Module 3 Enabling Technologies

MBA
Master of Business Administration

Crash Course
Course
“To reach our greatest potential, we

must set our sights clearly and
embrace the unknown confidently”
The National Organization of Certified Public Accountants An association of institutional, professionals, and OFWs
Riyadh Chapter, Kingdom of Saudi Arabia Riyadh, Kingdom of Saudi Arabia
MODULE 3
ENABLING
TECHNOLOGIES
WORLD’S
BIGGEST COMPANY?
World of Warcraft
not only trumps all
multiplayer games,
it also dominates a
number of countries
Exceeds 10 Million Players

Greater than population of Sweden
and Haiti.
Determining what actually is the world's

largest company is far from an exact science.
Do you measure it by annual revenue, in

which case it's ExxonMobil, which pulled in
about $400 billion in 2007?
Perhaps counting number of employees

makes more sense, in which case it's Wal-
Mart, which has 1.7 million blue-vested souls
on its books.
Maybe market capitalization, a measure of the

public opinion of the value of a company, is
what matters most, in which case it's
probably ExxonMobil again.
No matter how you slice it, most of the same names come up time and again -- a cabal of
the world's most powerful private economic entities. They include petroleum giants like
BP, Shell and ExxonMobil and manufacturing powerhouses like Toyota and General
Electric. Some, like HSBC and Citifinancial, are fiscal giants; others, like Warren Buffet's
Berkshire Hathaway, have fingers in all kinds of pies.
Each day, about half a million items are sold

on eBay...nearly 50 million people around the
world [use eBay]."
"EBay users exchanged some $9.3 billion

worth of goods in 18,000 categories [in nearly
170 million transactions last year.
EBay got by with no stores, fewer than 3,000

employees and without taking legal or
physical possession of [anything]...revenues
from listing fees and advertising last year
amounted to $749 million."
BASIC CONCEPTS
BASIC CONCEPTS
INFORMATION TECHNOLOGY (IT)

hardware, software, and
communication technologies –
essentially equipment
INFORMATION SYSTEM (IS)

a wider concept referring to information
flow designs in an attempt to meet the
information needs of the organization.
INFORMATION MANAGEMENT (IM)

process of managing the information
needs of the organization.
INFORMATION TECHNOLOGY
HARDWARE
CPU
Arithmetic Logic
Control Unit
INPUT DEVICES SEC. STORAGE

Keyboard Magnetic Disk
Mouse Optical Disk
Touch Screen Magnetic Tape
OUTPUT DEVICES
Printer Speakers
COMMUNICATION
Display DEVICE
Plotter
PRIMARY STORAGE
EVOLUTION OF COMPUTER HARDWARE
FIRST GENERATION : VACUUM TUBE

TECHNOLOGY
1946-1956
SECOND GENERATION : TRANSISTORS

1957-1963
THIRD GENERATION : INTEGRATED CIRCUITS

1964 - 1979
FOURTH GENERATION :
VERY LARGE SCALE INTEGRATED
CIRCUITS
1980 - PRESENT
MAINFRAMES
MINICOMPUTERS
PARALLEL COMPUTERS
SERVERS AND WORKSTATIONS
MAINFRAMES
highly engineered,
extremely powerful processors
special design - increased power
MINICOMPUTERS
Mid-range systems
Smaller than mainframes
Less configurations
PARALLEL COMPUTERS
Multiple processors
Accessing common memory
SERVERS
WORKSTATIONS
STORAGE DEVICE
MEMORY
MAGNETIC DISKS
OPTICAL DISKS
MAGNETIC TAPE
STORAGE DEVICE
MEMORY
STORAGE DEVICE
MAGNETIC DISKS
STORAGE DEVICE
OPTICAL DISKS
STORAGE DEVICE
MAGNETIC TAPE
Manage the resources of Programs for specific

computer business application
O/S
Windows
APPLICATION
Mcintosh Office
SOFTWARE
SOFTWARE
Novell CAD
SYSTEM
POSIX Payroll
UNIX Accounting
DBMS PeachTree
Comms Adobe
Mgt Etc
Etc
INPUT DEVICES
OUTPUT DEVICES
INFORMATION SYSTEMS
BUSINESS PERSPECTIVE
INFORMATION
SYSTEM
MANAGEMENT
Organizational and Management Solution to Environmental Challenges
HOW
ORGANIZATIONS
AFFECT
AFFECT
INFORMATION
SYSTEM?
HOW
ORGANIZATIONS AFFECT
INFORMATION SYSTEM?
FUNCTION - Decisions about the role of

information system.
RESPONSIBILITY - Decisions who will

deliver information technology services.
GOALS - Decisions why information

systems are built.
SYSTEMS DEVELOPMENT PROCESS
Decisions why information systems are
built.
WHY ORGANIZATIONS ADOPT INFORMATION SYSTEM?
Environmental Factors Institutional Factors

