1. Management Information Systems
Antoine HARFOUCHE, PHD

2. A. IS and IT are different
IT/ICT refers specifically to technology, essentially hardware, software and telecommunications networks.
Tangible (e.g. servers, PCs, routers, cables), and
Intangible (e.g. software)
IT/ICT facilitates the acquisition, processing, storing, delivery and sharing of information & other digital content.
IS – the means by which people & organizations, utilizing technology, gather, process, store, use & disseminate information (UK Academy of ISs)
Some IS are totally automated by IT.
IS ≠ IT

3. IS is a combination of three components
Perspectives on Information Systems
Information Systems Are More Than Computers 2 1
These three themes (management, organizations, and technology) will reappear throughout the book. Understanding the interaction between these factors and information systems is known as information system literacy. Knowing how to optimize the relationship between technology, organizations, and management is the purpose of this book and course. 3

4. 1. Technological dimension

5. 2 2. Organizational dimension of the Information Systems
Competitive advantage can not be created just by having the best technology.
People must accept it and used it in a clever and strategic way.
Features of organizations
Use of hierarchical structure
Accountability, authority in system of impartial decision making
Adherence to principle of efficiency
Routines and business processes
Organizational politics, culture, environments and structures
This concept was briefly discussed in Chapter 1. Figure 1-2 and 1-3 as well as the figure on the next slide, 3-1, display this interdependent relationship graphically.

6. 3. Strategic dimension of the Information Systems
Management dimension of information systems
Managers set organizational strategy for responding to business challenges
In addition, managers must act creatively:
Creation of new Business models
Occasionally re-creating the organization
How might information systems assist managers in the development of new products and services? What is meant by re-creating the organization? Why do organizations need to be continually re-created? The answer is that they quickly become obsolete unless they continue to change. Ask students to help you list some organizations that have recently failed, or are about to fail.

7. B. The Startegic alignment
A high degree of fit and consonance between the priorities and activities of the IS function and the strategic direction of the firm
Careful planning is critical for strategic alignments, especially for firms in highly competitive environments

8. Why the alignment matters?
Operational excellence is central to creating and sustaining strategic advantage and change!

9. Strategic Alignment Alignment between the business and IT strategies
Alignment between strategy and capabilities
Business IS
Business Strategy
IS Strategy
Value
IT infrastructure
Technology IT infrastructure
Human IT infrastructure
Business Capabilities
IT Capabilities
Including infrastructure
Including infrastructure

10. Three levels of IS 1.
The technological dimension of the alignment

11. Enterprise Systems The ERP
Also called “enterprise resource planning (ERP) systems”
Suite of integrated software modules and a common central database
Collects data from many divisions of firm for use in nearly all of firm’s internal business activities
Information entered in one process is immediately available for other processes
This slide describes the main purpose of enterprise systems. Ask students for examples of why it might be valuable to have information from one process instantly available to another process.

12. BI Business Intelligence Data mining The Data Marts
MAILING
Website
History
Social Network
Business Intelligence:
Tools for consolidating, analyzing, and providing access to vast amounts of data to help users make better business decisions
Principle tools include:
ETL
Online analytical processing (OLAP)
Data mining
DATAWAREHOUSE
OLAP
ETL 2 1 3
Data mining
HRM
The Data Marts
Acc
Finance
HRM
Accounting
Finance

13. 2. The 3 organizational dimensions
The organizational dimension of the alignment
Managers set organizational structure for responding to strategic business challenges
In addition, they must re- creat the organization
How might information systems assist managers in the development of new products and services? What is meant by re-creating the organization? Why do organizations need to be continually re-created? The answer is that they quickly become obsolete unless they continue to change. Ask students to help you list some organizations that have recently failed, or are about to fail.

14. The strategic dimension of the alignment
5 Business strategies 3.
The strategic dimension of the alignment
Five strategies for dealing with competitive forces, enabled by Network organizations
Low-cost leadership
Product differentiation
Focus on market niche
Strengthen customer and supplier intimacy
Blue Ocean Strategy
Here you can make a list of five well-known firms and then analyze with students the major thrust of their strategy. Wal-Mart is a good example to start with because of its emphasis on low-cost leadership.

15. 4. IS strategies The IS strategy dimension of the alignment
Integrating
Tracking
...

