9343 BIS Addl Ppt 01 Strategic Importance

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1.Strategic Importance of IS 1

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Management Information System

Transcript of 9343 BIS Addl Ppt 01 Strategic Importance

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1.Strategic Importance of IS1Finally, IT is having a revolutionRestructuring impact is enormousAffects major changes in our life and workSpeed and capacityPervasiveness of InternetFocus is use of IT in managing and operating organizations2Themes of the present environmentThe new Economy: (E-Economy)Use of computers since 1950sEmergence of electronic economyNew terms popping up:E-commerce: handling commercial transactionsEbusiness: building relationships with consumers and other enterprises3The Internet:Technical infrastructure enabling e-economyFoundations started in early 1960sConsolidated in 1990s a global network of networksInterconnection + a set of protocols4Knowledge sharing and Knowledge Management:Transferring knowledge (asset) between peopleTransferring knowledge from peoples heads to lasting things processes, products, softwares5Two kinds of knowledge work:Process-based and goal basedEmphasis shifting from former to laterA major shift from Information access to Content Management filtering, synthesizing, assimilating knowledge resourcese.g., A detailed cost report6Management of ISThe process of managing technology becoming more important and more complex too.WHY ??Three major trends that impact IT management:

Responsibility of managing IT shifting from IS executives towards a collaborative effort rich partnerships among all senior executives

Role of IS dept shifting from application delivery to system integration and infrastructure development

Outsourcing is a way of life managing contracts and relationships with vendors7Mission of ISEarly Days: Transaction processing era:IS acted as paperwork factoriesObjective was productivity measures throughput and latencyMIS era:Producing MIS reports exception reporting, summary reports to all levels of managementObjective to get the right info to the right person at the right time8Present era:A broader focus is envisagedTo improve performance of people in organizations through use of ITObjective performance improvementFocus is peopleResource is IT910The Key (Whats it all about?)Technology is configured into systems that help manage information to improve organizational performance

1011The Organizational EnvironmentThe way IT is used depends on the environment surrounding the organization that uses itSimultaneously, technological advances affect the way IT is usedTech drives change or merely supports it ?IT and its use, and management co-evolve influencing each other1112The External Organizational EnvironmentWidely discussed in public and technical pressIT allows information to move faster, thus increasing the speed at which events take place and the pace at which individuals and organizations respond to events.Turbulent business world shorter product cycles, mega-bankruptcies..1. The Internet EconomyB2C, B2B etc.IT is a major underpinning of the way the old and new worlds interface12132. Global MarketplaceThe entire world has become the marketplace merger maniaThe Internet allows companies to work globally3 main operating arenas Asia/Pacific, Americas, and EuropeGlobalization is a two way streetInternet allows small firms to have a global reachBusiness environment is now global, but local tastes still matter13143. Business EcosystemsWeb of relationships surrounding one or a few companies PC ecosystem (Wintel), Internet, wireless communicationFollow biological rules more than industrial rules4. DecapitalizationTangible items, such as capital, equipment and buildings were the tenets of power in the industrial ageToday = power of intangibles such as ideas and knowledgeManaging talent = as important as e.g. managing finance14155. Faster Business Cycles Rely on ITAccelerate time to market, reduce cycle time 6. Accountability and TransparencyRise and fall of dot-coms probably should have been expectedMany business plans could not make $$$Debacle in Telco and business shenanigans have shaken investor confidenceCall for greater transparency of corporate operations and greater accountability of corporate officersIT will play a significant role in implementing the ensuing regulations and fostering transparency15167. Rising Societal Risks of ITIT has negatively affected millions of peopleNetwork shutdownsComputer virusesIdentity theftEmail scamsMovement of white collar jobs offshoreLed to increasing calls for Government regulation and for vendors and corporations to take action1617The Internal Organizational EnvironmentThe work environment is also changing, and the art of managing people is undergoing significant shifts1. From Supply-Push to Demand-PullOldCompanies did their best to figure out what customers wantedOrganized to build a supply of products or services and then push them out to end customers on stores shelves, in catalogs etc.1718New (Internet)Allows much closer and one-to-one contact between customer and sellerOffer customers the components of a product/service then the customer creates their own version by pulling what they wantMass customization reverse business processes to be customer-facingCollaboration and co-creation192. Self- ServiceATMs = early example1990s saw an increase in systems that let consumers access corporate computer systems to:Learn about productsPurchase productsInquire about ordersCommunicate and do business with the firme.g. FedEx parcel tracking leverages the Web19203. Real-Time Working (enterprise)Sales people have up-to-the-minute information about customersKnowing e.g. inventory and cash levels as the are NOW not as they were a week or a month agoBeing able to reach someone when you need themInstant messaging?4. Team-Based WorkingWorking together on one or more projectsGroupware20215. Anytime, Anyplace Information WorkConvergence of wireless and computing techs6. Outsourcing and Strategic AlliancesTo become more competitive, organizations are examining types of work that should be done internally or externally by othersRanges from a simple contract for services to a long-term strategic allianceThe thinking is: We should focus on what we do best and outsource the other functions to people who specialize in themNote = not new (especially in non-IT)Extended enterpriseAlso = some backlash 21227. The Demise of HierarchyTraditional hierarchical structure groups, several people performing the same type of work, overseen by a supervisorDivision of labour, chain of command and controlNo longer the most appropriate in factories or offices2223Hierarchical structures cannot cope with rapid changeCommunications up and down the chain of command takes too much time for todays environmentIT enables team-based organizational structures by facilitating rapid and far-flung communicationStill has its place in many organizationsSelf-managed groups manage themselves better24Goals of the New Work EnvironmentTo redefine the work environment1. Leverage Knowledge Globally(McKinsey)Tap tacit knowledge by fostering sharing and supporting sharing through technologyNote: driving force is culture!Happens through organizational pull (people needing help) rather than organizational push which overloads people with informationLeveraging knowledge = raising aspirations24252. Organize for Complexity

