94
Unit 403: Managing Informa2on Systems Sweta Sud Chifley Adjunct Fellow

Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Embed Size (px)

DESCRIPTION

Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Citation preview

Page 1: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Unit  403:  Managing  Informa2on  Systems      

Sweta Sud Chifley Adjunct Fellow

 

Page 2: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014
Page 3: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Know your facilitator •  Instrumentation and Controls Engineer •  MBA in Systems and Marketing •  Master Project Manager •  Post Graduate Diploma in IT Management •  Certified Information Systems Auditor •  Managed MIS Projects for ü  GM-Opel Astra (Holden) Car Manufacturing Automation Plant ü  Tata Indica, NANO (TELCO) Manufacturing Plant ü  Shopfloor Information Management Systems ü  Dubai Duty Free Transaction System ü  Dubai Municipality ü  SAP India, Singapore, Thailand, Taiwan, Indonesia Integration ü  ABB Sydney – Electrical Plants Automation Projects

Page 4: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

MIS

What Business are you in?

Why MIS?

Page 5: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

In this Unit.. Week  1  

• First  workshop  • Topic  1,2,3  

Week  2  • Read  the  Study  guide  • Read  the  e-­‐book    

Week  3  • 2nd  workshop  • Topic  4,5,6  

Week  4  • Do  the  assignment    

Week  5  •  3rd  workshop  • Topic  7,8,9,10  

Week  6  • Exam  on  4th  September  

Page 6: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Today’s Agenda

0  

• Starts  08:30  am  • MIS  –  your  understanding  • Ac2vi2es  and  discussions  • Morning  tea@10:00  

1  • Managing  IS  to  seize  new  strategic  opportuni2es    • Lunch  @  12:30pm  –  01:30  pm  

2  • Case  Study  Discussion  2me  1:30  to  02:00  pm  • Managing  using  a  systems  approach    • Evening  Tea@  2:30pm  

3  • Informa2on  systems  and  strategy  • Session  closes  04:00  pm    

Unit-403, Workshop1

Page 7: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

E-­‐BOOK  Managing and Using Information Systems: A

Strategic Approach

by Keri Pearlson & Carol Saunders  

Page 8: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Roman  Empire  

Mughal  Empire  

Renaissance  

OXoman  Empire  

Social  Developent  Index  

Ibraham  

Buddha  

Confucius  

Plato  

life  of  alexander  

Jesus  

Zero  

Mohammad`  

Black  Death  

Columbus  

Calculus  

World  popula2on  ‘000  

0  

100  

200  

300  

400  

500  

600  

700  

0  

1000  

2000  

3000  

4000  

5000  

6000  

7000  

8000  

Page 9: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

What’s  the  most  significant  event  in  Human  History  

Page 10: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

What  do  future  Jobs  look  like  

Page 11: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Customer  Service  Vs.  Siri  

Page 12: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Machines  replacing  skills  

Page 13: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

More  output  at  lower  costs  

Page 14: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Google  chairman  predicts  the  whole  world  will  be  on  the  Web  by  2020.            CNN    June  2013  

"For  every  person  online,  there  are  two  who  are  not,"  Eric  Schmidt  

Page 15: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Major  shies  in  the  demand  for  skills  Economy-­‐wide  measures  of  rou2ne  and  non-­‐rou2ne  task  input  (US)  

40  

45  

50  

55  

60  

65  

1960   1970   1980   1990   2002  

Rou2ne  manual  

Nonrou2ne  manual  

Rou2ne  cogni2ve  

Nonrou2ne  analy2c  

Nonrou2ne  interac2ve  

 (Levy  and  Murnane,  2010)  

Mea

n ta

sk in

put

as p

erce

ntile

s of

the

196

0 ta

sk d

istr

ibut

ion

Dilemma  facing  schools:  The  skills  that  are  easiest  to  teach  and  test  are  also  the  ones  that  are  easiest  to  digi?se,  automate  and  outsource  

18  

Page 16: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014
Page 17: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

TOPIC  1:  Managing  IS  to  seize  new  strategic  opportuni2es    

Analyse  the  impact  that  IS  has  on  organisa2ons    and  the  consequent  changes  that  have  occurred  to  the  role  of  business  managers.    

