Transcript Module 1: Introduction to MIS

Module 1: Introduction to MIS
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Objectives
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Understand the systems approach
Why is technology important?
Understand Porters 5 forces framework
Understand the Value chain framework
Differentiate between types of systems
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Systems approach to MIS
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Management
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The act, art, or manner of managing, handling,
controlling directing, etc.
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Origin: to train (a horse) in his paces; cause to
do exercises of the manage
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To control the movement or behavior of; handle;
manipulate
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To have charge of; direct; conduct; administer
To get (a person) to do what one wishes
Webster’s Dictionary
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Information
•Derived from the Latin verb informo, informare,
meaning to “give form to”
• Information etymologically connotes an
imposition of organization upon some
indeterminate mass or substratum, the
imparting form that gives life and meaning to
otherwise lifeless or irrelevant matter
• Data that have been shaped by humans into a
meaningful and useful form.
Schoderbek, Schoderbek & Kefalas
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SYSTEM
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A set or arrangement of things so related or
connected as to form a unity or organic whole
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A set of facts, principles, rules, etc. classified
or arranged in a regular, orderly form so as to
show a logical plan linking the various parts.
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A method or plan of classification or
arrangement
Webster’s New World Dictionary
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SYSTEM
A system is defined as (1) a set (2) of objects (3)
together with relationships (4) between the objects and
between their attributes (5) related to each other and to
their environment (6) so as to form a whole.
SET — any well defined collection of elements or objects within some
frame of reference
OBJECTS — objects are elements of a system [INPUTS (serial, probable,
or feedback), PROCESS (transformation), OUTPUTS (Intended, waste, or
pollution)] Efficiency - ratio of output to input
RELATIONSHIPS — the bonds that link objects together (Symbiotic,
synergistic, and redundant)
ATTRIBUTES — attributes a properties of both objects and
relationships (defining/accompanying characteristics)
ENVIRONMENT — includes not only that which lies outside the system’s
complete control but that which at the same time also determines in some
way the system’s performance.
WHOLE — defining attribute.
Schoderbek, Schoderbek & Kefalas
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Individual Information Processing System
Environment
Input
Sensory Information
- Visual
- Auditory
- Kinesthetic
- Olfactory
Processing
Output
Brain
Behaviors
Cognitive Frames
- Assumptions
- Criteria
Macro
- Speaking
- Eating
- Pointing
Internal States
Memory Personal History
Micro
- Heart Rate
- Voice Temp
- Skin Temp
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The Organization as a System
Science
Labor
Money
Materials
and
Equipment
Technology
Products,
goods and
services
Management
Input
Process
Output
Management
Government
Marketable
waste
Pollution
Public
Environment
Political, Legal, Social, Physical, Economic, …
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Diagram of a System’s Parameters, Boundary, and Environment
System’s environment
System’s boundary
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From other systems
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To other systems
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Input
Process
Output
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Feedback
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The Organization, Its Resources and Its Environment
Customers
Labor
Material and
Equipment
Ecology
The organization
Input
Process
Government
Output
Feedback
Capital
General
Public
Land
Competitors
Technology
Indicates degree of control, alternatively, resources
Indicates degree of independence or, alternatively, environment
Indicates the boundary demarking the system from its environment
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Socio-Technical System
Social
System
STRUCTURE
Technical
System
TECHNOLOGY
MIS
(Direct)
PEOPLE
TASKS
Socio-Technical Model as a Work System
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CHALLENGES
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Technology advances
Productivity challenge
Strategic business challenge
People challenge
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Information Systems1 -- FOCUS
•People
•Organizations
•Technology
•Problem Solving
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A set of interrelated components that collect, retrieve, process,
store and distribute information for the purpose of facilitating planning,
control, coordination, analysis, and decision making in organizations.
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5 forces and value chain
Organizational processes
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Competitive Intelligence
One of the most important aspects in developing a competitive
advantage is to acquire information on the activities and actions
of competitors.
