contemporary approach to it

7/28/2019 Contemporary Approach to IT

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Management InformationSystems - Class Note #1

Prof. Yuan-Shyi Peter ChiuFeb. 2012


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Chapter 1

Managing the Digital Firm 1.1 Why Information Systems 1.2 Contemporary Approaches to

Information System

1.3Toward the Digital Firm:The New Role of Information Systems in

Organizations

1.4 Learning to Use Information Systems:New Opportunities with Technology


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1.1 Why Information Systems

Four powerful worldwide changes have

altered the business environment

Emergence of the Global Economy

Transformation of Industrial Economies

Transformation of the Business Enterprise The Emerging Digital Firm


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Management & control in a global marketplace

Competition in world markets

Global work groups

Global delivery systems

Globalization



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Knowledge- and information-based economies New products and services

KnowledgeA central productive and strategic asset

Time-based competition

Shorter product life

Turbulent environment

Limited employee knowledge base

Transformation of Industrial Economies



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Fig 1-1: The growth of the information economy


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Digitally enabled relationships with customers,suppliers, and employees

Core business processes accomplished via

digital networks

Digital management of key corporate assets Rapid sensing and responding to environmental

changes

Emergence of the Digital Firm



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Emergence of the Global Economy

Transformation of Industrial Economies Transformation of the Business Enterprise

The Emerging Digital Firm


10/4010Fig 1-3: Function of an information system


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Using information system effectively requires anunderstanding of the Organization , Management ,Information Technology

Fig 1-4


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Organization

People

Structure Operating procedures

Politics

Culture


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Major Organizational Functions

Sales & Marketing

Manufacturing Finance

Accounting

Human Resources


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Major Organizational Functions


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Management

set the organizational strategy

allocate the financial resources

allocate the human resources

coordinate the work

leadership

create new products or new services

re-create organization from time to time


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Technology

tools to managers

glue that holds the organization together Computer hardware

Computer software

Storage technology Telecommunications technology

Information technology Infrastructure


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1.2 Contemporary Approaches toInformation Systems

Technical approach Behavioral approach


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Fig 1-5: Contemporary approaches to information

system.


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Technical approach

Theories of computability

Methods of computation Methods of efficient data storage and

access

Models for decision making

Management practices

Computer science

Management science


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Technical approach

Mathematical techniques for optimizing

selected parameters of organizations,

such as transportation, inventory control,

etc.

Operations research


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Behavioral Approach

Sociology

Psychology

Economics

Development of systems

System affect individual, groups,

and organization.

How human decision makers perceive

and use formal information .

Impacts to firm and within markets

on control

cost structures


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Socio-Technical Systems

SOURCE: Liker, et al, 1987

Figure 1-6


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Optimize systems performance:

Technology and organization

Organizations mutually adjust to one another

until fit is satisfactory

Socio-Technical Systems


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1.3 Toward the Digital Firm:

The New Role of I.S. in Organizations

The widening scope of I.S.

The network revolution and the internet

New options for organizational design:The Digital Firm and the Collaborative Enterprise

The Digital Firm:E-commerce, E-business, and New Digital

Relationships2


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Fig 1-7: The interdependence between

organizations and information systems

1.3.1 The widening scope of I.S.


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Fig 1-8: The widening scope of information systems .

1.3.1 The widening scope of I.S.


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Information Systems

It affects the organization and its employees, and how

they can make business more competitive and

efficient . It has become essential for creatingcompetitive firms,

managingglobal corporations, and providinguseful

products and services to customers.


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What you can do on the internet?

Communicate & collaborate

Access information Participate in discussions

Supply information

Find entertainment

Exchange business transactions

1.3.2 The network revolution and the internet


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INTERNET

International network of networks that is a

collection of hundreds of thousands of private

and public networks.

World Wide Web (WWW)

A system with universally accepted standardsfor storing, retrieving, formatting, and

displaying information in a networked

environment.

1.3.2 The network revolution and the internet


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1.3.3 New Options for Organizational Design

The Digital Firm and the Collaborative Enterprise

Flattening Organizations and the Changing

Management Processes Separating Work from Location

Reorganizing Work Flows

Increasing Flexibility of Organizations

Redefining Organizational Boundaries

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Flattening Organizations Information Systems



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Redesigned Work Flow For Insurance Underwriting



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E-commerce, E-business, and New DigitalRelationships

Electronic market

A marketplace that is created by computer

and communication technologies that linkmany buyers and sellers .

1.3.4 The Digital Firm


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Electronic Commerce

The process of buying and selling goods and

services electronically involving transactions

using the internet, networks, and other digital

technologies.

Internet Links Buyers, Sellers

Lower Transaction Costs

Goods & Services Advertised, Bought, Exchanged

Worldwide

Business-to-Business Transactions Increasing



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Intranet An internal network based onInternetand

World Wide Webtechnology and standards.

Electronic Business

The use of the Internet and other digital

technology for organizational communicationand coordination and the management of the

firm.



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37Figure 1-11


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1.4 Learning to Use Information Systems:New Opportunities with Technology

Challenge of Information Systems:Key Management Issues

Strategic:competitive & effective

Globalization:multinational info

Info architecture:support goals Investment:value of information

Responsibility & control:ethics


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Figure 1-12

Information Architecture and Information Technology Infrastructure


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HOMEWORK Chap. 1#1 Describe four trends in the global business environment

that have made information systems so important.#2 What are the organization, management, and technology

dimensions of information systems?

#3 Name and describe major organizational functions.

#4 Distinguish major disciplines of the behavior and thetechnical approach to information systems.

#5 Describe briefly what information systems are.

#6 Describe some of the major changes that informationsystems are bringing to organizations.

#7 Define E-Commerce, E-Business, and Intranet.

#8 What are the key management challenges involved inbuilding, operating, and maintaining information systemstoday?

THE END

contemporary approach to it

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