Management Information

System
Information System in Global
Business Today

STRATEGIC BUSINESS
OBJECTIVES OF IS

Strategic Business
Objectives of IS
o Organizations relying more and more on
IT/IS
o E-Business becoming essential to many
o Entire sectors on E-Business

Strategic Business Objectives of IS

(2)
o GrowingOperational
interdependence between
Excellence

New Products,
Hard Ability
to
use
IT
and
ware
Services, Biz
Model to achieve strategy and goals
Ability
Customer
&
Supplier
Intimacy

Business
Strategic
Objectives
Biz
Processes

Improved
Decision
Making
Competitive
Advantage
Survival

Interdependence

Organizati
on

Softw
are

Information
System

Databases

Telecomm

PERSPECTIVE ON IS

Information System (IS) and

Information Technology (IT)
o IT
IT refers specifically to technology, essentially
hardware, software, and telecommunication
networks.
It is thus both
tangible (e.g. with servers, PC, routers, and network
cable), and
intangible (e.g. with software of all types.

IT facilitates the
acquisition, processing, storing, delivery and sharing of
information and other digital content.

ICT (another term commonly used for IT).

Information System (IS) and

Information Technology (IT)
o IS
The means
by which people and organizations,
utilizing technology,
gather, process, use and disseminate
information.
IS is concerned with purposeful utilization
of IT.

Information System (IS) and

Information Technology (IT)
o IS domain of study
Involves the study of theories and practices
related to the social and technological
phenomena, which determine the
development, use and effects of
information systems in organizations and
society.

Information System (IS) and

Information Technology (IT)
o IS domain of study
Although technology is the immediate enabler of
IS,
IS actually is part of the much wider domain of
human language and communication,
that IS will remain in a state of continual
development and change in response both
to technological innovation and
to its mutual interaction with human society as a
whole.

Mingers

IS
o A set of interrelated components that
collect (or retrieve), process, store, and
distribute information to support
decision making, and control in an
organization.

Functions of IS

Functions of IS

Dimensions of IS
ORGANIZATIONS

TECHNOLOGY

INFORMATION
SYSTEMS

MANAGEMENT

Dimensions of IS (2)
o IS literacy vs. Computer Literacy
o Organization
Structure of organization
Layers in organization
Operational, Middle, Senior

Comm. within and b/w layers through IS

Business Functions and Processes

Culture

o Management
Perceive challenges and make strategies
Allocate resources

o Technology
H/W, S/W, Telecom.

Business Perspective of IS
o IS are part of series of value adding
activities for
acquiring,
transforming, and
distributing information

o that managers can use to

improve decision making,
enhance organizational performance, and,
ultimately, increase profitability.

Business Perspective of IS
Business
Processes

Supply
Enterprise Customer Knowledge
Chain
ManagementManagementManagement
Management

Data
Transformation Dissemination
Collection Into
and
Business
Storage Systems

Information
Processing
Activities

Planning Coordinating Controlling Modeling and

Decision Making

Managemen
t Activities

Business Value

Firm
Profitability
and
Strategic
Position

Complimentary Assets: Organizational

Capital and The Right Business Model

Complimentary Assets: Organizational

Capital and The Right Business Model
4.
0
Productivi
ty
(relative
to
Industry
average)

2.
0
1.
0
.5
.
25

8.
4.
1.
.
0
0
0
25
IT Capital Stock (relative to Industry
average)

Complimentary Assets: Organizational

Capital and The Right Business Model
o Complimentary Assets:
Assets required to derive the value from a
primary investment.
E.g. roads, petrol pumps, CNG stations,
service shops, spare parts distribution etc
to cars/automobiles.

o Increase in investment in
Complementary Assets results in
increase in returns from IS investment

Complimentary Assets Required to

Optimize Returns from IS/IT investment:
Asset
Category

Asset Type

Organizational

o
o
o
o
o

Supportive culture valuing efficiency and effectiveness

Appropriate Business Model
Decentralized Authority
Distributed decision-making rights
Strong IS development Team

Managerial

o
o
o
o
o

Strong senior management support for IT/IS

Incentives for management innovation
Teamwork and collaborative work environment
Training programs to enhance mgmt. decision skills
Mgmt. culture that values flexibility and knowledgebased decision making

Social

o
o
o
o

The internet and Telecomm. Infrastructure

IT rich educational programs raising comp. literacy
Standards (govt. and private)
Laws and regulations creating fair, stable market
environment

Asset Category: Organizational

o Asset Type:
Supportive culture valuing efficiency and
effectiveness
Appropriate Business Model
Decentralized Authority
Distributed decision-making rights
Strong IS development Team

Asset Category: Managerial

o Asset Type:
Strong senior management support for IT/IS
Incentives for management innovation
Teamwork and collaborative work
environment
Training programs to enhance mgmt.
decision skills
Mgmt. culture that values flexibility and
knowledge-based decision making

Asset Category: Social

o Asset Type:
The internet and Telecommunication
Infrastructure
IT rich educational programs raising
computer literacy
Standards (govt. and private)
Laws and regulations creating fair, stable
market environment
Technology and service firms in adjacent
markets to assist implementation

CONTEMPORARY APPROACHES
TO INFORMATION SYSTEMS

Contemporary Approaches to
Information Systems
Technical
Approaches
Computer
Science

Management
Science
Psychology

Operations
Research

Sociology

Economics
Behavioral
Approaches

Sociotechnical System
o The performance of the system is
optimized when both
Technology
Organization

mutually adjust to one another until a

satisfactory fit is obtained.