MIS Chapter 1 PPT - Tagged

Management Information Systems Overview

• Title: Management Information Systems: Managing the Digital Firm, Seventeenth Edition

• Focus: Importance and transformation of Information Systems (IS) in global business.

Learning Objectives

Key Questions Addressed

• Transformation of Business: How are information systems transforming business, and why are they essential?

• Definition and Components: What is an information system? Components and working mechanism?

• Academic Disciplines: What disciplines contribute to the study of IS?

• Career Relevance: How will Management Information Systems (MIS) help enhance career prospects?

Transformation of Business

• IT Investment: Global IT spending reached nearly $3.8 trillion in 2019.

• Consulting Services: $160 billion spent on management consulting and services.

• Organizational Change: Companies must often undergo management and cultural changes to fully harness IT value.

Key Trends in Management Information Systems (1 of 3)

IT Innovations

• Emerging Technologies: Cloud computing, big data, Internet of Things (IoT), mobile digital platforms.

• AI & Machine Learning: Growing usage in business processes.

• Social Networks: Increasingly utilized to meet business objectives.

Key Trends in Management Information Systems (2 of 3)

E-commerce Growth

• E-commerce Expansion: Reached nearly $3.6 trillion globally in 2019.

• Mobile Retail Growth: Exceeded 20% growth annually, reaching approximately $300 billion in 2020.

• Management Changes: Mobile environments for managers, social tools, and business intelligence applications becoming standard.

Key Trends in Management Information Systems (3 of 3)

Organizational Adaptation

• Collaborative Structure: Shift towards less hierarchical structures, emphasizing skills and competencies.

• Enhanced Decision Making: Faster and more accurate decision-making processes using data.

• Consumer Interaction: Increased willingness to engage consumers through social media.

Globalization and Its Effects

• Global Communications: Drastically reduced costs of transacting on a global scale.

• Competition Dynamics: Heightened competition for jobs, markets, and resources.

• Interconnected Economies: Increased interconnectedness of global economies, necessitating new skills and market understandings.

The Emerging Digital Firm

• Fully Digital Operations: Relationships and core processes are digitally enabled.

• Digital Asset Management: Key corporate assets are strategically managed in digital formats.

• Flexibility in Management: Adoption of time and space shifting to enhance organizational agility.

Strategic Business Objectives of Information Systems (1 of 2)

• Interdependence: Importance of IT usage correlating with corporate strategy implementation.

Strategic Business Objectives of Information Systems (2 of 2)

Six Key Objectives

1. Operational excellence

2. New products, services, and business models

3. Customer and supplier intimacy

4. Improved decision making

5. Competitive advantage

6. Survival in competitive markets

Operational Excellence

• Efficiency Improvement: Leads to higher profits; example: Walmart's strategic use of IS for operational efficiency.

New Products, Services, and Business Models

• Innovation Facilitation: IS enables creation of innovative business models, exemplified by Apple's iTunes and subsequent product innovations.

Customer and Supplier Intimacy

• Repeat Business: Close customer relationships enhance loyalty.

• Supplier Cost Reduction: Effective IS usage alongside close supplier relationships can lower operational costs.

Improved Decision Making

• Real-time Information: Importance of accurate data in managerial decision-making; example: Verizon’s digital dashboards for operational insights.

Competitive Advantage

• Business Objectives: Competitive edge is often achieved through operational efficiencies and effective IS usage (e.g., Apple, Walmart).

Survival in Business

• Necessity and Compliance: Companies must invest in IS to comply with regulations and to remain competitive in the marketplace.

Definition of Information Systems (1 of 3)

• Information Technology: Hardware and software supporting business objectives.

• Information System: Interrelated components managing information for decision-making and analysis.

• Data vs. Information: Data is unprocessed facts, while information is data organized in a useful context.

Functions of Information Systems (2 of 3)

Information System Activities

• Input: Gathering data.

• Processing: Analyzing and interpreting data.

• Output: Delivering processed information.

• Feedback Loop: Necessary for assessing and enhancing inputs and processes.

Dimensions of Information Systems

• Components: Organizations, Management, Technology—each plays a crucial role.

Organizational Dimension (1 of 2)

• Hierarchical Structure: Ranges from senior management to operational and production workers.

Separation of Business Functions (2 of 2)

• Functional Areas: Distinction among sales, HR, finance, and manufacturing; these shape unique processes and cultures.

Management Dimension

• Strategic Response: Managers devise strategies to meet business challenges and innovate product offerings.

Technology Dimension

• Technology Infrastructure: Covers hardware, software, and telecommunications essential for IS functionality.

Complementary Assets (1 of 2)

• Investment Synergy: Essential to complement primary technology investments for enhanced returns.

Variations in Technology Returns (2 of 2)

• Factors Influencing Success: A sound business model and complementary organizational investments are critical.

Business Information Value Chain

• Process of Value Creation: Data is enhanced through various stages, ultimately leading to better decision-making and profitability.

Sociotechnical Systems Perspective (1 of 2)

• Optimal Balance: Achieving the best performance by harmonizing technical and social systems.

Career Development in MIS

• Career Prospects: Understanding and utilizing MIS is essential for professional growth in businesses leveraging technology.