1.1 © 2006 by Prentice Hall 1 Chapter Managing the Digital Firm Lecture 1 Managing the Digital Firm Lecture 1

1.2 © 2006 by Prentice Hall Management Information Systems Chapter 1 Managing the Digital Firm DaimlerChrysler Case Challenge: 104 plants, 37 countries, 14,000 suppliers Solutions: Integrated Volume Planning System connects demand side of business with suppliers, reducing inventories. Powerway helps 3,400 suppliers track parts and quality, reducing errors. Demonstrates IT’s role in operational excellence, better quality products, and agility–time to market Illustrates the emerging digital firm landscape where information can flow seamlessly among business partners to create a superior customer experience

1.3 © 2006 by Prentice Hall WHY INFORMATION SYSTEMS? Management Information Systems Chapter 1 Managing the Digital Firm Capital managementCapital management Foundation of doing businessFoundation of doing business ProductivityProductivity Strategic opportunity and advantageStrategic opportunity and advantage Why Information Systems Matter There are four reasons why IT makes a difference to the success of a business:

1.4 © 2006 by Prentice Hall Role of IS: Survival and existence Dependency on Cell phones, blackberry’s, and other hardware s, online conferencing, internet technologies Table 1.1 read 6 important business objectives : Operational excellence New products or services Business models Customer and supplier intimacy Improved decision making Competitive advantage

1.5 © 2006 by Prentice Hall Management Information Systems Chapter 1 Managing the Digital Firm Digitally enabled relationships with customers, suppliers, and employees Core business processes accomplished using digital networks Digital management of key corporate assets WHY INFORMATION SYSTEMS? Emergence of the Digital Firm:

1.6 © 2006 by Prentice Hall Management Information Systems Chapter 1 Managing the Digital Firm Agile sensing and responding to environmental changes Seamless flow of information within the firm, and with strategic partners WHY INFORMATION SYSTEMS? Emergence of the Digital Firm (Continued):

1.7 © 2006 by Prentice Hall Management Information Systems Chapter 1 Managing the Digital Firm The Emerging Digital Firm Figure 1-4 WHY INFORMATION SYSTEMS?

1.8 © 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm What Is an Information System? Technology perspective: Technology perspective: A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

1.9 © 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm What is an Information System? (Continued) Data: Streams of raw facts representing events such as business transactions Information: Clusters of facts meaningful and useful to human beings in the processes such as making decisions

1.10 © 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Data and Information Figure 1-5

1.11 © 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Functions of an Information System Figure 1-6

1.12 © 2006 by Prentice Hall Senior management Middle mgt Operational mgt Dimensions of IS: Management, Organizations, technology

1.13 © 2006 by Prentice Hall Basic functions: Sales and marketing Production Finance HRM Management: helping managers to design and deliver new products Technology: hardware, software, networks, internet, IT infrastructure

1.14 © 2006 by Prentice Hall PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Information Systems Are More than Computers Figure 1-8

1.15 © 2006 by Prentice Hall Management Information Systems Chapter 1 Managing the Digital Firm Complementary assets: New business processes Management behavior Organizational culture Training PERSPECTIVES ON INFORMATION SYSTEMS Complementary Assets: Technical approach, behavioral approach

1.16 © 2006 by Prentice Hall CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Sociotechnical Systems Optimize systems performance: Technology and organization Organizations mutually adjust to one another until fit is satisfactory

1.17 © 2006 by Prentice Hall CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm A Sociotechnical Perspective on Information Systems Figure 1-11