INFO Exam 1
What's New in MIS?
- New Technologies Cloud Computing / Software As A Service (SAAS) Big Data Mobile Digital Platforms - Management Managers use social networking, collaboration. Business Intelligence Applications Virtual Meeting Proliferate - Organizations Social businesses Teleworking gains momentum Co-creation of value, collaboration across firms
factors:
Adopting the right business model Investing in complementary assets (organizational and management capital)
Problem identification includes
Agreement that a problem exists Definition of problem Causes of problem Ideas about what can be done given the resources available to the firm
IT infrastructure that is composed of five major components:
Computer hardware Computer software services data management networking
Focuses mostly on knowledge of IT
Computer literacy (Technical Aspects)
Solution Evaluation & Choice
Cost Feasibility Length of time required to implement solution
Serving customers well leads to customers returning, which raises revenues and profits
Customer & Supplier Intimacy
Organizations use Information Systems to:
Do things faster: Automation and efficient business processes Do things better: Improved decisions by managers, organizational learning and development Do things smarter: Support business strategy and enable innovation
Globalization Challenges & Opportunities
Drastic reduction of costs of operating and transacting on global scale. Competition for jobs, markets, resources, ideas Dependence on imports and exports Requires new understanding
example of customer and supplier intimacy
Example: High-end hotels using systems to track customer preferences and use to monitor and customize environments/experiences.
example of business model
Example: How Apple transformed the music industry and simultaneously killed the Zune. Shifting focus from physical media to digital distribution Achieved through close relationships in industry More profit, less overhead, ease of access Apple's constant focus on innovations - iPod, iPhone, iPad
example of operational excellence
Example: Wal-Mart's Retail Link system links suppliers to stores for superior replenishment system Suppliers have complete access to inventory information and in turn are held accountable for KPIs
Common requirements for all majors
How IT helps achieve six business objectives Central role of databases Business analytics and intelligence systems Working with specialists and systems designers Ethical, social, legal environment and issues Use of IT to meet legal requirements
Information technology enhances business processes in two main ways:
Increasing the efficiency of existing processes - Automating steps that were previously manual - Replace sequential steps with parallel steps Enabling entirely new processes that are capable of transforming the business - Change the flow of information - Eliminate delays in decision making - Drive new business models
Includes the behavioral and technical approach
Information Systems literacy (Business & Processes)
defined as hardware, software, and communications equipment,
Information technology capital investment,
Business Assets: What 3 things?
Intellectual Property Core Competencies Financial & Human Capital
example of complementary assets
Invest in technology and the people to make it work properly. Hire the subject matter experts. Contractors, Consultants, Flex-Labor
accounting Skills 3:
Knowledge of databases and networks Online financial transactions and reporting systems How systems are used to achieve accounting functions
Four elements of critical thinking:
Maintaining doubt suspending judgement Being aware of different perspectives Testing alternatives letting experience guide Being aware of organizational and personal limitations.
Focuses on broader information systems literacy Issues surrounding development, use, impact of information systems used by managers and employees.
Management Information Systems (MIS)
Major Functions of a Business
Manufacturing & Production Sales & Marketing Finance & Accounting Human Resources
How Information Systems Are Transforming Business?
New laws require businesses to store more data for longer periods of time. Changes in business result in changes in jobs and careers. Increase in wireless technology adaption and use across all businesses and industries. Increased social and business use of Web 2.0 technologies
Solution Design
Often many possible solutions (brainstorming) Consider as many as possible to understand the range of possible/plausible solutions
Competitive Advantage list
Often results from achieving previous business objectives. Being better then the other guy! Delivering better performance Charging less for superior products Responding to customers and suppliers in real time Example: Best Buy vs. Circuit City
Business firms invest heavily in information systems to achieve six strategic business objectives:
Operational Excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival
Problem solving: a four-step process
Problem Identification Solution Design Choice "best solution" "solution evaluation and choice" Implementation
Operations management in services and manufacturing include what three jobs?
Production managers, administrative service managers, and operations analysts
Outsourcing and offshoring jobs
Production programming, system maintenance, call centers
Five Basic Business Entities
Suppliers Customers Employees Invoices/Payments Products & Services
Outdated business processes Unsupportive culture and attitudes Political conflicts/in-fighting Turbulent business environment, change Complexity of tasks Inadequate resources
Typical Organizational Problems
Lack of employee training Difficulties of evaluating performance Legal and regulatory compliance Work environment, ergonomics Poor or indecisive management Lack of employee support and participation
Typical People (Management) Problems
Insufficient or aging hardware Outdated software Inadequate database capacity Insufficient telecommunications capacity Incompatibility of old systems with new technology Rapid technological change
Typical Technology Problems
How IS Affects Business Careers?
When firms cannot achieve business objectives these objectives become challenges. Information systems often present solutions, partially or fully, to these challenges. Success in today's job market requires a broad set of skills. Job candidates must have problem-solving skills as well as technical skills so that they can complete specific tasks.
The Internet has created
a flattened world
An organizations unique culture is defined by
a fundamental set of assumptions, values and ways of doing things that has been accepted by the majority of its members.
a formal organization that makes products or provides a service in order to make a profit.
business
describes how a company produces, delivers, and sells products or services
business model
Collection of activities required to produce a product or service. (conduct business) Process Improvement / Quality Control (OM/OR)
business process
Workflows of materials, information, knowledge Sets of activities May be tied to functional area or be cross functional Depicted using process diagrams (Microsoft Visio)
business processes
actual steps and tasks that describe how work is organized in a business.
business processes
related tasks and behaviors for accomplishing work.
business processes
The job of management has been transformed by?
by information systems.
