mgt info systems - session 2
TRANSCRIPT
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Management
Information SystemsSESSION 2 - STRATEGIC INFORMATION SYSTEMS
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Assignment
Case Study
You are the Senior Manager of a major wireless telecommprovider. Your main competitor in this industry haannounced that they will be releasing a new generatiservice that will significantly increase internet access
wireless devices (e.g. smartphones, tablets)
In the last Board Meeting, you were chosen to determinyour company should also consider deploying a similar snew generation service is based on an entirely new technas such will require customers to buy new wireless devices
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Assignment
The Board has a few concerns:
High cost associated with replacement of IT equipment and syst Will this new technology be readily adopted by customers
Is this the technology of the future?
Will the competitor be stealing your customers?
Requirements:Submit a report of 1500 words for the Board discussing the benefits of ysuggested plan of action and risks associated to it.
How long to wait?
Adopt / Ignore the new technology
What information will you look at for the basis of your decision
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Assignment
Being a senior manager, you have access to various resou corporate database
Information on billing, customers
Marketing team
Information on the IT infrastructure
DEADLINE: 16thNovember 2013
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Evolution of IS
The earliest IS developed in the 1960s
Evolution from local business environmto emerging interconnected ones
Enterprises with blurred boundaries anincreasing interconnections
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Evolution of Information Systems
Eras of IS: Data Processing (1960s +)
Management Information Systems (1970s +)
Strategic Information Systems - SIS (
Inter-organisational Operating Syste/ Extended Business Networks(1990s
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Data Processing Era
Automate business processes
Focus on Processing predefined transact
Purchase Orders, Customer Orders, Payroll
Limitations: Only processing transaction data
Did not meet information needs of managers
hoc reports
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MIS Era
Data stored across the organisation +flexible and user friendly tools
Development of IS that support manadecision making
New capabilities of IS
Enquiry (searching database)
Analysis (what-if scenarios)
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SIS Era
Aim:
improving an organisations competitive
changing the way business is conducted
Establishing links to business partners and SIS
Flexible, externally focused, driven by busrequirements and customer requirements
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IOS / Extended Business Networks
Extend between two or more organiswith distinct structures, strategies, busprocesses, IT infrastructure
Added complexity: important allianclinkages to suppliers and business par
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Key Characteristics of SIS
Significantly changes business performance Contributes to attaining a strategic goal (e
increase sales volume by a percentage)
Fundamentally changes the way the organdoes business
Dealing with suppliers, customer
Changing the way it competes
e.g. a supermarket developing a cyberstore (ASDSainsburys)
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Objectives, Decisions andInformation
InformationManager
How do we determine what informationa
manager needs?
Informationdetermined by decisions
How do we determine what decisionsneed tobe taken?
Decisionsdetermined by Objectives
ObjectivesDecisionsInformation Needs
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Objectives, Decisions andInformation
Example
Objectiveis to increase net profit by 50%
Decisions?
Which products should be emphasised?
Do we buy the product externally?
Where do we get the informationto formulatethe decisions?
From MIS
E.g. How well each product is selling
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Levels of Decision Making
Decision
Strategic (Top management)
Tactical (Middle management)
Operational (Lower level management)
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Levels of Decision Making
Strategic
Establish objectives for organisation andrange plans to attain objective
e.g. decision on location of plants, sourcapital, which products to produce
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Levels of Decision Making
Tactical
Implement decisions made at strategic lev
Allocate resources to pursue organisation o
e.g. plant layout, budget allocation, personnel cproduction scheduling
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Levels of Decision Making
Operational
Executing specific tasks and assuring they are
out effectively and efficiently
e.g. accepting/rejecting, determining inventory reo
and quantity, assigning jobs to workers
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Characteristics of Levels of DecisionMaking
Characteristic Operational Tactical Strat
Degree ofjudgement
Low Moderate High
Planning
Decisions
Few About Half Mos
Problem Variety Low Moderate High
Time Horizon Days Months Year
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Characteristics of Information
Information
Characteristic
Operational Tactical Strate
Dependence on IS High Low Low t
Dependence onInfo Summarisation
Very low Moderate High
Need for computergraphics
Low Moderate High
Use of Real Timeinfo
Very high High Mode
Use of Predictiveinfo
Low High Very
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Decision Support Systems (DSS)
In the past, MIS have provided routine,structured and anticipated types of info
Less successful in providing unstructured
decisions
DSS
An extension of MIS
Set of computer tools to allow decision ma
retrieve info for unstructured decisions
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Components of a DSS
Language System
Procedurallanguage
Non ProceduralLanguage
Problem Processing
System
ManagementScience Models
Graphics Spreadsheet Financial
Functions
Knowledge Syst
Expert System DBMS
Allows users tointeract with DSS
PerformProcessing Tasks
Provides dataAI capabilitiethe DSS
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Components of a DSS
Procedural language: User provides logicasolve problem
Non-procedural language: User specifiescharacteristics of the problem (query) ; DS
determines logical steps to provide info
Management Science models: regressionanalysis
Expert system: provides advice and expla
advice where necessary
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Benefits of Expert System
Improve Consistency and Accuracy of de
Documentation of the Rationale