1. CHAPTER 2 Information Systems: Concepts and Management

2. CHAPTER OUTLINE Types of Information Systems Why We Use Information Systems Competitive Advantage and Strategic Information Systems (SIS) 2

3. 2.1 Type of Information Systems: Inside an Organization 3

4. Type of Information Systems: Outside an Organization  Supply Chain Management  Electronic Commerce 4

5. Why We Use Information Systems 1. Improve operational efficiency 2. Support organizational learning 3. Achieve competitive advantages 5

6. Improving Operational Efficiency Doing things faster and cheaper Result: increased productivity Efficiency = Amount of Output Amount of Input  Being efficient is different from being effective Effectiveness = Goals Achieved Planned Goals 6 Efficiency – doing things the right way Effectiveness – doing the right thing

7. Support Organizational Learning Gain Business Intelligence (BI) Understand and improve business processes Understand Markets and Customers Allow better decision-making (to be more effective) 7

8. Achieve Competitive Advantages  Determine the organizational strategy  Leverage IS/IT to help achieve defined strategy  Technologies can be disruptive so companies must keep reinventing themselves 8

9. Competitive Advantage and Strategic Information Systems Michael Porter’s competitive forces model (Porter, 1985) 9

10. Porter’s Value Chain Model 10 Primary Activities

11. Sources of Competitive Advantages Cost Leadership Differentiation Innovation Customer-orientation 11

12. Industrial Robots See video of warehouse robots at workvideo 12