1. 1.1 © 2006 by Prentice Hall Modified By Nooran Alsalman 1 Chapter Managing the Digital Firm

2. 1.2 © 2006 by Prentice Hall Modified By Nooran Alsalman OBJECTIVES Management Information Systems Chapter 1 Managing the Digital Firm Explain why information systems are so important today for business and management Evaluate the role of information systems in today’s competitive business environment Assess the impact of the Internet and Internet technology on business and government

3. 1.3 © 2006 by Prentice Hall Modified By Nooran Alsalman Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems literacy Identify the major management challenges to building and using information systems OBJECTIVES (Continued) Management Information Systems Chapter 1 Managing the Digital Firm

4. 1.4 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm DaimlerChrysler Case DaimlerChrysler includes Chrysler Group, the Mercedes and Smart Passenger Group 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

5. 1.5 © 2006 by Prentice Hall Modified By Nooran Alsalman 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:

6. 1.6 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm IT is the largest single component of capital investment in the United States. About $1.8 trillion is spent each year by American businesses. Managers and business students need to know how to invest this capital wisely. The success of your business in the future may well depend on how you make IT investment decisions. Capital Management: WHY INFORMATION SYSTEMS?

7. 1.7 © 2006 by Prentice Hall Modified By Nooran Alsalman INFORMATION TECHNOLOGY (IT)REFERS TO ALL OF THE COMPUTER BASED INFORMATION SYSTEMS USED BY ORGANISATION Information technology capital investment, defined as hardware software and telecommunication equipment expanded from 19% in 1980 to 35% in 2003 Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS?

8. 1.8 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Information Technology Capital Investment Figure 1-1 WHY INFORMATION SYSTEMS?

9. 1.9 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm In the US over 23million managers and over 113 million workers in labour force rely on information systemsIn the US over 23million managers and over 113 million workers in labour force rely on information systems Most businesses today could not operate without extensive use of information systems and technologies.Most businesses today could not operate without extensive use of information systems and technologies. IT can increase market share.IT can increase market share. IT can help a business become a high-quality, low-cost producer.IT can help a business become a high-quality, low-cost producer. Foundation of doing business: WHY INFORMATION SYSTEMS?

10. 1.10 © 2006 by Prentice Hall Modified By Nooran Alsalman IT is vital to the development of new products.IT is vital to the development of new products. Examples Amazon eBay Online Universities There is growing interdependency between Businesses strategies and the use of IT Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Foundation of doing business:

11. 1.11 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm The Interdependence between Organizations and Information Systems Figure 1-2 WHY INFORMATION SYSTEMS?

12. 1.12 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm IT is one of the most important tools managers have to increase productivity and efficiency of businesses. According to the Federal Reserve Bank, IT has reduced the rate of inflation by 0.5 to 1% in the last decade. For firms this means IT is a major factor in reducing costs. It is estimated that IT has increased productivity in the economy by about 1% in the last decade. For firms this means IT is a major source of labor and capital efficiency. WHY INFORMATION SYSTEMS? Productivity:

13. 1.13 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm If a business wants to take advantage of new opportunities in the markets, develop new product or create a new service chances are quite high that they will need to invest heavily in IT Create competitive advantage: IT makes it possible to develop competitive advantages. WHY INFORMATION SYSTEMS? Strategic Opportunity and Advantage:

14. 1.14 © 2006 by Prentice Hall Modified By Nooran Alsalman New Business Models: Dell Computer has built its competitive advantage on an IT enabled build-to- order business model that other firms have not been able to imitate. Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Strategic Opportunity and Advantage:

15. 1.15 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Create new services: eBay has developed the largest auction trading platform for millions of individuals and businesses. Competitors have not been able to imitate its success. Differentiate yourself from your competitors: Amazon has become the largest book retailer in the United States on the strength of its huge online inventory and recommender system. It has no rivals in size and scope. WHY INFORMATION SYSTEMS? Strategic Opportunity and Advantage:

16. 1.16 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm In may 2003 Nicholas Carr has written that whatever advantages firms build using IT can be easily copied by competitors. This view is not supported by the evidence: Amazon, eBay, Dell, Wal-Mart and Apple's iTunes are just a few firms that have built and maintained technology-based advantages. How Much Does IT Matter? WHY INFORMATION SYSTEMS?

17. 1.17 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Commoditization of technology( availability and prices decreases) is typically leading to innovation and new business models, products and services not a signal to the end of innovation. Competitive advantage derives not from the technology, but on how businesses use the technology. Innovations in business processes, management and organization are not easily copied from one firm to another there is only one Dell. How Much Does IT Matter? WHY INFORMATION SYSTEMS?