Page 18: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

18  

Objec2ve  

1.  Explain  why  managing  informa2on  is  important  in  today's  business  world  

2.  Define  concepts  from  the  hierarchy  of  data  and  IS,  as  dis2nct  from  IT  

3.  Describe  the  major  challenges  facing  today's  business  and  IS  manager  

4.  Analyse  and  report  on  an  organisa2on's  IT-­‐investment  profile    

Page 19: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

19  

A  Business  View  

•  IT  is  a  cri2cal  resource.  •  IT  is  over  50%  of  capital  goods  dollars  spent  in  the  US.  – Over  $3,800  a  year  per  capita.  – High  growth  firms  invest  more  in  IT.  

•  Business  managers  decide  resource  alloca2on.  

Page 20: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

20  

Par2cipa2ng  in  Informa2on  Decisions  

•  Business  managers  “must”  be  involved  in  informa2on  decisions.  

Page 21: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

21  

Par2cipa2ng  in  Informa2on  Decisions  

•  Business  managers  “must”  be  involved  in  informa2on  decisions.  

•  .    IS  …  –  is  a  cri2cal  resource.  –  enables  change  in  how  people  work  together.  –  is  integrated  with  almost  every  aspect  of  business.  –  enables  business  opportuni2es  and  new  strategies.  –  can  be  used  to  combat  business  challenges  from  

Page 22: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

22  

People  and  Technology  

•  People  and  Technology  work  together.  – Technology  is  cri2cal.  – Workers  rely  heavily  on  technology.  

•  Managers  must  know  how  to  mesh  both.  – Examine  long-­‐term  and  short-­‐term  consequences.  – Manage  change  carefully.  

•  Technology  changes  rapidly.  

Page 23: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

23  

Is  IT  a  cost  centre?  Can  IS  create  new  strategic  Business  Opportuni2es?    (Apply  product  vs.  market  Matrix  

Page 24: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

24  

Business  Goals  

•  IS  must  support  business  goals.  –  It  is  not  an  end  but  a  means  to  an  end.  – Support  and  strategic  focus.  

•  Toys  R  Us  IT  debacle.  – Must  meet  user  needs.  – Must  be  able  to  support  business  transac2ons.  

Page 25: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

25  

Organiza2onal  Systems  

•  IT  must  support  organiza2onal  systems  – The  people,  work  processes,  and  structure.  

•  Carefully  consider  the  consequences  of  making  an  IS  change.  – How  will  this  impact  the  way  work  is  done?  – Will  the  people  accept  this  new  technology?  – What  changes  may  need  to  be  made  in  the  structure  of  the  organiza2on?  

Page 26: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

26  

WHAT  SKILLS  ARE  NEEDED  TO  PARTICIPATE  EFFECTIVELY  IN  INFORMATION  TECHNOLOGY  DECISIONS?  

Page 27: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

27  

Basic  Skills  Needed  

•  Myth  -­‐  technical  exper2se  is  not  needed  to  par2cipate.  

•  Managerial  role  and  skills  needed  (Fig  I.2):  – Visionary  –  crea2vity,  curiosity,  confidence,  focus  on  business  solu2ons,  flexibility.  

–  Informa2onal  and  Interpersonal  –  communica2on,  informa2on  gathering,  interpersonal  skills.  

– Structured  –  project  management,  analy2cal  skills,  organiza2onal  skills,  planning  skills.  

Page 28: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

28  

BASIC  ASSUMPTIONS  •  Managers  must  know  about  both  using  and  managing  informa2on.  

•  Managers  must  be  knowledgeable  par2cipants  in  IS  decisions.  – The  general  manager  must  have  a  basic  understanding  of  the  business  and  technology  issues  related  to  IS.  

•  Technology  of  today  is  different  from  the  technology  of  yesterday.  

Page 29: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

29  

•  The  role  of  the  general  manager  and  IS  manager  are  dis2nct.  – The  GM  must  have  a  basic  understanding  of  IS  to  make  decisions  that  may  have  significant  implica2ons  for  the  business.  

