1. 1.1 1 1 MANAGING THE DIGITAL FIRM DIGITAL FIRM Chapter

2. 1.2 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Figure 1-1 Labor Force Composition 1900-1997 WHY INFORMATION SYSTEMS?

3. 1.3 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Transformation of the Business Enterprise FlatteningFlattening DecentralizationDecentralization FlexibilityFlexibility Location independenceLocation independence Low transaction and coordination costsLow transaction and coordination costs EmpowermentEmpowerment Collaborative work and teamworkCollaborative work and teamwork The Competitive Business Environment and the Emerging Digital Firm

4. 1.4 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm WHY INFORMATION SYSTEMS? Emergence of the Digital Firm Digitally-enabled relationships with customers, suppliers, and employeesDigitally-enabled relationships with customers, suppliers, and employees Core business processes accomplished via digital networksCore business processes accomplished via digital networks Digital management of key corporate assetsDigital management of key corporate assets Rapid sensing and responding to environmental changesRapid sensing and responding to environmental changes The Competitive Business Environment and the Emerging Digital Firm

5. 1.5 A set of interrelated components that collect (or retrieve), process, store, and distribute (or retrieve), process, store, and distribute information to support decision making and control in an organization Essentials of Management Information Systems Chapter 1 Managing the Digital Firm What Is an Information System? WHY INFORMATION SYSTEMS?

6. 1.6 Data: Streams of raw facts representing events such as business transactionsData: Streams of raw facts representing events such as business transactions Information: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisionsInformation: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisions Essentials of Management Information Systems Chapter 1 Managing the Digital Firm What Is an Information System? WHY INFORMATION SYSTEMS?

7. 1.7 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Figure 1-2 Data and Information WHY INFORMATION SYSTEMS? What Is an Information System?

8. 1.8 INPUTOUTPUTPROCESS FEEDBACK Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Activities in an Information System WHY INFORMATION SYSTEMS?

9. 1.9 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Functions of an Information System WHY INFORMATION SYSTEMS? Figure 1-3

10. 1.10 Rely on computer hardware and softwareRely on computer hardware and software Processing and disseminating informationProcessing and disseminating information Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Computer-Based Information System (CBIS) WHY INFORMATION SYSTEMS?

11. 1.11 Key Elements: 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 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Organizations WHY INFORMATION SYSTEMS?

12. 1.12 Operating procedures: Standard operating procedures (SOP, rules for action)Operating procedures: Standard operating procedures (SOP, rules for action) Politics: Power to persuade, get things donePolitics: Power to persuade, get things done Culture: Customs of behaviorCulture: Customs of behavior Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Organizations WHY INFORMATION SYSTEMS?

13. 1.13 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY COMPUTERSCIENCE OPERATIONSRESEARCH MANAGEMENTSCIENCE TECHNICAL APPROACHES MIS BEHAVIORAL APPROACHES Figure 1-5

14. 1.14 Optimize systems performance: Technology and organizationTechnology and organization Organizations mutually adjust to one another until fit is satisfactoryOrganizations mutually adjust to one another until fit is satisfactory Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Socio-Technical Systems CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

15. 1.15 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm TOWARD THE DIGITAL FIRM The Interdependence Between Organizations and Information Systems Figure 1-7

16. 1.16 1950s: Technical changes1950s: Technical changes 60s-70s: Managerial controls60s-70s: Managerial controls 80s-90s: Institutional core activities80s-90s: Institutional core activities Growing Importance Essentials of Management Information Systems Chapter 1 Managing the Digital Firm THE NETWORK REVOLUTION AND THE INTERNET The Widening Scope of Information Systems

17. 1.17 Communicate and collaborateCommunicate and collaborate Access informationAccess information Participate in discussionsParticipate in discussions Supply informationSupply information Find entertainmentFind entertainment Exchange business transactionsExchange business transactions Essentials of Management Information Systems Chapter 1 Managing the Digital Firm TOWARD THE DIGITAL FIRM What You Can Do on the Internet

18. 1.18 Flattening organizationsFlattening organizations Separating work from locationSeparating work from location Reorganizing work-flowsReorganizing work-flows Increasing flexibilityIncreasing flexibility Redefining organizational boundariesRedefining organizational boundaries Essentials of Management Information Systems Chapter 1 Managing the Digital Firm TOWARD THE DIGITAL FIRM New Options for Organizational Design

19. 1.19 Electronic commerceElectronic commerce Electronic businessElectronic business Electronic market: Information systems links, buyers and sellers to exchange information, products, services, paymentsElectronic market: Information systems links, buyers and sellers to exchange information, products, services, payments Essentials of Management Information Systems Chapter 1 Managing the Digital Firm TOWARD THE DIGITAL FIRM The Digital Firm

20. 1.20 Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Figure 1-11 TOWARD THE DIGITAL FIRM

21. 1.21 Internet links buyers, sellersInternet links buyers, sellers Lower transaction costsLower transaction costs Goods and services advertised, bought, exchanged worldwideGoods and services advertised, bought, exchanged worldwide Business-to-business transactions increasingBusiness-to-business transactions increasing Essentials of Management Information Systems Chapter 1 Managing the Digital Firm TOWARD THE DIGITAL FIRM Electronic Commerce

22. 1.22 Internet: Business builds private, secure networkInternet: Business builds private, secure network E-mail, Web documents, group software: Extends effective communication and controlE-mail, Web documents, group software: Extends effective communication and control Extranet: Extension of intranet to authorized external usersExtranet: Extension of intranet to authorized external users Essentials of Management Information Systems Chapter 1 Managing the Digital Firm Electronic Business TOWARD THE DIGITAL FIRM

23. 1.23 1 1 MANAGING THE DIGITAL FIRM DIGITAL FIRM Chapter