18. 1.18 © 2006 by Prentice Hall Modified By Nooran Alsalman A combination of IT innovations and the changing domestic and the global business environment makes the role of IT in business even more important for managers than just a few years ago. Why IT Now? Digital Convergence and the Changing Business Environment WHY INFORMATION SYSTEMS? Management Information Systems Chapter 1 Managing the Digital Firm

19. 1.19 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Internet growth and technology convergence Transformation of the business enterprise Why IT Now? Digital Convergence and the Changing Business Environment Growing impact of IT in business firms can be assessed from the following five factors: WHY INFORMATION SYSTEMS?

20. 1.20 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Growth of a globally connected economy Growth of knowledge and information-based economies Emergence of the digital firm WHY INFORMATION SYSTEMS? Why IT Now? Digital Convergence and the Changing Business Environment (Continued)

21. 1.21 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Growth of the Internet: 120 million online in the United States, 500 million global users The Internet is bringing about a convergence of telecommunications and computing: VoIP telephones. WHY INFORMATION SYSTEMS? The Internet and Technology Convergence:

22. 1.22 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Growth in e-business, e-commerce, and e- government Internet is bringing about rapid changes in markets and market structure: financial services and banking such as eTrade.com. The Internet is making many traditional business models obsolete: the corner music store and video store. WHY INFORMATION SYSTEMS? The Internet and Technology Convergence:

23. 1.23 © 2006 by Prentice Hall Modified By Nooran Alsalman The traditional business firm was a hierarchical, centralized, structured arrangement of specialists that typically relied on a fixed set of standard operating procedures to deliver a mass-produced product (or service). The new manager appeals to the knowledge, learning, and decision making of individual employees to ensure proper operation of the firm. Once again, information technology makes this style of management possible. Transformation of the Business Enterprise: WHY INFORMATION SYSTEMS? Management Information Systems Chapter 1 Managing the Digital Firm

24. 1.24 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Decentralization Flexibility Companies can use communications technology to organize in more flexible ways, increasing their ability to sense and respond to changes in the marketplace and to take advantage of new opportunities. Information systems can give both large and small organizations additional flexibility to overcome some of the limitations posed by their size.Companies can use communications technology to organize in more flexible ways, increasing their ability to sense and respond to changes in the marketplace and to take advantage of new opportunities. Information systems can give both large and small organizations additional flexibility to overcome some of the limitations posed by their size. WHY INFORMATION SYSTEMS? Transformation of the Business Enterprise:

25. 1.25 © 2006 by Prentice Hall Modified By Nooran Alsalman Flattening Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Transformation of the Business Enterprise:

26. 1.26 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork WHY INFORMATION SYSTEMS? Transformation of the Business Enterprise (Continued):

27. 1.27 © 2006 by Prentice Hall Modified By Nooran Alsalman Foreign trade, both exports and imports, accounts for a little more than 25 percent of the goods and services produced in the United States, and even more in countries such as Japan and Germany. The success of firms today and in the future depends on their ability to operate globally Via a global IS. Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Globalization:

28. 1.28 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Management and control in a global marketplace IS provides: communication and analytical power to conduct trade and manage businesses globally. Communicating with distributors and suppliers, Operating 24 hours a day in different national environments Competition in world markets Customers now can shop in a worldwide marketplace, obtaining price and quality information reliably 24 hours a dayCustomers now can shop in a worldwide marketplace, obtaining price and quality information reliably 24 hours a day WHY INFORMATION SYSTEMS? Globalization:

29. 1.29 © 2006 by Prentice Hall Modified By Nooran Alsalman Global workgroups Global delivery systems Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Globalization:

30. 1.30 © 2006 by Prentice Hall Modified By Nooran Alsalman Knowledge and information work now account for a significant 60 percent of the American gross national product and nearly 55 percent of the labor force. Knowledge- and information-based economies, Sales, education, healthcare, banks, insurance firms, and law firms Manufacturing has been moving to low-wage countries Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Rise of the Information Economy:

31. 1.31 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Knowledge and information-based economies Dow Jones News Service, and America OnlineNew products and services, Dow Jones News Service, and America Online Knowledge- and information-intense products, computer gamesKnowledge- and information-intense products, computer games Knowledge as a central productive and strategic asset WHY INFORMATION SYSTEMS? Rise of the Information Economy:

32. 1.32 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm The Growth of the Information Economy Figure 1-3 WHY INFORMATION SYSTEMS? Source: U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 2003, Table 615; and Historical Statistics of the United States, Colonial Times to 1970, Vol. 1, Series D, pp. 182-232.