Uncertainties Values
Opportunities Norms
Interests
System Development
Adoption
Utilization
Management
INFORMATION ARCHITECTURE DEVT

Decisions about the role of information
system.
1950
Electronic Accounting Machines
Senior
Few Critical Management
Functions
Treasury Personnel
Production Marketing
EAM
1960s
Data Processing Department
Senior
Management Large Centralized
Machines
Data
Treasurer Production Marketing
Processing

1970s
Data Processing Department
Major on-line
Senior
systems
Management
Treasurer Information Marketing

Mini System Mini
Production Personnel
Communication Links to distribute information

1980s
Information Systems and Services
Telecommunication
Senior
Link
Management
Treasurer Information Marketing

Mini System Mini
Microcomputers
Information Personnel
Center Mini
Communication Links to distribute information

1990s
Enterprise-wide Information Utility
Senior
Management
Enterprise
Information
Utility
Acctg & Fin MFG SALES HR Information

Mini Mini Mini Mini Center
PC PC PC
networks CAD/CAM networks networks
Enterprise backbone network
COMPUTER PACKAGE-ORGANIZATION
Decisions who will deliver information
technology services.
SENIOR MANAGEMENT
MAJOR END USERS
INFORMATION SYSTEMS DEPARTMENT
Information Systems Specialists
Technology • Managers
• Systems Analysts
• Hardware • Systems programmers
• Software • Maintenance programmers
• Database Administrators
• Encoders
1960’s TRADITIONAL APPROACH
DP MANAGER
SYSTEMS
OPERATIONS DEVELOPMENT
MANAGER MANAGER
Data Senior
Shift Senior
Preparation Analyst
Supervisor Programmer
Supervisor
Control Data Dev’t Maint System

Operator Validator
Clerk Entry Progrmr Progrmr Analysts
1980’s FUNCTI ONAL PROJECT GROUPS
MIS DIRECTOR
Data Center Corporate Marketing Manufacturing Information

Network Systems Systems Systems Services
Financial Sales Stock Data

Reports to Control Admin
HQ but sited Customer
Management
in user Service Production Systems
Support
community Planning Programng
Personnel Market
Research Engineering Information
center
Security
CHALLENGES OF
INFORMATION SYSTEM
KEY MANAGEMENT ISSUES

INFORMATION SYSTEM CHALLENGES
Strategic Business Challenge:
How can businesses use information

technology to design organizations that
are competitive and effective?
simplify communication and coordination
eliminate unnecessary work
eliminate inefficiencies

Global Challenge
How can firms understand the business

and system requirements of a global
economic environment?
develop global hardware, software, and

communications standards
create cross cultural accounting and

reporting structures

Information Architecture Challenge
How can organizations develop an

information architecture that supports
their business goals?
Integrating these “islands of information”

into coherent architecture
Information System Investment
Challenge:
How can organization determine the

business value of information
systems?
Obtaining sizable payoff from information

system investment.
ROI
Responsibility and Control Challenge:
Design systems that people can control

and understand
Ensure information systems are used in

ethically and socially responsible
manner?

