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1Chapter
Managing the Digital Managing the Digital FirmFirm
Lecture 1Lecture 1
Managing the Digital Managing the Digital FirmFirm
Lecture 1Lecture 1
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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
DaimlerChrysler Case
• Challenge: 104 plants, 37 countries, 14,000 suppliers
• Solutions: Integrated Volume Planning System connects demand side of business with suppliers, reducing inventories.
• Powerway helps 3,400 suppliers track parts and quality, reducing errors.
• Demonstrates IT’s role in operational excellence, better quality products, and agility–time to market
• Illustrates the emerging digital firm landscape where information can flow seamlessly among business partners to create a superior customer experience
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WHY INFORMATION SYSTEMS?
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
• Capital managementCapital management
• Foundation of doing businessFoundation of doing business
• ProductivityProductivity
• Strategic opportunity and advantageStrategic opportunity and advantage
Why Information Systems Matter Why Information Systems Matter
There are four reasons why IT makes a difference to the There are four reasons why IT makes a difference to the success of a business:success of a business:
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Role of IS:•Survival and existence•Dependency on Cell phones, blackberry’s, and other hardware•Emails, online conferencing, internet technologies•Table 1.1 read
6 important business objectives:•Operational excellence•New products or services•Business models•Customer and supplier intimacy•Improved decision making•Competitive advantage
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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
• Digitally enabled relationships with customers, suppliers, and employees
• Core business processes accomplished using digital networks
• Digital management of key corporate assets
WHY INFORMATION SYSTEMS?
Emergence of the Digital Firm:
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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
• Agile sensing and responding to environmental changes
• Seamless flow of information within the firm, and with strategic partners
WHY INFORMATION SYSTEMS?
Emergence of the Digital Firm (Continued):
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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
The Emerging Digital Firm The Emerging Digital Firm
Figure 1-4
WHY INFORMATION SYSTEMS?
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PERSPECTIVES ON INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
What Is an Information System?
Technology perspective:Technology perspective: A set of interrelated
components that collect (or retrieve), process, store,
and distribute information to support decision
making and control in an organization
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PERSPECTIVES ON INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
What is an Information System? (Continued)
• Data: Streams of raw facts representing events such as business transactions
• Information: Clusters of facts meaningful and useful to human beings in the processes such as making decisions
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PERSPECTIVES ON INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Data and Information
Figure 1-5
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PERSPECTIVES ON INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Functions of an Information System
Figure 1-6
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Senior management
Middle mgt
Operational mgt
Dimensions of IS:•Management , Organizations, technology
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Basic functions:•Sales and marketing•Production•Finance•HRMManagement: helping managers to design and deliver new productsTechnology: hardware, software, networks, internet, IT infrastructure
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PERSPECTIVES ON INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Information Systems Are More than Computers
Figure 1-8
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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Complementary assets:
• New business processes
• Management behavior
• Organizational culture
• Training
PERSPECTIVES ON INFORMATION SYSTEMS
Complementary Assets: Technical approach, behavioral approach
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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
Sociotechnical Systems
Optimize systems performance:
• Technology and organization
• Organizations mutually adjust to one another until fit is satisfactory
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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm
A Sociotechnical Perspective on Information Systems
Figure 1-11