MIS-Chat-1 managing the digital firm of mangement information system

8/7/2019 MIS-Chat-1 managing the digital firm of mangement information system

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MANAGING THEMANAGING THEDIGITAL FIRMDIGITAL FIRM

OBJECTIVES

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Chapter # 1Chapter # 1


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Management, Information, and System. (Data Vs Information) What exactly is an information system?

What are the functions of information systems?

What are the roles of information systems in todays

competitive business environment? Do you think that information system can help your

careers?

What are the major management challenges to building

and using information systems? Dimensions of Information Technologies.

OBJECTIVES

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Topicsto becovered

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sdfkljslkfjlWhat is Management? Management = Manage + Men + T (Tactfully)i.e. manage people tactfully.

Management is an art of getting things donethrough others. defined by Rue and Byars.

Management is what a manager does. The majorresponsibilities of a manager are to

- make policies or plans or take decisions,- collect resources and allocate those resources accordingto the demand or requisitions of the people ordepartments of org.,- guide people in the right direction and make them

efficient,- finally monitor the people and overall activities.

Management is the process of planning, organizing, leadingand controlling the organizations human, physical, financialand information resources for achieving the goals of the

organization effectively and efficiently. Ricky W. Griffin.


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Chapter 1

Whatis Information?

By information, we mean data that have been shaped into a form thatis meaningful and useful to human beings. Data, in contrast, are set ofraw facts and figures representing events occurring in organizationsor the physical environment. Information is summarized data orprocessed data. Show the figure

Data Information

Beauty soap 1050 units @ Tk.13.40Cost @ Tk. 12.50; Laundry soap 1750 Item Units Sold Total Sales G. Profitunits @ Tk. 12.75, cost @ Tk.11.25; Soap &Detergent powder 1260 packets Detergent 4060 Tk.59818.50 Tk. 6468.0@ Tk. 18.60, cost @ Tk. 16.30

Figure: Data & Information

Inf.Sys.


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Whatis System?

System is an organized assembly of components withspecial relationships between the components. In asystem, all the components work together to attain aspecific goals. For example, a business organization is a

social system. Several departments work together toachieve its common goal. Our human body is a perfectexample of system.


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A set of interrelated components that collect (or retrieve),process, store, and distribute information to supportdecision making and control in an organization.

Information system produces the information thatorganizations need to make decisions, control theoperations, analyze problems, and create new productsor services.

Information systems transform raw data into usefulinformation through three basic activities: input,processing, and output. From business point of view, aninformation system provides a solution to a problem orchallenge facing a firm and provides real economic value

to the business.

What Isan Information System?

Chapter 1

What Isan Information System?


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It can be manual or computer based. Generally,information system means computer based informationsystem. It is concerned with collecting data, processing itinto information, and storing the information for futurereference and makes a result or output. This is consisted of

five components: hardware, software, data/information,procedures, and people.

Functions of Information System:

Three activities in an organization system are to producethe information that organizations need to make decisions,control operations, analyze problems and create newproducts or services. These activities are input, processing,and output.

Chapter 1


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Functions of an Information System

Figure 1-3

Chapter 1


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Functions of Information System:Input: Input captures or collects raw data within theorganization or from its external environment.

Processing: Processing converts this raw input into

meaningful information.Output: Output transfers the processed information to thepeople who will use it or to the activities for which it willbe used.

Feedback: Information systems also require feedback,which is output that is returned to appropriate members ofthe organization to help them to evaluate or correct theinput stage.

Chapter 1


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Roles ofinformationsystemsintodayscompetitivebusinessenvironment?

Information systems are the foundation for conductingbusiness today. In many industries, survival and even

existence is difficult without extensive use of informationtechnology. Information systems have become essential forhelping organizations operate in a global economy.

There are four powerful worldwide changes that make the

business enterprises to apply information systems:1.Emergence of the Global Economy

2.Transformation of Industrial Economies

3.Transformation of the Business Enterprise

4.The Emerging Digital Firm

WHY INFORMATION SYSTEMS?

Chapter 1


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1. Emergence of the Global Economy:The success of a firm today and in the future dependson their ability to operate globally. Today, informationsystems provide the communication and analytical

power that a firm needs for conducting trade andmanaging business on a global scale. Powerfulinformation system is required for facing the businesschallenges like --

a) Management and control in a global marketplaceb) Competition in world markets

c) Global work groups

d) Global delivery systems

Chapter 1


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2. Transformation of Industrial Economies:Major industrial powers are being transformed fromindustrial economics to knowledge and information-basedservices economics. Where as manufacturing has been

moving to low wages countries. In a knowledge andinformation-based economy, knowledge and information arekey ingredients/factors in creating wealth. Informationsystem assists a firm in the following issues:

a) Knowledge- and information-based economiesb) Productivity

c) New products and services

d) Knowledge: a central productive and strategic asset

Chapter 1


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e) Time-based competitionf) Shorter product lifeg) Turbulent environmenth) Limited employee knowledge base

3. Transformation of the Business Enterprise:There has been a transformation in organizing and managingthe business enterprises. Many firms have begun to takeadvantages from this transformation. The traditionalbusiness firm was and still is a hierarchical, centralized,structured arrangement of specialists. They rely on a fixedset of standard operating procedures. Moreover thetraditional management group relied and still relies onformal plans, a rigid division of labor, and formal rules andregulations.

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The new style of business firm is to apply the followingaspects because of information technology:

a) Flattening

b) Decentralization

c) Flexibility

d) Location independence

e) Low transaction and coordination costs

f) Empowerment

g) Collaborative work and teamwork

Chapter 1


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4. Emergence of the Digital Firm:The digital firm can be defined from several point of

views. A digital firm is one where nearly all of theorganization's significant business processes and

relationships with customers, suppliers, and employees aredigitally enabled and key corporate assets are managedthrough digital means.