• Such information-gathering drives business performance
– by increasing market knowledge
– improving knowledge management
– raising the quality of strategic planning
However once the data has been gathered it must be
processed into information and subsequently business
intelligence.
Porters 5 Forces is a well-known framework that
aids in this analysis.
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Porter’s Competitive Forces Model
The model recognizes five major forces that could endanger a
company’s position in a given industry.
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The threat of entry of new competitors
The bargaining power of suppliers
The bargaining power of customers (buyers)
The threat of substitute products or services
The rivalry among existing firms in the industry
External Competitive Forces
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Porter’s Competitive Forces Model
Competitive Forces
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The Value Chain
Value Chain -- The set of processes a firm uses to
create value for its customers ( see pg 58)
(an abbreviated version of the term value added chain from economics)
The Value Chain includes:
Primary Processes -- that directly create the value the firm’s customer
perceives, and
Support Processes -- that add value indirectly by making it easier for
others to perform the primary processes
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The Value Chain
According to the value chain model (Porter, 1985), the activities
conducted in any organization can be divided into two parts: primary
activities and support activities.
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Primary activities are those activities in which
materials are purchased, processed into
products, and delivered to customers. Each adds
value to the product or service hence the value
chain.
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Inbound logistics (inputs)
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Operations (manufacturing and testing)
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Outbound logistics (storage and distribution)
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Marketing and sales
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Service
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The Value Chain (Continued)
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Unlike the primary activities, which directly add value to
the product or service, the support activities are
operations that support the creation of value (primary
activities)
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The firm’s infrastructure (accounting, finance, management)
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Human resources management
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Technology development (R&D)
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Procurement
The initial purpose of the value chain model was to analyze the internal
operations of a corporation, in order to increase its efficiency,
effectiveness, and competitiveness. We can extend that company
analysis, by systematically evaluating a company’s key processes and
core competencies to eliminate any activities that do not add value to
the product.
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The Value Chain (Continued)
Secondary Activities
Value
Primary Activities
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IBM’s Value Chain Model
Customer
Collaberation
CRM
Value Chains
High-Volume, Easily Configured Products
Complex Configured Hardware
OEM Hardware
Customers
Sales
Integrated
Product
Development
Distributed Software
Entitled Software
Fufillment
Supplier
Collaberation
Suppliers
Procurement
Services
Financing
Ibm.com
Integrated
Supply Chain
Enterprise Information
Management
Business Policies and Rules
Self-Service
Knowledge Management
Collaboration and e-Learning
Employees
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Does IT matter?
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Types of systems
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Information System Focus
Focus on
Executive
information
Management 1990’s
systems advantage
has moved upward
Middle
1980’s through the
Management
organization.
Operational Management
1960’s - 1970’s
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Organization Levels and
Types of IS Used
Strategic Level
Tactical Level
Knowledge Level
Operational Level
Top Level ???
GSS/EIS
MIS/DSS/GSS/EIS
MIS/DSS/KWS
TPS
Information System
Focus
• Transaction Processing Systems (TPS) - handles and processes daily exchanges
(transactions)
• Office Automation Systems (OAS) - produces documents, plans, schedules
• Management Information Systems (MIS)
– produces managerial reports
Operational Level
Information System
Focus
• Decision Support Systems (DSS) – supports and assists in all problem-specific decision
making.
• Artificial Intelligence (AI) and Expert Systems
(ES) -- Knowledge Work Systems (KWS)
- is an information system that can make
suggestions and reach solutions in much the
same way as a human expert.
Knowledge Level
Information System
Focus
• Executive Support System (ESS)
• Group Support System (GSS)
- is an information system that can make
suggestions and reach solutions in much
the same way as a human expert.
