Lecture 1 ISM- © 2010 Houman Younessi Information Systems Summer 2010 Convener: Houman Younessi

Lecture 1 ISM - © 2010 Houman Younessi This course explores information technology in the context of management. ISM examines the motivations; challenges and opportunities; techniques and methodologies; as well as issues, problems and gaps in capability in deployment and management of information systems. As such, this course explores relevant enabling information systems and technologies that may be used to deliver business advantage. Beyond development and deployment, the course explores issues relating to management of globally dispersed IT services in order to maximize customer satisfaction, information security and return on investment.

Lecture 1 ISM - © 2010 Houman Younessi Grading: Group Assignment30 Percent Final paper60 Percent Class participation10 Percent

Lecture 1 ISM - © 2010 Houman Younessi Silk, Sword and SUV – Global Business The interaction of enterprise, markets and the environment.

Lecture 1 ISM - © 2010 Houman Younessi Providing value: need for high quality products and services 1.Why do business at all? 2.What products should we make and where should we sell them? 3.How do I get the most reward for my enterprising effort? 4.How long can I/ should I continue in that enterprise?

Lecture 1 ISM - © 2010 Houman Younessi Why do business at all? Profit What is Profit? Accounting profit versus economic profit Opportunity cost

Lecture 1 ISM - © 2010 Houman Younessi What products should we make and where should we sell them? If you do not think that there is anyone out there who wishes to buy the product under question, then it should not be offered Demand

Lecture 1 ISM - © 2010 Houman Younessi How do I get the most reward for my enterprising effort? Elasticity of Demand Determining which item should be sold where and when Demand manipulation: Price setting, Advertising, Market generation, Income, Wealth, etc Supply management: Amount of supply, Competing Products, Complementary products, etc.

Lecture 1 ISM - © 2010 Houman Younessi How long can I/ should I continue in that enterprise? Risk Opportunity

Lecture 1 ISM - © 2010 Houman Younessi The Value of Firm Model:

Lecture 1 ISM - © 2010 Houman Younessi r Firms would have revenue if there was demand for their products. There will be demand only if the product: Satisfies a need or want Represents an adequate level of quality The required quality is offered at an acceptable price

Lecture 1 ISM - © 2010 Houman Younessi Obtain Retain Process Disseminate use INFORMATION on What products and, products that we contemplate offering in the future are (or will be) needed? What level(s) of quality of products will be demanded by the market and where? What is the quality level of the products we currently make and how much does it take to improve that quality? What level of demand will there be for our products and when will that demand manifest itself? What prices should the firm set for their products, and should the prices be uniform or vary in their different markets?

Lecture 1 ISM - © 2010 Houman Younessi c Production Capability Technology Resources Quality

Lecture 1 ISM - © 2010 Houman Younessi i

Lecture 1 ISM - © 2010 Houman Younessi n

Lecture 1 ISM - © 2010 Houman Younessi ElementConceptInformation CategoryInformation System RevenueDemandMarket trends and marketing Product quality Pricing Data Acquisition Data Analysis Control Forecasting Optimization CostProductionProcess capability Technology Forecasting Estimating Optimization Control RiskUncertaintyEconomic Environment Internal control Forecasting Control LongevitySustainabilityEnvironment Integration and systemicity Forecasting Optimization

Lecture 1 ISM - © 2010 Houman Younessi Product Process Enterprise Environ. Quality Efficiency Effective- ness Sustain. Demand Side Supply Side Demand and Supply Aggregate Demand and Aggregate Supply