MIS BBA (Hons) Morn & Eve 6 th

© Farhan Mir© Farhan Mir

20201212 IMSIMS

MIS MIS BBA (Hons) Morn & Eve 6BBA (Hons) Morn & Eve 6thth (Module 2)(Module 2)Management, Management, Organizations, Decision Organizations, Decision Making Strategy and ISMaking Strategy and IS

Course Lecturer: Farhan MirCourse Lecturer: Farhan Mir


20201212 IMSIMS

Expected TopicsExpected TopicsIntroduction to IS

Management & Decision MakingIT FundamentalsTransaction Processing and Reports SystemDSSKnowledge-Based SystemsSystem DevelopmentMIS in the Fundamental Areas of Business (Will be covered through case studies)Contemporary Issues & Trends (You will cover it through your research work and Presentations/ Seminars)


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Once we have seen how IS Once we have seen how IS could enhance the could enhance the effectiveness of effectiveness of

Organizational Functions Organizational Functions (Overall Performance) now we (Overall Performance) now we could explain their pivotal role could explain their pivotal role in Decision Making & Strategy in Decision Making & Strategy


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Organizations & PeopleOrganizations & People Organizations

StructureStructure CultureCulture Management (Decision Making)Management (Decision Making) New trends in organizations (Globalization)New trends in organizations (Globalization)

People (always bring Psychological issues) AttitudeAttitude PersonalitiesPersonalities MotivationMotivation The biggest problem area for/ in ISThe biggest problem area for/ in IS Skills & abilities (Learning/ Training)Skills & abilities (Learning/ Training) Career DevelopmentCareer Development


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Transformation of Transformation of OrganizationsOrganizations

Flattening (Need for Agility)Decentralization (More focus on Behavioral Approaches)Flexibility Location Independence (Globalization Pressures)Low Transaction CostEmpowerment (Employee needs to respond quickly)Collaborative Work (More teams are emerging)Overall Performance (Effectiveness)

Competitive Advantage


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Managers & Decision Managers & Decision MakingMakingDecision Making

The process by which managers respond to The process by which managers respond to opportunities and threats by analyzing options, opportunities and threats by analyzing options, and making decisions about goals and courses of and making decisions about goals and courses of action.action.

Decisions in response to opportunities—occurs when managers respond to ways to improve organizational performance.

Decisions in response to threats—occurs when managers are impacted by adverse events to the organization.


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Scope of DecisionScope of Decision

Operational Planning and Control:Focus on efficient and effective execution of specific Focus on efficient and effective execution of specific tasks.tasks.

They affect activities taking place right nowThey affect activities taking place right now

E.g... What should be today's production levelE.g... What should be today's production level

Management Control and Tactical PlanningFocus on effective utilization of resourcesFocus on effective utilization of resources

more longer range planning horizonmore longer range planning horizon

E.g... What is next years production levelE.g... What is next years production level

Strategic PlanningLong-range goals and policies for resource allocationLong-range goals and policies for resource allocation

E.g... What new products should be offeredE.g... What new products should be offered


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What Makes Decision What Makes Decision Making so Difficult? Making so Difficult?

Complexity

Uncertainty

Organizational & Environment Pressure

Individual Decision Making Limitations

Experience, Beliefs & Perceptions of the Decision Maker


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Structured and Structured and Unstructured ProblemsUnstructured Problems


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Decisions are classified as:Unstructured: Non-routine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making

Structured: Repetitive, routine, handled using a definite procedure

Managers and Decision Making


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Simon’s Rational Decision Simon’s Rational Decision Making ModelMaking Model

IntelligenceInvolves gathering information from external and Involves gathering information from external and internal sources.internal sources.

DesignInvolves generating alternative decisions.Involves generating alternative decisions.

ChoiceInvolves selecting one of the alternatives.Involves selecting one of the alternatives.

ImplementationAlternative is put into action.Alternative is put into action.


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Decision Making Decision Making StagesStages

intelligence

design

choice

IMPLEMENTATION

search for information

formulate alternatives

evaluate and make a selection

JUST DO IT!


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Six Steps in Decision Six Steps in Decision MakingMaking

Figure 7.4


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Realities facing Managers Realities facing Managers and Decision Makingand Decision Making

Managers perform high-volume, high speed work involving a large number of topics.Managers are often under stress.Managers often take shortcuts.Satisficing (sounds like?) nature of decision making Political motivations may impact decisions.Decisions should be transparent. (need for open communication)


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Why Information Is Why Information Is IncompleteIncomplete

Figure 7.2


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Information Systems Information Systems & Decision Making & Decision Making ProcessProcess


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Where IS Lies in Where IS Lies in Organizations?Organizations?