It is a revolution in CONCEPTS.
It is not happening in Information Technology (IT), or in

Management Information Systems (MIS), and is not being led
by Chief Information Officers (CIOs).
It is led by people on whom the Information Industry tends to

look down: accountants.
But an Information Revolution has also been going on in

information for the individual.
Again it is not happening in IT or MIS, and is not led by CIOs.
PETER DRUCKER It is a print revolution. And what has triggered these

“Revered as father information revolutions and is driving them is the failure of
of Modern Day the "Information Industry"—the IT people, the MIS people, the
Management” CIOs—to provide INFORMATION.
So far, for fifty years, Information Technology has centered on

DATA—their collection, storage, transmission, presentation. It
has focused on the "T" in "IT."
Top executives have not

used the new technology
because it has not
provided the information
they need for their own
PETER DRUCKER
“Revered as father tasks.
of Modern Day
Management”
According to a recent DTI International

Benchmarking Study
77 % of UK businesses had a business

plan, only 33% had an IT policy as part of
their overall strategy.
The majority of companies do not

necessarily need to spend more on IT, just
more efficiently.
ROLES OF COMPUTERS IN
MANAGEMENT
CLASSICAL MODEL OF MGT FUNCTIONS
Deciding Putting together
how to achieve resources to
the objectives implement
plans.
PLANNING ORGANIZING
CONTROL- COORDI-
Supervising NATING Ensuring
and measuring LING alignment of
performance resources to
achieve
organization’s
objectives
MOTIVATING
Leadership & inspiring subordinates

Creating good moral and spirit
MANAGERIAL ROLES & IS SUPPORT
Interpersonal Roles
Figure Head - None Exist
Leader - None Exist
Liaison - Electronic
Comm. Sys
Informational Roles Decisional Roles
Nerve Center -MIS Entrepreneur -None

Disseminator -Mail/ Disturbance Handler -None
Resource Allocator -DSS
Ofc System
Spokesman Negotiator -None
-Office
Ssystems
KEY SYSTEMS APPLICATION

IN THE ORGANIZATION
INFORMATION SYSTEM AS
STRATEGIC RESOURCE
CHANGING CONCEPTS OF IS
CONCEPTION OF INFORMATION
TIME PURPOSE
INFORMATION SYSTEMS
ELECTRONIC Speed Accounting
1950 -1960 A PAPER DRAGON ACCOUNTING and paper
BUREAUCRATIC MACHINES (EAM) processing
GENERAL MANAGEMENT Speed general

1960 -1970 PURPOSE INFORMATION reporting
SUPPORT SYSTEM (MIS) requirements
CUSTOMIZED DECISION SUPPORT Improve and

1970 -1980 MANAGEMENT SYSTEM (DSS) customize
CONTROL EXEC SUPPORT decision making
SYSTEM (ESS)
Strategic Resource Promote survival

STRATEGIC
1985 - 2000 Competitive Advantage and prosperity of
Strategic Weapon SYSTEMS
organization
KEY SYSTEMS APPLICATION
STRATEGIC
LEVEL System SENIOR
SYSTEMS for MANAGERS
long-range
planning
activities
MANAGEMENT MIDDLE
LEVEL System that supports
MANAGERS
SYSTEMS Monitoring, controlling,
decision making
KNOWLEDGE KNOWLEDGE
LEVEL System that supports knowledge and AND
SYSTEMS data workers DATA
(Control of paperworks) WORKERS
OPERATIONAL
System for elementary activities and OPERATIONAL
LEVEL
transactions of the organization MANAGERS
SYSTEMS
(Activities Tracking system)
Sales & Mktg Manufacturing Finance Acctg HR
INFORMATION PROCESSING SYSTEM

EXECUTIVE 5 – YEAR BUSINESS PLANS
SUPPORT SYSTEM FORECASTING
(ESS) OPERATIONAL PLANS
STRATEGIC LEVEL SYSTEM
Sales Mgt Annual Budgeting Manpower
• MGT. INFO SYSTEM Sales Analysis Cost Analysis Analysis
• DECISION Inventory Control Capital Analysis Contract Cost
SUPPORT SYSTEM Production Scheduling Pricing Analysis Analysis
MANAGEMENT LEVEL SYSTEM – MIDDLE MANAGERS

• KNOWLEDGE
WORK SYSTEM Eng’g Station Graphics Station Managerial Stations
• SOFFICE Word Processing Image Storage Electronic calendars
AUTOMATION
SYSTEM KNOWLEDGE LEVEL SYSTEM – KNOWLEDGE DATA WORKERS
Order Machine Securities Payroll Training

TRANSACTION Tracking Control Trading Accts/Rcvl Compensa-
PROCESSING Order Plnt Sched Cash Mgt Accts Pybl tion
SYSTEM Processing Material Mgt Invoicing Records
Sales & Mktg Mfg Finance Accounting HR
OPERATIONAL LEVEL SYSTEM – OPERATIONAL MANAGERS