– The  IS  manager  must  have  general  business  knowledge  and  a  more  in  depth  knowledge  of  IS  to  support  its  func2on.  

Page 30: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

30  

Management  Assump2ons  

•  Four  key  ac2vi2es  of  the  classic  view  of  management  (Fig  I.3).  – Planning  – Organizing  – Leading  – Controlling  

•  Classic  view  is  seen  as  more  of  a  tac2cal  approach  to  management.  

Page 31: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

31  

•  The  Mintzberg  model  describes  management  in  behavioral  terms  (Fig  I.4  –  page  25).  –  Interpersonal  –  Informa2onal  – Decisional    

Mintzberg  Model  

Page 32: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

32  

Figure  I.5    Hierarchical  View  of  the  firm.  

Page 33: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

33  

Func2onal  View  

•  Func2onal  View  of  the  business  – Based  on  the  func2ons  people  perform.  –  Informa2on  flows  ver2cally  in  the  organiza2on.  – Some2mes  informa2on  flows  across  the  organiza2on.  

– Accoun2ng,  Opera2ons,  Marke2ng,  Sales  and  Support.  

– Execu2ve  Management  receives  the  informa2on  and  distributes  as  need  arrives.    

– See  Figure  I.5  

Page 34: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

34  

Figure  I.6  Process  View  of  the  Firm:  The  Value  Chain  

Page 35: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

35  

Process  View  •  This  model  sees  the  business  by  the  processes  it  performs  to  achieve  its  goals.  

•  Porter  describes  business  in  terms  of  its  primary  and  support  ac2vi2es.  – Primary  –  inbound  and  outbound  logis2cs,  opera2ons,  marke2ng  and  sales.  

– Support  –  HR,  technology,  procurement,  infrastructure.  

•  Ac2vi2es  are  linked  together  to  form  a  chain  –  the  value  chain  (fig  I.6).  

Page 36: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

36  

Data  Hierarchy  

Wisdom  

Understanding  

Knowledge  

Informa2on  

Data  

Page 37: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

37  

Informa2on  Hierarchy  

•  Data,  Informa2on,  and  Knowledge  are  not  interchangeable  terms.  – Data  –  set  of  specific  objec2ve  facts  or  observa2ons  (inventory  contains  100  widgets).  

–  Informa2on  –  data  endowed  with  relevance  and  purpose  (75%  of  widgets  were  purchased  by  customers  in  December)  –  see  fig  I.8.  

– Knowledge  -­‐    informa2on  that  has  been  synthesized  and  contextualized  to  provide  value.  

Page 38: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

38  

Data Information Knowledge

Definition Simple Observations of the sate of the world

Data endowed with relevance and purpose

Info from the human mind (includes reflection, etc)

Characteristic • Easily structured •  “ captured •  “ transferred • Often quantified • Mere facts

• Requires unit of analysis • Data that has been processed • Human mediation necessary

• Hard to structure • Difficult to capture on machines • Often tacit • Hard to transfer

Example Daily inventory reports of all inventory items sent to CEO of large manufacturing company

Daily inventory report of items below economic order quality levels sent to inventory manager (IM)

IM knows which items need to be reordered in light of related potential problems

Page 39: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

39  

Top Management Middle Management

Supervisory & Lower-Level Management

Time Horizon Long: years Medium: weeks, months, years

Short: day to day

Level of Detail

Highly aggregated Less accurate More predicted

Summarized Integrated Often financial

Very detailed Very accurate Often nonfinancial

Orientation Primarily external Primarily internal with limited external

Internal

Decision Extremely judgmental Uses creativity and analytic skills

Relatively judgmental

Heavy reliance on rules

Figure  I.8  Informa2on  Characteris2cs  across  Hierarchical  Levels  

Page 40: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

40  

What’s  the  difference  between  IS  and  IT?  

Page 41: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

41  

Figure  I.9    System  Hierarchy  

Management

Information Systems

People Technology Process

Page 42: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

42  

System  Hierarchy  •  Informa2on  systems  are  comprised  of  three  main  elements:  – Technology  – People  – Process  

•  Infrastructure  –  everything  that  supports  the  flow  of  processing  informa2on  – Hardware,  soeware,  data,  and  components.  

