BISM_1

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied,

scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

CHAPTER ONE

MANAGEMENT INFORMATION

SYSTEMS

BUSINESS DRIVEN MIS

2

COMPETING IN THE INFORMATION AGE

Did you know . . .

§  Avatar, the movie, took over 4 yrs to make and cost $450 million

§  Lady Gaga’s real name is Joanne Angelina Germanotta

§  It costs $2.6 million for a 30-second advertising time slot during the Super Bowl

3


§  Fact - The confirmation or validation of an event or object

§  Information age - The present time, during which infinite quantities of facts are widely available to anyone who can use a computer

4


§  Examples of the power of business and technology

•  Amazon – Not a technology company; primary business focus is selling books

•  Netflix – Not a technology company; primary business focus is renting videos

•  Zappos – Not a technology company; primary business focus is selling shoes

5


§  The core drivers of the information age

•  Data

•  Information

•  Business intelligence

•  Knowledge

6

Data §  Data - Raw facts that describe the characteristics

of an event or object

7

Information §  Information - Data converted into a meaningful

and useful context

8

Business Intelligence

§  Business intelligence - Information collected from multiple sources such as suppliers, customers, competitors, partners, and industries that analyzes patterns, trends, and relationships for strategic decision making

9

Knowledge

§  Knowledge - Skills, experience, and expertise coupled with information and intelligence that creates a person’s intellectual resources

§  Knowledge worker – Individual valued for their ability to interpret and analyze information

10

THE CHALLENGE: DEPARTMENTAL COMPANIES

Common Departments Working Independently

11

Common Departments Working Interdependently

THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

12


13


14


§  Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

15


§  Management Information Systems (MIS) – A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving

16

MIS Department Roles and Responsibilities

§  Chief information officer (CIO) – Oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

§  Chief knowledge officer (CKO) - Responsible for collecting, maintaining, and distributing the organization’s knowledge

§  Chief privacy officer (CPO) – Responsible for ensuring the ethical and legal use of information

17

MIS Department Roles and Responsibilities

§  Chief security officer (CSO) – Responsible for ensuring the security of IT systems

§  Chief technology officer (CTO) – Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT

18

IDENTIFYING COMPETITIVE ADVANTAGES

§  Business strategy – A leadership plan that achieves a specific set of goals or objectives such as

§  Developing new products or services

§  Entering new markets

§  Increasing customer loyalty

§  Attracting new customers

§  Increasing sales

19


20


§  Competitive advantage – A product or service that an organization’s customers place a greater value on than similar offerings from a competitor

§  First-mover advantage – Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

21


§  Competitive intelligence – The process of gathering information about the competitive environment to improve the company’s ability to succeed

§  Competitive intelligence tools •  Porter’s Five Forces Model •  Porter’s Three Generic Strategies •  Porter’s Value Chain Analysis

22

THE FIVE FORCES MODEL – EVALUATING INDUSTRY ATTRACTIVENESS

Porter’s Five Forces Model

23

Buyer Power

§  Buyer power – The ability of buyers to affect the price of an item •  Switching cost – Manipulating costs

that make customers reluctant to switch to another product

•  Loyalty program – Rewards customers based on the amount of business they do with a particular organization

24

Supplier Power §  Supplier power – The suppliers’ ability to

influence the prices they charge for supplies

•  Supply chain – Consists of all parties involved in the procurement of a product or raw material

25

Threat of Substitute Products or Services

§  Threat of substitute products

or services – High when there are many alternatives to a product or service and low when there are few alternatives

26

Threat of New Entrants

§  Threat of new entrants – High when it is easy for new competitors to enter a market and low when there are significant entry barriers

•  Entry barrier – A feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

27

Rivalry Among Existing Competitors

§  Rivalry among existing competitors – High when competition is fierce in a market and low when competitors are more complacent

•  Product differentiation – Occurs when a company develops unique differences in its products or services with the intent to influence demand

28

Analyzing the Airline Industry

§  Perform a Porter’s Five Forces analysis of each of the following for a company entering the commercial airline industry •  Buyer power

•  Supplier power

•  Threat of substitute products/services

•  Threat of new entrants

•  Rivalry among competitors

29

THE THREE GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS

Porter’s Three Generic Strategies

30

THE THREE GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS

Porter’s Three Generic Strategies

31

VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES

§  Business process – A standardized set of activities that accomplish a specific task, such as a specific process

§  Value chain analysis – Views a firm as a series of business processes that each add value to the product or service

32


§  Primary value activities

•  Inbound logistics - Acquires raw materials and resources, and distributes

•  Operations - Transforms raw materials or inputs into goods and services

•  Outbound logistics - Distributes goods and services to customers

•  Marketing and sales - Promotes, prices, and sells products to customers

•  Service - Provides customer support

33


§  Support value activities •  Firm infrastructure – Includes the company format or

departmental structures, environment, and systems

•  Human resource management – Provides employee training, hiring, and compensation

•  Technology development – Applies MIS to processes to add value

•  Procurement – Purchases inputs such as raw materials, resources, equipment, and supplies

34


Porter’s Value Chain

35


Value Chain and Porter’s Five Forces Model

BISM_1

Documents

Transcript of BISM_1