16. 4’. IS strategies Benefits of co-creation
The Web strategy dimension of the alignment
Benefits of co-creation
Benefits of personalization/customization
Benefits of integrating communication channels in one channel
Benefits Virtual Communities
Benefits of Disintermediation

17. C. Pillars of Business Model

18. Crowdsourcing
The recruitment and coordination of piece-meal work across the internet to achieve a goal.
Speeds up content creation
Gets clients and collaborators involved
Gets target audience involved
Offers diversity and creative choice
Drives development of scalable processes
(Bratvold, 2012)

19. Crowdfunding
The process of aggregating many small sums from a large group of individuals to enable the commitment of a significant amount of capital to a project

20. Different models
Donation based: Allows charities, or those who raise money for social or charitable projects, to gather a community online and to enable them to donate to a specific project.
Reward based: Enables people to contribute to projects and receive non–financial rewards in return, usually operating a tiered system where the more you donate the better the reward you receive. £%
Lending based: Projects or businesses seeking debt apply through the platform uploading their pitch, with members of the crowd taking small chunks of the overall loan.
Equity based: Enables the crowd to invest for equity, or profit/revenue sharing in businesses or projects. This form of the model has been the slowest to grow due to regulatory restrictions that relate to this type of activity.

21. The search for collaborative advantage
Seek out opportunities for horizontal as well as vertical collaboration
Co-operate to grow the cake, compete on how to slice it
Leveraging capabilities and knowledge through collaboration
Share assets in the supply chain where appropriate

22. Collaborative Relationships
Customers
•Risk-sharing contracts
•Collaborative transactions
Competitors
•Trade associations
•R&D Consortia
•Standard-setting bodies
•Industry lobbying
•co-epetition
Horizontal partners
•Benchmarking
•Collaborative logistics
•Joint MRO procurement
A company
Suppliers
•Risk-sharing contracts
•Collaborative transactions

23. With suppliers: Vendor Management Inventory
Vendor Managed Inventory (VMI) is a procurement and planning practice in which a company delegate’s key inventory management functions to one or more of its suppliers.
Under this arrangement the supplier determines the items, quantities, and delivery schedules on behalf of the customer based on information it receives from the customer’s inventory and procurement systems.
Using VMI, manufacturers and distributors can anticipate customer needs and provide inventory more proactively than is possible using traditional procurement methods
This slide discusses the effects of timely and untimely information on a supply chain. Ask students what causes inefficiencies in a supply chain (parts shortages, underutilized plant capacity, excessive finished goods inventory, high transportation costs). These are caused by untimely information. Perfect information– or nearly perfect-- can result in a just-in-time strategy where inventories and buffers are reduced to nearly zero. But because of the lack of timely information, manufacturers keep safety stock of parts and inventory. Why is this an inefficient result? Another effect of uncertainties is the bullwhip effect. How can information slow or eliminate bullwhip effects?

24. With suppliers: Collaborative Planning, Forecasting and Replenishment (CPFR)
Builds on “best-in-class” VMI implementations
Principles:
Builds on the trading partners’ competencies (includes several “scenarios”)
Working off a single forecast which imbeds the retailer’s view (of multiple suppliers’ plans) and the supplier’s view (of multiple retailers’ actions)
Making the whole supply chain more efficient

25. Co-opetition: a definition
With competitors: Co-opetition
Co-opetition: a definition
A business strategy based on a combination of cooperation and competition, derived from an understanding that business competitors can benefit when they work together.
A “non zero sum” scenario, in which the sum of what is gained by all players is greater than the combined sum of what the players entered the scenario with.
Source: D. Meyer, 15th March 2011 and istockphoto

26. With customers: Value co-creation
Value Propositions describes what creates value for a targeted Customer Segment.
Cost reduction
Risk reduction
Accessibility
Convenience
Usability
Newness
Performance
Customization
“Getting the job done”
Brand / Status
Design

27. With customers: Value co-creation
Source: J.H. Dyer, Collaborative Advantages
Extended Enterprise
Focus on expanding the pie
Traditional Relationship
Focus on splitting the pie
Value to Customer
Value to Customer
Value to Supplier
Value to Supplier
Co-creation relates to the value received by the customer through usage, consumption or experience. (Lusch & Vargo 2006).
Occurs whenever consumers interact with companies or products and thereby have an active role in the shaping of their experience and ultimately value perception.

28. With customers: Value co-creation

29. With customers: Customization
Pure standardization
Segmented standardization
Customized standardization
Tailored customization
Pure customization