Management Information Systems Chapter 1 PDF

Management Information Systems Chapter 1: Business Information Systems in Your Career Interactive Session: Organizations UPS COMPETES GLOBALLY WITH I.T. Read the Interactive Session and discuss the following questions...

Management Information Systems Chapter 1: Business Information Systems in Your Career Interactive Session: Organizations UPS COMPETES GLOBALLY WITH I.T. Read the Interactive Session and discuss the following questions How UPS Is Using Big Data To Transform Package Deliveries – https://www.youtube.com/watch?v=PSNIr1EMu_I How Overnight Shipping Works – https://www.youtube.com/watch?v=y3qfeoqErtY 1.1  Management Information Systems Chapter 1: Business Information Systems in Your Career Interactive Session: Organizations UPS COMPETES GLOBALLY WITH I.T. Read the Interactive Session and discuss the following questions What are the inputs, processing, and outputs of https://www.studocu.com/row/docume nt/lebanese-international- UPS’s package tracking system? university/management-information- systems/case-study-1-grade- What technologies are used by UPS? How are these a/9829647 technologies related to UPS’s business strategy? What business objectives do UPS’s information systems address? What would happen if these systems were not available? 1.2  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Dimensions of UPS tracking system – Organizational: Procedures for tracking packages and managing inventory and provide information – Management: Monitor service levels and costs – Technology: Handheld computers, bar-code scanners, networks, desktop computers, and so on 1.3  Management Information Systems Chapter 1: Business Information Systems in Your Career Information Technology Capital Investment FIGURE 1-1 Information technology capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009. 1.4  Management Information Systems Chapter 1: Business Information Systems in Your Career The Interdependence Between Organizations and Information Technology In contemporary systems there is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require Figure 1.2 changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do. 1.5  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Technology dimension of information systems – Computer hardware and software – Data management technology – Networking and telecommunications technology Networks, the Internet, intranets and extranets, World Wide Web – IT infrastructure: provides platform that system is built on 1.6  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Information system: – Set of interrelated components – Collect, process, store, and distribute information – Support decision making, coordination, and control Information vs. data – Data are streams of raw facts. – Information is data shaped into meaningful form. 1.7  Management Information Systems Chapter 1: Business Information Systems in Your Career Data and Information Figure 1.3 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. 1.8  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Three activities of information systems produce information organizations need – Input: Captures raw data from organization or external environment – Processing: Converts raw data into meaningful form – Output: Transfers processed information to people or activities that use it 1.9  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Feedback: – Output is returned to appropriate members of organization to help evaluate or correct input stage. Computer/Computer program vs. information system – Computers and software are technical foundation and tools, similar to the material and tools used to build a house. 1.10  Management Information Systems Chapter 1: Business Information Systems in Your Career Functions of an Information System An information system contains information about an organization and its surrounding environment. Three basic activities—input, processing, and output— produce the information organizations need. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems. Figure 1.4 1.11  Management Information Systems Chapter 1: Business Information Systems in Your Career Levels in a Firm Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management. Figure 1.6 1.12  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Functional managers – Separation of business functions Sales and marketing Human resources Finance and accounting Manufacturing and production – Unique business processes 1.13  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Management dimension of information systems – Managers set organizational strategy for responding to business challenges. – Managers are evaluated on performance. – In addition, managers must act creatively: Creation of new products and services Occasionally re-creating the organization 1.14  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Business perspective on information systems: – Information system is instrument for creating value – Investments in information technology will result in superior returns: Productivity increases Revenue increases Superior long-term strategic positioning 1.15  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Business information value chain – Raw data acquired and transformed through stages that add value to that information – Value of information system determined in part by extent to which it leads to better decisions, greater efficiency, and higher profits Business perspective: – Calls attention to organizational and managerial nature of information systems 1.16  Management Information Systems Chapter 1: Business Information Systems in Your Career The Business Information Value Chain Figure 1-7 From a business perspective, information systems are 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. 1.17  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals Business firms invest heavily in information systems to achieve six strategic business objectives: 1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival 1.18  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today Operational excellence: – Improvement of efficiency to attain higher profitability – Information systems, technology an important tool in achieving greater efficiency and productivity – Walmart’s Retail Link system links suppliers to stores for superior replenishment system 1.19  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today New products, services, and business models: – Business model: describes how company produces, delivers, and sells product or service to create wealth – Information systems and technology a major enabling tool for new products, services, business models Examples: Apple’s iPad, Google’s Android OS, and Netflix 1.20  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today Customer and supplier intimacy: – Serving customers well leads to customers returning, which raises revenues and profits. Example: High-end hotels that use computers to track customer preferences and used to monitor and customize environment – Intimacy with suppliers allows them to provide vital inputs, which lowers costs. Example: JCPenney’s information system which links sales records to contract manufacturer 1.21 21  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today Improved decision making – Without accurate information: Managers must use forecasts, best guesses, luck Results in: – Overproduction, underproduction – Misallocation of resources – Poor response times Poor outcomes raise costs, lose customers – Example: Verizon’s Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, and so on 1.22  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today Competitive advantage – Delivering better performance – Charging less for superior products – Responding to customers and suppliers in real time – Examples: Apple, Walmart, UPS 1.23  Management Information Systems Chapter 1: Business Information Systems in Your Career The Role of Information Systems in Business Today Survival – Information technologies as necessity of business – Industry-level changes Example: Citibank’s introduction of ATMs – Governmental regulations requiring record-keeping Examples: Toxic Substances Control Act, Sarbanes-Oxley Act 1.24  Management Information Systems Chapter 1: Business Information Systems in Your Career Perspectives on Information Systems Investing in information technology does not guarantee good returns. There is considerable variation in the returns firms receive from systems investments. Factors: – Adopting the right business model – Investing in complementary assets (organizational and management capital) 1.25