Lecture 1
Managing
Dr. Igli Tafa
MBA Program – UNYT
Spring 2015
GENERAL INFO
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Course title: Information Systems
Credit Hours: 40
Instructor
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Dr. Igli Tafa
Email: itafaj@gmail.al
Contact: E-mail
Course website
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www.iglitafa.com
Get everything from here
COURSE OUTLINE
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The course introduces aspects of management related
to information systems.
It emphasizes the use of IT in managing and operating
organizations, including business enterprises, public
institutions, and social and charitable communities.
The goal is provide students with a solid background on
how to make use of IT as strategic in today’s global
economy to gain competitive advantage and to present
issues related with management of information
resources.
COURSE CONTENT
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IS Management in the Global Economy
Evolution of IS function and CIO’s job
Strategic uses of IT
IS planning
Distributed systems architecture
Building and managing telecommunications
Managing corporate information resources
Managing day-to-day operations
Evolution of system development, the tools and approaches
Information security
Supporting decision-making
ORGANIZATION OF THE COURSE
Part 1: Information Systems, Organizations, Management, and Strategy
•Why information systems are so important today for business and management
•Evaluate the role of information systems in today’s competitive business environment
•Identify the major management challenges to building and using information systems
•Evaluate the role played by the major types of systems in a business and their
relationship to each other
•Describe the information systems supporting the major business functions: sales and
marketing, manufacturing and production, finance and accounting, and human
resources
•Analyze the relationship between organizations, information systems, and business
processes
Organization of the course cont’d
Part 2: E-Commerce. Ethical and Social Issues in Enterprise
•Analyze how Internet technology has changed value propositions and business
models
•Define electronic commerce and describe how it has changed consumer
retailing and business-to-business transactions
•Analyze the relationship among ethical, social, and political issues that are
raised by information systems
•Identify the main moral dimensions of an information society and specific
principles for conduct that can be used to guide ethical decisions
ORGANIZATION OF THE COURSE
CONT’D
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Part 3: Managing Data Resources and IT functions in
supporting of enterprise solution.
•Describe basic file organization concepts and the problems of
managing data resources in a traditional file environment
•Describe how a database management system organizes information
and compare the principal database models
•Apply important database design principles
•Identify the challenges posed by data resource management and
management solutions in Network Infrastructure, Wireless.
• Identification and steps in Security controls.
ORGANIZATION OF THE COURSE
CONT’D
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Part 4: Enterprise Applications and Business Process
Integration. Managing Knowledge.
•Assess how enterprise systems provide value for businesses and describe how they
work
•Assess how supply chain management systems provide value for businesses and
describe how they work
•Assess how customer relationship management systems provide value for businesses
and describe how they work
•Define and describe the types of systems used for enterprise-wide knowledge
management and demonstrate how they provide value for organizations
•Evaluate the business benefits of using intelligent techniques for knowledge
management
ORGANIZATION OF THE COURSE
CONT’D
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Part 5: Decision Making.
•Describe different types of decisions and the decision-making process
•Evaluate the role of information systems in helping people working individually and in a
group make decisions more efficiently
•Demonstrate how executive support systems can help senior managers make better
decisions
•Assess how systems that support decision making can provide value for the firm
•Identify the challenges posed by decision-support systems, group decision-support
systems, and executive support systems and management solutions
ORGANIZATION OF THE COURSE
CONT’D
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Part 6: Redesigning the Organization with Information Systems.
Understanding the Business Value of Systems and Managing Change
•Demonstrate how building new systems produces organizational change
•Explain how a company can develop information systems that fit its business plan
•Identify and describe the core activities in the systems development process
•Evaluate models for understanding the business value of information systems
•Assess the change management requirements for building successful systems and
Select appropriate strategies to manage the system implementation process
BOOKS
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Required
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Management Information Systems, Author:
Kenneth C. Laudon, Jane P. Laudon. Prentice
Hall; 12-th edition
Recommended for further reading
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Information Systems Management in Practice, Eighth Edition
ISBN: 9780132437158 Author: Barbara C. McNurlin, Ralph H.
Sprague, Tung Bui. Prentice Hall; 8 edition (September 15,
2008)
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MIS Essentials, Second Edition. ISBN: 9780138018825: David
M. Kroenke.
GRADING BREAKDOWN
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Coursework = 50%
Final Exam = 50%
Total = 100%
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For final exam
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A set of topics and orientating questions will be
provided to you in advance to prepare for the final
exam.
