1. Introduction
Textbook – Management Information Systems (Fifth Canadian Edition) (Laudon, Laudon, and Brabston)
Lesson Material
Software
Word
Excel
Windows
Internet Explorer
Web browser

2. Module 1 & 2 Strategic Importance of IS
Information Systems Planning Issues

3. The interdependence between organizations and information technology
Management Information Systems
Chapter 1 Information Systems in Global Business Today
The Role of Information Systems in Business Today
The interdependence between organizations and information technology
There is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
Figure 1-2

4. What is an information system?
Management Information Systems
Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems
What is an information system?
A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

5. Why ISs? What drives these companies? New Digital Firm
Emergence of global economy
Transformation of industrial economics from manufacturing to knowledge & information sectors
Transformation of the business enterprise
New Digital Firm
Nearly all significant business relationships are digitally enabled & mediated
Business processes transformed

6. What is an IS? System composed of one purpose & four processes Input
Output
Feedback

7. Information System
INPUT
PROCESSING
OUTPUT
Feedback

8. Data vs Information
What is the difference between Data and Information?
Data - raw facts about the organization and its business transactions. Most data items have little meaning and use by themselves.
Information - data that has been refined and organized by processing and purposeful intelligence.
Information Systems transform data into useful information.
An information system is an arrangement of people, data, processes, interfaces, and geography that are integrated for the purpose of supporting and improving the day-to-day operations in a business, as well as fulfilling the problem-solving and decision-making information needs of business managers.

9. Data and Information Management Information Systems Figure 1-4
Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems
Data and Information
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
Figure 1-4

10. Information Systems formal vs informal Manual vs Computer based
Large scale systems vs Small scale systems

11. Functions of an information system
Management Information Systems
Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems
Functions of an information system
Figure 1-5

12. Management Information Systems
Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems

13. Management Information Systems
Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems
Figure 1-7

14. Management Information Systems
Chapter 1 Information Systems in Global Business Today
Contemporary Approaches to Information Systems

15. Network Revolution The Computer is Now the Network!
The Internet Changes Everything!
Agree or Disagree?
The WWW is just part of the Internet
The Internet is an information space
It’s what you do with the space that counts!
Communicate, share, coordinate, collaborate, buy/sell, feedback, gather/analyze data

16. Digital Organization Design
Flattening organizations
Broader span of control
Communication
Separating work from location
Telecommuting
Group & team work
Asynchronous & synchronous work
Reorganizing workflows
Increasing flexibility
Mass customization
Small- & medium-sized businesses (SMEs)

17. Digital Organization Design
Changing management process
More information: Is this always good?
More communication: Is this always good?
Redefining organizational boundaries
Electronic transactions
Efficiencies
Reduced costs
Interorganizational systems (IOS)

18. E-Commerce & E-Business
E-Commerce: It’s not just the Internet!
Usually uses Internet & extranets
May be EDI & other technologies discussed later
E-markets link organizations for e-commerce
E-Business: Internal business, not commerce
Usually uses intranets

19. Key Management Challenges
Strategic Business Challenge
How to use IT to compete?
Globalization Challenge
How to understand other cultures, markets, countries, laws?
Information Architecture & Infrastructure Challenge
How to know what to do when change happens so fast?

20. Key Management Challenges
IS Investment Challenge
What is the business value of a system?
Responsibility & Control Challenge
Legal, ethical, responsible use: What is it? How to ensure it?

