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1Chapter

Managing the Digital Managing the Digital FirmFirm

Lecture 1Lecture 1

Managing the Digital Managing the Digital FirmFirm

Lecture 1Lecture 1

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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

DaimlerChrysler Case

• Challenge: 104 plants, 37 countries, 14,000 suppliers

• Solutions: Integrated Volume Planning System connects demand side of business with suppliers, reducing inventories.

• Powerway helps 3,400 suppliers track parts and quality, reducing errors.

• Demonstrates IT’s role in operational excellence, better quality products, and agility–time to market

• Illustrates the emerging digital firm landscape where information can flow seamlessly among business partners to create a superior customer experience

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WHY INFORMATION SYSTEMS?

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

• Capital managementCapital management

• Foundation of doing businessFoundation of doing business

• ProductivityProductivity

• Strategic opportunity and advantageStrategic opportunity and advantage

Why Information Systems Matter Why Information Systems Matter

There are four reasons why IT makes a difference to the There are four reasons why IT makes a difference to the success of a business:success of a business:

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Role of IS:•Survival and existence•Dependency on Cell phones, blackberry’s, and other hardware•Emails, online conferencing, internet technologies•Table 1.1 read

6 important business objectives:•Operational excellence•New products or services•Business models•Customer and supplier intimacy•Improved decision making•Competitive advantage

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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

• Digitally enabled relationships with customers, suppliers, and employees

• Core business processes accomplished using digital networks

• Digital management of key corporate assets

WHY INFORMATION SYSTEMS?

Emergence of the Digital Firm:

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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

• Agile sensing and responding to environmental changes

• Seamless flow of information within the firm, and with strategic partners

WHY INFORMATION SYSTEMS?

Emergence of the Digital Firm (Continued):

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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

The Emerging Digital Firm The Emerging Digital Firm

Figure 1-4

WHY INFORMATION SYSTEMS?

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PERSPECTIVES ON INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

What Is an Information System?

Technology perspective:Technology perspective: A set of interrelated

components that collect (or retrieve), process, store,

and distribute information to support decision

making and control in an organization

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PERSPECTIVES ON INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

What is an Information System? (Continued)

• Data: Streams of raw facts representing events such as business transactions

• Information: Clusters of facts meaningful and useful to human beings in the processes such as making decisions

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PERSPECTIVES ON INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

Data and Information

Figure 1-5

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PERSPECTIVES ON INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

Functions of an Information System

Figure 1-6

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Senior management

Middle mgt

Operational mgt

Dimensions of IS:•Management , Organizations, technology

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Basic functions:•Sales and marketing•Production•Finance•HRMManagement: helping managers to design and deliver new productsTechnology: hardware, software, networks, internet, IT infrastructure

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PERSPECTIVES ON INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

Information Systems Are More than Computers

Figure 1-8

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Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

Complementary assets:

• New business processes

• Management behavior

• Organizational culture

• Training

PERSPECTIVES ON INFORMATION SYSTEMS

Complementary Assets: Technical approach, behavioral approach

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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

Sociotechnical Systems

Optimize systems performance:

• Technology and organization

• Organizations mutually adjust to one another until fit is satisfactory

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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

Management Information SystemsManagement Information SystemsChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

A Sociotechnical Perspective on Information Systems

Figure 1-11