Computing Fundamentals

Management Information SystemInformation System in Global Business TodayLaudon, Laudon. (11/e). Management Information Systems, Pearson, Chapter-0111. Design competitive and effective systems

2. Understand system requirements of global business environment

3. Create information architecture that supports organizations goal

4. Determine business value of information systems

5. Design systems people can control, understand and use in a socially, ethically responsible manner

MANAGEMENT CHALLENGESStrategic Business Objectives of ISStrategic Business Objectives of ISOrganizations relying more and more on IT/IS E-Business becoming essential to manyEntire sectors on E-Business

Strategic Business Objectives of IS (2)Growing interdependence betweenAbility to use IT andAbility to achieve strategy and goals

Business Strategic Objectives

Biz ProcessesSoftwareHard-wareData-basesTele-commInterdependenceOrganizationInformation SystemOperational ExcellenceNew Products, Services, Biz ModelCustomer & Supplier IntimacyImproved Decision MakingCompetitive AdvantageSurvivalSix Strategic Biz Objectives to achieve through IS:Operational ExcellenceNew Products, Services, Biz ModelCustomer & Supplier IntimacyImproved Decision MakingCompetitive AdvantageSurvival

5Perspective on ISInformation System (IS) and Information Technology (IT)ITIT refers specifically to technology, essentially hardware, software, and telecommunication networks.It is thus both tangible (e.g. with servers, PC, routers, and network cable), andintangible (e.g. with software of all types.IT facilitates the acquisition, processing, storing, delivery and sharing of information and other digital content.ICT (another term commonly used for IT).Information System (IS) and Information Technology (IT)ISThe means by which people and organizations, utilizing technology, gather, process, use and disseminate information.

IS is concerned with purposeful utilization of IT.Source: http://www.ukais.org.uk/about/DefinitionIS.aspx

8Information System (IS) and Information Technology (IT)IS domain of study Involves the study of theories and practices related to the social and technological phenomena, which determine the development, use and effects of information systems in organizations and society.

Source: http://www.ukais.org.uk/about/DefinitionIS.aspx9Information System (IS) and Information Technology (IT)IS domain of study Although technology is the immediate enabler of IS, IS actually is part of the much wider domain of human language and communication, that IS will remain in a state of continual development and change in response both to technological innovation and to its mutual interaction with human society as a whole. MingersJ.C. Mingers, What is the distinctive nature and value of IS as a discipline?, Systemist, Vol. 17, No. 1, 1996, 18-22

Human language and comm.: how do people share knowledge and feelings.

As new technology is coming, people are using it differently. E.g. 3G/4G networks and social media are latest how we interact.10ISA set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making, and control in an organization.Functions of ISLaudon: Fig 1-412Functions of IS

Laudon: Fig 1-413Functions of ISThree activities in IS to produce information for the organization to make decisions, control operations, and analyze problems,InputProcessingOutputFeedback is also there to improve the inputLaudon: Fig 1-414Dimensions of ISORGANIZATIONSTECHNOLOGYMANAGEMENTINFORMATION SYSTEMSDimensions of IS (2)IS literacy vs. Computer Literacy

OrganizationStructure of organizationLayers in organizationOperational, Middle, SeniorComm. within and b/w layers through ISBusiness Functions and ProcessesCultureManagementPerceive challenges and make strategiesAllocate resourcesTechnologyH/W, S/W, Telecom.

Business Perspective of ISIS are part of series of value adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase profitability. MIS, Laudon & Laudon; pp2617Business Perspective of ISBusiness ProcessesInformation Processing ActivitiesBusiness ValueManagement ActivitiesSupplyChainManagementEnterpriseManagementCustomerManagementDataCollectionandStorageTransformationIntoBusinessSystemsDisseminationKnowledgeManagementPlanningCoordinatingControllingModeling andDecisionMakingFirmProfitabilityandStrategicPositionBusiness Perspective of IS (2)IS is part of a series of value adding activities for acquiring, transforming, and distributing information, that managers can use to improve decision making, enhance organizational performance, and ultimately increase firm profitability.Complimentary Assets: Organizational Capital and The Right Business ModelComplimentary Assets: Organizational Capital and The Right Business ModelIT Capital Stock (relative to Industry average)Productivity(relative to Industry average)1.08.0.254.0.25.51.04.02.0Complimentary Assets: Organizational Capital and The Right Business ModelComplimentary Assets:Assets required to derive the value from a primary investment.E.g. roads, petrol pumps, CNG stations, service shops, spare parts distribution etc to cars/automobiles.

Increase in investment in Complementary Assets results in increase in returns from IS investment and vice versa.

Complimentary Assets Required to Optimize Returns from IS/IT investment:Asset CategoryAsset TypeOrganizationalSupportive culture valuing efficiency and effectivenessAppropriate Business ModelDecentralized AuthorityDistributed decision-making rightsStrong IS development TeamManagerialStrong senior management support for IT/ISIncentives for management innovationTeamwork and collaborative work environmentTraining programs to enhance mgmt. decision skillsMgmt. culture that values flexibility and knowledge-based decision makingSocialThe internet and Telecomm. InfrastructureIT rich educational programs raising comp. literacyStandards (govt. and private)Laws and regulations creating fair, stable market environmentTechnology and service firms in adjacent markets to assist implementationAsset Category: OrganizationalAsset Type: Supportive culture valuing efficiency and effectivenessAppropriate Business ModelDecentralized AuthorityDistributed decision-making rightsStrong IS development Team

Asset Category: ManagerialAsset Type: Strong senior management support for IT/ISIncentives for management innovationTeamwork and collaborative work environmentTraining programs to enhance mgmt. decision skillsMgmt. culture that values flexibility and knowledge-based decision making

Asset Category: SocialAsset Type: The internet and Telecommunication InfrastructureIT rich educational programs raising computer literacyStandards (govt. and private)Laws and regulations creating fair, stable market environmentTechnology and service firms in adjacent markets to assist implementation

Contemporary Approaches to Information SystemsContemporary Approaches to Information SystemsTechnicalApproachesBehavioralApproachesManagementScienceOperationsResearchSociologyEconomicsComputerSciencePsychology

Contemporary Approaches to Information SystemsStudy of IS is a multidisciplinary field.

In general, the field can be divided intoTechnical ApproachBehavioral Approach

Sociotechnical SystemTo make IS work properly, it requires both; the understanding/ability of technology and social/organizational and intellectual investment

Contemporary Approaches to Information SystemsTechnical ApproachEmphasizesMathematical based modelsPhysical technologiesComputer ScienceComputing, data storage and access.Management ScienceModels for decision making and Management practicesOperations ResearchMathematical techniques for optimizing selected parameters of organizations e.g. inventory control, transportation, transaction costs, etc

Contemporary Approaches to Information SystemsBehavioral ApproachIssues such as the following cannot be addressed using technical approach:Strategic business integration, design, implementation, utilization, and management of ISSociologist study (e.g.):How people shape the IS and how IS effect the people (individuals and as a group)Psychologist study (e.g.):How human decision makers perceive and use informationEconomist study (e.g.):How digital goods are produced, dynamics of digital markets, and how IS can change and effects costs within organization as well as the economy.

Sociotechnical SystemThe performance of the system is optimized when bothTechnologyOrganization mutually adjust to one another until a satisfactory fit is obtained.