Discussion
Suhas99
IntroLecture.pptxAdjust your audio
This is a narrated slide show. Please adjust your audio so you can hear the lecture.
If you have problems hearing the narration on any slide show please let me know.
Managing and Using Information Systems: A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders, and Dennis Galletta
© Copyright 2016 John Wiley & Sons, Inc.
Introduction
Why Should a Manager Study Information Systems?
--After all, an entire department is in charge of IT.
Nearly all decisions in organizations rely on information systems at some level.
Personal devices are ubiquitous.
In 2014, 90% of US adults had a cell phone and 87% used the Internet.
Personal experience with technology helps but the corporate setting has many different requirements in the areas of:
Security, Privacy, Risks
Support
Architecture
Firms use IT to enhance their business models or change entire industries.
Managers need to know the basics.
4
© 2016 John Wiley & Sons, Inc.
4
Why Should you Participate in IT Decisions in your Firms?
IT permeates almost every aspect of business
IT enables change in how people work
IT is at the heart of Internet-based solutions
IT enables or inhibits opportunities/strategies
IT combats competitors’ business challenges
IT provides customers with a voice
IT supports data-driven decision-making
IT can help secure key assets
© 2016 John Wiley & Sons, Inc.
5
A Business View of Critical Resources
Spending is quite high: Worldwide $3.7 trillion in 2014
Expenditures span 5 categories
Devices (e.g., PCs, tablets, mobile phones)
Data centers (e.g., servers, storage equipment)
Enterprise (companywide) software
IT Services (e.g., support and consulting services)
Telecommunications (e.g., voice and data services)
If these expenditures do not return value, they will dwindle over time
6
© 2016 John Wiley & Sons, Inc.
People and Technology Work Together
Some of the most-used sites focus on Web 2.0
In Web 2.0, significant content comes from users
Information Sharing
User-centered design
Interoperability
Collaboration
Skilled business managers must balance:
The benefits of introducing new technology
The costs associated with changing the existing behaviors of people in the workplace
Does not require deep technical knowledge
Requires understanding the consequences of the choices made
© 2016 John Wiley & Sons, Inc.
7
CTO of @Walmart Labs
What did Jeremy King say in his blog (pg. 4)?
“Every company is a tech company”
Do you believe this is true for most firms, or is Wal-Mart somehow different? Why?
Can you name firms that do not receive key impacts or benefits from technology?
© 2016 John Wiley & Sons, Inc.
8
Quote from Jeremy King: There used to be a big distinction between tech companies: those that develop enterprise technology for businesses, and the global companies that depend on those products. But that distinction is now diminishing for this simple reason: every global company is becoming a tech company…. we’re seeing technology as a critical component for business success
8
Opportunities and New Strategies from IT
New business opportunities spring up with little warning
Managers must:
Frame the opportunities in an understandable way for business leaders
Evaluate them against business needs and choices
Pursue those that fit into an articulated business strategy.
The quality of available information will impact the quality of their decisions and their implementation
Managers will therefore lead the changes driven by information systems
© 2016 John Wiley & Sons, Inc.
9
Competitive Challenges
Competitors spring up—sometimes unexpectedly
General managers are in the best position to
See those threats
Attempt to combat them, using technology as a tool
They need an understanding of
The capabilities of the organization
How those capabilities, together with IS, can
Create competitive advantage
Change the competitive landscape for an entire industry
© 2016 John Wiley & Sons, Inc.
10
Managers Need to be Aware of the importance of:
Customer pull
Customers now have power using social media
Entire business models sometimes need to be redesigned
Data-driven decision making
Now available: more data than ever before
From social media
From large data stores in firms
Predictive analytics tools can help with analysis of that data
Securing key assets
A balance is needed
Too little security endangers assets of the firm and its customers
Too much reduces operational convenience
© 2016 John Wiley & Sons, Inc.
11
What Happens if Management Doesn’t Participate?
Breakdown in servicing customers
Sales decline
Damaged reputation
Poor spending:
Overspending and excess capacity, or
Underspending and restricted opportunity
Inefficient business processes
© 2016 John Wiley & Sons, Inc.
12
Failing to Consider IS Strategy
Leads to:
IS that fail to support business goals (e.g., Victoria’s Secret site overload)
IS that fail to support organizational systems (e.g., workers buying mobile devices but the IT department only supports desktop PCs)
Misalignment between business goals and organizational systems
© 2016 John Wiley & Sons, Inc.
