1. Skill Development at it’s Best Copyright 2016@Mir.Org MIS BBA & MBA Lecture 789 Information Systems, Organizations, Management and Strategy Course Lecturer: Farhan Mir

2. Skill Development at it’s Best Copyright 2016@Mir.Org Expected Topics Introduction to IS Management & Decision Making IT Fundamentals Transaction Processing and Reports System DSS Knowledge-Based Systems System Development MIS in the Fundamental Areas of Business (Will be covered through case studies) Contemporary Issues & Trends (You will cover it through your research work and Presentations/ Seminars)

3. Skill Development at it’s Best Copyright 2016@Mir.Org Once we have seen how IS could enhance the effectiveness of Organizational Functions (Overall Performance) now we could explain their pivotal role in Organizations & Strategy

4. Skill Development at it’s Best Copyright 2016@Mir.Org Organizations & People  Organizations  Structure  Culture  Politics  Environment  Leadership  Nature of Business (Routine Vs Non-Routine)  New trends in organizations (Globalization)

5. Skill Development at it’s Best Copyright 2016@Mir.Org Organization and Behavioral Aspects  People (always bring Psychological issues)  Attitude  Personalities  Motivation  Resistance  The biggest problem area for/ in IS  Skills & abilities (Learning/ Training)  Career Development

6. Skill Development at it’s Best Copyright 2016@Mir.Org IS Impact on Organization Economic Cost Reduction – Transaction Cost – Agency Cost Structural Flatter Models Post Industrial Models (Knowledge) Behavioral

7. Skill Development at it’s Best Copyright 2016@Mir.Org Transformation of Organizations Flattening (Need for Agility) Decentralization (More focus on Behavioral Approaches) Flexibility Location Independence (Globalization Pressures) Low Transaction Cost Empowerment (Employee needs to respond quickly) Collaborative Work (More teams are emerging) Overall Performance (Effectiveness) Competitive Advantage

8. Skill Development at it’s Best Copyright 2016@Mir.Org Managers & Decision Making Decision Making – The process by which managers respond to opportunities and threats by analyzing options, and making decisions about goals and courses of action. Decisions in response to opportunities—occurs when managers respond to ways to improve organizational performance. Decisions in response to threats—occurs when managers are impacted by adverse events to the organization.

9. Skill Development at it’s Best Copyright 2016@Mir.Org What Makes Decision Making so Difficult? Complexity Uncertainty Organizational & Environment Pressure Individual Decision Making Limitations Experience, Beliefs & Perceptions of the Decision Maker

10. Skill Development at it’s Best Copyright 2016@Mir.Org Structured and Unstructured Problems

11. Skill Development at it’s Best Copyright 2016@Mir.Org Decisions are classified as: Unstructured: Non-routine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed- upon procedure for decision making Structured: Repetitive, routine, handled using a definite procedure Managers and Decision Making

12. Skill Development at it’s Best Copyright 2016@Mir.Org Realities facing Managers and Decision Making Managers perform high-volume, high speed work involving a large number of topics. Managers are often under stress. Managers often take shortcuts. Satisficing (sounds like?) nature of decision making Political motivations may impact decisions. Decisions should be transparent. (need for open communication)

13. Skill Development at it’s Best Copyright 2016@Mir.Org Why Information Is Incomplete Figure 7.2

14. Skill Development at it’s Best Copyright 2016@Mir.Org Where IS Lies in Organizations? Traditional Roles (Past) – A Separate Department having little influence in overall Organizational posture – It was used to provide information only “Operational Role” Current & Future Status – Linking all Departments (at heart of organizational operations) – Progressively involved in planning and Objective setting – Used as a business-creator/ initiator (Strategic Role)

15. Skill Development at it’s Best Copyright 2016@Mir.Org But Information Systems in organizations also act as an “Enabling” & “Filtering Tool” THE FIRM INFORMATION SYSTEMS THE ENVIRONMENT: RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY [CUSTOMERS!!]

