1. The Management Framework
Company Senior Management
CIO MIS Director D.P. Manager
Users (Managers and Staff)
Environment
IT Staff

2. CHALLENGE OF INFO SYSTEMS
STRATEGIC: COMPETITIVE & EFFECTIVE
GLOBALIZATION: MULTINATIONAL INFO
INFO ARCHITECTURE: SUPPORT GOALS
INVESTMENT: VALUE OF INFORMATION
RESPONSIBILITY & CONTROL: ETHICS *
1.28

3. Five Forces To Determine Industry Profitability
New Entrants
Threat of New Entrants
Industry Competitors
Bargaining Power of Suppliers
Bargaining Power of Buyers
Suppliers
Buyers
Rivalry Among Existing Firms
Threat of Substitute Products or Services
Substitutes
Source: Porter, M., Competitive Advantage, NY: The Free Press, 1985

4. The Value Chain N I G R A M Firm Infrastructure M A R G I N
Human Resources Management
Technology Development
Procurement
N I G R A M
Inbound Logistics
Operations
Outbound Logistics
Marketing & Sales
Service
Source: Porter, M., Competitive Advantage, NY: The Free Press, 1985

5. STRATEGIC QUESTIONS Can IT build barriers to entry?
Can IT build in switching costs?
Can IT strengthen customer relationships?
Can IT change the balance of power in supplier relationships?
Can IT change intra-industry competitive balance?
Can IT change the basis of competition?
Can IT generate new products?
Source: Cash, J. I., McFarlan, F. W., McKenney, J. L., and Applegate, L. M., Corporate Information Systems Management: Text and Cases, Homewood, IL, 1992.

6. BUSINESS-LEVEL STRATEGY
PRODUCT DIFFERENTIATION
FOCUSED DIFFERENTIATION
DATAMINING
SUPPLY CHAIN MANAGEMENT
EFFICIENT CUSTOMER RESPONSE
ENHANCING CORE COMPETENCIES *
2.24

7. A Framework for Analyzing IT Impact on Organizations
CONTEXT
External
Environment
Industry Structure
Rate of Change
Competitive Intensity Organization
History
Current State
Industry Position
Competitive Benchmarks Resources
People/ Leadership
Technology
Capital
Culture Stimulus for Change
Type
Urgency
Clarity
Shared Understanding
EXECUTION
ORGANIZATION EFFECTIVENESS MEASURES
Organization
Structure
Process
Time
Quality
Cost
Innovation
Stakeholder
Customer/ Supplier
Employee Satisfaction
Shareholder Satisfaction
Results
Market Share
Financial ROE P/E
Strategy
People
Work
Technology
Management
Control
Processes
Culture
Competitive Benchmarks
Source: Applegate, L.M., IT-Enabled Business Transformation, Boston: HBS Publishing, 1992

8. ENVIRONMENT FUNCTIONS OF AN INFORMATION SYSTEM Customers Suppliers
INPUT
OUTPUT
PROCESS
FEEDBACK
INFORMATION SYSTEM
ENVIRONMENT
Customers Suppliers
Regulatory Stockholders Competitors
Agencies
ORGANIZATION
1.12

9. THE INFORMATION RESOURCE
INTERNAL &
EXTERNAL DATA
COLLECTION
& STORAGE
COMMUNICATION
LINKS
DATA
TRANSFORMATION
PROCESS
INFORMATION
Plan
Control
Operate

10. MAJOR TYPES OF SYSTEMS 2.6 EXECUTIVE SUPPORT SYSTEMS (ESS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
DECISION SUPPORT SYSTEMS (DSS)
KNOWLEDGE WORK SYSTEMS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING SYSTEMS (TPS) *
2.6

11. INTERRELATIONSHIPS AMONG SYSTEMS
ESS
MIS
DSS
KWS OAS
TPS
SCADA
2.22

12. TYPES OF INFORMATION SYSTEMS
DATA WORKERS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR MANAGERS
MANAGEMENT LEVEL MIDDLE MANAGERS
OPERATIONAL OPERATIONAL LEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCES
MARKETING
2.5

13. TPS DATA FOR MIS APPLICATIONS
MIS FILES
SALES DATA
UNIT PRODUCT COST
PRODUCT CHANGE DATA
EXPENSE DATA
REPORTS
MANAGERS
TPS
Order Processing
System
Materials Resource
Planning System
General Ledger
ORDER FILE
PRODUCTION MASTER FILE
ACCOUNTING FILES
2.17

