management and information systems buad 600

1.1 Prof Jess Role @ UEAB 2012

Management and Information Systems

BUAD 600

Jesse Role, Ph. D. TM – Electronics and Information Technology

Chairman, Department of TechnologyUniversity of Eastern Africa, Baraton

1.2 Prof Jess Role @ UEAB 2012

Websitewww.roletech.net

Forum Sitehttp://roletech.net/BUAD600

1.3 Prof Jess Role @ UEAB 2012

Requirements• Lecture• Participation• Group Reporting• Case analysis report• Final Examination

– Thursday May 24, 2012

1.4 Prof Jess Role @ UEAB 2012

Why are information systems so essential for running and

managing a business today?• Information systems are a foundation for

conducting business today. In many industries, survival and the ability to achieve strategic business goals are difficult without extensive use of information technology. Businesses today use information systems to achieve six major objectives: operational excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival.

1.5 Prof Jess Role @ UEAB 2012

1MANAGING

THE DIGITAL

INSTITUTION

1.6 Prof Jess Role @ UEAB 2012

What Is an Information System?

An information system can be defined technically as a set of interrelated components

that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making,

coordination, and control, information systems may also help managers and workers analyze

problems, visualize complex subjects, and create new products.

1.7 Prof Jess Role @ UEAB 2012

1.8 Prof Jess Role @ UEAB 2012

1.9 Prof Jess Role @ UEAB 2012

1.10 Prof Jess Role @ UEAB 2012

• ANALYZE ROLE OF INFORMATION SYSTEMS IN BUSINESS ENVIRONMENT

• DEFINE INFORMATION SYSTEM, COMPUTER LITERACY, INFORMATION SYSTEMS LITERACY

• EXPLAIN HOW INFORMATION SYSTEMS TRANSFORM ORGANIZATION & MANAGEMENT

*

LEARNING OBJECTIVES

1.11 Prof Jess Role @ UEAB 2012

LEARNING OBJECTIVES• ASSESS DIGITAL FIRM, ELECTRONIC

COMMERCE, ELECTRONIC BUSINESS, INTERNET TECHNOLOGY

• IDENTIFY MANAGEMENT CHALLENGES TO BUILDING, USING

INFORMATION SYSTEMS*

1.12 Prof Jess Role @ UEAB 2012

MANAGEMENT CHALLENGES• WHY INFORMATION SYSTEMS?• CONTEMPORARY APPROACHES TO

INFORMATION SYSTEMS• ROLE OF INFORMATION SYSTEMS• USING INFORMATION SYSTEMS

*

1.13 Prof Jess Role @ UEAB 2012

MANAGEMENT CHALLENGES1. DESIGN COMPETITIVE & EFFICIENT

SYSTEMS2. UNDERSTAND SYSTEM REQUIREMENTS

OF GLOBAL BUSINESS ENVIRONMENT3. CREATE INFORMATION ARCHITECTURE

THAT SUPPORTS ORGANIZATION’S GOALS

*

1.14 Prof Jess Role @ UEAB 2012

MANAGEMENT CHALLENGES4. DETERMINE BUSINESS VALUE OF

INFORMATION SYSTEMS5. DESIGN SYSTEMS PEOPLE CAN

CONTROL, UNDERSTAND & USE IN A SOCIALLY, ETHICALLY RESPONSIBLE MANNER

*

1.15 Prof Jess Role @ UEAB 2012

THE CHANGING BUSINESS ENVIRONMENT

• GLOBALIZATION• INDUSTRIAL ECONOMIES• TRANSFORMATION OF

THE ENTERPRISE*

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GLOBALIZATION• MANAGEMENT & CONTROL• COMPETITION IN WORLD MARKETS• GLOBAL WORK GROUPS• GLOBAL DELIVERY

SYSTEMS

1.17 Prof Jess Role @ UEAB 2012

INDUSTRIAL ECONOMIES• KNOWLEDGE-BASED ECONOMIES• PRODUCTIVITY• NEW PRODUCTS & SERVICES• KNOWLEDGE AS AN ASSET• TIME-BASED COMPETITION• SHORTER PRODUCT LIFE• TURBULENT ENVIRONMENT• LIMITED EMPLOYEE KNOWLEDGE

BASE*

1.18 Prof Jess Role @ UEAB 2012

1.19 Prof Jess Role @ UEAB 2012

TRANSFORMATION OF ENTERPRISE• FLATTENING• DECENTRALIZATION• FLEXIBILITY• LOCATION INDEPENDENCE• LOW TRANSACTION COSTS• EMPOWERMENT• COLLABORATIVE WORK

*

1.20 Prof Jess Role @ UEAB 2012

EMERGENCE OF THE DIGITAL FIRM

• DIGITALLY-ENABLED RELATIONSHIPS WITH CUSTOMERS, SUPPLIERS, EMPLOYEES

• CORE BUSINESS PROCESSES VIA DIGITAL NETWORKS

• DIGITAL MANAGEMENT OF KEY ASSETS

• RAPID SENSING & RESPONDING TO CHANGE

*

1.21 Prof Jess Role @ UEAB 2012

1.22 Prof Jess Role @ UEAB 2012

Why IT Now? Digital Convergence and the Changing

Business EnvironmentThere are five factors to consider when assessing

the growing impact of IT in business firms both today and over the next ten years.