ORGANIZATIONAL LEVEL IS SUPPORT
ORGANIZATIONAL
ACTIVITY EXAMPLE SUPPORT SYSTEM
LEVEL
Individual Job, Task Microcomputer Application; personal

client database; decision support
system
Group Project Product scheduling; access to

mainframe data, external data
resources, dynamic information
requirements; group DSS
Department Major Accounts payable, warehouse, payroll,

Function HR, marketing, stable information
requirements, MIS, major transaction
systems
Division Major Accounts payable, warehouse, payroll,

Product or HR, marketing, stable information
Service requirements, MIS, major transaction
systems
ORGANIZATIONAL LEVEL IS SUPPORT

ORGANIZATIONAL
ACTIVITY EXAMPLE SUPPORT SYSTEM
LEVEL
Organization Multiple Integrated financial and planning

products systems; MIS; on-line interactive
services systems; ESS
Inter- Alliance Communication systems; intelligence;

Organization Competition observation, and monitoring system
Exchange
Contact
Organizational Sector of Informal communication systems;

Network economy; industry and sector level formal
related reporting system
products,
services;
interdepen-
dences
HOW
INFORMATION SYSTEMS
CAN BE
CAN BE USED
USED
FOR
STRATEGIC ADVANTAGE
PRODUCT DIFFERENTIATION
Developing unique product

differences with the intent to
influence demand.
Products and services that

can easily be distinguished
from those of competitors
Products and services that

existing competitors or
potential new competitors
can’t duplicate.
FOCUSED DIFFERENTIATION
Create new market niche for

specific product.
Provide specialized products

and services serving narrow
target market better than
existing competitors.
CUSTOMER-SUPPLIER LINKAGE
Lock customers to the company’s

products and services
Tie suppliers to delivery

timetables and price structure
Economies of Scale Advantage

LOW-COST PRODUCER
Producing goods and services at

lowest cost
Maintaining quality at right cost

and price
Percentage of small- and medium-size businesses that

report using the Internet for:
Researching markets, competition - 79%

Advertising, promoting products - 51%
Long-distance collaboration - 44%
Providing after-sales services to clients - 32%
Communicating with government offices - 27%
Selling directly to other companies - 27%
Managing financial accounts - 26%
Selling directly to consumers - 26%
Managing orders and invoices - 23%
CHANGING ROLES OF
IN BUSINESS
CHANGING ROLES
ECONOMIST INTELLIGENCE UNIT REPORT
Most technology managers (62%) believe that enabling

revenue generation will come to be IT‘s primary mission
within the next three years but CEOs and board
members (83%) are almost wholly convinced of it.
CEOs, hope the level of IT-business alignment will

improve giving strong emphasis on joint project
management responsibility between IT and business
managers, as well as the use of cross-functional teams.
CEOs and board members (41%) foresee the

disappearance of a stand-alone IT department . More than
a few companies appear ready to consider radical
solutions to bring IT and the business closer together.
SYSTEMS DEVELOPMENT
AND
ORGANIZATIONAL CHANGE
SYSTEMS DEVT-ORG CHANGE

STRUCTURAL ORGANIZATIONAL
CHANGE ENABLED BY
Automation
Rationalization of Procedures
Paradigm Shifts
Business Re-engineering
AUTOMATION
Use of computers to speed up

process
Increase volume of production
Product Uniformity
Quality
RATIONALIZATION OF PROCEDURES
Streamlining Standard Procedures

(SOP’s)
Eliminating bottlenecks
Setting operating platforms.
WITHOUT CERTAIN RATIONALIZATION

COMPUTER TECHNOLOGY WOULD BE
USELESS
PARADIGM SHIFT
Re-thinking the nature of business.
Re-thinking the nature of operation.
USE OF INFORMATION TECHNOLOGY

