Upload
dysis
View
65
Download
4
Tags:
Embed Size (px)
DESCRIPTION
Module 1: Introduction to MIS. Objectives. Understand the systems approach Why is technology important? Understand Porters 5 forces framework Understand the Value chain framework Differentiate between types of systems. Systems approach to MIS. Management. - PowerPoint PPT Presentation
Citation preview
1
Module 1: Introduction to MIS
2
Objectives
• Understand the systems approach• Why is technology important?• Understand Porters 5 forces framework• Understand the Value chain framework• Differentiate between types of systems
3
Systems approach to MIS
4
Management
• The act, art, or manner of managing, handling, controlling directing, etc.
• Origin: to train (a horse) in his paces; cause to do exercises of the manage
• To control the movement or behavior of; handle; manipulate
• To have charge of; direct; conduct; administer
• To get (a person) to do what one wishes
Webster’s Dictionary
5
Information
•Derived from the Latin verb informo, informare, meaning to “give form to”
• Information etymologically connotes an imposition of organization upon some indeterminate mass or substratum, the imparting form that gives life and meaning to otherwise lifeless or irrelevant matter
• Data that have been shaped by humans into a meaningful and useful form.
Schoderbek, Schoderbek & Kefalas
6
SYSTEM
Webster’s New World Dictionary
• A set or arrangement of things so related or connected as to form a unity or organic whole
• A set of facts, principles, rules, etc. classified or arranged in a regular, orderly form so as to show a logical plan linking the various parts.
• A method or plan of classification or arrangement
7
SYSTEMA system is defined as (1) a set (2) of objects (3) together with relationships (4) between the objects and between their attributes (5) related to each other and to their environment (6) so as to form a whole.
Schoderbek, Schoderbek & Kefalas
SET — any well defined collection of elements or objects within some frame of reference
OBJECTS — objects are elements of a system [INPUTS (serial, probable, or feedback), PROCESS (transformation), OUTPUTS (Intended, waste, or pollution)] Efficiency - ratio of output to input
RELATIONSHIPS — the bonds that link objects together (Symbiotic, synergistic, and redundant)
ATTRIBUTES — attributes a properties of both objects and relationships (defining/accompanying characteristics)
ENVIRONMENT — includes not only that which lies outside the system’s complete control but that which at the same time also determines in some way the system’s performance.
WHOLE — defining attribute.
8
Individual Information Processing System
Sensory Information - Visual - Auditory - Kinesthetic - Olfactory
Brain
Cognitive Frames - Assumptions - Criteria
Internal States
Behaviors
Macro - Speaking - Eating - Pointing
Micro - Heart Rate - Voice Temp - Skin Temp
Input Processing Output
Memory Personal History
Environment
9
The Organization as a System
Money
Labor
Input Process Output
Science Technology
Products, goods and services
Marketable waste
Government
Pollution
Public
Management
Management
Materials andEquipment
Environment
Political, Legal, Social, Physical, Economic, …
10
Diagram of a System’s Parameters, Boundary, and Environment
Input Process Output
Feedback
o
p
i
I
p
0
op
i
op
i
o
p
i To other systemsFrom other systems
System’s boundary
System’s environment
11
The Organization, Its Resources and Its Environment
Input Process Output
Feedback
Material andEquipment Government
Ecology
Competitors
GeneralPublic
Land
Capital
Labor
Technology
Customers
The organization
Indicates degree of control, alternatively, resourcesIndicates degree of independence or, alternatively, environmentIndicates the boundary demarking the system from its environment
12
Socio-Technical System
SocialSystem
Technical System
STRUCTURE
PEOPLE
TECHNOLOGY
TASKS
MIS(Direct)
Socio-Technical Model as a Work System
13
CHALLENGES
• Technology advances
• Productivity challenge
• Strategic business challenge
• People challenge
14
Information Systems1 -- FOCUS
•People
•Organizations
•Technology
•Problem Solving
1 A set of interrelated components that collect, retrieve, process,store and distribute information for the purpose of facilitating planning,control, coordination, analysis, and decision making in organizations.
