winter 2014 – term 1 - university of british...

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COMM 391 Introduction to Management Information Systems Winter 2014 – Term 1 ROLE OF BUSINESS MANAGERS IN TECHNOLOGY ADOPTION AND DEVELOPMENT Learning Objectives 1. Discuss why business managers should study information systems. 2. Explain information system (IS) basics. 3. Discuss the role of information technology (IT) in business. 4. Discuss the role of business managers in technology adoption and development. © 2014 – Y.M. Cheung 3 COMM 391 - W2014 Term 1 IT’s About Business – E-Meals Read the case “1.1 E-Meals” and answer the following questions: 1. Provide two examples of how Jane uses information technology to provide her service. 2. Provide two additional examples of how Jane might use information technology to improve her service. Be specific. © 2014 – Y.M. Cheung COMM 391 - W2014 Term 1 4

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COMM 391Introduction to Management Information Systems

Winter 2014 – Term 1

ROLE OF BUSINESS MANAGERS IN TECHNOLOGY ADOPTION AND DEVELOPMENT

Learning Objectives

1. Discuss why business managers should study information systems.

2. Explain information system (IS) basics.3. Discuss the role of information

technology (IT) in business.4. Discuss the role of business managers in

technology adoption and development.

© 2014 – Y.M. Cheung 3COMM 391 - W2014 Term 1

IT’s About Business – E-Meals

Read the case “1.1 E-Meals” and answer the following questions:

1. Provide two examples of how Jane uses information technology to provide her service.

2. Provide two additional examples of how Jane might use information technology to improve her service. Be specific.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 4

Learning Objective 1

• Discuss why business managers should study information systems.

© 2014 – Y.M. Cheung 5COMM 391 - W2014 Term 1

The Informed Users

An informed user is a person knowledgeable about information systems and information technology.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 6

USERS MIS

IT skills open many doors because IT is so widely used.

Why Should I be an Informed User?

You will benefit more from your organization’s IT applications because you will understand what is “behind” those applications.

You will be in a position to enhance the quality of your organization’s IT applications with your input.

Even as a new graduate, you will quickly be in a position to recommend the IT applications that your organization will use.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 7

Why Should I be an Informed User? (cont’d)

Being an informed user will keep you abreast of both new information technologies and rapid developments in existing technologies.

You will understand how using IT can improve your organization’s performance and teamwork as well as your own productivity.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 8

IT Offers Career Opportunities IT is vital to the operation of modern business,

it offers many employment opportunities. E.g. Chief Information Officer (CIO), Project Manager,

Business Analyst, Database Administrator, Webmaster, Business Technology Consultant, IT Auditor, etc.

For further details about current careers in IT see: http://jobs.itworldcanada.com/

http://itjobs.computerworld.com/

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 9

Managing Information Resources

Traditional Functions of MIS Department E.g. manage systems development project;

manage computer operations; provide technical services

New (Consultative) Functions of MIS Department E.g. create business alliances with business

partners; manage system integration; manage outsourcing

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 10

For discussion …

Compare the average salary of the following IT jobs: Project Manager

Business Analyst

Business Intelligence (BI) Analyst

Sources: http://www.itworldcanada.com/salarycalculator/

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 11

Learning Objective 2

• Explain information system (IS) basics.

12COMM 391 - W2014 Term 1 © 2014 – Y.M. Cheung

Information Technology (IT) vs. Information Systems (IS) Information systems is not the same as

information technology Technology is a tool. Systems are the collection of the tool, the

people who use it, and the processes it supports

An Information System collects, processes, stores, analyzes, and disseminates information for a specific purpose.

13COMM 391 - W2014 Term 1 © 2014 – Y.M. Cheung

Data and Information Data Raw facts representing events such as business

transactions. Unprocessed facts of interest to end users (e.g., customer x bought product y for $z on date t)

Information A meaningful aggregation of facts that is useful to

human beings in management and decision making.(e.g., year-to-date revenues from customer x are $2.4m, average gross margin from customer x is 12.2% compared to firm average of 8.4%)

© 2014 – Y.M. Cheung 14COMM 391 - W2014 Term 1

Knowledge

Information

Data Items that are the most

elementary descriptions of things, events, activities, and transactions.

May be internal or external.

Organized data that has meaning and value.

Processed data or information that conveys some individuals’ understanding or learning applicable to a problem or activity.

Data, Information, Knowledge

© 2014 – Y.M. Cheung 15COMM 391 - W2014 Term 1

Basic Components of Information Systems

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 16

Which component is

most important?

Importance of IT

Information technology is an important enabler of business success and innovation.

However, IT in and of itself is not useful unless the right people know how to useand manage it effectively.

© 2013 – Kafui Monu, Y.M. CheungCOMM 391 - W2013 Term 2 17

Basic Components of Information Systems (cont’d)

• A device such as a processor, monitor, keyboard or printer.Hardware

• A program or collection of programs that enable hardware to process data.