Traditional Roles (Past)A Separate Department having little A Separate Department having little influence in overall Organizational postureinfluence in overall Organizational posture

It was used to provide information onlyIt was used to provide information only

“Operational Role”

Current & Future StatusLinking all Departments (at heart of Linking all Departments (at heart of organizational operations)organizational operations)

Progressively involved in planning and Progressively involved in planning and Objective settingObjective setting

Used as a business-creator/ initiator Used as a business-creator/ initiator (Strategic Role)(Strategic Role)


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But Information Systems But Information Systems in organizations also act in organizations also act as an “Enabling” & as an “Enabling” & “Filtering Tool”“Filtering Tool”

THE FIRM

INFORMATIONINFORMATION SYSTEMSSYSTEMS

THE ENVIRONMENT:THE ENVIRONMENT:

RESOURCES & CONSTRAINTS

GOVERNMENTS

COMPETITORS

FINANCIAL INSTITUTIONS

CULTURE

KNOWLEDGE

TECHNOLOGY

[CUSTOMERS!!]


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Transformation of Transformation of OrganizationsOrganizations

Flattening (Need for Agility)Decentralization (More focus on Behavioral Approaches)Flexibility Location Independence (Globalization Pressures)Low Transaction CostEmpowerment (Employee needs to respond quickly)Collaborative Work (More teams are emerging)Overall Performance (Effectiveness)

Competitive Advantage


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Competitive Forces ModelCompetitive Forces Model

THE FIRMTRADITIONAL COMPETITION

NEW MARKET ENTRANTS

SUPPLIERS CUSTOMERS

SUBSTITUTE PRODUCTS & SERVICES


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Strategies Used With the Strategies Used With the Competitive Forces ModelCompetitive Forces Model

Product differentiation involves developing new and unique products and services not easily duplicated by competitors

low-cost producer (provide same value but at a lower cost than competitors)

Focused differentiation involves

Narrowing the market by developing niches for Narrowing the market by developing niches for specialized products or services where a business specialized products or services where a business can compete better than its rivalscan compete better than its rivals

Use of customer data (data mining, credit card Use of customer data (data mining, credit card

transactions, Internet behaviortransactions, Internet behavior))


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Examples of Systems for Each Examples of Systems for Each StrategyStrategy

Product differentiationLevi Strauss’ s Personal Pair (Levi Strauss’ s Personal Pair (mass mass customizationcustomization or or one-to-one marketing) one-to-one marketing) and Lands’ Endand Lands’ End

Hallmark’s computer generated cardsHallmark’s computer generated cards

Build to order products (Dell)Build to order products (Dell)

Focus (market niche)

Customer data analysis through CRMCustomer data analysis through CRM

Harrah’s case and Hilton HotelsHarrah’s case and Hilton HotelsLow cost producer

CAD systems used in the automobile or CAD systems used in the automobile or airline industryairline industry

Insurance claim adjusters use of pen-Insurance claim adjusters use of pen-based computersbased computers


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Primary Activities of the VC Primary Activities of the VC ModelModel

Inbound logistics - receiving and storing of materials

Wal-Mart’s continuous replenishment Wal-Mart’s continuous replenishment systemsystem

stockless inventory systemsstockless inventory systems

Operations - transformation of inputs to finished goods or the process of providing a service

computer controlled machinery used by computer controlled machinery used by Gillette for producing razor bladesGillette for producing razor blades

Outbound logistics - storing and distributing the product

airline reservation systemairline reservation system

automated shipping scheduling systemsautomated shipping scheduling systems


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Management IssuesManagement Issues

Opportunities

Firms face a continuing stream of IT-based Firms face a continuing stream of IT-based opportunities to achieve strategic opportunities to achieve strategic advantages advantages

Challenges

Some firms face big hurdles in Some firms face big hurdles in implementing contemporary systems; implementing contemporary systems; resistance to change.resistance to change.

Once an advantage is achieved, there are Once an advantage is achieved, there are difficulties in sustaining the advantage.difficulties in sustaining the advantage.

Organizations often cannot change fast Organizations often cannot change fast enough to accommodate new technologies enough to accommodate new technologies (Kodak).(Kodak).


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Solutions: What Managers Can Solutions: What Managers Can DoDo

Managers cannot depend on IS professionals to tell them about strategic opportunities

Managers must understand what is happening in their industry in general and the role of technology in particular

How do you do this?


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ReferencesReferences

Charles Parker, Thomas Case. (2000). “Management Information Systems: Action & Strategy”. (2nd Ed). Chapter 2 & 4

James O’Brien. (1998). “Introduction to Information Systems: A Networked Enterprise Perspective”. (2nd Ed). Chapter 10,12

Kenneth C. Laudon & Jane P. Laudon (2011). “Management Information Systems: Managing a Digital Firm”.(7th Ed). Chapter 3

Grover S. Kearns (1997). Alignment of Information

Systems Plans with Business Plans: (http://hsb.baylor.edu/ramsower/ais.ac.97/papers/kearns.htm)

MIS BBA (Hons) Morn & Eve 6 th

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