14. LEARNING OBJECTIVES DESCRIBE CHARACTERISTICS OF ORGANIZATIONS
RELATE INFO SYSTEMS TO ORGANIZATIONS
COMPARE MODELS DESCRIBING SYSTEM ORIGINS *
3.2

15. LEARNING OBJECTIVES COMPARE THEORIES OF ORGANIZATIONS
ANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATION
DESCRIBE IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATION *
3.3

16. MANAGEMENT CHALLENGES
DIFFICULTIES OF MANAGING CHANGE
ADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL FIT *
3.4

17. TRANSFORMATION KNOWLEDGE-BASED ECONOMIES PRODUCTIVITY
NEW PRODUCTS & SERVICES
KNOWLEDGE AS AN ASSET
TIME-BASED COMPETITION
SHORTER PRODUCT LIFE
TURBULENT ENVIRONMENT
LIMITED EMPLOYEE KNOWLEDGE BASE *
1.7

18. TRANSFORMATION OF ENTERPRISE
FLATTENING
DECENTRALIZATION
FLEXIBILITY
LOCATION INDEPENDENCE
LOW TRANSACTION COSTS
EMPOWERMENT
COLLABORATIVE WORK *
1.8

19. ORGANIZATIONS & INFORMATION TECHNOLOGY
MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance
ORGANIZATIONS
INFORMATION TECHNOLOGY
3.5

20. IMPLEMENTING CHANGE TASK PEOPLE TECHNOLOGY STRUCTURE RESISTANCE
Source: Leavitt, Handbook of Organization (1965)
TASK
PEOPLE
TECHNOLOGY
STRUCTURE
RESISTANCE
MUTUAL ADJUSTMENT
3.25

21. LEARNING OBJECTIVES EVALUATE SCHOOLS OF MANAGEMENT THINKING
DESCRIBE LEVELS, TYPES, STAGES OF DECISION MAKING
COMPARE INDIVIDUAL & ORGANIZATIONAL DECISION MAKING *
4.2

22. LEARNING OBJECTIVES ASSESS CHANGING MANAGEMENT PROCESS
EXPLAIN HOW INFO SYSTEMS AID MANAGERS & DECISION MAKING *
4.3

23. MANAGEMENT CHALLENGES
WHAT MANAGERS DO
INTRODUCTION TO DECISION MAKING
INDIVIDUAL MODELS OF DECISION MAKING
HOW INFORMATION TECHNOLOGY HAS CHANGED MANAGEMENT PROCESS *
4.4

24. ROLE OF MANAGERS INTERPERSONAL: Figureheads, leaders, liaison
INFORMATIONAL: Receive & disseminate critical information
DECISIONAL: Initiate activities, handle disturbances, allocate resources, negotiate conflicts *
3.28

25. LEVELS OF DECISION MAKING
STRATEGIC: Long-term objectives; resources; policies
MANAGEMENT CONTROL: Monitor use of resources; performance
KNOWLEDGE-LEVEL: Evaluate potential innovations; knowledge
OPERATIONAL: How to carry out specific day-to-day tasks *
4.19

26. TYPES OF DECISIONS
STRUCTURED: Repetitive; routine; definite procedure; certainty
SEMISTRUCTURED: One or more factors not structured; risk
UNSTRUCTURED: Unique; non-routine; uncertainty; requires judgment *
4.20

27. INFO SYSTEMS, LEVELS, DECISIONS
TPS
OAS
MIS
KWS
DSS
ESS
ORGANIZATIONAL LEVEL
TYPE OF
DECISION
OPERATIONAL
KNOWLEDGE
MANAGEMENT
STRATEGIC
STRUCTURED
ACCOUNTS
RECEIVABLE
ELECTRONIC
PRODUCTION
SCHEDULING
COST OVERRUNS
SEMI-
BUDGET
PREPARATION
PROJECT
FACILITY
LOCATION
UNSTRUCTURED
PRODUCT DESIGN
NEW PRODUCTS
NEW MARKETS
4.21

28. DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING *

29. DECISION SUPPORT SYSTEM

30. GROUP DECISION-SUPPORT SYSTEM (GDSS)
INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED PROBLEMS BY DECISION MAKERS WORKING AS GROUP *