AND SYSTEM TO SHIFT BUSINESS TO
COMPLEMENTARY OPERATION, E.G.
ON-LINE BANKING SYSTEM
BUSINESS RE-ENGINEERING
Radical design of business process
Analyze relationship among business

units.
Streamline processes.
Make business more efficient and

effective
FIVE (5) MAJOR STEPS TO
BUSINESS PROCESS RE-ENGINEERING
(BPR)
DEVELOP BUSINESS
VISION AND PROCESS
OBJECTIVES IDENTIFY
OPPORTUNITIES FOR
INFORMATION
TECHNOLOGY
APPLICATION
IDENTIFY THE
PROCESSES TO BE RE-
DESIGNED
BUILD A PROTOTYPE
OF THE NEW PROCESS
UNDERSTAND AND
MEASURE EXISTING
PROCESSES
IDENTIFY GAPS
CLASSIC CASE OF BPR – FORD
TARGET : ACCOUNTS PAYABLE SECTION
VISION AND PROCESS OBJECTIVES : COST SAVINGS AND

OPERATIONAL EFFICIENCY
PROCESS FOR RE-DESIGN : ACCOUNTS PAYABLE
PROBLEM AREAS : PURCHASE ORDER

RECEIPT DOCUMENTATION
INVOICE MISMATCHES
BEFORE AFTER
TRADITIONAL INITIATING AND STORE ORDERS ON ON-LINE

PREPARATION OF ORDERS DATABASE, NO COPIES GOING
TO ANYONE
GOODS COME IN : REFERS TO GOODS COME IN: CHECKS

PRUCHASE ORDER FORMS DATABASE
MATCHES 3 ITEMS : PART NUMBERS,

MATCHES 14 ITEMS AND MANUALLY UNIT OF MEASURE, SUPPLIER CODE
ALL MATCHING BY COMPUTER
CHEQUE AUTOMATICALLY
MANUAL CHEQUE PREPARATION
PREPARED BY COMPUTER
BEFORE AFTER
PURELY PAPERWORKS PAPERLESS OFFICE
HEADCOUNT OF 500 EMPLOYEES HEADCOUNT REDUCED BY 75%
LONG PROCESS OF CHECKING/

SHORT TIME AND ACCURATE
VALIDATIONG FINANCIAL
FINANCIAL REPORTS
REPORTS
CHALLENGES TO
BUSINESS PROCESS RE-ENGINEERING
(BPR)
14% Project Charter too narrow
18% IS Staff involved too late
25% Inadequate team skills
27% Lack of cross functional project team
29% Unrealistic expectations
Lack of Sr Executive Champion 37%
Lack of Executive Consensus 39%
Limitation of Existing System 42%
Resistance to change 60%
0 10 20 30 40 50 60
APPROACHES
TO
IS/IT
IS/IT
STRATEGY DEVELOPMENT
WHAT
IS
STRATEGY?
STRATEGY
Broad collection of decision rules and

guidelines that define a business scope
and business dimension
- Ansoff (1965) Corporate Strategy
Broad based formula how business is

going to compete, what goals should
be, and what policy will be needed to
carry out this goals
- Porter (1980) Competitive Strategy
STRATEGY
Strategy is the pattern of

resource allocation decisions
made throughout an
organization encapsulating
desired goals, and beliefs about
what is acceptable and, most
critically, unacceptable means
for achieving them.
WHY IS/IT
STRATEGIC
PLANNING
NEEDED?
STRATEGY
Identify current and future information
needs of the organization.
Determine and identify policies for

management, creation, maintenance,
control and accessibility to corporate
information resource.
Reposition IS/IT function – Matching

IS/IT to business needs.
Management and operational support.
Resource forecasting.
STRATEGY
Business Planning.
Communication.
Understanding of
business/organization
Long term confidence in the direction

of development.
Support for long term business goals

and targets.
Cost effectiveness.
WHAT IS
IT/IS/IM
STRATEGY?
STRATEGY
IT STRATEGY – concerned with
technology policies : architecture, risk
attitudes, vendor policies and technical
standards.
IS STRATEGY – aligning IS
development with business needs and
seeking strategic advantage from IT.
IM STRATEGY – aims at putting the

management into IT and concerned
with relationship between specialists
and users and between centers and
divisions or business units.
APPROACHES
TO
IS/IT STRATEGY
DEVELOPMENT
GARRET HICKEY 4 PHASE APPROACH

FOCUS PROCESS MAIN OUTPUT
Business Objectives Confirm business Business Objectives

