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Information Systems in Business and Management

Information Systems in Business and Management. Information Systems in Business and Management. Origins in a number of Disciplines Management Operations Research Computer Science Accounting Organisation Development Taxonomy of Information Systems Transaction Processing

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Information Systems in Business and Management

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  1. Information Systems in Business and Management

  2. Information Systems in Business and Management • Origins in a number of Disciplines • Management • Operations Research • Computer Science • Accounting • Organisation Development • Taxonomy of Information Systems • Transaction Processing • Management Reporting Systems • Decision Support Systems • Executive Information Systems

  3. Management Information Systems Information: The most valuable resource

  4. Five Main Resources • Personnel • Material • Machines • (including facilities and energy) • Money • Information (and data) Physical } Conceptual

  5. How Resources are Managed • Acquire • Assemble, or prepare • Maximize use • Replace

  6. Factors Stimulating Interest in Information Management • Increasing complexity of business • International economy • Worldwide competition • Increasing complexity of technology • Shrinking time frames • Social constraints • Improved computer capabilities

  7. Who are the Users? • Managers • Nonmanagers • Persons & organizations in the firm’s environment

  8. Where Managers are Found • Various management levels • Various functional areas of the firm

  9. Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title The Nature of Management • Functional Activities • Accounting • Marketing • Production • Personnel

  10. Levels of Management (Anthony 1965) Strategic Planning Management control Operational Control

  11. Levels of Managers • Strategic planning • Management control • Operational control

  12. Strategic Planning • Relates to the Organisation as a Whole • Occurs on an Irregular Basis • Relies on External Information • An Exercise in Applied Economics • Small Numbers Involved • Provides the Framework for Mgt Control

  13. Management Control • Elements •   Process   • Managers   • Goals   • Efficiency and Effectiveness • Characteristics •   Focus on Responsibility Centres •   General Types of Information •   Comprehensive •   Expressed in Financial Terms •   Defined Patterns and Timetables •   Coordinated Integrated System

  14. Operational Control • Restricted to Narrowly Defined Activities • Occurs in the Content of Mgt Control • Based on a Financial Structure • Relates to Individual Transactions • Requires a Formal Model of Operation

  15. The Influence of Management Level on Information Source Environmental Strategic planning level Management control level Operational control level Internal

  16. The Influence of Management Level on Information Form Summary Strategic planning level Management control level Operational control level Detail

  17. Managers Can Be Found on All Levels and in All Functional Areas of the Firm Strategic planning level Management Control Level Operational Control Level Finance Function Information Services Function Manufacturing Function Marketing Function Human Resources Function

  18. Managerial Roles • Fayol • Mintzberg • Stewart Planning , Staffing, Controlling etc

  19. What Managers do --Fayol’s Functions Strategic Planning Level Management Control Level Operational Control Level

  20. What Managers do -- Mintzberg’s Roles • Decisional roles • Entrepreneur • Disturbance handler • Resource allocator • Negotiator • Interpersonal roles • Figurehead • Leader • Liaison • Informational roles • Monitor • Disseminator • Spokesperson

  21. Problem Solving Information Comes in Many Forms Internal Sources External Sources Written Media Oral Media Tours Voice Mail Telephone Periodicals Electronic mail Letters & Memos Computer Reports Scheduled Meetings Unscheduled Meetings Noncomputer reports Business Meals Problem Solving

  22. Management Skills • Communications • Problem solving How can an information specialist help?

  23. Transaction Processing Systems • A focus on data storage processing and flows at the operational ; • Efficient Transaction Processing • Automation of High Volume Routine Tasks • Minimum Participation by Users • Summary reports to Management • Ryanair, EBay, Google

  24. Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Management Reporting Systems • An Information Focus aimed at Middle Managers • Structured Information Flow • Inquiry and Report Generation off a Database • Planning and Control • Summary Details • Rhythmic in Nature

  25. Decision Support Systems • Support for Managerial Decision Making • Evolved from Experiences with M.I.S. • Aimed at the less well structured/Underspecified problems • Combine modelling and Analysis Capability • Flexibility and Adaptability

  26. Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Name Title Executive Information Systems • Structured Automated Tracking Systems for Executives • Designed to Support Top Executives • Characteristics • Ease of use - Touch Screens etc • Data Cube • External Information • Examples in Ireland • Bank of Ireland, AIB • Telecom Eireann • ESB

  27. A Systems View • Business operations are embedded within a larger environmental setting

  28. Evolution of the CBIS • Data (EDP) • MIS 1964 • IBM promoted the concept as a means of selling disk files and terminals • DSS 1971 • Our distinction: • MIS: Organizational/group - general • DSS: Individual - specific • 1980’s/1990/s EIS • 1990’s/2000’s ERP systems (back to 1964?)