Strategic Level
Tactical Level
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
STRATEGIC LEVEL
MANAGEMENT LEVEL
KNOWLEDGE LEVEL
SENIOR MANAGERS
MIDDLE MANAGERS
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
LEVEL
SALES &
MARKETING
GROUPS SERVED
OPERATIONAL
MANAGERS
MANUFACTURING FINANCE
ACCOUNTING HUMAN
RESOURCES
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Information Systems
Process Systems and Knowledge Systems
Type of system
Process systems
Knowledge systems
Type of Data
Quantitative /
Structured
Quantitative /
Structured
Qualitative /
Unstructured
Examples of
technology
ERP / TPS
Business intelligence
Content Management
SCM
Data Mining
Information Portals
CRM
Example
When customers make a
purchase from anywhere
in the world using
EBay's' online auctions,
the firms' sales process
integrates with a variety
of partner and processes
that include payment
process and its internal
process. (Sambamurthy
et al., 2003)
Collaborative tools
Sara Lee uses its ability to
analyze the sales of
retailers it serves. In
doing so, they can
identify trends and
exceptions, draw
comparison, perform
calculations and obtain
fast answers (Turban &
Aronson, 2000).
BP uses 3-D imaging rooms
equipped with state-of-the
art videoconferencing
systems for helping its
engineers gather in any of
the company's 15 imaging
rooms and tap into and
share data over the
network (Echikson, 2001).
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Characteristics of
Information System Capabilities
Capability
Orientation
Level
Focus
Nature
TPS
MIS
DSS
OAS
EIS
AI/ES
IOS
Data
Information
Decision
Productivity
Problem
Knowledge
Data
Operational
Management control
All, strategic
Operational
Executive
Operational
Operational
Task, Efficiency
Resource
Alternatives
Task, Efficiency
Status, Problem
Problem
Task, Efficiency
Structured
Structured
Unstructured
Structured
Flexible, easy
Structured
Structured
Strategic Information Systems -- Information systems that play a major role in a product’s value chain.
Although there is no clear-cut separation between strategic information systems and other systems, a number of
characteristics indicate whether an information system should be considered strategic.
Systems should be considered strategic if :
•they help differentiate the product form its competitors;
•if the customers directly perceive the value of the information system to them; or
•if the product’s production, sales, and service require the system.
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Lewin’s Change Model
•Unfreezing
• preparing for change
• create felt need
• disrupt existing attitudes, behaviors
•Changing
• modify situation
• sustain effort
• clear goals
• adequate preparation
•Refreezing
• Reinforce desired behavior
• Support
• Evaluation
Change Agent
• Responsible for changing individual & system (organizational) behavior
• IS professional as change agent
• Facilitate & support change processes
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Change
Resistance to Change
Planned Change
Causes
Deliberate and intentional
Fear of unknown
Security
No felt need
Power/threatened
Rumors
Timing
Resources
Response to performance gap
Gap between actual & desired state
Radical
• massive restructuring “frame-breaking”
Incremental
• “frame-bending”
• continuous improvement
Strategies
Communicate
Clarify
Show benefit
Enlist key people
Accurate info
Delay
Provide support
Targets of Change
Purpose, strategy, objectives
Structure
Technology
Culture
Tasks
People
All are interrelated
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Change
Resistance to Change
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Attitudes and behaviors
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View as useful feedback
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Educate / communicate
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Change Strategies
Force-coercion
Authority power
Good for unfreezing stage
Rational persuasion
Participation = commitment
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Provide support re: external constraints
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Negotiate trade-offs
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Manipulation: speed, use power
Expert power
Convince of benefits of change
Shared power
Active, real involvement
Takes longest, lasts longest
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Strategic Role of IS
How Businesses Use Information Systems
&
Information Systems: Challenges and Opportunities
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SYSTEM INTERDEPENDENCE
INTERDEPENDENCE
HARDWARE
BUSINESS
SOFTWARE
DATABASE
Strategy
Rules
Procedures
ORGANIZATION
TELECOMMUNICATIONS
INFORMATION SYSTEM
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