IS/IT Opportunities objectives & IS/IT IS/IT Opportunities
Initial Blueprint opportunities analysis Initial Blueprint
Assessment of current
Current IS/IT Analysis needs, IS/IT
Scope of strategy assess current IS/IT & Review IT organization
scope of strategy Prioritize application
Scoping of IS/IT strategy
Detailed blueprint for Information

Define target IS/IT
main components architectures; Data
assessment of IS/IT determine alternative Applications
strategies strategies Technology
Organization
Conclusion of strategy
Implementation plan
Complete IS/IT IS/IT Strategy
Costs and benefits
strategy; develop IS/IT IS/IT implementation
implementation plan Executive summary
EARL’S MULTIPLE METHODOLOGY
The “three-pronged attack”
TACKLES THREE (3) MANAGEMENT ISSUES
Clarification of
of the
the business
business needs
needs
and strategy in information system;
Evaluation of current information

systems provision and use; and
Innovation of new strategic

opportunities afforded by IT.
The “three-pronged attack”
APPROACHES
TOP DOWN
DOWN APPROACH
APPROACH
BOTTOM-UP
INSIDE-OUT
TOP-DOWN APPROACH
BUSINESS PLANS
IDENTIFY/AGREE BUSINESS
OBJECTIVES
IDENTIFY CRITICAL SUCCESS

FACTORS
DETERMINE IS SUPPORTING
CRITICAL SUCCESS FACTORS
APPLICATION
BOTTOM - UP APPROACH
APPLICATION
ESTABLISH EXTENT OF
RENEWAL/MODIFICATIONS
IDENTIFY
GAPS
ESTABLISH ACTUAL
POSITION/SITUATION
CURRENT SYSTEMS
INSIDE - OUT APPROACH
IT OPPORTUNITIES
CREATIVE
TECHNIQUES PROCESS
AND ENVIRONMENT
BRIGHT SPARKS
PRODUCT CHAMPIONS
CHAMPIONS
INSIDE - OUT APPROACH
IT OPPORTUNITIES
CREATIVE
TECHNIQUES PROCESS
AND ENVIRONMENT
BRIGHT SPARKS
PRODUCT CHAMPIONS
CHAMPIONS
REPONEN’S IMPLEMENTATION APPROACH
BUSINESS
Strategic
Use of IT
IT
Application STRATEGY
MULTIPLE s Dev’t. IMPLEMEN-
PARTICIPANTS
TATION
Architecture
CONCEPTS
IS Function
Investment
EXPERIENCE
EVOLUTIONAL STRATEGIC PLANNING
Corporate
Strategy
IS/IT
Industry &
Business
Business
Impact
Unit
Strategies
Corporate &
Business Unit
Strategies
IT
Strategy (ies)
EVOLUTIONAL STRATEGIC PLANNING

Assessing the need for Appraisal of IS/IT as it Identifying potential future
immediate investment (1-2 relates to the business investment investment (1-5
years) Short/Medium Term years) Long Term
Understand industry
structure and business
position
Interpret business Consider potential IS/IT
objectives and strategy impact on
products/services, etc
Analyze external value
chain and information
flow implications
Determine CSF for Consider strategic
company and potential IS/IT impact &
competitors effects on value chain
Analyze internal value
chain & organizational
relationships
Identify Critical Identify options for long
business processes and term IS/IT investment –
activities select most beneficial
Assess the business
contribution of existing
system (SWOT)
Determine short term
focus for investments
Existing
Required
Potential
application
portfolio
COMMON COMPUTER
MANAGEMENT MISTAKES
COMMON MISTAKES
Making generalists out of specialists.
Failure to manage computers and

projects.
Maintaining unrealistic expectations of

software.
Cutting purchasing corners – hybrid of

cheap hardware and software.
Failure to standardize – inconsistency.
MEASURING SYSTEM
SUCCESS
SUCCESS
MEASURING SYSTEM SUCCESS
High Level of System Use
Appropriate Nature of Use
User Satisfaction-Favorable Users’ Attitude
Achieved Objectives
Financial Payoff
CAUSES OF SUCCESS & FAILURES
User Involvement and Influence
Management Support
Levels of Complexity and Risk
- Project Size
- Project Structure
- Experience with technology
Management of Implementation Process
"...workers spend an average of 8.3 hours a

week - more than one entire workday -
peeking at non-work-related sites.
One of every four employees reports 'feeling

addicted to, or compulsive in' using the
Internet.
More than half of the Fortune 500, as well as

roughly 17,000 companies, now run EIM
[employee Internet management] software,
including Cisco, McDonalds and Pepsi."

