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COMM 391Introduction to Management Information Systems
Winter 2014 – Term 1
ROLE OF BUSINESS MANAGERS IN TECHNOLOGY ADOPTION AND DEVELOPMENT
Learning Objectives
1. Discuss why business managers should study information systems.
2. Explain information system (IS) basics.3. Discuss the role of information
technology (IT) in business.4. Discuss the role of business managers in
technology adoption and development.
© 2014 – Y.M. Cheung 3COMM 391 - W2014 Term 1
IT’s About Business – E-Meals
Read the case “1.1 E-Meals” and answer the following questions:
1. Provide two examples of how Jane uses information technology to provide her service.
2. Provide two additional examples of how Jane might use information technology to improve her service. Be specific.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 4
Learning Objective 1
• Discuss why business managers should study information systems.
© 2014 – Y.M. Cheung 5COMM 391 - W2014 Term 1
The Informed Users
An informed user is a person knowledgeable about information systems and information technology.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 6
USERS MIS
IT skills open many doors because IT is so widely used.
Why Should I be an Informed User?
You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications.
You will be in a position to enhance the quality of your organization’s IT applications with your input.
Even as a new graduate, you will quickly be in a position to recommend the IT applications that your organization will use.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 7
Why Should I be an Informed User? (cont’d)
Being an informed user will keep you abreast of both new information technologies and rapid developments in existing technologies.
You will understand how using IT can improve your organization’s performance and teamwork as well as your own productivity.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 8
IT Offers Career Opportunities IT is vital to the operation of modern business,
it offers many employment opportunities. E.g. Chief Information Officer (CIO), Project Manager,
Business Analyst, Database Administrator, Webmaster, Business Technology Consultant, IT Auditor, etc.
For further details about current careers in IT see: http://jobs.itworldcanada.com/
http://itjobs.computerworld.com/
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 9
Managing Information Resources
Traditional Functions of MIS Department E.g. manage systems development project;
manage computer operations; provide technical services
New (Consultative) Functions of MIS Department E.g. create business alliances with business
partners; manage system integration; manage outsourcing
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 10
For discussion …
Compare the average salary of the following IT jobs: Project Manager
Business Analyst
Business Intelligence (BI) Analyst
Sources: http://www.itworldcanada.com/salarycalculator/
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 11
Learning Objective 2
• Explain information system (IS) basics.
12COMM 391 - W2014 Term 1 © 2014 – Y.M. Cheung
Information Technology (IT) vs. Information Systems (IS) Information systems is not the same as
information technology Technology is a tool. Systems are the collection of the tool, the
people who use it, and the processes it supports
An Information System collects, processes, stores, analyzes, and disseminates information for a specific purpose.
13COMM 391 - W2014 Term 1 © 2014 – Y.M. Cheung
Data and Information Data Raw facts representing events such as business
transactions. Unprocessed facts of interest to end users (e.g., customer x bought product y for $z on date t)
Information A meaningful aggregation of facts that is useful to
human beings in management and decision making.(e.g., year-to-date revenues from customer x are $2.4m, average gross margin from customer x is 12.2% compared to firm average of 8.4%)
© 2014 – Y.M. Cheung 14COMM 391 - W2014 Term 1
Knowledge
Information
Data Items that are the most
elementary descriptions of things, events, activities, and transactions.
May be internal or external.
Organized data that has meaning and value.
Processed data or information that conveys some individuals’ understanding or learning applicable to a problem or activity.
Data, Information, Knowledge
© 2014 – Y.M. Cheung 15COMM 391 - W2014 Term 1
Basic Components of Information Systems
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Which component is
most important?
Importance of IT
Information technology is an important enabler of business success and innovation.
However, IT in and of itself is not useful unless the right people know how to useand manage it effectively.
© 2013 – Kafui Monu, Y.M. CheungCOMM 391 - W2013 Term 2 17
Basic Components of Information Systems (cont’d)
• A device such as a processor, monitor, keyboard or printer.Hardware
• A program or collection of programs that enable hardware to process data.
Software
• A collection of related files or tables containing data.Database
• A connecting system (wireline or wireless) that permits different computers to share resources.
Network
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 18
Basic Components of Information Systems (cont’d)
• A set of instructions about how to combine the above components in order to process information and generate the desired output.
Procedures
• Those individuals who use the hardware and software, interface with it, or uses its output.
People
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 19
Information Technology in an Organization
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 20
IT Platform vs. IT Infrastructure
• Include the IT components of hardware, software, networks (wireline and wireless), and databases.
