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Ch 1 - Information Systems
in Global Business Today
- Opening Case - NBA
(p3 - short
for page 3)
What is an Information System?
- Problem: Player development.
- Solution: Synergy Sports
Technology - created database of video clips of each play indexed on
players involved, type of play, result, ... See
- Benefit: helps coaches analyze
strengths and weaknesses of individual players. One team gives
players iPods so they can review videos to prepare for next game.
Strategic Business Objectives of (enabled by) Info
- Data vs. Information - Fig 1-3
- Def (short for definition) - Data - raw facts
representing events occurring in organizations or the physical
- Def - Information - data
that have been shaped into a form that is useful to human beings
- Information system - a set of interrelated
components that collect, process, store, and distribute information to
support decision making and control in an organization.
Dimensions of Information Systems
- Operational excellence - Wal-Mart
- most efficient retail store in the industry.
- New products, and business models
- Example - new product, Apple iPod.
- Def - Business model - a description of
how a company produces, delivers, and sells a good or service to create
- Apple transformed the old business model of
physically distributing records and CDs to a new model of downloading
music with iTunes.
- Customer and Supplier Intimacy - Mandarin
Oriental Hotel - sets room temperature to guest's preference.
Improved Decision Making - Verizon uses real-time
info on customer complaints to fix storm-damaged lines.
Competitive Advantage - Toyota - high level of
efficiency and quality.
Survival - banks follow Citibank's 1977
successful ATM introduction just to stay in business.
(Note by PJL: in order to analyze information systems, we
must consider the organizational, managerial, and technological aspects
(dimensions) of information systems.)
Complementary Assets (p26)
- Information systems are an integral part of an
- Key elements of an organization are its people,
structure, business processes, politics, and culture.
- Perceives opportunities in the
environment, and sets the strategy by allocating human and financial
resources to achieve success.
Note by PJL from Mgt 3325 (for your info only): management conducts a
SWOT Analysis, see Section I.B.2 of
- Creates new goods and services.
Note by PJL from Mgt 3325 (for your info only): see Section I of
http://www.patlyons.com/m3325/chapters/h905.htm for product selection
Information Technology (IT) - consists of:
- Computer hardware
- Computer software - Ch 5
- Data management technology - Ch 6
- Networking and telecommunications technology - Ch
Interactive Session: Technology
- Def - Complementary assets -
assets required to derive value from a primary investment.
- Example - to realize value from automobiles
requires complementary investments in highways, repair facilities, and
- Firms that support their information technology
investments in complementary assets receive superior returns on
- Organizational complementary assets include:
- Supportive business culture,
- Appropriate business models,
- Efficient business processes,
- Decentralized authority,
- Highly distributed decision making,
- Strong information system development team.
Managerial complementary assets
Strong senior management support for change
Incentive systems that reward innovation
Emphasis on teamwork
Management culture that values flexibility and
Sociotechnical Approach to Information Systems
- Read UPS Competes Globally with Information
- Be prepared to discuss the
- What are the inputs, processing, and outputs of
UPSís package tracking system?
- What technologies are used by UPS?
- How are these technologies related to UPSís
- What problems do UPSís information systems solve?
What would happen if these systems were not available?
- The study of information systems is a
multidisciplinary field of study that encompasses both the:
- Technical approach - disciplines include computer
science, management science, and operations research, and
- Behavioral approach - disciplines include
psychology, sociology, and economics.
(This page was last edited on
January 09, 2010