13
Skills Managers Need for Their IT Decisions
Visionary role
Creativity
Curiosity
Confidence
Focus on business solutions
Flexibility
Informational and Interpersonal
Communication
Listening
Information gathering
Interpersonal skills
Structural
Project management
Analytical
Organizational
Planning
Leading
Controlling
© 2016 John Wiley & Sons, Inc.
14
Upcoming Material
Information Systems Strategy Triangle: Alignment of IT and the business
Links between IS and business strategy
Links between IS and organizational strategy
Collaboration and individual work
Business processes
Architecture and infrastructure
Participating in decisions about IS security
The business of IS
Governance of IS resources
Sourcing
Project and change management
Business intelligence
Ethical use of information
© 2016 John Wiley & Sons, Inc.
15
Assumptions
16
© 2016 John Wiley & Sons, Inc.
Assumptions About Management
Interpersonal
Figurehead
Leader
Liaison
Informational
Monitor
Disseminator
Spokesperson
Decisional
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
© 2016 John Wiley & Sons, Inc.
17
Assumptions About Business – Functional View
© 2016 John Wiley & Sons, Inc.
18
Process View
© 2016 John Wiley & Sons, Inc.
19
Assumptions about the Nature of Information
Data – simple observations
Information – data + relevance + purpose
Knowledge – information + context + synthesis + reflection
© 2016 John Wiley & Sons, Inc.
20
Data, Information, and Knowledge
| Data | Information | Knowledge | |
| Definition | Simple observations of the state of the world | Data endowed with relevance and purpose | Information from the human mind (includes reflection, synthesis, context) |
| Characteristics | Easily structured Easily captured on machines Often quantified Easily transferred Mere facts | Requires unit of analysis Data that have been processed Human mediation necessary | Hard to structure Difficult to capture on machines Often tacit Hard to transfer |
| Example | Daily inventory report of all items | Daily inventory report of items with low levels of stock | Report of which items need to be reordered after considering inventory levels, anticipated labor strikes, and a flood affecting a supplier |
© 2016 John Wiley & Sons, Inc.
21
Characteristics of Information Across Levels
| Top Management | Middle Management | Supervisory and Lower-Level Management | |
| Time Horizon | Long: years | Medium: weeks, months, years | Short: day to day |
| Level of Detail | Highly aggregated Less accurate More predictive | Summarized Integrated Often financial | Very detailed Very accurate Often nonfinancial |
| Source | Primarily external | Primarily internal with limited external | Internal |
| Decision | Extremely judgmental Uses creativity and analytical skills | Relatively judgmental | Heavy reliance on rules |
© 2016 John Wiley & Sons, Inc.
22
Economics of Information vs Things
| Things | Information |
| Wear out | Doesn’t wear out but can become obsolete or untrue |
| Are replicated at the expense of the manufacturer | Is replicated at almost zero cost without limit |
| Exist in a tangible location | Does not physically exist |
| When sold, possession changes hands | When sold, seller may still possess and sell again |
| Price based on production costs | Price based on value to consumer |
© 2016 John Wiley & Sons, Inc.
23
Internet of Things (IoT)
Combine information and things = IoT
From the 1970s: Coke machine at Carnegie Mellon University
From the 1980s: Elevators that call for service without people knowing there is a problem
Today:
Self-driving cars
Internet-connected (and controllable) thermostats, stoves, alarm systems
Pets that are trackable online
Heart monitors that alert doctors or hospitals of a problem
Digital video recorders that can be controlled around the world
Quad-copters (drones) that can
Record video marked with location data
Return to the point of origin if it goes out of range of the “pilot”
Notify regarding its location and avoid objects in a database
© 2016 John Wiley & Sons, Inc.
24
The Term “Information Systems”
Composed of:
Technology
People
Processes
Information Technology vs Information Systems
The term “IT” tends to be more fashionable
But IT actually refers to just the technology
Many people interchange the terms
© 2016 John Wiley & Sons, Inc.
25
Summary
This has been a brief introduction to some of the topics you will encounter throughout our course.
I anticipate a lively and interesting class!
26
© 2016 John Wiley & Sons, Inc.
Summary
After you have listened to this lecture and read the Introduction Chapter in your text
Go to Discussion Board 1.2 and answer the discussion prompt
There is no quiz this week.
© 2016 John Wiley & Sons, Inc.
27
