introduction to information systems - cis.gsu.edu 1-dt...information systems for management 5...

Information Systems for Management

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MBA 8120 (Spring 2007) MBA 8120 (Spring 2007) –– Week 1 Week 1Duane TruexDuane Truex

Course Website:Course Website:http://www.http://www.ciscis..gsugsu.edu/~dtruex/courses/MBA8120/MBA8120-scheduleSp-07..edu/~dtruex/courses/MBA8120/MBA8120-scheduleSp-07.htmhtm

Introduction toIntroduction toInformation SystemsInformation Systems

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OutlineOutline

Why study information technology?Why study information technology? Business Organizations in 2006Business Organizations in 2006 Future PredictionsFuture Predictions MBA 8120 course overviewMBA 8120 course overview

–– TopicsTopics–– ScheduleSchedule–– EvaluationEvaluation


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Why Study Information Technology?Why Study Information Technology?

What is the role of information systems inWhat is the role of information systems intodaytoday’’s competitive environment?s competitive environment?

What should managers know aboutWhat should managers know aboutinformation technology?information technology?

How do information systems transformHow do information systems transformorganizations and management?organizations and management?

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ProcessTechnology

Organization


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IT and BusinessIT and Business

““How can we leverage informationHow can we leverage informationtechnology to deliver businesstechnology to deliver businessvalue?value?””

““How can we gather, focus, andHow can we gather, focus, andapply information to deliverapply information to deliverbusiness value?business value?””

Dennis Severance, Univ.of Michigan

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IT and BusinessIT and Business

““How can we How can we (manager)(manager) gather gather (monitor,(monitor,collect, store),collect, store), focus focus (analyze, organize,(analyze, organize,structure),structure), and apply and apply (share and use for(share and use forbusiness purposes)business purposes) information information (regarding(regardingproducts, etc.)products, etc.) to deliver to deliver (change(changebusiness processes)business processes) business value business value(increase revenue, lower cost, invest now(increase revenue, lower cost, invest nowor in future)?or in future)?””

Dennis Severance, Uni.of Michigan


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Flattened organizationFlattened organization Rely on nearly instant informationRely on nearly instant information Deliver mass-customized products andDeliver mass-customized products and

services uniquely suited to specificservices uniquely suited to specificmarkets / customersmarkets / customers

Business in the Year 2006Business in the Year 2006Business StructureBusiness Structure

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Business in the Year 2006Business in the Year 2006Business EnvironmentBusiness Environment

Ubiquitious Ubiquitious ComputingComputing New BusinessesNew Businesses

- The eBay Effect- The eBay Effect

70% of invested capital in service70% of invested capital in serviceindustriesindustries

““Romancing the Segment of OneRomancing the Segment of One””


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Business in the Year 2007Business in the Year 2007Digital Convergence of Media into Bits (Straub 2004)

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Business in the Year 2006Business in the Year 2006Emergence of the Net-Enhanced OrganizationEmergence of the Net-Enhanced Organization

Digitally-enabledDigitally-enabled relationships with customers, relationships with customers,suppliers, employeessuppliers, employees

Core business processes via Core business processes via digitaldigital networks networks DigitalDigital management of key assets management of key assets Rapid sensing & responding to changeRapid sensing & responding to change Flattened organizationsFlattened organizations Separating work from locationSeparating work from location Increasing flexibilityIncreasing flexibility Redefining organizational boundariesRedefining organizational boundaries

Information systems link buyers & sellers to exchangeInformation systems link buyers & sellers to exchangeinformation, products, services, paymentsinformation, products, services, payments

Source: Straub, 2004


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Year 2006: Changing Face ofYear 2006: Changing Face ofBusinessBusiness

““What is your China Price?What is your China Price?”” Retailers expect Retailers expect30% discounts30% discounts

Location independence, work travels to where itLocation independence, work travels to where itis wantedis wanted–– Global marketplaceGlobal marketplace–– Growth of Growth of outsourcing/offshoringoutsourcing/offshoring

Culture shiftCulture shift–– We donWe don’’t meett meet–– We donWe don’’t talkt talk–– We expect instant responsesWe expect instant responses

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Business in the Year 2006Business in the Year 2006U.S. versus Emerging EconomiesU.S. versus Emerging Economies

MythMyth–– ““U.S. will lead the way in innovation, while emergingU.S. will lead the way in innovation, while emerging

economies like India and China will provide low costeconomies like India and China will provide low costoperationsoperations””

FactFact–– ““Emerging economies have embraced and areEmerging economies have embraced and are

fostering innovation while still able to pursue low costfostering innovation while still able to pursue low costoperationsoperations””

–– Example: Detroit vs. JapanExample: Detroit vs. Japan

Source: Roger Martin, BusinessWeek Online.Dec. 13, 2005.


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Business Business –– Next 5 Years Next 5 Years

““What business would like to do in fiveWhat business would like to do in fiveyears often depends on what its systemsyears often depends on what its systemswill be able to do.will be able to do.””

(Laudon and Laudon, 2006)(Laudon and Laudon, 2006)

Digital firmDigital firm–– Nearly all organizationNearly all organization’’s s significant businesssignificant business

relationshipsrelationships digitally enabled digitally enabled

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Business ManagersBusiness ManagersIn the Year 2010In the Year 2010

Changing skill set Changing skill set–– Need for business knowledgeNeed for business knowledge–– ““VersatilistsVersatilists”” - deep skills in multiple domains, - deep skills in multiple domains,

multiple roles, broad experiencemultiple roles, broad experience–– Focus on process improvement, total qualityFocus on process improvement, total quality

management, and project managementmanagement, and project management Why are skills sets changing? Why are skills sets changing?