To be able to handle complexitySimple solutions no longer solve problemsImpacts - environmental, HR, economic, ethicalAlliance helps25263. Work ElectronicallyMarketplace moving to marketspace, workplace is moving to workspaceTaking advantage of the Internet and networks in general = 3rd major goal of enterprises todayRequires different organizing principles, management tenets, compensation schemes, structure etc.Changes how organizations interact with others including customersThe microchip moved power within companies. Bandwidth moves power all the way to consumers Will increase exponentially as bandwidth capability increases and costs decrease274. Handle Continuous and Discontinuous ChangeInnovate continually2 forms of changesContinuous espoused by TQM techniquesDiscontinuous espoused by reengineering, e.g., fits and startsHandle both for the products and services

A Simple Model of Technology Use (v1)Process of applying IT to accomplish useful workTranslation of users needs into implemented systemsEntirely by the System Analysts28

29System & Domain SpecialistsBridging The Technology Gap (v2)

30Tech becomes complex and powerfulUsers become sophisticatedIS is a product; Users are customersSystem specialists are pressed into service bridge the gap31Users Bridging The Gap (v3)Tech is more complexApplications more sophisticatedUsers participating more heavily in development bridging the gap32

33A Better ModelExpanding the simple model gives us more guidance into managerial principles and tasksA set of technologies that represent the IT infrastructure installed and managed by the IS departmentA set of users who need to use IT to improve their job performanceA delivery mechanism for developing , delivering and installing applicationsExecutive leadership to manage the entire process of applying the technology to achieve organizational objectives and goals

34A Framework for IS Management

351. The TechnologiesSeveral forces contribute to the increased importance and complexity of IT:Growth in capacity + reduction in cost & sizeMerging of previously separate technologies of computers, telephones/telecom/cable TV, office equipment and consumer electronicsAbility to store and handle multiple forms of dataInformation systems now fill major roles in management reporting, problem solving and analysis, office support, customer service and communications

362. The Users & UsesDichotomy of Info Work

37The Dichotomy of Information WorkActivities of Info workersProcedure-based & knowledge- or goal-basedProcedure-based:Large volume transactionsEach has low cost/valuePrincipal performance measure is efficiencyMainly handle datae.g., back office, cheque posting, payroll processing38Knowledge-based:Handle fewer transactionsEach has a higher valueBased on handling concepts, not datae.g., loans, corporate banking, planning393. System Development and DeliverySystems development and delivery bridge the gap between technology and usersSystems for procedure-based (clerical) activities differ from systems for knowledge based information work (managerial)Systems are built based on technology resources. Three main categories (essential technologies):Hardware and softwareTelecommunicationsInformation resourcesManagement of these is called infrastructure management

404. IS ManagementChief Information Officer (CIO)Must be high enough in the enterprise to influence organizational goalsMust have enough credibility to lead the harnessing of technology to pursue those goalsMust work with all the other CXOsIT has become too important to be left to one individualExecutive team must work together to govern it and leverage it well

41A Better Model - SummaryThis model has four major components:The technology which provides the electronic and information infrastructureInformation workers who use IT to accomplish their work goalsSystem development and delivery which brings the technology and users togetherThe management of the IS functionOverall responsibility = to harness IT to improve the performance of the people and the organization

42IS functions in the latest modelManagement of technologyManagement of info workersThe system development and delivery function to bring users and technology togetherExecutive leadership to manage the entire process of applying technology43It is not the strongest species that survive, nor the most intelligent,but the ones responsive to change- Charles Darwin44