15
5 forces and value chain Organizational processes
16
Competitive Intelligence
• Such information-gathering drives business performance – by increasing market knowledge – improving knowledge management – raising the quality of strategic planning
One of the most important aspects in developing a competitive advantage is to acquire information on the activities and actions of competitors.
However once the data has been gathered it must be processed into information and subsequently business intelligence. Porters 5 Forces is a well-known framework that aids in this analysis.
17
Porter’s Competitive Forces Model
• The threat of entry of new competitors• The bargaining power of suppliers• The bargaining power of customers (buyers)• The threat of substitute products or services• The rivalry among existing firms in the industry
The model recognizes five major forces that could endanger a company’s position in a given industry.
External Competitive ForcesExternal Competitive Forces
18
Competitive Competitive ForcesForces
Porter’s Competitive Forces Model
19
The Value ChainValue Chain -- The set of processes a firm uses to create value for its customers ( see pg 58)
(an abbreviated version of the term value added chain from economics)
The Value Chain includes: Primary Processes -- that directly create the value the firm’s customer perceives, and
Support Processes -- that add value indirectly by making it easier for others to perform the primary processes
20
The Value ChainAccording to the value chain model (Porter, 1985), the activities conducted in any organization can be divided into two parts: primary activities and support activities.
Primary activities are those activities in which materials are purchased, processed into products, and delivered to customers. Each adds value to the product or service hence the value chain. Inbound logistics (inputs) Operations (manufacturing and testing) Outbound logistics (storage and distribution) Marketing and sales Service
21
The Value Chain (Continued) Unlike the primary activities, which directly add value to
the product or service, the support activities are operations that support the creation of value (primary activities) The firm’s infrastructure (accounting, finance, management) Human resources management Technology development (R&D) Procurement
The initial purpose of the value chain model was to analyze the internal operations of a corporation, in order to increase its efficiency, effectiveness, and competitiveness. We can extend that company analysis, by systematically evaluating a company’s key processes and core competencies to eliminate any activities that do not add value to the product.
22
The Value Chain (Continued)
Secondary Secondary ActivitiesActivities
Primary ActivitiesPrimary Activities
ValuValuee
23
IBM’s Value Chain Model
High-Volume, Easily Configured Products
Complex Configured Hardware
OEM Hardware
Distributed Software
Entitled Software
Services
Financing
Enterprise Information Management
Business Policies and Rules
Customer Collaberation
Self-Service Knowledge Management Collaboration and e-Learning
Ibm.com
Fufillment
Sales
CRM
Supplier Collaberation
Integrated Supply Chain
Procurement
Integrated Product
Development
Value Chains
Customers Suppliers
Employees
24
Does IT matter?
25
Types of systems
26
Information System Focus
ExecutiveManagement
MiddleManagement
Operational Management 1960’s - 1970’s
1980’s
1990’s
Focus on information systems advantage has moved upward through the organization.
MIS/DSS/GSS/EIS
Organization Levels and Types of IS Used
Strategic Level
Tactical Level
Knowledge Level
Operational LevelTPS
GSS/EIS
MIS/DSS/KWS
Top Level ???
• Transaction Processing Systems (TPS) - - handles and processes daily exchanges (transactions)
• Office Automation Systems (OAS) - - produces documents, plans, schedules
• Management Information Systems (MIS)– produces managerial reports
Information System Focus
Operational Level
• Decision Support Systems (DSS) - – supports and assists in all problem-specific decision
making.
• Artificial Intelligence (AI) and Expert Systems (ES) -- Knowledge Work Systems (KWS)- is an information system that can make suggestions and reach solutions in much the same way as a human expert.
Information System Focus
Knowledge Level
• Executive Support System (ESS)• Group Support System (GSS)
- is an information system that can make suggestions and reach solutions in much the same way as a human expert.