•  Architecture  –  strategy  implicit  in  these  components.    

Page 43: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Ac2vity  1.2  Tom  Peters  

ACTIVITY  1.2—SIMPLIFYING  SYSTEMS  Having  watched  the  Tom  Peters  video,  reflect  on  whether  or  not  your  organisa2on  ac2vely  encourages  con2nuous  improvement  of  systems.    What  would  you  do  to  implement  a  program  where  your  people  can  make  it  easier  to  achieve  your  core  business  objec2ves  through  simplifying  systems?  .  

Page 44: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

ORGANISATIONAL  NEEDS  AND  INVESTMENT    

•  Enterprise  Resource  Planning  systems  (ERP)  systems    

•  data-­‐warehousing  and  data-­‐mining  systems  •  Groupware  •  group  support  systems   •  Intranets  •  e-­‐commerce  and  e-­‐business  services  and  

tools.    

Page 45: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

How  much  to  invest  and  where?  

Page 46: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Gibson  and  Nolan:  Stages  of  Growth  Stage  1:  Ini?a?on  simple  administra2ve  func2ons  such  as  automa2on  of  payroll  or  general  ledger  func2ons.  low  expenditures,  liXle  user  involvement.  Stage  2:  Contagion  broader-­‐ranging  uses  of  IT,..  As  usage  grows,  there  is  a  lack  of  general  control.  Budgets  grow  rapidly;  the  focus  is  on  the  machine;  IT  use  is  plagued  by  crises.  Stage  3:  Control    2ghter  controls  are  necessary    upgrading  system  documenta2on,    budget  reviews  and  full  charge-­‐out  of  IT  costs  to  user  departments.    Integra2on  of  incompa2ble  systems  and  user  frustra2on  become  common  themes.  Stage  4:  Integra?on  user-­‐oriented  steering  commiXees,    financial  planning  for  applica2ons,      charge-­‐back  systems.  5:  Data  administra?on  data  is  a  corporate  resource  

Focus  on  informa2on  systems,  rather  than  informa2on  technology.  Stage  6:  Maturity  data  administra2on.  Organisa2ons  use  their  data  resources  to  develop  compe22ve  and  opportunis2c  applica2ons,  not  simply  applica2ons  to  make  their  own  internal  opera2ons  more  efficient.    The  aim  is  to  develop  data-­‐resource  management  strategic  planning.  

Page 47: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

47  

Summary  

•  Business  managers  “must”  be  involved  in  informa2on  decisions.  

•  IT  is  a  cri2cal  resource.  •  People  and  Technology  work  together.  •  Certain  key  skills  are  needed.  •  Data,  Informa2on,  and  Knowledge  are  dis2nct.  

Page 48: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

48  

THE  CASE  FOR  PARTICIPATING  IN  DECISIONS  ABOUT  INFORMATION  SYSTEMS  

Page 49: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

49  

CASE  STUDY  1:    

•  Amazon.com  has  garnered  a  leadership  posi2on  in  the  online  world  by  leveraging  their  new  business  model.    See  www.amazon.com    –  Expanded  market  offerings.  –  Increased  customiza2on  and  personaliza2on  –  Smarter  storage  –  Cost  cuxng.  

Page 50: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

50  

CASE  STUDY  2:  

•  Google  has  become  the  leader  in  the  search  engine  market  through  innova2on,  simplicity,  and  by  adding  new  features.        –  See  www.google.com    –  Their  mission  statement  can  be  found  at  

hXp://www.google.com/corporate/    

Page 51: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

The  informa2on  facts  of  life  

If  informa2on  is  power  and  money,  people  won't  share  it  easily.  

Page 52: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

TOPIC  2:  Managing  using  a  systems  approach    

Analyse  IS  and  its  management  using  a  number  of  analysis  approaches    

Page 53: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

53  

Objec2ves  

1.  define  the  terms  'system'  and  'informa2on  system'  in  a  management  context    

2.  explain  the  difference  between  tradi2onal  and  object-­‐oriented  approaches  to  systems  analysis    

3.  produce  a  basic  data-­‐flow  diagram    4.  Produce  a  basic  en2ty–rela2onship  diagram  

Page 54: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

54  

1.  System  ?  

A  group  of    •  interac2ng,  •   interrelated,  or  •   interdependent    elements  forming  a  complex  whole.    