IT Platform
• IT personnel use these components to develop information systems, oversee security and risk, and manage data.
IT Services
• The IT components plus IT services.
IT Infrastructure
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 21
What is an App?
An application (or app) is a computer program designed to support a specific task or business process.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 22
Major Capabilities of Information Systems
Perform high-speed, high-volume numerical computations.
Provide fast, accurate communication and collaboration within and among organizations.
Store huge amounts of information in an easy-to-access, yet small space.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 23
Major Capabilities of Information Systems (cont’d)
Allow quick and inexpensive access to vast amounts of information, worldwide.
Interpret vast amounts of data quickly and efficiently.
Automate both semi-automatic business processes and manual tasks.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 24
Information Systems Among Multiple Organizations
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Types of Information Systems
Functional Area Information Systems Transaction Processing Systems (TPS) Enterprise Resource Planning (ERP)
Systems Interorganizational Information Systems E.g. Supply Chain Management systems
Electronic Commerce (e-commerce) Systems
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 26
Types of Information Systems (cont’d)
Office Automation Systems Management Information Systems Decision Support Systems Expert Systems Executive Dashboard
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 27
Learning Objective 3
• Discuss the role of information technology (IT) in business
© 2013 – Kafui Monu, Y.M. Cheung 28COMM 391 - W2013 Term 2
IT’s Role in Business
Information technology is everywhere in business.
Understanding IT provides great insight to anyone learning about business.
© 2014 – Y.M. Cheung 29COMM 391 - W2014 Term 1
IT’s Impact on Business
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IT’s Impact on Business (cont’d)
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 31
IS’s Role in a Typical Organization
Organizations typically operate by functional areas or functional silos.
Functional areas are interdependent.
Information systems enable functional areas (departments) to perform more efficiently and effectively.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 32
Marketing working with other organizational
departments
Departments Working Independently
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Departments Working Interdependently
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 34
• Systems are the primary enabler of cross-functional operations.
IT as a Critical Enabler
IT enables firms to collect, maintain, and analyze a very large amount of data related to customers.
Marketing
customer database Sales
Post sale: customer service & technical support
customer database
customer databaseFAccounting
customer database
Acknowledgement: Carson Woo and Ofer Arazy© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 35
Finance & Accounting
Marketing
Web-enabled customer interactions
Sales
Integratedcustomer database
Post sale: customer service
& technical support
Acknowledgement: Carson Woo and Ofer Arazy
IT as a Critical Enabler (cont’d)
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 36
IT’s Role Automate processes Can use information technology to replace human effort For instance: e-commerce
Informate processes Can use information technology to augment human effort For instance: decision support systems
Transform processes Can use information technology to transform a set of
processes For instance: cloud computing
© 2014 – Y.M. Cheung 37COMM 391 - W2014 Term 1
Information Cultures Culture influences the way people use information
(their information behaviour) and reflects the importance that company leaders attribute to using information in achieving success or avoiding failure.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 38
Learning Objective 4
• Discuss the role of business managers in technology adoption and development
© 2014 – Y.M. Cheung 39COMM 391 - W2014 Term 1
Embracing Digital Technology A study by MIT Sloan Management Review and
Capgemini Consulting finds that companies now face a digital imperative:
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 40
Adopt new technologies effectively or face competitive obsolescence.
(Source: http://sloanreview.mit.edu/projects/embracing-digital-technology/)
Key Findings of the Survey
Many say their leaders lack urgency and fail to share a vision for how technology can change the business.
Companies that succeed tend to have leaders who share their vision and define a road map, create cross-organizational authority for adoption and reward employees for working towards it.
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 41
Benefits of Digital Transformation
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The Biggest Transformation Traps
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The Pace of Digital Transformation
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 44
Culture Clash
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 45
Two Wrong Ways to Approach Digital Transformation
1. “Just go off and do something. And we don’t need to worry about coordination.”
2. “Hire a bunch of people and say ‘make this happen. I don’t need to be involved.’”
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 46
Conclusion “If you’re an executive leading a company
looking at these technologies, you need to lead the technology — don’t let it lead you.”
“You want to think about, how is your company going to be different because this is here? And then, put in a framework, so you’re not just buying technology, you’re actually pushing your company forward in a different way, because the technology is there.”
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 47
For discussion …
What are the major reasons why it is important for employees in all functional areas to become familiar with IT?
© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 48