GRADING POLICY
Grade
Herzing University
Percentage
Quality Points
A
AB+
B
BC+
C
92 -100
88 - 91.99
84 - 87.99
80 - 83.99
77 - 79.99
74 - 76.99
70 - 73.99
4.00
3.67
3.33
3.00
2.67
2.33
2.00
F
Anything below
0
Management Information Systems
Lecture 1 Managing
OBJECTIVES
• Explain why information systems are so
important today for business and management
• Evaluate the role of information systems in
today’s competitive business environment
• Assess the impact of the Internet and Internet
technology on business and government
Management Information Systems
Lecture 1 Managing
OBJECTIVES (Continued)
• Define an information system from both a
technical and business perspective and
distinguish between computer literacy and
information systems literacy
• Identify the major management challenges to
building and using information systems
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Why Information Systems Matter
There are four reasons why IT makes a difference to the
success of a business:
• Capital management
• Foundation of doing business
• Productivity
• Strategic opportunity and advantage
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Capital Management:
• IT is the largest single component of capital
investment in the United States.
• About $1.8 trillion is spent each year by American
businesses.
• Managers and business students need to know how
to invest this capital wisely.
• The success of your business in the future may well
depend on how you make IT investment decisions.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Information Technology Capital Investment
Source: Based on the data in U.S. Department of
Commerce, Bureau of Economic Analysis, National
Income and Product Accounts, Tables 5.2 and 5.8,
2004.
Figure 1-1
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Foundation of doing business:
• Most businesses today could not operate without
extensive use of information systems and
technologies.
• IT can increase market share.
• IT can help a business become a high-quality,
low-cost producer.
• IT is vital to the development of new products.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
The Interdependence between Organizations and
Information Systems
Figure 1-2
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Productivity:
• IT is one of the most important tools managers
have to increase productivity and efficiency of
businesses.
• According to the Federal Reserve Bank, IT has
reduced the rate of inflation by 0.5 to 1% in the
last decade. For firms this means IT is a major
factor in reducing costs.
• It is estimated that IT has increased productivity
in the economy by about 1% in the last decade.
For firms this means IT is a major source of labor
and capital efficiency.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Strategic Opportunity and Advantage:
• Create competitive advantage: IT makes it
possible to develop competitive advantages.
• New Business Models: Dell Computer has built its
competitive advantage on an IT enabled build-toorder business model that other firms have not
been able to imitate.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Strategic Opportunity and Advantage:
• Create new services: eBay has developed the
largest auction trading platform for millions of
individuals and businesses. Competitors have
not been able to imitate its success.
• Differentiate yourself from your competitors:
Amazon has become the largest book retailer in
the United States on the strength of its huge
online inventory and recommender system. It has
no rivals in size and scope.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
How Much Does IT Matter?
• Carr has written that whatever advantages firms
build using IT can be easily copied by
competitors.
• This view is not supported by the evidence:
Amazon, eBay, Dell, Wal-Mart and Apple's iTunes
are just a few firms that have built and
maintained technology-based advantages.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
How Much Does IT Matter?
• Commoditization of technology is typically a
spur to innovation and new business models,
products and services.
• Competitive advantage derives not from the
technology, but on how businesses use the
technology.
• Innovations in business processes,
management and organization are not easily
copied from one firm to another.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Why IT Now? Digital Convergence and the
Changing Business Environment
Growing impact of IT in business firms can be
assessed from the following five factors:
• Internet growth and technology convergence
• Transformation of the business enterprise
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Why IT Now? Digital Convergence and the
Changing Business Environment (Continued)
• Growth of a globally connected economy
• Growth of knowledge and information-based
economies
• Emergence of the digital firm
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
The Internet and Technology Convergence:
• Growth of the Internet: 120 million online in the
United States, 500 million global users
• The Internet is bringing about a convergence of
telecommunications and computing: VoIP
telephones.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
The Internet and Technology Convergence:
• Growth in e-business, e-commerce, and egovernment
• Internet is bringing about rapid changes in
markets and market structure: financial services
and banking such as eTrade.com.
• The Internet is making many traditional
business models obsolete: the corner music
store and video store.
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Transformation of the Business Enterprise:
• Flattening
• Decentralization
• Flexibility
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Transformation of the Business Enterprise (Continued):
• Location independence
• Low transaction and coordination costs
• Empowerment
• Collaborative work and teamwork
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Globalization:
• Management and control in a global marketplace
• Competition in world markets
• Global workgroups
• Global delivery systems
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Rise of the Information Economy:
• Knowledge and information-based economies
• New products and services
• Knowledge as a central productive and strategic
asset
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Rise of the Information Economy (Continued):
• Time-based competition
• Shorter product life
• Turbulent environment
• Limited employee knowledge base
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
The Growth of the Information Economy
Source: U.S. Department of Commerce, Bureau of the
Census, Statistical Abstract of the United States, 2003,
Table 615; and Historical Statistics of the United States,
Colonial Times to 1970, Vol. 1, Series D, pp. 182-232.