Here, business processes refer to the unique manner inwhich work is organized, coordinated, and focused to

produce a valuable product or services. Developing a newproduct, generating and fulfilling an order, or hiring anemployees are the examples of business processes.

Key corporate assets include - intellectual properties, core

competencies, and financial and human resources.

Chapter 1


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Q - Do you thinkthatinformationsystemcanhelp yourcareers?All firms today, large and small, local and global, useinformation systems to achieve important businessobjectives, such as operational efficiency, customer and

supplier intimacy, better decision making, and newproducts and services. You should need to know how touse information systems and technologies to help yourcareer for solving the problems and overcoming the

challenges:1. If your career is in finance or accounting, you will needinformation systems to summarize transactions, organizedata, and performance analysis.

Chapter 1


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2. If your career is in human resources or management youwill need information systems to communicate withemployees, maintain employee records, and coordinatework activities.

3. If your career is in information systems, you will be

working with management and other businessprofessionals to develop and support new systems thatserve the needs of the business.

4. If your career is in manufacturing, production, oroperations management, you will need information

systems for planning, forecasting, and monitoringproduction and services.

5. If your career is in sales and marketing, you will needinformation systems for branding, promotions, processingorders, and providing customer service.

Chapter # 1


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Although information technology is advancing theworld, there are five key challenges confronting

managers:

1.The Strategic BusinessChallenges,

2.The GlobalizationChallenges,

3.Information Systems Investment

Challenges,4.The Responsibility andControl Challenge.

5.The Information ArchitectureandInfrastructureChallenges,

The Challenges of Information Systems :

Key Management Issues


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1.The Strategic Business Challenges: Creating adigital firm and obtaining benefits is a long anddifficult journey for most organizations. Despite heavyinvestments, many organizations are not benefiting

significantly from their systems. The power ofcomputer hardware and software has grown muchmore rapidly than the ability of organizations to applythe technology. So redesigned is must for most of the

organizations to achieve full benefits of informationsystems. This is a time consuming process. Because, itneeds fundamental changes in organizationalinfrastructure, models and behavior.

Chapter 1


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Chapter 1

2. The Globalization Challenges: The rapidgrowth in international trade and emergence of globaleconomy demand information systems that cansupport both producing and selling goods in many

different countries. Given language, cultural, andpolitical differences among countries can be greatsource of chaos and conflict in central managementcontrol. To develop integrated and multinational

information systems, business must develop globalhardware, software, and communications standards.These are not easy jobs to ensure equal standard forall.


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Chapter 1

3. Information Systems InvestmentChallenges:In business, cost-benefit analysis is a significantconsideration for management how information systemcontribute to corporate value. Some questions are verymuch relevant in this regard:

- How can organizations determine the businessvalue of information system?

- How can we evaluate our information system aswe do other investments?- Are we receiving the kind of return on investment

from our systems that we should be?- Do our competitors get more? Etc.

Most companies suffer by taking decision whichtechnology they apply and how much.


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Chapter 1

4. The Responsibility and Control Challenge:Although information systems have provided enormousbenefits and efficiencies, they have also created newproblems and challenges of which managers should beaware. The following tables describes some of theseproblems and challenges:

Benefits of Information System Negative Impact

1. Information system canperform much faster than people

1. Information systems has eliminatedjobs by automating activities that were

previously done by people.

2. Information system can helpcompanies to learn details about aperson or products or objects.

2. It violates the law of privacy since itmay allow organizations to collectpersonal details.


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Chapter 1

3. Information systems provide newefficiencies through services likeautomated teller machines (ATM),or telephone systems, or computer-

controlled airplanes and airterminals

3. Information systems are used in somany aspects of everyday life thatsystem can be the cause of shutdownof business or it can paralyze the

communities.

4. IS ( information systems) havemade possible new medicaladvances in surgery, and patientmonitoring.

4. Heavy users of IS may sufferrepetitive stress injury, techno stress,and other health problems

5. The Internet distributesinformation instantly to millions ofpeople across the world.

5. The Internet can be used todistribute illegal copies of software,books, articles, and other intellectualproperty.


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Chapter 1

5. The Information Architecture and InfrastructureChallenges: At present, an organization is bound to developan information architecture, and information technologyinfrastructure that can support their goals when businessconditions and technologies are changing so rapidly.

Information architecture is the particular form that informationtechnology takes in an organization to achieve selected goals orfunctions. It is designed for the firms key business applicationsystems and the specific ways that they are used by eachorganization.


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Information Systems

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

SYSTEMSSYSTEMS

Figure 1-5

Basic Dimensions of Information Technology


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Key Elements: People: Managers, knowledge workers, data workers,

production or service workers.

Structure: Organization chart , groups of specialists,products, geography.

Operatingprocedures: Standard operating procedures(SOP, rules for action)

Politics: Power to persuade others, get things done.

Culture: Customs of behavior.

Organizations


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Levels:

Seniormanagers: make long-range

strategic decisions about products andservices.

Middlemanagers: Carry out the programsand plans of senior management.

Operational managers: monitor the firmsdaily activities.

Management


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Hardware: Physical equipments.

Software: set of electronic instructions that tell hardware

what to do how to do. Storage: Physical media for storing data and the

software.

Communications Technology: transfers data from one

physical location to another.

Networks: link computers to share data or resources.

Users: People who use computer or technology.

Computer Technology

MIS-Chat-1 managing the digital firm of mangement information system

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