Management and Information Systems BUAD 600

1. Management and Information SystemsBUAD 600 Jesse Role, Ph. D. TM – Electronics and Information Technology Chairman, Department of Technology University of Eastern Africa, Baraton

2. Websitewww.roletech.net Forum Site http://roletech.net/BUAD600

3. Requirements • Lecture • Participation • Group Reporting • Case analysis report • Final Examination • Thursday May 24, 2012

4. Why are information systems so essential for running and managing a business today? • Information systems are a foundation for conducting business today. In many industries, survival and the ability to achieve strategic business goals are difficult without extensive use of information technology. Businesses today use information systems to achieve six major objectives: operational excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival.

5. 1 MANAGING THE DIGITAL INSTITUTION

6. What Is an Information System? An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.

10. LEARNING OBJECTIVES • ANALYZE ROLE OF INFORMATION SYSTEMS IN BUSINESS ENVIRONMENT • DEFINE INFORMATION SYSTEM, COMPUTER LITERACY, INFORMATION SYSTEMS LITERACY • EXPLAIN HOW INFORMATION SYSTEMS TRANSFORM ORGANIZATION & MANAGEMENT *

11. LEARNING OBJECTIVES • ASSESS DIGITAL FIRM, ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, INTERNET TECHNOLOGY • IDENTIFY MANAGEMENT CHALLENGES TO BUILDING, USING INFORMATION SYSTEMS *

12. MANAGEMENT CHALLENGES • WHY INFORMATION SYSTEMS? • CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS • ROLE OF INFORMATION SYSTEMS • USING INFORMATION SYSTEMS *

13. MANAGEMENT CHALLENGES 1. DESIGN COMPETITIVE & EFFICIENT SYSTEMS 2. UNDERSTAND SYSTEM REQUIREMENTS OF GLOBAL BUSINESS ENVIRONMENT 3. CREATE INFORMATION ARCHITECTURE THAT SUPPORTS ORGANIZATION’S GOALS *

14. MANAGEMENT CHALLENGES 4. DETERMINE BUSINESS VALUE OF INFORMATION SYSTEMS 5. DESIGN SYSTEMS PEOPLE CAN CONTROL, UNDERSTAND & USE IN A SOCIALLY, ETHICALLY RESPONSIBLE MANNER *

15. THE CHANGING BUSINESS ENVIRONMENT • GLOBALIZATION • INDUSTRIAL ECONOMIES • TRANSFORMATION OF THE ENTERPRISE *

16. GLOBALIZATION • MANAGEMENT & CONTROL • COMPETITION IN WORLD MARKETS • GLOBAL WORK GROUPS • GLOBAL DELIVERY SYSTEMS

17. INDUSTRIAL ECONOMIES • KNOWLEDGE-BASED ECONOMIES • PRODUCTIVITY • NEW PRODUCTS & SERVICES • KNOWLEDGE AS AN ASSET • TIME-BASED COMPETITION • SHORTER PRODUCT LIFE • TURBULENT ENVIRONMENT • LIMITED EMPLOYEE KNOWLEDGE BASE *

19. TRANSFORMATION OF ENTERPRISE • FLATTENING • DECENTRALIZATION • FLEXIBILITY • LOCATION INDEPENDENCE • LOW TRANSACTION COSTS • EMPOWERMENT • COLLABORATIVE WORK *

20. EMERGENCE OF THE DIGITAL FIRM • DIGITALLY-ENABLED RELATIONSHIPS WITH CUSTOMERS, SUPPLIERS, EMPLOYEES • CORE BUSINESS PROCESSES VIA DIGITAL NETWORKS • DIGITAL MANAGEMENT OF KEY ASSETS • RAPID SENSING & RESPONDING TO CHANGE *

22. Why IT Now? Digital Convergence and the Changing Business Environment There are five factors to consider when assessing the growing impact of IT in business firms both today and over the next ten years. • Internet growth and technology convergence • l Transformation of the business enterprise • l Growth of a globally connected economy • l Growth of knowledge and information-based economies • l Emergence of the digital firm

23. 70% 60% % SERVICE 50% % WHITE COLLAR 40% % BLUE COLLAR 30% % FARMING 20% 10% 0% 1900 1910 1920 1930 1940 1950 1960 1970 1980 1997 YEAR LABOR FORCE COMPOSITION 1900-2008