Page 55: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

55  

1.  Informa2on  System  ?  

•  An  informa2on  system  (IS)  can  be  defined  in  a  very  broad  way  as  the  collec2on  of  informa2on  technology,  procedures  and  people  responsible  for  the  capture,  movement,  management  and  distribu2on  of  data  and  informa2on.    

Page 56: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

56  

1.  System  Analysis?  

'Systems  analysis  and  design'  is  a  set  of  principles,  a  method  by  which  we  can  consider,  design  and  implement  informa2on  systems  .  1.  Tradi2onal  Approach  2.  Object  oriented  Approach      

Page 57: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

57  

Tradi2onal  Approach  

 1.  Flow  chart  2.  Data  flow  diagrams  3.  En2ty  Rela2onship  diagrams    

Page 58: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

DFD  for  ??  

Page 59: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014
Page 60: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

60  

OOP  Approach  

 1.  Objects  2.  Instances  3.  Classes,  Subclasses  

Page 61: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

61  

How  to  develop  IS  for  your  organiza2on?  

 1.  Plan  (Strategy)  2.  Analyse  (Business)  3.  Design  (IT,  system)  4.  Implement  (Development  and  cutover)  

Page 62: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

62  

Key  Characteris2cs  

 •  It  is  user  driven  •  It  is  data  focused  •  It  is  automated  •  It  uses  models  •  It  uses  formal  structured  techniques  •  It  treats  the  full  Systems  Planning  Life  cycle-­‐  Integrated  whole  

•  It  is  a  Reduc2onist  Approach  •  It  builds  a  corporate  knowledge  base    

Page 63: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

63  

Real  World  Example  •  Na2onal  Linen  Service  was  facing  poor  earnings  due  to  increased  compe22on  and  a  weak  economy.  

•  They  created  a  strategic  systems  department  to  increase  compe22veness.  

•  A  new  system  was  implemented,  BOSS,  that  deleted  expired  customer  contracts  hur2ng  their  boXom  line.  

•  The  unintended  consequences  of  the  system  were  not  taken  into  account.  

Page 64: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

The  informa2on  facts  of  life  

Managers  prefer  to  get  informa2on  from  people  rather  than  computers;  people  add  value  to  raw  informa2on  by  interpre2ng  it  and  adding  context.  

Page 65: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

TOPIC  3:Informa2on  systems  and  strategy    Iden2fy  the  elements  that  combine  to  form  an  informa2on  vision  and  informa2on    technology  (IT)  architecture    

Page 66: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

66  

Objec2ves  •  define  'mission  statement'  and  'vision  statement',  and  enumerate  the  

differences  between  them    

•  explain  how  organisa2ons  can  use  IS  to  gain  strategic  and  compe22ve  advantage,  and  iden2fy  poten2ally  useful  IS  applica2ons  for  your  own  organisa2on    

•  explain  how  SIS  can  change  the  nature  of  a  business  or  industry  when  it  is  used  as  an  instrument  to  change  the  balance  of  power  between  the  business  and  its  compe2tors,  customers  and/or  suppliers  

•  iden2fy  and  evaluate  some  of  the  poten2al  risks,  as  well  as  the  opportuni2es,  which  strategic  systems  can  create    

•  explain  how  interorganisa2onal  systems,  especially  e-­‐business,  can  be  used  to  provide  beXer  service  for  customers.    

Page 67: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

67  

Do  you  have  a  WriXen  Strategy    •  Vision    •  Mission  •  Strategy  •  Corporate  Plan  

A  plan  ar2cula2ng  where  a  business  seeks  to  go  and  how  it  expects  to  get  there.  It  is  the  means  by  which  a  business  communicates  its  goals.      

Page 68: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Wal-­‐Mart:    "To  give  ordinary  folk  the  chance  to  buy  the  same  thing  as  rich  people.”    

Page 69: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

3M:    "To  solve  unsolved  problems  innova?vely.”    

