Managing Information Systems: Week 1

Managing
Information
Systems
Week 1
IT and IS
What is Information Technology?

Any
form of technology used by people to handle

information.
What are Information Systems?

Integrated
components processing, storing and

disseminating information in an organisation.
Study
of systems that provide information to

users in organisations.
Information and Data

Information
Clusters
of facts meaningful and useful to

human beings in processes such as
making decisions
Data
Streams
of raw facts representing events

such as business transactions
meaningless without structure
Experiences of IT and IS
Examples of IT
Hardware (PC, UNIX server)
Software (e-mail, Internet, Windows, Word)
Consumer devices (mobiles, train times)
Examples of IS
File systems, databases, e-mail servers /
clients
e-commerce
SAP, student records
Management Information
Systems
Management
Information
System
The study of information

systems focusing on their
use in business and
management.
Why is IS Important?
For
an organisation to survive and

prosper
More
New
locations (networking, Internet)

products and services
Improve
jobs and work flows:
Efficiency
Cost
Ethical
and social issues
Fundamental Role of IS
Support
of Business Decision Making.
Information
systems also help store managers

and other business professionals make better
decisions.
For
example, decisions about what lines of

merchandise need to be added or
discontinued and what kind of investments
they require are typically made after an
analysis provided by computer-based
information systems.
Fundamental Role of IS
Support of Strategies for Competitive

Advantage.
Gaining
a strategic advantage over competitors

requires the innovative application of information
technologies.
For example, store management might make a
decision to install touch-screen kiosks in all
stores, with links to the e-commerce Web site for
online shopping.
This offering might attract new customers and
build customer loyalty because of the ease of
shopping and buying merchandise provided by
such information systems.
Management Information Systems

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.
2.
3.
4.
5.
6.
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

Operational
Improvement
excellence:
of efficiency to
attain higher profitability
Information systems, technology an
important tool in achieving
greater efficiency and
productivity
Walmarts RetailLink system links
suppliers to stores for superior
replenishment system

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: Apples iPod, iTunes,
iPhone, iPad, Googles Android OS,
and Netflix

Customer
Serving
and supplier intimacy:
customers well leads to customers

returning, which raises revenues and profits
Example: High-end hotels that use
computers to track customer preferences
and use to monitor and customize
environment
Intimacy with suppliers allows them to
provide vital inputs, which lowers costs
Example: J.C.Penneys information system
which links sales records to contract
manufacturer

Improved
decision making
Without
accurate information:
Managers
Leads
must use forecasts, best guesses, luck
to:
Overproduction,
Misallocation
Poor
Poor
underproduction of goods and services
of resources
response times
outcomes raise costs, lose customers
Example:
Verizons Web-based digital

dashboard to provide managers with real-time
data on customer complaints, network
performance, line outages, etc.

Operational
excellence:
Improvement
of efficiency to attain higher

profitability
New
products, services, and business models:
Enabled
Customer
by technology
and supplier intimacy:
Serving
customers raises revenues and profits

Better communication with suppliers lowers
costs
Improved
More
decision making
accurate data leads to better decisions

Competitive
Delivering
Charging
products
advantage
better performance
less for superior
Responding
to customers and
suppliers in real time
Examples:
Apple, Walmart, UPS

Survival
Information
technologies as
necessity of business
May be:
Industry-level changes, e.g.
Citibanks introduction of ATMs
Governmental regulations
requiring record-keeping
Examples:
Any new Act

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Managing

What is Information Technology?

form of technology used by people to handle

What are Information Systems?

components processing, storing and

of systems that provide information to

Information and Data

of facts meaningful and useful to

of raw facts representing events

The study of information

an organisation to survive and

locations (networking, Internet)

jobs and work flows:

and social issues

of Business Decision Making.

systems also help store managers

example, decisions about what lines of

Support of Strategies for Competitive

a strategic advantage over competitors

Management Information Systems

interdependence between ability to

firms invest heavily in

Management Information Systems

Management Information Systems

products, services, and

model: describes how company

Management Information Systems

and supplier intimacy:

customers well leads to customers

Management Information Systems

must use forecasts, best guesses, luck

underproduction of goods and services

outcomes raise costs, lose customers

Verizons Web-based digital

Management Information Systems

of efficiency to attain higher

products, services, and business models:

and supplier intimacy:

customers raises revenues and profits

accurate data leads to better decisions

Management Information Systems

less for superior

Apple, Walmart, UPS

Management Information Systems

Any new Act

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