Information System Focus
Strategic Level
Tactical Level
31
TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERSSTRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MIDDLE MANAGERSMANAGEMENT LEVEL MIDDLE MANAGERS
OPERATIONAL OPERATIONAL OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE & KNOWLEDGE LEVEL KNOWLEDGE & DATA WORKERSDATA WORKERS
RESOURCESRESOURCESMARKETINGMARKETING
32
Information Systems Process Systems and Knowledge Systems
Type of system Process systems Knowledge systems
Type of DataQuantitative /
StructuredQuantitative /
StructuredQualitative /
Unstructured
Examples of technology ERP / TPS Business intelligence Content Management
SCM Data Mining Information Portals
CRM Collaborative tools
Example When customers make a purchase from anywhere in the world using EBay's' online auctions, the firms' sales process integrates with a variety of partner and processes that include payment process and its internal process. (Sambamurthy et al., 2003)
Sara Lee uses its ability to analyze the sales of retailers it serves. In doing so, they can identify trends and exceptions, draw comparison, perform calculations and obtain fast answers (Turban & Aronson, 2000).
BP uses 3-D imaging rooms equipped with state-of-the art videoconferencing systems for helping its engineers gather in any of the company's 15 imaging rooms and tap into and share data over the network (Echikson, 2001).
33
Characteristics of Information System Capabilities
Capability Orientation Level Focus Nature
TPS Data Operational Task, Efficiency StructuredMIS Information Management control Resource StructuredDSS Decision All, strategic Alternatives UnstructuredOAS Productivity Operational Task, Efficiency StructuredEIS Problem Executive Status, Problem Flexible, easyAI/ES Knowledge Operational Problem StructuredIOS Data Operational Task, Efficiency Structured
Strategic Information Systems -- Information systems that play a major role in a product’s value chain.
Although there is no clear-cut separation between strategic information systems and other systems, a number of characteristics indicate whether an information system should be considered strategic.
Systems should be considered strategic if :•they help differentiate the product form its competitors; •if the customers directly perceive the value of the information system to them; or •if the product’s production, sales, and service require the system.
34
Lewin’s Change Model
•Unfreezing • preparing for change • create felt need • disrupt existing attitudes, behaviors
•Changing • modify situation • sustain effort • clear goals • adequate preparation
•Refreezing • Reinforce desired behavior • Support • Evaluation
Change Agent• Responsible for changing individual & system (organizational) behavior • IS professional as change agent • Facilitate & support change processes
35
Resistance to Change Causes Fear of unknown Security No felt need Power/threatened Rumors Timing Resources
Strategies
Communicate Clarify Show benefit Enlist key people Accurate info Delay Provide support
Targets of Change
Purpose, strategy, objectives Structure Technology Culture Tasks People
All are interrelated
Planned Change Deliberate and intentional
Response to performance gap
Gap between actual & desired state
Radical • massive restructuring “frame-breaking”
Incremental • “frame-bending” • continuous improvement
Change
36
Change Strategies
Force-coercion
Authority power Good for unfreezing stage
Rational persuasion
Expert power Convince of benefits of change
Shared power Active, real involvement Takes longest, lasts longest
Resistance to Change
• Attitudes and behaviors
• View as useful feedback
• Educate / communicate
• Participation = commitment
• Provide support re: external constraints
• Negotiate trade-offs
• Manipulation: speed, use power
Change
37
Strategic Role of IS
How Businesses Use Information Systems &
Information Systems: Challenges and Opportunities
38
SYSTEM INTERDEPENDENCE
BUSINESSBUSINESS
StrategyStrategy
RulesRules
ProceduresProcedures
ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM
INTERDEPENDENCEINTERDEPENDENCE
SOFTWARESOFTWARE
HARDWAREHARDWARE
DATABASEDATABASE
TELE-TELE-COMMUNICATIONSCOMMUNICATIONS