31. LEARNING OBJECTIVES EXPLAIN ORGANIZATIONAL KNOWLEDGE MANAGEMENT
DESCRIBE USEFUL APPLICATIONS FOR DISTRIBUTING, CREATING, SHARING KNOWLEDGE
EVALUATE ROLE OF ARTIFICIAL INTELLIGENCE IN KNOWLEDGE MANAGEMENT *

32. LEARNING OBJECTIVES
DEMONSTRATE HOW ORGANIZATIONS USE EXPERT SYSTEMS, CASE-BASED REASONING TO CAPTURE KNOWLEDGE
DEMONSTRATE HOW NEURAL NETWORKS & OTHER TECHNIQUES IMPROVE KNOWLEDGE BASE *

33. KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
SYSTEMATICALLY & ACTIVELY
MANAGING AND LEVERAGING
STORES OF KNOWLEDGE
IN AN ORGANIZATION *

34. KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Office Automation Systems (OAS)
Knowledge Work Systems (KWS)
Group Collaboration Systems (GCS)
Artificial Intelligence Applications (AI) *

35. CREATE KNOWLEDGE KNOWLEDGE WORK SYSTEMS:
INFORMATION SYSTEMS THAT AID KNOWLEDGE WORKERS TO CREATE, INTEGRATE NEW KNOWLEDGE IN ORGANIZATION *

36. CAPTURE & CODIFY KNOWLEDGE ARTIFICIAL INTELLIGENCE (AI) SYSTEMS:
AI: COMPUTER-BASED SYSTEMS WITH ABILITIES TO LEARN LANGUAGE, ACCOMPLISH TASKS, USE PERCEPTUAL APPARATUS, EMULATE HUMAN EXPERTISE & DECISION MAKING *

37. CAPTURE & CODIFY KNOWLEDGE ARTIFICIAL INTELLIGENCE (AI) SYSTEMS:
EXPERT SYSTEMS
NEURAL NETS
FUZZY LOGIC
GENETIC ALGORITHMS
INTELLIGENT AGENTS *

38. AI AI FAMILY NATURAL LANGUAGE ROBOTICS PERCEPTIVE SYSTEMS EXPERT
INTELLIGENT
MACHINES
ARTIFICIAL
INTELLIGENCE

39. BUSINESS INTERESTS IN AI
PRESERVE EXPERTISE
CREATE KNOWLEDGE BASE
MECHANISM NOT SUBJECT TO FEELINGS, FATIGUE, WORRY, CRISIS
ELIMINATE ROUTINE / UNSATISFYING JOBS
ENHANCE KNOWLEDGE BASE *

40. THE CHANGING MANAGEMENT PROCESS
ENTERPRISE RESOURCE PLANNING (ERP)
ELECTRONIC COMMERCE
ELECTRONIC BUSINESS
ELECTRONIC MARKET *
1.23

41. LEARNING OBJECTIVES
DEMONSTRATE HOW INTERNET TECHNOLOGY USED FOR INTRA- AND INTERORGANIZATIONAL ELECTRONIC BUSINESS
EXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETY *
10.3

42. VIRTUAL ORGANIZATION MANUFACTURING COMPANY DESIGN COMPANY CORE COMPANY
SALES & MARKETING
COMPANY
LOGISTICS
COMPANY
FINANCE COMPANY
1.27

43. CHALLENGES & OPPORTUNITIES
UNPROVEN BUSINESS MODELS
BUSINESS PROCESS CHANGE REQUIREMENTS
CHANNEL CONFLICTS
TECHNOLOGY HURDLES
LEGAL ISSUES
SECURITY & PRIVACY *
10.33

44. GLOBALIZATION MANAGEMENT & CONTROL COMPETITION IN WORLD MARKETS
GLOBAL WORK GROUPS
GLOBAL DELIVERY SYSTEMS *
1.6

45. LEARNING OBJECTIVES
IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION
COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS
DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES *

46. INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE
GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES
CORPORATE GLOBAL STRATEGIES
ORGANIZATIONAL STRUCTURE
MANAGEMENT & BUSINESS PROCEDURES
TECHNOLOGICAL PLATFORM
INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

47. IT-Enabled Business Transformation Module
Scope of Change
Inter- Organization
Function
Organization
Anticipatory
Stimulus
for
Change
Crisis
Source: Applegate, L.M., IT-Enabled Business Transformation, Boston: HBS Publishing, 1992

48. “The modern age has a false sense of superiority because of the great mass of data at its disposal. The valid criterion of distinction is (not the quantity of data available but) rather the extent to which man knows how to form and master the materials at his command.”