Figure 1-3
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Emergence of the Digital Firm:
• Digitally enabled relationships with customers,
suppliers, and employees
• Core business processes accomplished using
digital networks
• Digital management of key corporate assets
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
Emergence of the Digital Firm (Continued):
• Agile sensing and responding to environmental
changes
• Seamless flow of information within the firm, and
with strategic partners
Management Information Systems
Lecture 1 Managing
WHY INFORMATION SYSTEMS?
The Emerging Digital Firm
Figure 1-4
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
What Is an Information System?
Technology perspective: A set of interrelated
components that collect (or retrieve), process, store,
and distribute information to support decision
making and control in an organization
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
What is an Information System? (Continued)
• Data: Streams of raw facts representing events
such as business transactions
• Information: Clusters of facts meaningful and useful
to human beings in the processes such as making
decisions
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Data and Information
Figure 1-5
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Functions of an Information System
Figure 1-6
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Computer-Based Information System (CBIS)
• Rely on computer hardware and software
• Processing and disseminating information
• Fixed definitions of data and procedures
• Collecting, storing, and using information
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
A Business Perspective on Information Systems
Information systems are more than just technology.
Businesses invest in IS in order to create value and
increase profitability.
• Information systems are an organizational and
management solution to business challenges that
arise from the business environment.
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
A Business Perspective on Information Systems
(Continued)
• Based on information technology but also require
significant investment in organizational and
management changes and innovations
• IS create value primarily by changing business
processes and management decision making.
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
The Business Information Value Chain
Figure 1-7
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Information Systems Are More than Computers
Figure 1-8
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
• Information systems literacy: Broad-based
understanding of information systems that includes
behavioral knowledge about organizations,
management and individuals using information
systems as well as technical knowledge about
computers
• Computer literacy: Knowledge about information
technology, focusing on understanding how
computer technologies work
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Major Business Functions Rely on Information Systems
• Sales and marketing
• Manufacturing
• Finance
• Accounting
• Human resources
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Dimensions of Information Systems
Three Important Dimensions of Information Systems
• Organizations
• Managers
• Technology
You will need to understand and balance these
dimensions of information systems in order to create
business value.
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
The Organizational Dimension of Information Systems
• People
• Structure
• Business processes
• Culture
• Politics
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
The Management Dimension of Information Systems
Managers are:
• Sense makers
• Decision makers
• Planners
• Innovators of new processes
• Leaders: set agendas
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
The Management Dimension of Information Systems
(Continued)
Managers who can understand the role of
information systems in creating business value are
the key ingredient to success with systems, and
cannot easily be replicated by your competitors.
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
The Technology Dimension of Information Systems
Information technology is one of the tools managers
use to cope with change:
• Hardware: Physical equipment
• Software: Detailed preprogrammed instructions
• Storage: Physical media for storing data and the
software
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
The Technology Dimension of Information Systems
(Continued)
• Communications technology: Transfers data
from one physical location to another
• Networks: Links computers to share data or
resources
Managers need to know enough about information
technology to make intelligent decisions about how to
use it for creating business value.
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Complementary Assets and Organizational Capital
Complementary assets:
• New business processes
• Management behavior
• Organizational culture
• Training
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Organizational capital:
• Supportive business culture that values efficiency
and effectiveness
• Efficient business processes, decentralization of
authority
• Highly distributed decision rights
• A strong information system (IS) development
team
Management Information Systems
Lecture 1 Managing
PERSPECTIVES ON INFORMATION SYSTEMS
Variation in Returns on Information Technology Investment
Source: Based on Erik Brynjolfsson and Lorin M.
Hitt, “Beyond Computation: Information Technology,
Organizational Transformation and Business
Performance.” Journal of Economic Perspectives
14, no. 4 (Fall 2000). Used with permission of the
American Economic Association.
Figure 1-9
Management Information Systems
Lecture 1 Managing
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Sociotechnical Systems
Optimize systems performance:
• Technology and organization
• Organizations mutually adjust to one another
until fit is satisfactory
Management Information Systems
Lecture 1 Managing
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
A Sociotechnical Perspective on Information Systems
Figure 1-11