06. Information Systems (IS) in Management & Strategic Information Systems (SIS)

1. 06. Information Systems (IS) in Management & Strategic Information Systems (SIS) • Rev: Feb, 2013 • Euiho (David) Suh, Ph.D. • POSTECH Strategic Management of Information and Technology Laboratory • (POSMIT: http://posmit.postech.ac.kr) • Dept. of Industrial & Management EngineeringPOSTECH

2. Contents

3. Model IS Type = f(m, d, i) a? c? Intelligence b? Data 1. Information Systems in Management 1) The role of IS in Management 3-Axis MSS Model Ex) TPS = f(0.1, 0.9, 0) DSS = f(0.5, 0.3, 0.2)

4. 1. Information Systems in Management 1) The role of IS in Management The view of Information Systems View Point 1 Data Information Decision Aids Knowledge Reasoning Statistical Analysis Math Analysis View Point 2 View Point 3 H Strategic Value EIS/ESS ? Extreme top E R P DSS Top IPS ? Middle TPS low L OAS Extreme low L H IS Expansion

5. 1. Information Systems in Management 1) The role of IS in Management Role of IS View Point 4 Helper A Function IS IS Financing Management Management IS Accounting Financing Marketing Marketing Accounting IS Controller Melting Pot IS Financing IS Accounting Marketing Financing Accounting Marketing All Functions are melted

6. 1. Information Systems in Management 2) Hierarchy Level of IS in Management Management Hierarchy Level (1/2) Management Triangle Types of management Problem types to be dealt with Political strategic Unstructured Extreme top Strategic Semi – Structured and Structured Top Tactical Middle Operational Structured low Clerical Extreme low

7. 1. Information Systems in Management 2) Hierarchy Level of IS in Management Management Hierarchy Level (2/2) Management Triangle Extreme top Top Middle low Extreme low

8. 2. Strategic Information System 1) Introduction Strategic IT • Technology is no longer an afterthought in business strategy, but the cause and driver • IT can change the way businesses compete • A strategic information system is any information system that uses IT to help an organization… • Gain a competitive advantage • Reduce a competitive disadvantage • Or meet other strategic enterprise objectives

9. 2. Strategic Information System 1) Introduction Overview of SIS Paradigm Shift Technology-driven Customer-driven Globe-driven Information-driven MIT(Management Innovation Technology) • Dramatic Profit • Competitive Advantage SM(Super Set) SIS(Subset) DSS EIS & ESS IPS & MIS OAS TPS (EDPS) ERP & BPR SA KM CRM EC MOT

10. 2. Strategic Information System 1) Introduction Strategy Tree (1/2) Automation Information(IT, IS) Innovation Work Automation Automation Manufacturing Automation Strategic Information System(SIS) Success StrategicUse of Information (IT, IS) Failure Non-strategic Information System (NSIS) Use of Information Automation Strategic Use of Information

11. 2. Strategic Information System 1) Introduction Strategy Tree (2/2) Work Automation Automation SM SIS Manufacturing Automation Information Strategic Management (SM) Success StrategicManagement Innovation NSIS NSM Failure Non-strategic Management (NSM) Strategic Management Information Strategy Tree

12. 2. Strategic Information System 2) Competitive Strategy & IT Competitive Strategies (1/2) Competitive Forces and Strategies • Businesses can develop competitive strategies to counter the actions of the competitive forces they confront in the marketplace. • Using Competitive Strategies • These strategies are not mutually exclusive • Organizations use one, some, or all • A given activity could fall into one or more categories • Not everything innovative serves to differentiate one organization from another • Likewise, not everything that differentiates organizations is innovative

13. 2. Strategic Information System 2) Competitive Strategy & IT Competitive Strategies (2/2) Five Competitive Strategies Cost Leadership Differentiation Strategies Alliance Innovation Growth • Cost Leadership Strategy • Reducing their costs or increasing the costs of competitors • Differentiation Strategy • Developing ways to differentiate a firm’s products and services from those of its competitors • Innovation Strategy • Developing unique products and services or entering unique markets or market inches • Growth Strategy • Expanding a company’s capacity to produce goods and services, expanding into global markets, diversifying into new products and services, or integrating into related products and services • Alliance Strategy • Establishing new business linkages and alliances with customers, suppliers, competitors, consultants, and other companies

14. 2. Strategic Information System 2) Competitive Strategy & IT Ways to Implement Basic Strategies

15. 2. Strategic Information System 3) Evaluation of SIS Evaluation of SIS • When you evaluate a SIS… • Process automation or innovation • If innovation, which Hammer’s principle? • Which competing forces to e affected • Value chain activities to be reinforced • Type of IS

16. Note • MIT PPT material (SIS) • http://ocw.mit.edu/courses/sloan-school-of-management/15-565j-integrating-esystems-global-information-systems-spring-2002/lecture-notes/lecture02.pdf

17. Reference O’Brien & Marakas, “Introduction to Information Systems – Sixteenth Edition”, McGraw – Hill, Chapter 1 O’Brien & Marakas, “Introduction to Information Systems – Sixteenth Edition”, McGraw – Hill, Chapter 2 Euiho Suh, “Information & Management (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory) Euiho Suh, “Role of Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory) Euiho Suh, “Strategic Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)