Page 70: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Walt  Disney:  "To  make  people  happy.”    

Page 71: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

How  to  Write  Strategy  Statement  

What  is  this  missing?  

Page 72: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

72  

The  Impact  of  IS  •  The  Informa2on  Systems  Strategy  Triangle  is  a  simple  framework  for  understanding  the  impact  of  IS  on  organiza2ons.  

•  Successful  firms  have  an  overriding  business  strategy.  

•  This  business  strategy  drives  both  Organiza2onal  and  Informa2on  strategy.  

•  All  decisions  are  driven  by  the  firm’s  business  objec2ves.  

Page 73: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

73  

Figure  1.1      The  Informa2on  Systems  Strategy  Triangle  

Page 74: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

74  

IS  Strategy  Triangle  

•  Business  Strategy  drives  all  other  strategies.  •  Organiza2onal  and  Informa2on  Strategy  are  then  dependent  upon  the  Business  Strategy.  

•  Changes  in  any  strategy  requires  changes  in  the  others  to  maintain  balance.    

•  IS  Strategy  is  affected  by  the  other  strategies  a  firm  uses.    

•  IS  strategy  always  involves  consequences.  

Page 75: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

BRIEF  OVERVIEW  OF  BUSINESS  STRATEGY  FRAMEWORKS  

Page 76: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

76  

Generic  Strategies  Framework  

•  Michael  Porter  describes  how  businesses  can  build  a  sustainable  compe22ve  advantage.  

•  He  iden2fied  three  primary  strategies  for  achieving  compe22ve  advantage:  – Cost  leadership  –  lowest-­‐cost  producer.  – Differen2a2on  –  product  is  unique.  – Focus  –  limited  scope.  

Page 77: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

77  

Figure  1.2    Three  strategies  for  achieving  compe22ve  advantage.  

Page 78: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

78  

Using  Informa2on  Resources  to    Influence  Compe22ve  Forces  •  Porter’s  five  forces  model  show  the  major  forces  

that  shape  the  compe22ve  environment  of  the  firm.  

1.   Threat  of  New  Entrants:  new  firms  that  may  enter  a  companies  market.  

2.   Bargaining  Power  of  Buyers:  the  ability  of  buyers  to  use  their  market  power  to  decrease  a  firm’s  compe22ve  posi2on    

3.   Bargaining  Power  of  Suppliers:  the  ability  suppliers  of  the  inputs  of  a  product  or  service  to  lower  a  firm’s  compe22ve  posi2on    

4.   Threat  of  Subs?tutes:  providers  of  equivalent  or  superior  alterna2ve  products  

5.   Industry  Compe?tors:  current  compe2tors  for  the  same  product.  •  Figure  2.2  and  2.3  show  this  model  in  detail.  

Page 79: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

79  

Figure  2.2    Five  compe22ve  forces  with  poten2al    strategic  use  of  informa2on  resources.  

Page 80: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

80  

Porter’s  Compe22ve  Advantage  •  Remember  that  a  companies  overall  business  strategy  will  drive  all  other  strategies.      

•  Porter  defined  these  compe22ve  advantages  to  represent  various  business  strategies  found  in  the  marketplace.  

•  Cost  leadership  strategy  firms  include  Walmart,  Suzuki,  Overstock.com,  etc.  

•  Differen2a2on  strategy  firms  include  Coca  Cola,  Progressive  Insurance,  Publix,  etc.  

•  Focus  strategy  firms  include  the  Ritz  Carlton,  MarrioX,  etc.  

Page 81: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

81  

Framework Key Idea Application to Information Systems

Porter’s generic strategies framework

Firms achieve competitive advantage through cost leadership, differentiation, or focus.

Understanding which strategy is chosen by a firm is critical to choosing IS to complement that strategy.

D’Aveni’s hyper-competition model

Speed and aggressive moves and countermoves by a firm create competitive advantage

The 7 Ss give the manager suggestions on what moves and countermoves to make. IS are critical to achieve the speed needed for these moves.

Figure  1.5    Summary  of  key  strategy  frameworks.  

