CIS 2200
Kannan Mohan
Department of CIS
Zicklin School of Business, Baruch College
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• Why are we here?
• What has changed because of IT?
1-3
• What is IT? What is IS?
• Does IT matter?
• If yes, how?
• How can organizations use IT to gain competitive
advantage?
• Why do some IT investments fail while others succeed?
1-4
• Information technology: The hardware and software a
business uses to achieve objectives
• Information system: Interrelated components that
manage information to:
• Support decision making and control
• Help with analysis, visualization, and product creation
1-5
1-6
Organization
Technology
Information
Systems
People
1-7
THE IMPLEMENTATION PROCESS
INITIATION BUILD/BUY INTRODUCTION ADAPTATION
FIRM STRATEGY
THE
INFORMATION
SYSTEM
BUSINESS PROCESSES
USE
STRUCTURE & CULTURE
CONSEQUENCES
THE ORGANIZATION
IT INFRASTRUCTURE
THE EXTERNAL ENVIRONMENT
1-8
Source: (Silver et al, 1995)
• Access to computing and telecommunications
• Changing the way firms advertise and people
communicate
• Lowered computing costs
• Pervasive impact of technology – across business
disciplines
1-9
• Sophisticated, high-powered computing is turning into a
utility via:
• Cloud computing
• Software as a service
• New technologies have also:
• Fueled globalization
• Fueled data-driven decision making
• Raised privacy and security concerns
1-10
• Accounting
• Finance
• Marketing
• HR
• Operations
• Law
• Programmers
• Experts in user-interface design, process design, and strategy
• Consulting and field engineering
• Chief information officer
• “C-level” specialties in emerging areas
• Chief information security officer (CISO)
• Chief privacy officer (CPO)
1-12
• Operational excellence
• New products, services, and business models
• Customer and supplier intimacy
• Improved decision making
• Competitive advantage
• Survival
1-13
• Improved efficiency results in higher profits
• Helping improve efficiency and productivity
• E.g. Wal-Mart:
• Power of combining information systems and best business
practices to achieve operational efficiency—and $348 billion in
sales in 2007
• Most efficient store in world as result of digital links between
suppliers and stores
1-14
• Enabling firms to create new products, services, and
business models
• Business model: How a company produces, delivers, and sells its
products and services
• E.g. Music industry
• Drastic changes in business models in recent years
• Apple: Successful innovations – iPod, iTunes, etc.
1-15
• Customers who are served well become repeat
customers who purchase more
• Mandarin Oriental hotel
• Uses IT to foster an intimate relationship with its customers,
keeping track of preferences, etc.
• Close relationships with suppliers result in lower costs
• JCPenney
• IT to enhance relationship with supplier in Hong Kong
1-16
• Managers being swamped with data that is not
timely or helpful
• Real-time data improves ability of managers to
make decisions
• Verizon: Web-based digital dashboard to update managers
with real-time data on customer complaints, network
performance, and line outages
1-17
• Often results from achieving business objectives
• Advantages over competitors:
• Charging less for superior products, better performance, and
better response to suppliers and customers
• Toyota: Uses TPS (Toyota Production System) to achieve high
levels of efficiency and quality
1-18
• Investment in IS out of necessity
• Simply the cost of doing business
• Keeping up with competitors - ATMs?
• Federal and state regulations and reporting requirements
1-19
• How can IT transform your business?
• How has IT impacted the various areas of business?
• What are the key business drivers for IS?
• What are the dimensions and functions of IS?
1-20