Assets required to derive value from a primary investment
complementary assets
raw stream of facts?
data
Business Processes:
developing new products Product Design & Development (Apple iPhone) Software Design & Development (iOS 7) fulfilling orders Pre-Ordering New iPhone Online Manufacturer packing and shipping iPhone order creating a new marketing plan hiring employees
Internet technologies and global communication have greatly reduced the
economic and cultural advantages of developed countries.
Output returned to appropriate members of organization to help evaluate or correct input stage
feedback
The relationship between information systems and financial management and services is so strong that many advise finance majors to double major in information systems.
finance
Use systems for financial reporting, direct investment activities, implement cash management strategies Plan, organize, implement information systems strategies for the firm Whose skills are these?
finance skills
Coordinate work through a structured _______ and _____ ______.
hierarchy; business processes
Accountants increasingly rely on?
information systems
Domestic and offshore outsourcing.
information systems
Fast changing and dynamic profession because information technologies are among the most important tools for achieving business firms key objectives.
information systems
Uses of new and emerging hardware and software to achieve the six strategic business objectives. An ability to take a leadership role in the design and implementation of new information systems. Whose skills are these?
information systems skills include:
the hardware, software and telecommunications
information technology
Set of interrelated components that manage information to Support decision making, coordination, and control Help with analysis, visualization, and product creation.
informations systems
Captures raw data from organization or external environment
input
Fundamental Activities in an information system that produce information:
input processing output feedback
Information Systems enable firms to: ________ all of their information Make Better _______ Improve the ______
manage; decisions; execution of business processes
Businesses must ______ and ______ many other components
manage; monitor
Use of information systems for each function of job, from desktop productivity tools to applications coordinating the entire enterprise.
management skills
Incentives for management innovation Teamwork and collaborative work environments What type of assets?
managerial assets
Perceive business challenges Set organizational strategy Allocate human and financial resources Creative work: new products and services. Whose roles are these?
managers
Work with databases for tracking and reporting on customer behavior, product performance, customer feedback, product development. Enterprise systems for product management, sales force management, customer relationship management. Whose skills are these?
marketing
Information Systems and technology applications enable organizations to achieve greater efficiency and productivity in operations resulting in higher profits.
operational excellence
Use database and analytical software for coordinating and optimizing resources required for producing goods and services What type of skills?
operations management skills
An information system contains information about what?
organization and its surrounding environment.
Appropriate business model Efficient business processes Organizational Culture (Asset/Liability) what type of assets?
organizational assets
Complementary Assets include:
organizational assets Appropriate business model Efficient business processes Organizational Culture (Asset/Liability) managerial assets Incentives for management innovation Teamwork and collaborative work environments social assets The Internet and telecommunications infrastructure Technology standards
Transfers processed information to people or activities that use it.
output
Converts raw data into meaningful form
processing
Implementation
purchasing a solution Testing solution Change management Measurement of outcomes Feedback
Fulfilling a customer order involves a complex set of steps that requires
sales, accounting, and manufacturing functions.
The Internet and telecommunications infrastructure Technology standards the things listed above are what kind of assets?
social assets
Businesses may need to invest in information systems out of necessity, simply the cost of doing business.
survival
One in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.
the digital firm
Involves sustained suspension of judgement with an awareness of multiple perspectives and alternatives.
the role of critical thinking
Agreement that a problem exists Definition of problem Causes of problem Ideas about what can be done given the resources available to the firm
true
Businesses can be seen as a collection of processes
true
Culture is embedded in information systems
true
During implementation and thereafter, the outcome must be continually measured and the information about how well the solution is working is fed back to the problem solvers. In this way, the identification of the problem can change over time, solutions can be changed, and new choices made, all based on experience.
true
Employee attitudes affect an organization's ability to use systems productively.
true
Every business, regardless of its size, must perform four functions to succeed. It must produce the product or service; market and sell the product; keep track of accounting and financial transactions; and perform basic human resources tasks, such as hiring and retaining employees.
true
Firms supporting technology investments with investment in complementary assets receive superior returns
true
In the digital firm any piece of information required to support key business decisions are available at anytime and anywhere in the firm.
true
Information systems require skilled people to build, maintain and operate them.
true
Investing in information technology does not guarantee good returns.
true
Investments in information technology can result in superior returns:
true
Most business problems involve a number of major factors that can fall into the three dimensions of IS (Organization, Technology, People)
true
Performance of a firm is largely based on how well it's business processes are designed and executed
true
Problem solving is a continuous process, not a single event.
true
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information
true
Sharp distinction between computer or computer program verses an information system.
true
There is considerable variation in the returns firms receive from systems investments.
true
Without accurate information: Managers must use forecasts, best guesses, luck
true
marketing and advertising have had the most changes
true
Using information systems effectively requires an ________ of the _______, ________, and ______________ shaping the systems.
understanding; organization; people; information technology
Information systems are powerful instruments for creating
value
Why do business professionals have to know about Information Systems (IS)?
vital component of successful business. (transition to the digital firm) facilitates managerial decision making and collaboration within and between organizations. helps business expand and compete. improves efficiency and effectiveness of business processes. (operations management) Studying Information Systems is required to graduate as a well rounded business student.