Page 82: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

82  

Understanding  Organiza2on  Strategy  

To  understand  organiza2onal  strategy  we  must  answer  the  following  ques2ons:  

1.  What  are  the  important  structures  and  repor2ng  rela2onships  within  the  organiza2on?  2.  What  are  the  characteris2cs,  experiences,  and  skill  levels  of  the  people  within  the  organiza2on?  3.  What  are  the  key  business  processes?  4.  What  control  systems  are  in  place?  5.  What  is  the  culture  of  the  organiza2on?  

 

Page 83: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

83  

Framework Key Idea Usefulness in IS Discussions

Business Diamond

There are 4 key components of an organization: business processes, values and beliefs, management control systems, and tasks and structures.

Using IS in an organization will affect each of these components. Use this framework to identify where these impacts are likely to occur

Managerial levers

Organizational variables, control variables, and cultural variables are the levers managers can use to affect change in their organizations

This is a more detailed model than the Business diamond and gives specific areas where IS can be used to manage the organization and to change it

Figure  1.8    Summary  of  organiza2onal  strategy  frameworks  

Page 84: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

BRIEF  OVERVIEW  OF  INFORMATION  SYSTEMS  

STRATEGY  

Page 85: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

85  

IS  Strategy  

•  The  plan  an  organiza2on  uses  in  providing  informa2on  services.  

•  IS  allows  business  to  implement  its  business  strategy.  •  IS  helps  determine  the  company’s  capabili2es.  •  Four  key  IS  infrastructure  components  are  key  to  IS  strategy  (Figure  1.9)  

•  These  key  components  are  sufficient  to  allow  the    general  manager  to  assess  cri2cal  IS  issues.  

Page 86: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

86  

What Who Where

Hardware List of physical components of the system

Individuals who use it Individuals who manage it

Physical location

Software List of programs, applications, and utilities

Individuals who use it Individuals who manage it

What hardware it resides upon and where that hardware is located

Networking Diagram of how hardware and software components are connected

Individuals who use it/ Individuals who manage it/ Company service obtained from

Where the nodes are located, where the wires and other transport media are located

Data Bits of information stored in the system

Individuals who use it Individuals who manage it

Where the information resides

Figure  1.9    Informa2on  systems  strategy  matrix.  

Page 87: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

87  

Competitive Force IT Influence on Competitive Force

Threat of New Entrants

Can be lowered if there are barriers to entry. Sometimes IS can be used to create barriers to entry

Bargaining Power of Buyers Can be high if it’s easy to switch. Switching costs are increased by giving buyers things they value in exchange such as lower costs or useful information

Bargaining Power of Suppliers Forces is strongest when there are few firms to choose from, quality is inputs is crucial or the volume of purchases is insignificant to the supplier

Threat of Substitute Products Depends on buyers’ willingness to substitute and the level of switching costs buyer’s face

Industrial Competitors Rivalry is high when it is expensive to leave and industry, the industry’s growth rate is declining, or products have lost differentiation

Figure  2.3    Applica2on  of  five  compe22ve  forces  model.  

Page 88: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

How  Important  is  SIS  for  you?  

Page 89: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

What  is  the  impact  if  SIS?  

Page 90: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Significance  of    SIS    

Digicel  Edge  Vs.  3G  

Digicel  3G  Vs.  4G  

Page 91: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Jus2fying  SIS  –  Cost  Benefit  Analysis  

Page 92: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

92  

Figure  1.1      The  Informa2on  Systems  Strategy  Triangle  

Page 93: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

The  informa2on  facts  of  life  

There's  no  such  thing  as  informa2on  overload;  if  informa2on  is  really  useful,    our  appe2te  for  it  is  insa2able.    

Page 94: Unit 403: MIS Workshop 1: IBBM CBS MBA August 2014

Next Workshop – 15th August Week  1  

• First  workshop  • Topic  1,2,3  

Week  2  • Read  the  Study  guide  • Read  the  e-­‐book    

Week  3  • 2nd  workshop  • Topic  4,5,6  

Week  4  • Do  the  assignment    

Week  5  •  3rd  workshop  • Topic  7,8,9,10  

Week  6  • Exam  on  4th  September