33. 1.33 © 2006 by Prentice Hall Modified By Nooran Alsalman The intensive use of information technology in business firms since the mid-1990s, coupled with equally significant organizational redesign, created the conditions for a new phenomenon in industrial society—the fully digital firm A digital firm Digitally-enabled relationships with customers, suppliers, and employees Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Emergence of the Digital Firm:

34. 1.34 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Digitally enabled relationships with customers, suppliers, and employees Core business processes(The unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service) accomplished via digital networksCore business processes(The unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service) accomplished via digital networks Digital management of key corporate assets WHY INFORMATION SYSTEMS? Emergence of the Digital Firm:

35. 1.35 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Rapid sensing and responding to environmental changes Seamless flow of information within the firm, and with strategic partners For managers of digital firms, information technology is not simply an enabler, but rather it is the core of the business and the primary management tool.For managers of digital firms, information technology is not simply an enabler, but rather it is the core of the business and the primary management tool. WHY INFORMATION SYSTEMS? Emergence of the Digital Firm (Continued):

36. 1.36 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm The Emerging Digital Firm Figure 1-4 WHY INFORMATION SYSTEMS?

37. 1.37 © 2006 by Prentice Hall Modified By Nooran Alsalman 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

38. 1.38 © 2006 by Prentice Hall Modified By Nooran Alsalman 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

39. 1.39 © 2006 by Prentice Hall Modified By Nooran Alsalman PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Data and Information Figure 1-5

40. 1.40 © 2006 by Prentice Hall Modified By Nooran Alsalman INPUT OUTPUT PROCESS FEEDBACK Activities in an Information System Captures or collects raw data from within the organization or from its external environment Converts this raw input into a meaningful form. Transfers the processed information to the people who will use it or to the activities for which it will be used Output that is returned to appropriate members of the organization to help them evaluate or correct the input stage PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm

41. 1.41 © 2006 by Prentice Hall Modified By Nooran Alsalman PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Functions of an Information System Figure 1-6

42. 1.42 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Rely on computer hardware and softwareRely on computer hardware and software Processing and disseminating informationProcessing and disseminating information Fixed definitions of data and proceduresFixed definitions of data and procedures Collecting, storing, and using informationCollecting, storing, and using information PERSPECTIVES ON INFORMATION SYSTEMS Computer-Based Information System (CBIS)

43. 1.43 © 2006 by Prentice Hall Modified By Nooran Alsalman Difference Between Computer/Program and IS There is difference between a computer and a computer program on the one hand and an information system on the other. Computers and related software programs are the technical foundation, the tools and materials, of modern information systems.

44. 1.44 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Information systems are an organizational and management solution to business challenges that arise from the business environment.Information systems are an organizational and management solution to business challenges that arise from the business environment. PERSPECTIVES ON INFORMATION SYSTEMS Information systems are more than just technology. Businesses invest in IS in order to create value and increase profitability. A Business Perspective on Information Systems

45. 1.45 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Based on information technology but also require significant investment in organizational and management changes and innovationsBased on information technology but also require significant investment in organizational and management changes and innovations IS create value primarily by changing business processes and management decision making.IS create value primarily by changing business processes and management decision making. PERSPECTIVES ON INFORMATION SYSTEMS A Business Perspective on Information Systems (Continued)

46. 1.46 © 2006 by Prentice Hall Modified By Nooran Alsalman From a business perspective, information systems are part of a series of value adding activities, transforming and distributing information that managers can use to improve decision making enhancing organisational performance and increase profitability Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS Business information value chain

47. 1.47 © 2006 by Prentice Hall Modified By Nooran Alsalman PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm The Business Information Value Chain Figure 1-7

48. 1.48 © 2006 by Prentice Hall Modified By Nooran Alsalman PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Information Systems Are More than Computers Figure 1-8

49. 1.49 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Information systems literacy: Broad-based understanding of information systems that includes behavioral knowledge about organizations, management and individuals using information systems as well as technical knowledge about computersInformation systems literacy: Broad-based understanding of information systems that includes behavioral knowledge about organizations, management and individuals using information systems as well as technical knowledge about computers Computer literacy: Knowledge about information technology, focusing on understanding how computer technologies workComputer literacy: Knowledge about information technology, focusing on understanding how computer technologies work PERSPECTIVES ON INFORMATION SYSTEMS

50. 1.50 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Three Important Dimensions of Information Systems Organizations Managers Technology PERSPECTIVES ON INFORMATION SYSTEMS You will need to understand and balance these dimensions of information systems in order to create business value. Dimensions of Information Systems

51. 1.51 © 2006 by Prentice Hall Modified By Nooran Alsalman An organization coordinates work through a structured hierarchy and formal, standard operating procedures. The hierarchy arranges people in a pyramid structure of rising authority and responsibility. An Organization’s structures reveal a clear-cut division of labor. Experts are employed and trained for different business functions The Organization Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS

52. 1.52 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Key Elements of an organization are: People: Managers, knowledge workers, data workers, production or service workersPeople: Managers, knowledge workers, data workers, production or service workers Structure: Organization chart, groups of specialists, products, geographyStructure: Organization chart, groups of specialists, products, geography PERSPECTIVES ON INFORMATION SYSTEMS The Organization

53. 1.53 © 2006 by Prentice Hall Modified By Nooran Alsalman Operating procedures: Standard operating procedures (SOP, rules for action) Politics: Different levels and specialties in an organization create different interests and points of view. These views often conflict. Culture:Each organization has a unique culture, or fundamental set of assumptions, values, and ways of doing things, that has been accepted by most of its members. Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS The Organization

54. 1.54 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm major business functions (specialized tasks performed by business organizations) rmajor business functions (specialized tasks performed by business organizations) rely on Information Systems Sales and marketingSales and marketing ManufacturingManufacturing FinanceFinance AccountingAccounting Human resourcesHuman resources PERSPECTIVES ON INFORMATION SYSTEMS Major Business Functions Rely on Information Systems

55. 1.55 © 2006 by Prentice Hall Modified By Nooran Alsalman Managers perceive business challenges in the environment. They set the organizational strategy for responding and allocating the human and financial resources to achieve the strategy and coordinate the work. Management Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS

56. 1.56 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Managers are: Sense makersSense makers Decision makersDecision makers PlannersPlanners Innovators of new processesInnovators of new processes Leaders: set agendasLeaders: set agendas PERSPECTIVES ON INFORMATION SYSTEMS Management

57. 1.57 © 2006 by Prentice Hall Modified By Nooran Alsalman Levels: Senior managers: make long-range strategic decisions about products and services Middle managers: Carry out the programs and plans of senior management Operational managers: monitor the firm’s daily activities Each level of management has different information needs and information system requirements. Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS Management

58. 1.58 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm PERSPECTIVES ON INFORMATION SYSTEMS Managers who can understand the role of information systems in creating business value are the key ingredient to success with systems, and cannot easily be replicated by your competitors. Management

59. 1.59 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Hardware: Physical equipmentHardware: Physical equipment Software: Detailed preprogrammed instructionsSoftware: Detailed preprogrammed instructions Storage: Physical media for storing data and the softwareStorage: Physical media for storing data and the software PERSPECTIVES ON INFORMATION SYSTEMS Information technology is one of the tools managers use to cope with change: The Technology Dimension of Information Systems

60. 1.60 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Communications technology: Transfers data from one physical location to anotherCommunications technology: Transfers data from one physical location to another Networks: Links computers to share data or resourcesNetworks: Links computers to share data or resources PERSPECTIVES ON INFORMATION SYSTEMS The Technology Dimension of Information Systems (Continued) Managers need to know enough about information technology to make intelligent decisions about how to use it for creating business value.

61. 1.61 © 2006 by Prentice Hall Modified By Nooran Alsalman 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 and Organizational Capital

62. 1.62 © 2006 by Prentice Hall Modified By Nooran Alsalman Management Information Systems Chapter 1 Managing the Digital Firm Supportive business culture that values efficiency and effectiveness Efficient business processes, decentralization of authority Highly distributed decision rights A strong information system (IS) development team PERSPECTIVES ON INFORMATION SYSTEMS Organizational capital:

63. 1.63 © 2006 by Prentice Hall Modified By Nooran Alsalman PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm Variation in Returns on Information Technology Investment Figure 1-9 Source: Based on Erik Brynjolfsson and Lorin M. Hitt, “Beyond Computation: Information Technology, Organizational Transformation and Business Performance.” Journal of Economic Perspectives 14, no. 4 (Fall 2000). Used with permission of the American Economic Association.

64. 1.64 © 2006 by Prentice Hall Modified By Nooran Alsalman Sociologists: how groups and organizations shape the development of systems and also how systems affect individuals, groups, and organizations. Psychologists :how human decision makers perceive and use formal information. Economists :what impact systems have on control and cost structures within the firm and within markets. CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm

65. 1.65 © 2006 by Prentice Hall Modified By Nooran Alsalman Computer science: is concerned with establishing theories of computability, methods of computation, and methods of efficient data storage and access. Management science: emphasizes the development of models for decision-making and management practices. Operations research: focuses on mathematical techniques for optimizing selected parameters of organizations such as transportation, inventory control, and transaction costs. CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm

66. 1.66 © 2006 by Prentice Hall Modified By Nooran Alsalman Technical Approach Behavioural Approach CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS PERSPECTIVES ON INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm

67. 1.67 © 2006 by Prentice Hall Modified By Nooran Alsalman 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

68. 1.68 © 2006 by Prentice Hall Modified By Nooran Alsalman CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS Management Information Systems Chapter 1 Managing the Digital Firm A Sociotechnical Perspective on Information Systems Figure 1-11