24. FEEDBACK SYSTEM INPUT PROCESS OUTPUT

25. ENVIRONMENT Customers Suppliers ORGANIZATION INFORMATION SYSTEM INPUT PROCESS OUTPUT FEEDBACK Regulatory Stockholders Competitors Agencies FUNCTIONS OF AN INFORMATION SYSTEM

26. DATA & INFORMATION • DATA: STREAMS OF RAW FACTS REPRESENTING EVENTS SUCH AS BUSINESS TRANSACTIONS • INFORMATION: CLUSTERS OF FACTS MEANINGFUL & USEFUL TO HUMAN BEINGS IN PROCESSES SUCH AS MAKING DECISIONS *

27. COMPUTER-BASED INFORMATION SYSTEMS (CBIS) • FORMAL SYSTEMS • FIXED DEFINITIONS OF DATA, PROCEDURES • COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA *

28. INFORMATION SYSTEMS INFORMATION SYSTEMS ORGANIZATIONS TECHNOLOGY MANAGEMENT

29. ORGANIZATIONS • PEOPLE: Managers, knowledge workers, data workers, production or service workers • STRUCTURE: Organization chart, groups of specialists, products, geography *

30. ORGANIZATIONS • OPERATING PROCEDURES: Standard Operating Procedures (SOP), rules for action • POLITICS: Power to persuade, get things done • CULTURE: Customs of behavior *

31. MAJOR BUSINESS FUNCTIONS • SALES & MARKETING • MANUFACTURING • FINANCE • ACCOUNTING • HUMAN RESOURCES *

32. COMPUTER TECHNOLOGY • HARDWARE • SOFTWARE • STORAGE • COMMUNICATIONS • NETWORKS *

33. TECHNICAL APPROACHES COMPUTER SCIENCE OPERATIONS RESEARCH MANAGEMENT SCIENCE MIS SOCIOLOGY POLITICAL SCIENCE PSYCHOLOGY APPROACHES TO INFO SYSTEMS BEHAVIORAL APPROACHES

34. SOCIOTECHNICAL PERSPECTIVE OPTIMIZE SYSTEM PERFORMANCE: TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO ONE ANOTHER UNTIL FIT IS SATISFACTORY * SOURCE: Liker, et al, 1987

35. INTERDEPENDENCE HARDWARE BUSINESS Strategy Rules Procedures SOFTWARE DATABASE TELE-COMMUNICATIONS ORGANIZATION INFORMATION SYSTEM SYSTEM INTERDEPENDENCE

36. SCOPE OF INFO SYSTEMS • 1950s: TECHNICAL CHANGES • 60s-70s: MANAGERIAL CONTROL • 80s-90s: INSTITUTIONAL CORE ACTIVITIES GROWING IMPORTANCE *

37. WHAT YOU CAN DO ON THE INTERNET • COMMUNICATE & COLLABORATE • ACCESS INFORMATION • DISCUSS • OBTAIN INFORMATION • ENTERTAIN • TRANSACT BUSINESS *

38. NEW OPTIONS FOR ORGANIZATIONAL DESIGN • FLATTENING ORGANIZATIONS • SEPARATING WORK FROM LOCATION • REORGANIZING WORK-FLOWS • INCREASING FLEXIBILITY • REDEFINING ORGANIZATIONAL BOUNDARIES *

39. THE DIGITAL FIRM • ELECTRONIC COMMERCE • ELECTRONIC BUSINESS • ELECTRONIC MARKET: Information system links buyers & sellers to exchange information, products, services, payments *

40. ELECTRONIC COMMERCE • INTERNET LINKS BUYERS, SELLERS • LOWERS TRANSACTION COSTS • GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGED WORLDWIDE • BUSINESS-TO-BUSINESS TRANSACTIONS INCREASING *

42. ELECTRONIC BUSINESS • INTRANET: Business builds private, secure network • E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE: Extends effective communication & control • EXTRANET: Extension of Intranet to authorized external users *

43. Approach of This Text: Sociotechnical Systems

45. How are information systems transforming business and what is their relationship to globalization? • E-mail, online conferencing, and cell phones have become essential tools for conducting business. Information systems are the foundation of fast-paced supply chains. The Internet allows many businesses to buy, sell, advertise, and solicit customer feedback online. Organizations are trying to become more competitive and efficient by digitally enabling their core business processes and evolving into digital firms. The Internet has stimulated globalization by dramatically reducing the costs of producing, buying, and selling goods on a global scale. New information system trends include the emerging mobile digital platform, online software as a service, and cloud computing.

46. MANAGING THE DIGITAL FIRM