Transcript IT Strategy

The Strategic Role Of
Information Systems
Introduction
Information system (IS)
Set of interrelated components: collect,
manipulate, store, and disseminate data and
information
Provides feedback to meet an objective
Examples: ATMs, airline reservation systems,
course reservation systems
Information Concepts: Data, Information,
and Knowledge
Data: raw facts
Alphanumeric, image, audio, and video
Information: collection of facts
organized in such a way that they have
additional value beyond the value of the
facts themselves
Data, Information, and Knowledge
Figure 1.2: The Process of Transforming Data into
Information
The Value of Information
Value of information is directly linked to
how it helps decision makers achieve their
organization’s goals
For example, value of information might be
measured in:
Time required to make a decision
Increased profits to the company
The Characteristics of Valuable
Information
Table 1.2: Characteristics of Valuable Information
The Characteristics of Valuable
Information
Table 1.2: Characteristics of Valuable Information
(continued)
What Is an Information
System?
Figure 1.3: The Components of an Information System
Computer-Based Information Systems
Figure 1.4: The Components of a Computer-Based
Information System
Traditional View of the Systems
Global System Configuration
Four types of system configuration:
Centralized Systems
Duplicated Systems
Decentralized Systems
Networked Systems
Business Information Systems
Figure 1.5: Business Information Systems
Types of Information Systems
TYPES OF INFORMATION SYSTEMS
Enterprise Systems
Enterprise Systems
Benefits:
Challenges:
 Firm structure and
organization: One organization
 Difficult to build: Require
fundamental changes in the way
the business operates
 Management: Firm-wide
knowledge-based management
processes
 Technology: Require complex
pieces of software and large
investments of time, money, and
expertise
 Technology: Unified platform
 Centralized organizational
coordination and decision making:
Not the best way for the firms to
operate
 Business: More efficient
operations and customer-driven
business processes
Management Information
Systems
Management information system
(MIS)
Organized collection of people,
procedures, software, databases, and
devices
Provides routine information to
managers/decision makers
Primary focus is operational efficiency
Management Information Systems
Figure 1.10: Management Information System
Decision Support Systems
Decision support system (DSS)
Organized collection of people, procedures,
software, databases, and devices
Supports problem-specific decision making
Focus is on decision-making effectiveness
Decision Support Systems
Figure 1.11: Essential DSS Elements
Specialized Business Information Systems:
Knowledge Management, Artificial Intelligence,
Expert Systems, and Virtual Reality
 Knowledge management systems (KMSs): an
organized collection of people, procedures, software,
databases, and devices to create, store, share, and
use the organization’s knowledge and experience
 Artificial intelligence (AI): field in which the
computer system takes on the characteristics of
human intelligence
Artificial Intelligence
Figure 1.12: The Major Elements of Artificial Intelligence
Organizations and Information Systems
Figure 1.16: The Value Chain of a Manufacturing Company
Organizations and Information Systems
Supply chain management (SCM)
Determines required supplies, needed
quantities, processing, and shipment
Customer relationship management (CRM)
Helps company manage all aspects of customer
encounters, including marketing,
advertisement, sales, service, and maintaining
loyalty
Specific Applications: Customer
Relationship Management (CRM)
Specific Applications: Supply Chain
How do information systems facilitate supply chain
management?
Specific Applications: Collaborative Commerce
How do information systems facilitate collaborative
commerce?
Performance-Based Information
Systems
Figure 1.18: Three Stages in the Business Use of
Information Systems
Roles, Functions, and Careers in the IS
Department
Figure 1.19: The Three Primary Responsibilities of Information
Systems
Global Challenges in Information Systems
 Cultural challenges
 Language challenges
 Time and distance
challenges
 Infrastructure
challenges
 Currency challenges
 Product and service
challenges
 Technology transfer
issues
 State, regional, and
national laws
 Trade agreements