16. Skill Development at it’s Best Copyright 2016@Mir.Org Transformation of Organizations Flattening (Need for Agility) Decentralization (More focus on Behavioral Approaches) Flexibility Location Independence (Globalization Pressures) Low Transaction Cost Empowerment (Employee needs to respond quickly) Collaborative Work (More teams are emerging) Overall Performance (Effectiveness) Competitive Advantage

17. Skill Development at it’s Best Copyright 2016@Mir.Org 17 Competitive Forces Model THE FIRM TRADITIONAL COMPETITION NEW MARKET ENTRANTS SUPPLIERSCUSTOMERS SUBSTITUTE PRODUCTS & SERVICES

18. Skill Development at it’s Best Copyright 2016@Mir.Org 18 Strategies Used With the Competitive Forces Model Product differentiation involves developing new and unique products and services not easily duplicated by competitors low-cost producer (provide same value but at a lower cost than competitors) Focused differentiation involves – Narrowing the market by developing niches for specialized products or services where a business can compete better than its rivals – Use of customer data (data mining, credit card transactions, Internet behavior )

19. Skill Development at it’s Best Copyright 2016@Mir.Org 19 Examples of Systems for Each Strategy Product differentiation – Levi Strauss’ s Personal Pair (mass customization or one-to-one marketing) – Hallmark’s computer generated cards – Build to order products (Dell) Focus (market niche) – Customer data analysis through CRM – Hilton Hotels customer database Low cost producer – CAD systems used in the automobile or airline industry – Insurance claim adjusters use of pen-based computers – Wal-Mart point of sale terminals sending information directly to suppliers

20. Skill Development at it’s Best Copyright 2016@Mir.Org

21. Skill Development at it’s Best Copyright 2016@Mir.Org 21 Primary Activities of the VC Model Inbound logistics - receiving and storing of materials – Wal-Mart’s continuous replenishment system – stockless inventory systems Operations - transformation of inputs to finished goods or the process of providing a service – computer controlled machinery used by Gillette for producing razor blades Outbound logistics - storing and distributing the product – airline reservation system – automated shipping scheduling systems

22. Skill Development at it’s Best Copyright 2016@Mir.Org New Strategies based on IS Synergies – Partnerships within and outside the organization to support adtivities – Alliance between Bank of New York and JP Morgan Chase Enhancing Core Competencies – Focusing on particular expertise to gain advantage over other – P&G InnovationNet for knowledge sharing and learning Network-Based Strategies – Network Economics Cost of adding new members is quite low as compared to gains yielded by expansion of network – Virtual Company Model

23. Skill Development at it’s Best Copyright 2016@Mir.Org 23 Management Issues Opportunities – Firms face a continuing stream of IT-based opportunities to achieve strategic advantages Challenges – Some firms face big hurdles in implementing contemporary systems; resistance to change. – Once an advantage is achieved, there are difficulties in sustaining the advantage. – Organizations often cannot change fast enough to accommodate new technologies (Kodak).

24. Skill Development at it’s Best Copyright 2016@Mir.Org 24 Solutions: What Managers Can Do Managers cannot depend on IS professionals to tell them about strategic opportunities Managers must understand what is happening in their industry in general and the role of technology in particular How do you do this?

25. Skill Development at it’s Best Copyright 2016@Mir.Org References Charles Parker, Thomas Case. (2000). “Management Information Systems: Action & Strategy”. (2 nd Ed). Chapter 2 & 4 James O’Brien. (1998). “Introduction to Information Systems: A Networked Enterprise Perspective”. (2 nd Ed). Chapter 10,12 Kenneth C. Laudon & Jane P. Laudon (2011). “Management Information Systems: Managing a Digital Firm”.(7 th Ed). Chapter 3 Grover S. Kearns (1997). Alignment of Information Systems Plans with Business Plans: (http://hsb.baylor.edu/ramsower/ais.ac.97/papers/kearns.htm)