–– Increased speed of businessIncreased speed of business–– FlexibilityFlexibility–– DifferentiationDifferentiation–– Smooth integration of technology and businessSmooth integration of technology and business

Source: Gartner Group, Nov. 28, 2005.


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Emergence of the Net-EnhancedEmergence of the Net-EnhancedOrganizationOrganization

Digitally-enabledDigitally-enabled relationships with customers, relationships with customers,suppliers, employeessuppliers, employees

Core business processes via Core business processes via digitaldigital networks networks DigitalDigital management of key assets management of key assets Rapid sensing & responding to changeRapid sensing & responding to change Flattened organizationsFlattened organizations Separating work from locationSeparating work from location Increasing flexibilityIncreasing flexibility Redefining organizational boundariesRedefining organizational boundaries

Information systems link buyers & sellers to exchangeInformation systems link buyers & sellers to exchangeinformation, products, services, paymentsinformation, products, services, payments

Source: Straub, 2004

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FriedmanFriedman’’ss““Lexus and the Olive TreeLexus and the Olive Tree”” and and

““The World is FlatThe World is Flat””

Being DigitalBeing Digital DemocratizationDemocratization


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What types of democracy?What types of democracy?

Democratization of technologyDemocratization of technology–– ““Printing made us all readers. Printing made us all readers. Xerozing Xerozing mademade

us all publishers. Television made us allus all publishers. Television made us allviewers. Digitization makes us allviewers. Digitization makes us allbroadcasters.broadcasters.”” Lawrence Grossman, NBC President quoted in T. Friedman, p. 50Lawrence Grossman, NBC President quoted in T. Friedman, p. 50

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What types of democracy? (2)What types of democracy? (2)

Democratization of FinanceDemocratization of Finance–– Commercial paperCommercial paper–– Open and shared performance evaluationOpen and shared performance evaluation


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What types of democracy? (2)What types of democracy? (2) The Democratization of InformationThe Democratization of Information

–– Information arbitrage reducedInformation arbitrage reduced–– Power in the access, quality and analysisPower in the access, quality and analysis–– Boundaries erasedBoundaries erased

““IBM was safe as long as the barriers to entryIBM was safe as long as the barriers to entryinto something as complex as the computerinto something as complex as the computerbusiness were so high that the big, slow, firmsbusiness were so high that the big, slow, firmscould be protected from mistakes, even failure,could be protected from mistakes, even failure,for a long time. And countries such as the Sovietfor a long time. And countries such as the SovietUnion were safe as long as the barriers toUnion were safe as long as the barriers toinformation were so high -- and the awareness byinformation were so high -- and the awareness byits own people of competing lifestyles was so low-its own people of competing lifestyles was so low--that the big, slow Kremlin could be protected-that the big, slow Kremlin could be protectedfrom its mistakes, even failures, for a long time.from its mistakes, even failures, for a long time.””Friedman, pg 79Friedman, pg 79

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Democratization of all threeDemocratization of all three(technology, finance, information)(technology, finance, information) brings brings……??

Amazon.comAmazon.com–– Technology (computing)Technology (computing)–– Finance (credit cards)Finance (credit cards)–– Information (the internet and e-Information (the internet and e-

business)business)

What elseWhat else……??


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The World is Flat! :The World is Flat! :What is being flattened?What is being flattened?

Friedman contends thatFriedman contends that……..–– DistanceDistance–– LanguageLanguage–– LocationLocation–– technologytechnology

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For FriedmanFor Friedman……

Globalization 2.0 isGlobalization 2.0 is……boundary spanning andboundary spanning andstretchingstretching–– conflict of national culture (the Olive Tree) and conflict of national culture (the Olive Tree) and globalismglobalism

(The Lexus)(The Lexus)

Globalization 3.0?Globalization 3.0?……–– Boundary elimination on steroids; hyper speedBoundary elimination on steroids; hyper speed

communication; transparency(/)communication; transparency(/)

OutsourcingOutsourcing……??–– HomesourcingHomesourcing–– Burgers too?Burgers too?

BloggingBlogging??


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Figure 1.1 The InformationFigure 1.1 The InformationSystems Strategy TriangleSystems Strategy Triangle

Manager in the

coordinating role

Business Strategy

OrganizationalStrategy

InformationStrategy

The corners areinterlocking. Change oneand all must adjust

IS strategy has (sometimesunintentional) consequences on thebusiness and organizationalstrategies.

IS Strategy is affected by theother strategies a firm uses.Changes in IS strategy must beaccompanied by changes in theother two.

Includes the whole conceptof organizational design

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InfrastructureTechnologies

Technologyto Support

Business Operations

Technologyto Support

Business Strategy

MBA 8120


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Case write-ups (2)Case write-ups (2) - 30%- 30% Class participation Class participation - 25%- 25% Group Project &Group Project &

–– PresenationPresenation: : - 20%- 20%

ExamExam(open book,(open book, & notes)& notes) - 25%- 25%

EvaluationEvaluation

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TodayToday’’s Agendas Agenda

Course introductionCourse introduction Information systems for businessInformation systems for business

operationsoperations Technology requirements for online courseTechnology requirements for online course Endnote tutorialEndnote tutorial Project teamsProject teams


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Take Take AwaysAways

Businesses operate in a complex environmentBusinesses operate in a complex environment Information systems can have a large impact onInformation systems can have a large impact on

the shape of an organization and how itthe shape of an organization and how itoperatesoperates

Managers need to understand the impact ofManagers need to understand the impact oftechnology on their operationstechnology on their operations

Organizations are highly dependent uponOrganizations are highly dependent uponinformation technologyinformation technology

The success of an organization may dependThe success of an organization may dependupon what its information systems are able toupon what its information systems are able tododo

introduction to information systems - cis.gsu.edu 1-dt...information systems for management 5...

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