21. How Businesses Use Information Systems
Chapter 2

22. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Business Processes and Information Systems
Business processes
The manner in which work is organized, coordinated, and focused to produce a valuable product or service
Every business is a collection of business processes
Information technology enhances business processes
increase efficiency of existing processes
enable new processes that can transform the business

23. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Business Processes and Information Systems
The Order Fulfillment Process
Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
Figure 2-1

24. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Figure 2-2

25. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Overview of an Inventory System
This system provides information about the number of items available in inventory to support manufacturing and production activities.
Figure 2-3

26. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Figure 2-4

27. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Figure 2-5

28. Systems from a constituency perspective
Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Systems from a constituency perspective
Transaction processing systems (TPS)
Management information systems (MIS) and decision-support systems (DSS)
Executive support systems (ESS)

29. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems

30. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Figure 2-7

31. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Types of Business Information Systems
Interrelationships Among Systems
The various types of systems in the organization have interdependencies. TPS are major producers of information that is required by many other systems in the firm, which, in turn, produce information for other systems. These different types of systems are loosely coupled in most business firms, but increasingly firms are using new technologies to integrate information that resides in many different systems.
Figure 2-10

32. Enterprise applications
Management Information Systems
Chapter 2 How Businesses Use Information Systems
Systems That Span the Enterprise
Enterprise applications
Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems

33. Management Information Systems
Chapter 2 How Businesses Use Information Systems
Systems That Span the Enterprise
Enterprise Application Architecture
Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization.
Figure 2-11

34. Supply Chain Management (SCM)
Coordinates all activities & flows in the supply chain (purchase raw materials, transform raw materials into finished goods, inventory, logistics (distribution)
Involves external suppliers & customers
Minimize costs, inventory, & cycle time
Maximize profit
SCM applications: Cross IS types (TPS, MIS, etc.)
Internet-based (including intranets & extranets)
EDI & other SCM applications

35. Intranets and Extranets
Management Information Systems
Chapter 2 How Businesses Use Information Systems
Systems That Span the Enterprise
Intranets and Extranets
E-business, e-commerce, and e-government

36. The information systems department
Management Information Systems
Chapter 2 How Businesses Use Information Systems
The Information Systems Function in Business
The information systems department
Programmers
Systems analysts
Information systems managers
Chief Information Officer (CIO)
End users
Organizing the information systems function

37. Management Information Systems
Chapter 2 How Businesses Use Information Systems
The Information Systems Function in Business
Figure 2-15a

38. Management Information Systems
Chapter 2 How Businesses Use Information Systems
The Information Systems Function in Business
Figure 2-15b

39. Management Information Systems
Chapter 2 How Businesses Use Information Systems
The Information Systems Function in Business
Figure 2-15c

40. Management Information Systems
Chapter 9 Systems Development
Systems as Planned Organizational Change

41. Total Quality Management (TQM)
Management Information Systems
Chapter 9 Building Systems
Systems as Planned Organizational Change
Process Improvement: Business Process Management, Total Quality Management, and Six Sigma (continued)
Total Quality Management (TQM)
Quality is the responsibility of all people and functions within an organization
Six Sigma
Measure of quality (3.4 defects per million opportunities)

42. Porter’s Five Forces Threat of new entrants
Bargaining power of customers
• Bargaining power of suppliers
• Threat of substitute products or services
• Rivalry among existing competitors

43. Management Information Systems
Chapter 3 Information Systems, Organizations, and Strategy
Using Information Systems to Achieve Competitive Advantage
Porter’s Competitive Forces Model
In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also by four forces in the industry’s environment: new market entrants, substitute products, customers, and suppliers.
Figure 3-10

44. Business-Level Strategy & Porter’s Value Chain Model
Competitive Edge: Added value/reduced cost
Primary Activities
Add value to product or service
Give competitive edge to a company
Support Activities
Support the delivery of primary activities
Value Web
Collection of firms coordinated to produce a product or deliver a service
ISs can help to add value or reduce cost

45. Management Information Systems
Chapter 3 Information Systems, Organizations, and Strategy
Using Information Systems to Achieve Competitive Advantage
The Value Web
The value web is a networked system that can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand.
Figure 3-13

46. Management Information Systems
Chapter 3 Information Systems, Organizations, and Strategy
Using Information Systems to Achieve Competitive Advantage
Figure 3-14

47. Sustaining competitive advantage
Management Information Systems
Chapter 3 Information Systems, Organizations, and Strategy
Using Systems for Competitive Advantage: Management Issues
Sustaining competitive advantage
Performing a strategic systems analysis
Managing strategic transitions

