Why Information Systems ? Introductory Note IS 655 The Reasons for Participating in Decisions about IS • • • • • IS must be managed as a critical resource. IS enable change in the way people work together. IS are part of almost every aspect of business. IS enable business opportunities and new strategies. IS can be used to combat business challenges from competitors. Intro Note 2 What If a Manager Doesn’t Participate • • Fail to make critical decisions on how Information Systems supporting business goal. Fail to make critical decisions on how Information Systems supporting organization systems. Intro Note 3 Skills of Successful Managers • Visionary • • • • • Creativity Curiosity Confidence Focus on Business Solution Flexibility Intro Note 4 Skills of Successful Managers… • Informational and Interpersonal • • • Communication Information gathering Interpersonal/Social skills Intro Note 5 Skills of Successful Managers… • Structural • • • • Project management Analytical skills Organizational skills Planning skills Intro Note 6 Basic Assumptions • • • Assumptions about Management Assumptions about Business Assumptions about Information Systems Intro Note 7 Assumptions about Management • Tactical Roles - Planning - Organizing - Leading - Controlling Intro Note 8 Assumptions about Management … • Strategic Roles - Interpersonal - Informational - Decisional Intro Note 9 Assumptions about Business • Functional View STRATEGIC TACTICAL OPERATIONAL A C C O U N T I N G F I N A N C E H U M A N R E S P R O D U C T I O N Intro Note S A L E S O T H E R S 10 Assumptions about Business … • Process View VALUE FIRM INFRASTRUCTURE HUMAN RESOURCE MANAGEMENT TECHNOLOGY DEVELOPMENT PROCUREMENT INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTIC COST Intro Note MARKETING & SALES LOGISTIC SERVICE MARGIN 11 Decision-Making in an Organization Intro Note 12 Decision-Making Levels in an Organization • • • Executive Level • Long-term decisions (Strategies) • Unstructured decisions (Competitions) Managerial Level • Decisions covering weeks and months (Tactics) • Semi-structured decisions (Effectiveness) Operational Level • Day-to-day decisions (Operations) • Structured decisions (Efficiency) Intro Note 13 STRATEGIC TACTICAL OPERATIONAL A C C O U N T I N G F I N A N C E H U M A N R E S P R O D U C T I O N S A L E S O T H E R S VALUE CHAIN Intro Note 14 Value-Added Activities • Customer-Value-Added Activity (maximize) a business process that a customer is willing to pay for Business-Value-Added Activity (minimize) • a business process that is essential to managing an organization Non-Value-Added Activity (eliminate) • customer will not pay for; business value will not be increased Goals of a business system: effective, efficient, competitive. • • • • Intro Note 15 BUSINESS DRIVERS BPR, CRM, SCM, e-Biz, etc. Business Data BUSINESS BUSINESS CONTEXT CONTEXT Business Users KNOWLEDGE KNOWLEDGE PROCESS PROCESS INTERFACE INTERFACE Database Database Information Information Processing Processing Business Business Rules, Rules, Procedures Procedures Input, Input, Output Output Location, Location, Security Security Hardware Hardware Software Software Networking Networking ERP, Object, Mobile, Collaborative, etc. TECHNOLOGY DRIVERS 16 Information Systems that Span Organizational Boundaries Intro Note 17 Information Systems Supporting the Functional Areas Intro Note 18 Information Systems in Organization STRATEGIC A C C O U N T I N G F I N A N C E People EXECUTIVE INFORMATION SYSTEMS TACTICAL MANAGEMENT INFORMATION SYSTEMS OPERATIONAL TRANSACTION PROCESSING SYSTEMS H U M A N P R O D U C T I O N R E S IT S A L E S O T H E R S Process 19 Some Visions of “Visionary” Business Leaders 2011 Your “Visionary” Manager: “We don’t need the passing fad IS !!!” 2012 Your “Visionary” Manager declares bankruptcy !!! Intro Note 20