MIS Introduction to Information Systems

Chapter One

Some Fundamental Questions

What is the role of information systems in todays competitive business environment?

What exactly is an information system (IS)? What do managers need to know about IS?
How are IS transforming organizations and management? How have the internet and Internet technology transformed business? What are the major management challenges to building and using information systems
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Toyotas Gran Vision

Building only cars that customers order and building them in record time has been every auto makers dream

Toyota Motor Corporation has 56 plants in 25 countries with 1000-plus suppliers In 2002, they invested $1.2 billion in software, hardware, and IT related services , by making agreement with Dassault & IBM

Toyotas Gran Vision

This technology will enable Toyota to model every aspect of car production, including the automobiles look, the parts that make it run, the sequence in which components are assembled, and the design of the factory itself The new system will replace Toyotas own internally developed computer-aided design (CAD) and product-data management systems, which have been highly praised, but could not perform the functions Toyota needs to stay ahead of the curve in automobile manufacturing

Toyotas Gran Vision

Toyota will be the first auto manufacturer to test designs for manufacturability (determining whether the design of individual parts and assemblies of parts makes them easy to install as the car is being assembled) on a global basis

Once the design, production plan, and factory-floor strategy fit together, Toyota can transmit the specifications for the new car model to its production and supply-chain management systems
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Toyotas Gran Vision

Integration of digital design and digital manufacturing will enable Toyota to bring new models to market in 10 months instead of several years Product-to-market time has become more important as Toyota tries to cultivate a younger market, targeting 45 & below age customers Toyotas ultimate vision is to be able to use all of these new tools and ways of working to support an order-to-delivery model in which it could build a car to customer specifications and deliver it within days (pull base manufacturing) 6

Toyotas Gran Vision

Where will Toyota get advantages with this huge investment ($1.2 billion or $120 or Tk.8,400 crore) in IS?

Information System (IS)

Environment Suppliers

Customers

Organization

Information System

Input

Processing Classify Arrange Calculate

Feedback

Output

Regulatory Agencies

Stockholders

Competitors
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Business Value Chain

Supply Chain Management

Enterprise Management

Customer Management

Knowledge Management

Data Collection Transformation Dissemination And storage Into business systems

Firm Profitability And strategic position

Planning

Coordinating

Controlling

Modeling and Decision making

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Information System (IS)

Technology Organizations Information Systems

Management

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Scenario
Develop growth strategy Design new production process

Business Challenge
Management Changing customer base Shrinking product-to-market line

IBM hardware Internet Technology Product Life Cycle Management software

Technology

Information System

Business Solutions

Customers Dealers Engineers Suppliers Production plants

Organization

Customize products Test designs for manufacturability Support converse engineering Model the product line

Increase Revenue Reduce costs

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Digital Firm
Widening Scope of IS Network Revolution and the Internet Collaborative Enterprise

Electronic Commerce, Electronic Business, and New Digital Relationships

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Why Information Systems (IS) Because of competitive business environment & emerging digital firm

Globalization
Transformation of Industrial Economics Transformation of the Enterprise Emergence of the Digital Firm
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Why Information Systems (IS) Globalization

Economy depends on import-export Business functions in different locations (outsourcing) Cost management MNCs operations

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Why Information Systems (IS) Transformation of Industrial Economics

Knowledge-base and information-base service economies where manufacturing has been moving to low-wage countries Japan, USA, Germany to China, Korea, Taiwan, India

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Why Information Systems (IS) Transformation of the Enterprise

Traditional business was a hierarchical, centralized, structured

arrangement of specialists that typically relied on a fixed set of standard operating procedures to deliver a mass-produced product (service)
The new style of business firm is a flattened (less hierarchical), decentralized, flexible arrangement of generalists who rely on

nearly instant information to deliver mass-customized products and services uniquely suited to specific markets or customers
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Why Information Systems (IS) Emergence of the Digital Firm

A digital firm is one where nearly all of the organizations significant business relationships with customers, suppliers, and employees are digitally enabled and mediated Business process refer to the unique manner in which work is organized, coordinated, and focused to produce a valuable product or service SCM CRM

Enterprise system
Knowledge management systems
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What is Information Systems (IS) Information System (IS)

IS can be defined technically as a set of interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.

Terms
Information, data, input, processing, output, feedback, computer-

based information system (CBIS), formal system

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Information System (IS)

Environment Suppliers

Customers

Organization

Information System

Input

Processing Classify Arrange Calculate

Feedback

Output

Regulatory Agencies

Stockholders

Competitors
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A Business Perspective on IS
IS not for its own purpose rather to improve organizational performance and produce profits. IS is for producing value -increasing firms return on investment (ROI)

-enhancing companys strategic position

-increasing market value of firms stock (share price)

IS leads to produce Business Value

From a business perspective, IS is a part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and ultimately increase firm 20 profitability

Business Value Chain

Supply Chain Management

Enterprise Management

Customer Management

Knowledge Management

Data Collection Transformation Dissemination And storage Into business systems

Firm Profitability And strategic position

Planning

Coordinating

Controlling

Modeling and Decision making

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Information System (IS)

Information systems are more than computers. Using information systems effectively requires an understanding of the organization,

management, and information technology shaping the systems. All

information systems can be described as organizational and management solutions to challenges posed by the environment that

will help create value for the firm

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Information System (IS)

Technology Organizations Information Systems

Management

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Organization Major Business Functions

Sales and marketing (selling the organizations products and services)

Manufacturing and production (producing products and services)

Finance (Managing the organizations financial assets (cash, stocks, bonds etc.) Accounting ( maintaining the organizations financial records (receipts, disbursements, paychecks etc.); accounting for the flow of funds) Human Resource (attracting, developing, and maintaining the organizations labor force; maintaining employee records) 24

Management
Senior Management-long range strategic decisions Middle Management- carry out programs and plans of SM Operational Management-monitor daily operations

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Technology
Computer hardware Computer software Storage technology Communications technology Network Information technology (IT) infrastructure

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Contemporary Approaches to IS
Technical Approach Behavioral Approach Socio-technical Approach

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Technical Approach
Emphasis mathematically based models to study information systems, as well as the physical technology and formal capabilities of these systems computer science-theories of computability management science-decision making

operations research-optimization of operations

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Behavioral Approach Behavioral issues

Sociology-study groups behavior

Psychology- study human perception

Economies-study impact of different economic activities

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Socio-technical Approach

Combination of both approaches

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Digital Firm
Widening Scope of IS Network Revolution and the Internet Collaborative Enterprise

Electronic Commerce, Electronic Business, and New Digital Relationships

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The Challenge of IS
Designing systems that are competitive and efficient Understanding the system requirements of a global business environment Creating in information architecture and IT infrastructure that support the organizations goals Determining the business value of information systems Designing systems that people can control, understand, and use in a socially and ethically responsible manner
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Information System

The End

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