The IS Revolution: Transforming Business and Management

normaldeerManagement

Nov 20, 2013 (3 years and 6 months ago)

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The IS Revolution: Transforming
Business and Management

Yong Choi

School of Business

CSU, Bakersfield

Study Objectives


IS vs. IT


Data vs. Information


Driving forces of IS


Understand background of IS


Understand functions of IS


Understand basic initiatives for gaining a competitive
advantage by utilizing IS.


Recognize risks of IS Success


Identify managers responsibilities

What is an Information System?


An
Information System (IS)

is interrelated components to
collect, process, store and distribute information to
support mainly decision makings in an organization


Information technology (IT)

describes the combination
of computer technology (hardware and software) with
telecommunications technology (data, image, and voice
networks).


CBIS

vs.
Manual IS

Data vs. Information


Data


refers to raw facts


Example:

inventory part number or sales orders


Information


refers to data that have been processed and presented in a form
suitable for human interpretation



Example:
total number of registered students based on each major or
geographical purchasing pattern of SUV


Example of data

Example of information


Why study MIS?

Information Age


Bill Gates (
how much rich
?
),
List of GDP


Major TANGIBLE product of Microsoft


Information age phenomena


Population of “facebook.com” : 800 million active user


US: 310 million


Price of your driver license: $150


Better to have a job that complies with rules of
information Age….


Type of Jobs based on

Type of Decisions
-
Makings


Structured


Small independent travel agencies and real estate agencies


Routine & Repetitive


Problems
are predictable


Problems can be solved by applying standard solutions

Type of Jobs based on

Type of Decisions
-
Makings


Unstructured


Management Consultant and negotiator


Non
-
routine, Unpredictable,
and F
uzzy


Standard solutions are not applicable


Solve problems by individual judgment



Type of Jobs based on

Type of Decisions
-
Makings


Semi
-
structured


Production manager


Combination of non
-
routine and predictable (production
Scheduling)


Require a combination of standard solution procedures and
individual judgment

Effect of Information Age

1) Globalization (Nike Corporation)


Global Marketing thru the Internet


Dramatic increase of global management

2) Organizational Change


Less traditional middle management : collect, process, store and
distribute information for various decision makings


Cross functional (project based


virtual team or organization)


Background of MIS

SOCIOLOGY

POLITICAL
SCIENCE

PSYCHOLOGY

COMPUTER

SCIENCE

OPERATIONS

RESEARCH

MANAGEMENT

SCIENCE

MIS

TECHNICAL

BEHAVIORAL

Functions of an information system

Competitive Advantage Thru IS


Definition of competitive advantage


Competitive advantage is a

significant benefit (ideally long term)
to
a business over its competitors
because of the quality or
superiority of products or services

which will persuade customers
to buy from them rather than from competitors.


Initiative # 1:
Cost leadership


Achieve competitive advantage by providing lower cost than
competitors


Wal
-
Mart
: Always Low Price
(read this

article!)
: lower price
using
c
omputerized purchasing and inventory system


Competitive Advantage Thru IS


Initiative # 2:
Differentiation


Achieve competitive advantage by providing more unique and
value added products/services than competitors


First ATM
system
by Citibank


Initiative # 3:
Focus

(Cost leadership + Differentiation)


Achieve competitive advantage by providing lower cost + unique
and value added products/services


Amazon.com

(others: SW, DVD, games and extra value added
information for each product)


Try to buy our textbook
: management information systems for
the information age


Competitive Advantage Thru IS


Initiative #4:
Enhance products and services


First Online Order Tracking system

by FedEx


Initiative #5:
Create new products and services


E*Trade.com


More initiatives
and five competitive forces model analysis
from the

textbook…

Risks of IS success


IS can be easily copied
by competitors
.



IS can b
ring on litigation or regulation



SABRE by AA
: first computer
-
based online reservation system.


Monopolization of the entire market
by monopolizing information


Bad timing


on
-
line home banking in the early 1980s by chemical bank

Manager’s job in
information age


Monitor

competitors IS usage


Monitor change of government regulations


Review competitor’s web sites


Information about new products and projects


Trend in budgeting (e.g., annual report)


Advertising strategies


Analyze competitor’s newsgroup on the Internet


Newsgroup participants discuss what they like or dislike about
competitor’s products or services