COMM 391. Learning Objectives. Introduction to Management Information Systems. IT s About Business E-Meals. Winter 2014 Term 1

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1 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. 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 Y.M. Cheung Y.M. Cheung 4

2 Learning Objective 1 Discuss why business managers should study information systems. The Informed Users An informed user is a person knowledgeable about information systems and information technology. USERS MIS IT skills open many doors because IT is so widely used Y.M. Cheung Y.M. Cheung 6 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. 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 Y.M. Cheung Y.M. Cheung 8

3 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: 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. Cheung Y.M. Cheung 10 For discussion Compare the average salary of the following IT jobs: Project Manager Business Analyst Business Intelligence (BI) Analyst Sources: Learning Objective 2 Explain information system (IS) basics Y.M. Cheung Y.M. Cheung 12

4 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. 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 Y.M. Cheung 14 Data, Information, Knowledge Knowledge Processed data or information that conveys some individuals understanding or learning applicable to a problem or activity. Basic Components of Information Systems Which component is most important? Information Data Organized data that has meaning and value. Items that are the most elementary descriptions of things, events, activities, and transactions. May be internal or external Y.M. Cheung Y.M. Cheung 16

5 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 use and manage it effectively. Basic Components of Information Systems (cont d) Hardware Software Database A device such as a processor, monitor, keyboard or printer. A program or collection of programs that enable hardware to process data. A collection of related files or tables containing data. Network A connecting system (wireline or wireless) that permits different computers to share resources. COMM W2013 Term Kafui Monu, Y.M. Cheung Y.M. Cheung 18 Basic Components of Information Systems (cont d) Information Technology in an Organization Procedures A set of instructions about how to combine the above components in order to process information and generate the desired output. People Those individuals who use the hardware and software, interface with it, or uses its output Y.M. Cheung Y.M. Cheung 20

6 IT Platform vs. IT Infrastructure What is an App? IT Platform Include the IT components of hardware, software, networks (wireline and wireless), and databases. An application (or app) is a computer program designed to support a specific task or business process. IT Services IT personnel use these components to develop information systems, oversee security and risk, and manage data. IT Infrastructure The IT components plus IT services Y.M. Cheung Y.M. Cheung 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. 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 Y.M. Cheung Y.M. Cheung 24

7 Information Systems Among Multiple Organizations 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. Cheung Y.M. Cheung 26 Types of Information Systems (cont d) Office Automation Systems Management Information Systems Decision Support Systems Expert Systems Executive Dashboard Learning Objective 3 Discuss the role of information technology (IT) in business 2014 Y.M. Cheung 27 COMM W2013 Term Kafui Monu, Y.M. Cheung 28

8 IT s Role in Business IT s Impact on Business Information technology is everywhere in business. Understanding IT provides great insight to anyone learning about business Y.M. Cheung Y.M. Cheung 30 IT s Impact on Business (cont d) 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. Marketing working with other organizational departments 2014 Y.M. Cheung Y.M. Cheung 32

9 Departments Working Independently Departments Working Interdependently Systems are the primary enabler of crossfunctional operations Y.M. Cheung Y.M. Cheung 34 IT as a Critical Enabler IT enables firms to collect, maintain, and analyze a very large amount of data related to customers. customer database Marketing FAccounting customer database Sales customer database customer database Post sale: customer service & technical support 2014 Y.M. Acknowledgement: Cheung 35 Carson Woo and Ofer Arazy IT as a Critical Enabler (cont d) Marketing Sales Integrated customer database Finance & Accounting Web-enabled customer interactions Post sale: customer service & technical support 2014 Y.M. Acknowledgement: Cheung 36 Carson Woo and Ofer Arazy

10 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 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 Y.M. Cheung Y.M. Cheung 38 Learning Objective 4 Discuss the role of business managers in technology adoption and development Embracing Digital Technology A study by MIT Sloan Management Review and Capgemini Consulting finds that companies now face a digital imperative: Adopt new technologies effectively or face competitive obsolescence. (Source: Y.M. Cheung Y.M. Cheung 40

11 Key Findings of the Survey Benefits of Digital Transformation 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 Y.M. Cheung Y.M. Cheung 42 The Biggest Transformation Traps The Pace of Digital Transformation 2014 Y.M. Cheung Y.M. Cheung 44

12 Culture Clash 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 Y.M. Cheung Y.M. Cheung 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. 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. Cheung Y.M. Cheung 48