  29. The CBIS Model Computer-based Information System (CBIS) Accounting Information System Problem Management Information System Information Decisions Decision Support Systems Problem Solution The Virtual Office Knowledge-based Systems

  30. Information Services Information specialists have full-time responsibility for developing and maintaining computer-based systems

  31. Traditional Communications Chain Database Administrator Systems Analyst Operator User Computer Programmer Network Specialist

  32. End-User Computing • End-user computing • Development of all or part of applications • Stimulants to EUC • Increased computer literacy • IS backlog • Low-cost hardware (the PC) • Prewritten software (electronic spreadsheets)

  33. IS and EUCThe End-User Computing Communication Chain Information Specialists Support User Communication Computer

  34. Justifying the CBIS • Justify in the same manner as any other large investment • Economic • Cost reduction • Reduced inventory investment • Increased productivity (CAD/CAM) • Noneconomic • Perceived value

  35. Achieving the CBIS

  36. Roles Played by the Managerand by the Information Specialist Phase Manager Information Specialist Define problem Planning Support Analysis Control System Study Design system Control Design Implementation Control Implement system Use Control Make available

  37. MANAGEMENT INFORMATION SYSTEMS Using Information Technology for Competitive Advantage

  38. The Firm’s Environment The Firm’s Environment Global Financial Community Community Labor unions Stockholders or owners Society Government The Firm Suppliers Suppliers Customers Customers The firm Labor unions Competitors Stockholders or owners

  39. A Value Chain Firm Infrastructure Human resource management Margin Support Activities Technology development Procurement Marketing and sales Inbound logistics Operations Outbound logistics Service Margin Primary Activities

  40. A Value System Supplier value chains Firm value chain Channel value chains Buyer value chains

  41. The Information Resources Hardware Software Database Information Specialists Information Users Facilities

  42. The Future The bright side: Information is getting more important The dark side: Trend to end-user computing is making information management more difficult

  43. The Functional Areas Should Cooperate in Developing Their Strategic Plans Strategic planning for information resources Strategic planning for marketing resources Strategic planning for financial resources Strategic planning for manufacturing resources Strategic planning for human resources

  44. Strategic Planning for Information Resources Influence on Information Resources Information resources and IS strategy Business strategy Influence on Business Strategy

  45. IRM - Required Elements • A recognition that competitive advantage can be achieved by means of superior information resources • A recognition that information services is a major functional area • A recognition that the CIO is a top-level executive

  46. IRM-Required Ingredients (cont.) • A consideration of the firm’s information resources when engaging in strategic planning • A formal strategic plan for information resources • A strategy for stimulating and managing end-user computing

  47. The IRM Model The environment of the firm ENVIRONMENTAL INFLUENCES The firm’s executives Other executives CIO Internal influences Firm’s strategic plan FUNCTIONAL AREAS Information services Marketing Human resources Manufacturing Finance STRATEGIC PLAN FOR INFORMATION RESOURCES Central computing resources Disbursed computing resources DATA AND INFORMATION User’s engaged in end-user computing Other users

  48. A Sales Report of Fast Moving Products Year-to-Date % of Total Item Number Item Description Sales Volume Year-to-Date Sales 400293 BRAKE PIPE $1,702.93 .068 319421 DOOR HANDLE GASKET 1,624.00 .065 786402 CLUTCH DRIVEN PLATE 1,403.97 .056 190796 CARPET SNAP 1,102.00 .044 001007 SPARK PLUG 1,010.79 .040 739792 HOSE CLIP 949.20 .038 722210 RUBBER PLUG 946.73 .038 410615 UPPER DOOR HINGE 938.40 .038 963214 REAR TUBE SHOCK 922.19 .037 000123 NEEDLE VALVE 919.26 .037 Totals $11,519.47 .461

  49. Information is Gathered from All of the Physical System Elements Management Information Information Transformation Process Input Resources Output Resources

  50. Supplier Analysis Report Item Number: 410615 Item Description: Upper Door Hinge SUPPLIER LAST UNIT DAYS TO PCT. NUMBER NAME DATE P.O. # QTY. PRICE RECEIPT REJECTS 3062 CARTER 7/12 1048-10 360 $8.75 12 .00 & SONS 4189 PACIFIC 4/13 962-10 350 9.10 08 .02 MACHINING 0140 A.B. 1/04 550-10 350 8.12 03 .00 MERRIL 2111 BAY AREA 8/19 1196-10 360 11.60 19 .04

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