Software

• A collection of related files or tables containing data.Database

• A connecting system (wireline or wireless) that permits different computers to share resources.

Network

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 18

Basic Components of Information Systems (cont’d)

• A set of instructions about how to combine the above components in order to process information and generate the desired output.

Procedures

• Those individuals who use the hardware and software, interface with it, or uses its output.

People

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 19

Information Technology in an Organization

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 20

IT Platform vs. IT Infrastructure

• Include the IT components of hardware, software, networks (wireline and wireless), and databases.

IT Platform

• IT personnel use these components to develop information systems, oversee security and risk, and manage data.

IT Services

• The IT components plus IT services.

IT Infrastructure

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 21

What is an App?

An application (or app) is a computer program designed to support a specific task or business process.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 22

Major Capabilities of Information Systems

Perform high-speed, high-volume numerical computations.

Provide fast, accurate communication and collaboration within and among organizations.

Store huge amounts of information in an easy-to-access, yet small space.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 23

Major Capabilities of Information Systems (cont’d)

Allow quick and inexpensive access to vast amounts of information, worldwide.

Interpret vast amounts of data quickly and efficiently.

Automate both semi-automatic business processes and manual tasks.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 24

Information Systems Among Multiple Organizations

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 25

Types of Information Systems

Functional Area Information Systems Transaction Processing Systems (TPS) Enterprise Resource Planning (ERP)

Systems Interorganizational Information Systems E.g. Supply Chain Management systems

Electronic Commerce (e-commerce) Systems

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 26

Types of Information Systems (cont’d)

Office Automation Systems Management Information Systems Decision Support Systems Expert Systems Executive Dashboard

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 27

Learning Objective 3

• Discuss the role of information technology (IT) in business

© 2013 – Kafui Monu, Y.M. Cheung 28COMM 391 - W2013 Term 2

IT’s Role in Business

Information technology is everywhere in business.

Understanding IT provides great insight to anyone learning about business.

© 2014 – Y.M. Cheung 29COMM 391 - W2014 Term 1

IT’s Impact on Business

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 30

IT’s Impact on Business (cont’d)

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 31

IS’s Role in a Typical Organization

Organizations typically operate by functional areas or functional silos.

Functional areas are interdependent.

Information systems enable functional areas (departments) to perform more efficiently and effectively.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 32

Marketing working with other organizational

departments

Departments Working Independently

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 33

Departments Working Interdependently

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 34

• Systems are the primary enabler of cross-functional operations.

IT as a Critical Enabler

IT enables firms to collect, maintain, and analyze a very large amount of data related to customers.

Marketing

customer database Sales

Post sale: customer service & technical support

customer database

customer databaseFAccounting

customer database

Acknowledgement: Carson Woo and Ofer Arazy© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 35

Finance & Accounting

Marketing

Web-enabled customer interactions

Sales

Integratedcustomer database

Post sale: customer service

& technical support

Acknowledgement: Carson Woo and Ofer Arazy

IT as a Critical Enabler (cont’d)

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 36

IT’s Role Automate processes Can use information technology to replace human effort For instance: e-commerce

Informate processes Can use information technology to augment human effort For instance: decision support systems

Transform processes Can use information technology to transform a set of

processes For instance: cloud computing

© 2014 – Y.M. Cheung 37COMM 391 - W2014 Term 1

Information Cultures Culture influences the way people use information

(their information behaviour) and reflects the importance that company leaders attribute to using information in achieving success or avoiding failure.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 38

Learning Objective 4

• Discuss the role of business managers in technology adoption and development

© 2014 – Y.M. Cheung 39COMM 391 - W2014 Term 1

Embracing Digital Technology A study by MIT Sloan Management Review and

Capgemini Consulting finds that companies now face a digital imperative:

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 40

Adopt new technologies effectively or face competitive obsolescence.

(Source: http://sloanreview.mit.edu/projects/embracing-digital-technology/)

Key Findings of the Survey

Many say their leaders lack urgency and fail to share a vision for how technology can change the business.

Companies that succeed tend to have leaders who share their vision and define a road map, create cross-organizational authority for adoption and reward employees for working towards it.

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 41

Benefits of Digital Transformation

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 42

The Biggest Transformation Traps

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 43

The Pace of Digital Transformation

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 44

Culture Clash

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 45

Two Wrong Ways to Approach Digital Transformation

1. “Just go off and do something. And we don’t need to worry about coordination.”

2. “Hire a bunch of people and say ‘make this happen. I don’t need to be involved.’”

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 46

Conclusion “If you’re an executive leading a company

looking at these technologies, you need to lead the technology — don’t let it lead you.”

“You want to think about, how is your company going to be different because this is here? And then, put in a framework, so you’re not just buying technology, you’re actually pushing your company forward in a different way, because the technology is there.”

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 47

For discussion …

What are the major reasons why it is important for employees in all functional areas to become familiar with IT?

© 2014 – Y.M. CheungCOMM 391 - W2014 Term 1 48