?
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1.24 2003 by Prentice Hall
Key Elements:Key Elements:
People:People:Managers, knowledge workers,Managers, knowledge workers,
data workers, production or servicedata workers, production or serviceworkersworkers
Structure:Structure: Organization chart , groups ofOrganization chart , groups of
specialists, products, geographyspecialists, products, geography
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Organizations
WHY INFORMATIONSYSTEMS?
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1.25 2003 by Prentice Hall
Operating procedures:Operating procedures: Standard operatingStandard operatingprocedures (SOP, rules for action)procedures (SOP, rules for action)
Politics:Politics: Power to persuade, get things donePower to persuade, get things done
Culture:Culture: Customs of behaviorCustoms of behavior
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Organizations
WHY INFORMATIONSYSTEMS?
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1.26 2003 by Prentice Hall
Levels:Levels:
Senior managers:Senior managers: make longmake long--rangerangestrategic decisions about products andstrategic decisions about products andservicesservices
Middle managers:Middle managers: Carry out the programsCarry out the programsand plans of senior managementand plans of senior management
Operational managers:Operational managers: monitor the firmsmonitor the firmsdaily activitiesdaily activities
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Management
WHY INFORMATIONSYSTEMS?
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1.27 2003 by Prentice Hall
Tools managers use to cope with changeTools managers use to cope with change
Hardware:Hardware:Physical equipmentPhysical equipment
Software:Software: Detailed preprogrammedDetailed preprogrammedinstructionsinstructions
Storage:Storage: Physical media forPhysical media forstoring data and the softwarestoring data and the software
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
ComputerTechnology
WHY INFORMATIONSYSTEMS?
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1.28 2003 by Prentice Hall
Communications Technology:Communications Technology:transfers data from one physical locationtransfers data from one physical location
to anotherto another
Networks:Networks: link computers to share datalink computers to share dataor resourcesor resources
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
ComputerTechnology
WHY INFORMATIONSYSTEMS?
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1.29 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
CONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMS
SOCIOLOGY
SOCIOLOGY
POLITICALPOLITICAL
SCIENCESCIENCEPSYCHOLOGYPSYCHOLOGY
COMPUTERCOMPUTER
SCIENCESCIENCEOPERATIONSOPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICALAPPROACHESTECHNICALAPPROACHES
MISMIS
BEHAVIORALAPPROACHESBEHAVIORALAPPROACHESFigure 1-5
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1.30 2003 by Prentice Hall
Optimize systems performance:Optimize systems performance:
Technology and organizationTechnology and organization
Organizations mutually adjust to oneOrganizations mutually adjust to oneanother until fit is satisfactoryanother until fit is satisfactory
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Socio-Technical Systems
CONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMS
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1.31 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
SOURCE: Liker, et al, 1987
Figure 1-6
Socio-technical Systems
CONTEMPORARYAPPROACHESTOINFORMATIONSYSTEMS
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
The Interdependence Between Organizations and Information Systems
Figure 1-7
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1.33 2003 by Prentice Hall
1950s:1950s: Technical changesTechnical changes
60s60s--70s:70s:M
anagerial controlsM
anagerial controls
80s80s--90s:90s: Institutional core activitiesInstitutional core activities
Growing ImportanceGrowing Importance
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
THENETWORKREVOLUTIONAND THEINTERNET
The Widening Scope ofInformation Systems
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1.34 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Figure 1-8
THENETWORKREVOLUTIONAND THEINTERNET
The Widening Scope ofInformation Systems
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1.35 2003 by Prentice Hall
Communicate and collaborateCommunicate and collaborate
Access informationAccess information
Participate in discussionsParticipate in discussions
Supply informationSupply information
Find entertainmentFind entertainment
Exchange business transactionsExchange business transactions
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
What You Can Do on the Internet
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1.36 2003 by Prentice Hall
Flattening organizationsFlattening organizations
Separating work from locationSeparating work from location
Reorganizing workReorganizing work--flowsflows
Increasing flexibilityIncreasing flexibility
Redefining organizational boundariesRedefining organizational boundaries
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
New Options forOrganizational Design
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1.37 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Figure 1-9
TOWARD THE DIGITAL FIRM
Flattening Organizations Information Systems
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1.38 2003 by Prentice Hall
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Figure 1-10
Redesigned Work Flow ForInsurance Underwriting
TOWARD THE DIGITAL FIRM
i f f i Si f f i S
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1.39 2003 by Prentice Hall
Electronic commerceElectronic commerce
Electronic businessElectronic business
Electronic market: Information systemsElectronic market: Information systems
links, buyers and sellers to exchangelinks, buyers and sellers to exchange
information, products, services, paymentsinformation, products, services, payments
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
The Digital Firm
E i l f M I f i SE i l f M I f i S
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Figure 1-11
TOWARD THE DIGITAL FIRM
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E ti l f M t I f ti S tE ti l f M t I f ti S t
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Internet:Internet: Business builds private, secureBusiness builds private, securenetworknetwork
EE--mail, Web documents, groupmail, Web documents, groupsoftware:software: Extends effectiveExtends effectivecommunication and controlcommunication and control
Extranet:Extranet: Extension of intranet toExtension of intranet toauthorized external usersauthorized external users
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Electronic Business
TOWARD THE DIGITAL FIRM
E ti l f M t I f ti S tE ti l f M t I f ti S t
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Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
InformationArchitecture and Information Technology Infrastructure
TOWARD THE DIGITAL FIRM
Figure 1-12
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1 44 2003 by Prentice Hall
11
MANAGING THEMANAGING THE
DIGITAL FIRMDIGITAL FIRM
Chapter