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ISYS 209 Chapter 1 Business Information Systems in Your Career
Terms in this set (38)
What's new in Management Information Systems (MIS)?
Cloud computing / software as a service (SaaS)
Mobile digital platform
Managers use social networks, collaboration.
Business intelligence applications accelerate
Virtual meetings proliferate.
Telework gains momentum
Co-creation of value, collaboration across firms
Internet and global communications have greatly reduced economic and cultural advantages of developed countries...
Drastic reduction of costs of operating and transacting on global scale
Competition for jobs, markets, resources, ideas
Dependence on imports and exports
Requires new understandings of skills, markets, opportunities
Businesses invest in IT to achieve 6 important business objectives. What are they?
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Improved efficiency results in higher profits.
Information systems and technologies help improve efficiency and productivity.
Ex: (Walmart)-Power of combining information systems and best business practices to achieve operational efficiency—and over $473 billion in sales in 2014
Most efficient retail store in world as result of digital links between suppliers and stores.
New products, services, and business models
Information systems and technologies enable firms to create new products, services, and business models.
(business model: how company produces, delivers, and sells its products and services)
Ex: (Apple)- Transformed old model of music distribution with iTunes. Continues to innovate iPod, iPhone, iPad, etc.
Customers who are served well become repeat customers who purchase more.
Ex: (Mandarin Oriental Hotel)- Uses IT to foster intimate relationship with customers, keeping track of preferences, etc.
Close relationship with suppliers result in lower costs.
Ex: (JCPenney)- IT to enhance relations with supplier in Hong Kong
Improved Decision Making
If managers rely on forecasts, best guesses, and luck, they will misallocate employees, services, and inventory.
Real-time data improves ability of managers to make decisions.
Ex: (Verizon)- Web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages.
Often results form achieving previous business objectives
Advantages over competitors--> Charging less for superior products, better performance, and better response to suppliers and customers
Ex: Apple, Walmart, UPS are industry leaders because they know how to use information systems for this purpose.
(Improved decision making, Customer/supplier intimacy, New products/services/business models, Operational excellence represent competitive advantage as well)
Business may need to invest in information systems out of necessity; simply the cost of doing business.
Information System (IS)
Interrelated components that manage information to:
Support decision making and control.
Help with analysis, visualization, and product creation.
Activities in an IS that produce info:
Input, Processing, Output, Feedback
Information Technology (IT)
Hardware and software a business uses to achieve objectives.
Streams of raw facts.
Data shaped into meaningful, useful form.
Data and Information
Ex: (Supermarket checkout counter)
Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.
Information systems literacy
Includes behavioral and technical approach
Focuses mostly on knowledge of IT
Management Information Systems (MIS)
Focuses on broader information systems literacy.
Issues surrounding development, use, impact of information systems used by managers and employees.
The three parts of Information Systems
Coordinate work through structured hierarchy and business processes.
(Business processes): Related tasks and behaviors for accomplishing work.
Culture embedded in information systems
IS requires skilled people to build, maintain, and use them.
Employee attitudes affect ability to use systems productively.
*Roles of managers:
Perceive business challenges
Set organizational strategy
Allocate human and financial resources
Creative work: new products, services
IT Infrastructure: Foundation or platform that information systems built on
Computer hardware & software
Data management technology
Networking and telecommunications tech.
Internet & Web, extranets, intranets
Problem solving is a continuous process, not a single event. Sometimes chosen solution doesn't work or needs adjustment
Agreement that problem exists
Definition of problem
Causes of problem
What can be done given resources of firm
Typical Organizational problems
Outdated business processes
Non-supportive culture and attitudes
Turbulent business environment, change
Complexity of task
Typical Technology Problems
Insufficient or aging hardware
Inadequate database capacity
Insufficient telecommunications capacity
Incompatibility of old systems with new technology
Rapid technological change
Typical People Problems
Lack of employee training
Difficulties of evaluating performance
Legal and regulatory compliance
Work environment, ergonomics
Poor or indecisive management
Lack of employee support and participation
Often many possible solutions
Consider as many as possible to understand range of solutions
Solution Evaluation and Choice
Feasibility given resources and skills
Length of time needed to implement solution
Building or purchasing solution
Testing solution, employee training
Measurement of outcomes
Feedback, evaluation of solution
Why is Critical thinking so important in Problem Solving?
Without critical thinking, it's easy to jump to conclusions, misjudge a problem, and waste resources
Sustained suspension of judgment with an awareness of multiple perspectives and alternatives
Four Elements of Critical thinking
1. Maintaining doubt and suspending judgement
2. Being aware or different perspective
Including tech., organization, and people perspective
3. Testing alternatives and letting experience guide
4. Being aware or organizational and personal limitations
Accountants increasingly rely on information systems to summarize transactions, create financial records, organize data, and perform financial analysis.
Knowledge of databases and networks
Online financial transactions and reporting systems
How systems are used to achieve accounting functions
Relationship between information systems and financial management and services is so strong that many advise finance majors to co-major in information systems.
Use systems for financial reporting, direct investment activities, implement cash management strategies.
Plan, organize, implement info systems strategies for the firm.
No field has undergone more technology-driven change in the past 5 years than marketing and advertising.
Work with databases for tracking and reporting on customer behavior, product performance, customer feedback, product development.
Enterprise systems for product management, sales force management, customer relationship management.
Operations management in services and manufacturing
Production managers, administrative service managers, and operations analysts.
Hardware & software platforms for operations management.
Use database and analytical software for coordinating and optimizing resources required for producing goods and services.
The job of management has been transformed by IS.
Impossible to manage business today without IS.
Use of IS for each function of job, from desktop productivity tools to applications coordinating the entire enterprise.
Information Systems (IS)--> Affects in Business Careers
Fast changing and dynamic profession because information technologies are among most important tools for achieving business firms' key objectives
Domestic and offshore outsourcing
Uses of new and emerging hardware and software to achieve 6 business objectives
An ability to take a leadership role in the design and implementation of new information systems.
Outsourcing and Offshoring
outsourcing to domestic U.S. firms outsourcing to low-wage countries such as India, China
Production programming, system maintenance, call centers
Lower cost of building and maintaining systems within US
Increased need for managerial positions