• Internet growth and technology convergence

• l Transformation of the business enterprise

• l Growth of a globally connected economy• l Growth of knowledge and information-

based economies• l Emergence of the digital firm

1.23 Prof Jess Role @ UEAB 2012

0%

10%20%

30%

40%

50%60%

70%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1997

YEAR

% SERVICE% WHITE COLLAR% BLUE COLLAR% FARMING

LABOR FORCE COMPOSITION 1900-2008

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SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

1.25 Prof Jess Role @ UEAB 2012

FUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEM

ENVIRONMENTCustomers Suppliers

Regulatory Stockholders Competitors

Agencies

ORGANIZATION

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DATA & INFORMATION• DATA: STREAMS OF RAW FACTS

REPRESENTING EVENTS SUCH AS BUSINESS TRANSACTIONS

• INFORMATION: CLUSTERS OF FACTS MEANINGFUL & USEFUL TO HUMAN BEINGS IN PROCESSES SUCH AS

MAKING DECISIONS*

1.27 Prof Jess Role @ UEAB 2012

COMPUTER-BASED INFORMATION SYSTEMS (CBIS)

• FORMAL SYSTEMS• FIXED DEFINITIONS OF DATA,

PROCEDURES• COLLECTING, STORING,

PROCESSING, DISSEMINATING, USING DATA

*

1.28 Prof Jess Role @ UEAB 2012

INFORMATION SYSTEMS

ORGANIZATIONS TECHNOLOGY

MANAGEMENT

INFORMATION SYSTEMS

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ORGANIZATIONS• PEOPLE: Managers, knowledge

workers, data workers, production or service workers

• STRUCTURE: Organization chart, groups of specialists, products, geography

*

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ORGANIZATIONS• OPERATING PROCEDURES:

Standard Operating Procedures (SOP), rules for action

• POLITICS: Power to persuade, get things done

• CULTURE: Customs of behavior*

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MAJOR BUSINESS FUNCTIONS

• SALES & MARKETING• MANUFACTURING• FINANCE• ACCOUNTING• HUMAN RESOURCES

*

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COMPUTER TECHNOLOGY• HARDWARE• SOFTWARE• STORAGE• COMMUNICATIONS• NETWORKS

*

1.33 Prof Jess Role @ UEAB 2012

SOCIOLOGY

POLITICAL SCIENCE

PSYCHOLOGY

COMPUTER SCIENCE OPERATIONS

RESEARCH

MANAGEMENTSCIENCE

TECHNICAL APPROACHES

APPROACHES TO INFO SYSTEMS

MIS

BEHAVIORAL APPROACHES

1.34 Prof Jess Role @ UEAB 2012

SOCIOTECHNICAL PERSPECTIVE

OPTIMIZE SYSTEM PERFORMANCE:TECHNOLOGY & ORGANIZATION

MUTUALLY ADJUST TO ONE ANOTHER

UNTIL FIT IS SATISFACTORY*

SOURCE: Liker, et al, 1987

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SYSTEM INTERDEPENDENCE

BUSINESS Strategy Rules Procedures

ORGANIZATION INFORMATION SYSTEM

HARDWARE

SOFTWARE DATABASE

TELE-COMMUNICATIONS

INTERDEPENDENCE

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• 1950s: TECHNICAL CHANGES• 60s-70s: MANAGERIAL CONTROL• 80s-90s: INSTITUTIONAL

CORE ACTIVITIES

GROWING IMPORTANCE*

SCOPE OF INFO SYSTEMS

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WHAT YOU CAN DO ON THE INTERNET

• COMMUNICATE & COLLABORATE• ACCESS INFORMATION• DISCUSS• OBTAIN INFORMATION• ENTERTAIN• TRANSACT BUSINESS

*

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NEW OPTIONS FOR ORGANIZATIONAL DESIGN

• FLATTENING ORGANIZATIONS• SEPARATING WORK FROM LOCATION• REORGANIZING WORK-FLOWS• INCREASING FLEXIBILITY• REDEFINING ORGANIZATIONAL

BOUNDARIES

*

1.39 Prof Jess Role @ UEAB 2012

THE DIGITAL FIRM• ELECTRONIC COMMERCE• ELECTRONIC BUSINESS• ELECTRONIC MARKET: Information

system links buyers & sellers to exchange information, products, services, payments

*

1.40 Prof Jess Role @ UEAB 2012

ELECTRONIC COMMERCE• INTERNET LINKS BUYERS, SELLERS• LOWERS TRANSACTION COSTS• GOODS & SERVICES

ADVERTISED, BOUGHT, EXCHANGED WORLDWIDE

• BUSINESS-TO-BUSINESS TRANSACTIONS INCREASING

*

1.41 Prof Jess Role @ UEAB 2012

1.42 Prof Jess Role @ UEAB 2012

ELECTRONIC BUSINESS• INTRANET: Business builds private, secure

network• E-MAIL, WEB DOCUMENTS, GROUP

SOFTWARE: Extends effective communication & control

• EXTRANET: Extension of Intranet to authorized external users

*

1.43 Prof Jess Role @ UEAB 2012

Approach of This Text: Sociotechnical Systems

1.44 Prof Jess Role @ UEAB 2012

1.45 Prof Jess Role @ UEAB 2012

How are information systems transforming business and what is their relationship to globalization?

• E-mail, online conferencing, and cell phones have become essential tools for conducting business. Information systems are the foundation of fast-paced supply chains. The Internet allows many businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become more competitive and efficient by digitally enabling their core business processes and evolving into digital firms. The Internet has stimulated globalization by dramatically reducing the costs of producing, buying, and selling goods on a global scale. New information system trends include the emerging mobile digital platform, online software as a service, and cloud computing.

1.46 Prof Jess Role @ UEAB 2012

MANAGING THE

DIGITAL FIRM