48. Management Information Systems
Chapter 11 Managing Global Systems
The Growth of International Information Systems
Developing an international information systems architecture
The global environment: business drivers and challenges
State of the art

49. Management Information Systems
Chapter 11 Managing Global Systems
The Growth of International Information Systems
International Information Systems Architecture
The major dimensions for developing an international information systems architecture are the global environment, the corporate global strategies, the structure of the organization, the management and business processes, and the technology platform.
Figure 11-2

50. Two groups of global business drivers General cultural factors
Management Information Systems
Chapter 11 Managing Global Systems
The Growth of International Information Systems
Two groups of global business drivers
General cultural factors
Global communication and transportation technologies
Development of global culture
Emergence of global social norms
Political stability
Global knowledge base
Continued …

51. Two groups of global business drivers (continued)
Management Information Systems
Chapter 11 Managing Global Systems
The Growth of International Information Systems
Two groups of global business drivers (continued)
Specific business factors
Global markets
Global production and operations
Global coordination
Global workforce
Global economies of scale

52. Cultural particularism: Social expectations: Political laws:
Management Information Systems
Chapter 11 Managing Global Systems
The Growth of International Information Systems
Business Challenges
Cultural particularism:
Regionalism, nationalism, language differences
Social expectations:
Brand-name expectations, work hours
Political laws:
Transborder data and privacy laws, commercial regulations
Continued …

53. Business Challenges (continued) Standards:
Management Information Systems
Chapter 11 Managing Global Systems
The Growth of International Information Systems
Business Challenges (continued)
Standards:
Different Electronic Data Interchange (EDI), telecommunications standards
Reliability:
Phone networks not uniformly reliable
Speed:
Different data transfer speeds, many slower than Canada
Personnel:
Shortages of skilled consultants

54. IT’s Rapid pace of Change
The pace of change
Hardware/Software
Moore’s Law
Quotes:
“640k ought to be enough for anybody”
“there is no reason anyone would want a computer in their home”

55. Management Information Systems
Chapter 10 Information Resource Management and Project Management
Information Resource Management
IRM is the process of managing information systems – including hardware, software, data and databases, telecommunications, people and the facilities that house these information system (IS) components

56. The information systems department
Management Information Systems
Chapter 10 Information Resource Management and Project Management
Information Resource Management
The information systems department
Manage computer operations
Manage systems development and systems development projects
Manage IS personnel
Budget for the department and others in the organization who use computers
Plan for the strategic, tactical, and operational level systems and for the IS department’s operations
Justify financial investment in information systems

57. Chief Information Officer (CIO)
Management Information Systems
Chapter 10 Information Resource Management and Project Management
Information Resource Management
Chief Information Officer (CIO)
The strategic level manager for information systems
A member of senior management
Ensures that all IS plans, systems, and operations support the organization’s overall strategy
MIS steering committee
Sets policy and priorities for the IS department
Approves budgets for major projects
Reviews progress reports for major projects

58. Role of CTO, CKO CTO – Chief Technology Officer
The role of the CTO is usually to be the technical visionary for the firm
CKO – Chief Knowledge Officer
a senior executive whose responsibility is to facilitate knowledge sharing throughout the organization

59. Managing Systems Development Systems operators Data entry operators
Management Information Systems
Chapter 10 Information Resource Management and Project Management
Information Resource Management
Managing Systems Development
Systems operators
Run hardware, ensure backups are completed
Data entry operators
Enter data in computer-readable format
Network managers
Web masters

60. Managing Personnel Managing Budgets
Management Information Systems
Chapter 10 Information Resource Management and Project Management
Information Resource Management
Managing Personnel
Non computer scientists find careers with IS departments
IS professionals demand high salaries
Skilled Canadians being hired by U.S. companies
Difficulty of keeping skills up-to-date
Managing Budgets
IS projects often run over budget
How to justify financial investments in IS