INFORMATION SYSTEM PROBLEM AREAS
Design
Data
Cost
Operation
SUCCESSFUL COMPANIES LESS SUCCESSFUL COMPANIES
USE OF IS/IT – MAIN EMPHASIS
AS BUSINESS WEAPON
Response to customers
Improve delivery times
Improve company image Improve company image
After sales service
Improve product quality Reduce product price
AS MANAGERIAL TOOL
Faster/better communication
Data Accuracy
Faster business planning
Decision Support Decision support
Reduction in staff cost
Control staff activities

SUCCESSFUL COMPANIES LESS SUCCESSFUL COMPANIES
MANAGEMENT OF IS/IT
Better IS/IT information Not interested, leave it to DP people

Development & use of IT by competitors
Use multiple suppliers Does not shop around for solution
Learn from mistakes Repeat mistakes
IS/IT policies linked to business policies
Plans and Budgets for IS/IT investment Finance Director sets budget and
Use of steering committees for projects spending by DP based on user
Frame corporate strategies- request. Priorities not clearly
customers/products/services defined
Top management informed about IS/IT
performance Frame strategies based on amount.
Projects appraised before & after
completion
Separate resources for current operations
from future developments
High spending on education and training of
all management and IS Staff.
CASE STUDY
This document was created with Win2PDF available at http://www.daneprairie.com.
The unregistered version of Win2PDF is for evaluation or non-commercial use only.

Module 3 Enabling Technologies

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Module 3 Enabling Technologies

Uploaded by

Copyright:

Available Formats

MBA

Master of Business Administration

“To reach our greatest potential, we

Exceeds 10 Million Players

Determining what actually is the world's

Do you measure it by annual revenue, in

Perhaps counting number of employees

Maybe market capitalization, a measure of the

Each day, about half a million items are sold

"EBay users exchanged some $9.3 billion

EBay got by with no stores, fewer than 3,000

INFORMATION TECHNOLOGY (IT)

INFORMATION SYSTEM (IS)

INFORMATION MANAGEMENT (IM)

INPUT DEVICES SEC. STORAGE

FIRST GENERATION : VACUUM TUBE

SECOND GENERATION : TRANSISTORS

THIRD GENERATION : INTEGRATED CIRCUITS

SERVERS AND WORKSTATIONS

Manage the resources of Programs for specific

Organizational and Management Solution to Environmental Challenges

FUNCTION - Decisions about the role of

RESPONSIBILITY - Decisions who will

GOALS - Decisions why information

Environmental Factors Institutional Factors

INFORMATION ARCHITECTURE DEVT

INFORMATION ARCHITECTURE DEVT

Treasurer Information Marketing

Communication Links to distribute information

Treasurer Information Marketing

Communication Links to distribute information

INFORMATION ARCHITECTURE DEVT

Acctg & Fin MFG SALES HR Information

Enterprise backbone network

INFORMATION SYSTEMS DEPARTMENT

Information Systems Specialists

Control Data Dev’t Maint System

Data Center Corporate Marketing Manufacturing Information

Financial Sales Stock Data

KEY MANAGEMENT ISSUES

How can businesses use information

simplify communication and coordination

eliminate unnecessary work

INFORMATION SYSTEM CHALLENGES

How can firms understand the business

develop global hardware, software, and

create cross cultural accounting and

INFORMATION SYSTEM CHALLENGES

How can organizations develop an

Integrating these “islands of information”

How can organization determine the

Obtaining sizable payoff from information

INFORMATION SYSTEM CHALLENGES

Responsibility and Control Challenge:

Design systems that people can control

Ensure information systems are used in

INFORMATION SYSTEM CHALLENGES

It is not happening in Information Technology (IT), or in

It is led by people on whom the Information Industry tends to

But an Information Revolution has also been going on in

Again it is not happening in IT or MIS, and is not led by CIOs.

PETER DRUCKER It is a print revolution. And what has triggered these

So far, for fifty years, Information Technology has centered on

Top executives have not