MIS MTDF (Strategic business objectives of information systems)
Survival example
- introducing the first ATMs in the New York region in 1977 by Citibank made its competitor rush to provide ATMs to keep up with Citibank. Today, all banks in the U.S have regional ATMs. - the Toxic Substances Control Act (1976) regulates firms to retain records on employee exposure for 30 years. The Sarbanes-Oxley Act (2002) regulates certified public accounting firms to retain audit working papers and records for five years. The Dodd-Frank Wall StreetReform and Consumer Protection Act (2010) regulate banking firms to retain all records for ten years.
Operational excellence
-Improvement of efficiency to attain higher profitability - IT are some of the most important tools available to managers for achieving higher levels of efficiency and productivity in business operations.
Customer and supplier intimacy example
1- high-end hotels use computers to track customer preferences, and monitor and customize environment based on customers' preferences. 2- JCPenney's information system links sales records to contract manufacturer so that manufacturer can know immediately how many replacement shirts to make, and in what styles, colors, and sizes. In other words, the cost of storing shirt for JCPenney is near zero.
*Six strategic business objectives of information systems*
1. operational excellence; 2. new products, services, and business models; 3. customer and supplier intimacy; 4. improved decision making; 5. competitive advantage; 6. survival.
Competitive advantage example
Apple Inc. and Walmart are industry leaders because they know how to use information systems for this purpose
New products, services, and business models example
Apple Inc. transformed an old business model of music distribution based on vinyl records, tapes, and CDs into an online, legal distribution model based on its own iPod technology platform.
competitive advantage
Doing things better than your competitors, charging less for superior products, and responding to customers and suppliers in real time all add up to higher sales and higher profits
Improved decision making
If managers rely on forecasts, best guesses, and luck, they will misallocate employees, services, and inventory. Real-time data improves ability of managers to make decisions.
survival
Information systems and technologies are necessities of doing business which are driven by industry-level changes -many federal and state statutes and regulations that create a legal duty for companies and their employees to retain records, including digital records
New products, services, and business models
Information systems and technologies enable firms to create new products, services, and business models. a business model describes how a company produces, delivers ,and sells a product or service to create wealth
Customer and supplier intimacy
Use information systems to develop strong ties and loyalty with customers and suppliers -When a business really knows its customers, and serves them well, the customers generally respond by returning and purchasing more. This raises revenues and profits -the more a business engages its suppliers, the better the suppliers can provide vital inputs
Improved Decision Making Example
Verizon Corp. uses web-based digital dashboard to provide managers with precise real-time info on customer complaints, network performance for each locality served, and line outages or storm-damaged lines. Using this info, managers can immediately allocate repair resources, inform consumers of repair efforts, and restore service fast
Operational Excellence Example
Walmart archived $473 billion in sales in large part because of its Retail Link system, which digitally links its suppliers to every one of Walmart's stores. As soon as a customer purchases an item, the supplier monitoring the item knows to ship a replacement to the shelf. -Info systems and technologies are some of the most important tools available to managers for achieving higher levels of efficiency and business practices and management behavior
