11 1. Role of IS in Organizations Early views of IS in organizations Lessons from DP era Lessons from MIS era The SIS era Types of SIS Success factors of SIS Applications portfolio in the SIS era Role of IS Plan in the SIS era

12 Planning systems Control systems Operational systems Sales forecasting, operating plans, capacity planning, profit/earnings forecasts, business mix analysis, manpower planning, financial modelling Sales analysis, budgetary control, management accounting, inventory management, quality analysis, expense reporting, market research/statistics, work-in-process control, requirements planning, supplier analysis Order entry processing, tracking shipping documents, vehicle scheduling/loading, invoicing, sales and purchase ledgers, cost accounting, stock control, shop floor scheduling, bill of materials, purchase orders, receiving, employee records, payroll, word processing Time Early Views of IS in Organizations Anthony’s (1965) framework

13 Early Views of IS in Organizations Initiation Batch processing, cost reduction, little management interest Control Returns expected, development methodologies, request backlogs Contagion Rapid growth, high expectations, little control Integration Integrate systems, user accountability, service centres Data management Information needs drive applications, information sharing Maturity IS planning align to business planning IS expense Time Data processing Management information systems Nolan’s (1974) framework

14 Lessons from DP Era Need to understand the process of developing complete IS More thorough requirements and data analysis More appropriate justification of investments Less creative, more structured approaches to programming, testing, and documentation Extended project management to coordinate user and DP functions Need to plan the inter-related set of IS required by the organization

15 Lessons from MIS Era Justification of IS investments not simply a matter of financial analysis Databases require large restructuring projects and heavy user involvement IS resource needs to move from a production to a service orientation Need for organizational policies, not just DP methodologies PCs enable better MIS to be developed provided users and IS people focus on information needs

16 The SIS Era 1960s1970s1980s1990s Data processing (improve operational efficiency) Management information systems (improve management effectiveness) Strategic information systems (improve organizational competitiveness) Technology developments Business opportunities

17 Types of SIS Those that share information with customers and/or suppliers thereby changing business relationships Those that effectively integrate the use of information in organizational value-adding processes Those that enable organizations to develop, produce, and market new or enhanced products or services Those that provide managers with information to support development and implementation of strategy Examples: American Hospital Supply, International Enterprise Singapore, Amazon.com, and Safeway

18 Success Factors of SIS External focus instead of internal focus Adding value instead of cost reduction Sharing the benefits internally and externally Understanding customers and their needs Business driven instead of technology driven Incremental development instead of total development Using information gained to develop business

19 Applications Portfolio in the SIS Era Strategic applications Critical for future success Support applications Valuable but not critical for success Key operational applications Critical for current success High potential applications May be critical for future success Examples Just-in-time links to suppliers Sales forecasting system Market analysis system Examples IS links to business partners Manpower planning system Expert fault diagnosis system Examples Inventory management system Product costing system Maintenance scheduling system Examples General accounting system Time recording system Payroll system

20 Role of IS Plan in the SIS Era IS demand issues Align IS demand to business objectives Facilitate integration of IS demand Allow priority setting for IS demand IS supply issues Guide resource planning for IS supply Ensure availability of assets for IS supply Promote objective evaluation of options for IS supply