CHAPTER ONE MANAGEMENT INFORMATION SYSTEMS: BUSINESS DRIVEN MIS

1. CHAPTER ONE MANAGEMENT INFORMATION SYSTEMS: BUSINESS DRIVEN MIS

2. COMPETING IN THE INFORMATION AGE • Examples of the power of business and technology • Amazon – Not a technology company; primary business focus is selling books • Netflix – Not a technology company; primary business focus is renting videos • Zappos – Not a technology company; primary business focus is selling shoes

3. COMPETING IN THE INFORMATION AGE • The core drivers of the information age • Data • Information • Business intelligence • Knowledge

4. THE CHALLENGE: DEPARTMENTAL COMPANIES Common Departments Working Independently

5. THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS Common Departments Working Interdependently

6. THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS • Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

7. THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS • Management Information Systems (MIS) – A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving

8. IDENTIFYING COMPETITIVE ADVANTAGES • Business strategy – A leadership plan that achieves a specific set of goals or objectives such as • Developing new products or services • Entering new markets • Increasing customer loyalty • Attracting new customers • Increasing sales

9. IDENTIFYING COMPETITIVE ADVANTAGES • Competitive advantage – A product or service that an organization’s customers place a greater value on than similar offerings from a competitor • First-mover advantage – Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

10. IDENTIFYING COMPETITIVE ADVANTAGES • Competitive intelligence –The process of gathering information about the competitive environment to improve the company’s ability to succeed • Competitive intelligence tools • Porter’s Five Forces Model • Porter’s Three Generic Strategies • Porter’s Value Chain Analysis

11. THE FIVE FORCES MODEL – EVALUATING INDUSTRY ATTRACTIVENESS Porter’s Five Forces Model

12. THE THREE GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS Porter’s Three Generic Strategies

13. VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES • Business process – A standardized set of activities that accomplish a specific task, such as a specific process • Value chain analysis – Views a firm as a series of business processes that each add value to the product or service

14. VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES Porter’s Value Chain

15. VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES Value Chain and Porter’s Five Forces Model