1. Management information systems managing digital firms
Kenneth c Laudon

2. Course Orientation Basically Theoretical focus But
Introduction of Concepts and Issues in the field of INFORMATION SYSTEMS
But
The practical orientation will also be a major focus of the course
Video clips
Real world Case Studies
Project

3. Course Administration
Final Assessment criteria
Final Exam %
Mid Term %
Project %
Quizzes %
Assignment, Class Participation,
Attendence %
Lums Case presentation %

4. Information Systems in Global Business Today Chapter 1
LECTURE 1
Information Systems in Global Business Today Chapter 1

5. Lecture 1 Information Systems in Global Business Today
Overview
Basic introduction
Role of information systems relate it to Opening Real world Case
Information systems transforming business
New trends in technology
Emerging digital firms
What is Information technology?
What is an information system?
Define an information system from both a technical and a business perspective.
Identify and describe the three dimensions of information systems.

6. Basic introduction
Computers are changing every aspect of our lives from entertainment to shopping, from the work we do and where we do it, to how we communicate with friends and relatives.
Knowledge and information based economy
New internet business culture

7. Role of information system in Business today
Lecture 1 Information Systems in Global Business Today
Role of information system in Business today
IS are foundation of conducting business.
Many industries survival and existence depends on information systems.
Eg: E-Commerce firms such as Amazon and Ebay would not exist.
Take a look around you and see if you can find a business that does not depend on information technology in one form or another

8. How Much Does IT Matter?
Every employee, including you, must know how to take advantage of information systems to improve your organization and to leverage the available information into a competitive advantage for your company.
By using systems make your business more competitive, efficient and profitable.

9. Management Information Systems
Chapter 1 Information Systems in Global Business Today
Smart Systems and Smart Ways of Working Help Toyota Become Number One
Problem: Tough competition and demanding customers.
Solutions: Based Its IS and business process on just in time delivery. Use Information systems to Redesigned order and production processes reduce costs, increase revenue, and improve customer service.
Vehicle order management system based on Oracle E-Business Suite makes it possible to build cars to order and forecast demand and production requirements more accurately.
Technology alone would not have provided a solution but Toyota had to revise its business processes
Result was a built to order system based on actual customer orders reduces inventory costs, improve customer service.
Information provided by the system helps management in analyzing market trends, forecasts demand and production requirement more accurately. 9

10. Lecture 1 Information Systems in Global Business Today
Information systems transforming business
Information systems transforming business
Massive spending in information technology 34% to 50% from
Cell phones, iphones, blackberrys and online conferencing over the internet have all become essential tools for business.
Internet advertising and ecommerce are booming. Internet advertising continues to grow at 25%.85% of online users are engaging in ecommerce.
Virtual Meetings proliferate.(video and web conferencing, growing at 30%)

11. Lecture 1 Information Systems in Global Business Today
Information systems transforming business
Newspaper readership declined 64 million receive news online.
Social networking sites Myspace and facebook attract 70 to 30 million visitor
Business use social networking to connect to their customers, employees and suppliers.(example make facebook to market and reach out)

12. The Role of Information Systems in Business Today
Lecture 1 Information Systems in Global Business Today
The Role of Information Systems in Business Today
Information Technology Capital Investment
Information technology investment, defined as hardware, software, and communications equipment, grew from 34% to 50% between 1980 and Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2006.
Figure 1-1 12

13. The Role of Information Systems in Business Today What’s New in MIS?
Technology
Cloud Computing
More powerful, energy efficient computer processing and storage devices
Growth in software as a service (SAAS)
Netbooks emerge as a growing presence in the PC marketplace
Management
Managers adopt online collaborations
Social networking software to improve coordination, collaboration, and knowledge sharing
Managers have smartphonesand mobile internet devices
Virtual meeting proliferation.
Organizations
Web 2.0 applications are widely adopted
Telework gains momentum in workplace
Outsourcing productions

14. New Trends Information Systems
Lecture 1 Information Systems in Global Business Today
New Trends Information Systems
Emerging mobile digital platform
(Examples Iphone and blackberry's)
Growth of online software SAAS
Cloud computing
What new in MIS (table 1.1)

15. Power of Cloud computing
Lecture 1 Information Systems in Global Business Today
Power of Cloud computing
Cloud” is simply a metaphor for the internet. Users do not have or need knowledge, control, ownership in the computer infrastructure .
Users simply rent or access the software/App in cloud, paying only for what they use .
Pay as u go
No maintenance
Less investment
Upgrades are taken care of
EXAMPLE IBM CLOUDBURST
Sales force cloud computing

16. Emerging Digital Firms
Lecture 1 Information Systems in Global Business Today
Emerging Digital Firms
All of these changes described earlier have created fully digital firms
All of organization significant relationships with customers ,suppliers and employees are digitally enabled and mediated.
Core business processes are accomplished through digital networks.
Key corporate assets are managed digitally
Time shifting and space shifting (globally and national boundaries).
digital firm must connect each functional area and each management level to one another
All info is available anytime anywhere in the firm
EXAMPLE :DELL COMPUTERS,CISCO systems, ACCENTURE

17. The Interdependence Between Organizations and Information Technology
Lecture1 Chapter 1 Information Systems in Global Business Today
The Role of Information Systems in Business Today
The Interdependence Between Organizations and Information Technology
There is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.
Figure 1-2 17

18. Lecture 1 Information Systems in Global Business Today
Business objectives
Firms invest in IS to achieve six objectives.
Operational excellence
High Level of productivity and efficiency
(Example:Wal-Mart retail link system)
2.New product services and business model
(Example: Apple has changed old business model CD distribution to I pod technology platform)
3.Customer and supplier Intimacy
(Example: high end hotels keep a track of guest preferences,JC penny)

19. Business objectives (continued)
Lecture 1 Information Systems in Global Business Today
Business objectives (continued)
4.Improved decision making
Example: Doctors used advanced systems for diagnosis.
Managers use digital dashboards
5.Competitive advantage
Example: Toyota world largest automaker,Toyata production system
Dell web based order entry model)
6.Survival
Business firms invest in IT because they are necessities of doing business
Example: Citibank Atm .ATM Services need to be offered for surviving in retail banking)

20. Lecture 1 Information Systems in Global Business Today
Definition
Information Technology is the use of hardware, software, by a firm to achieve its business objectives.
Includes not only computers ,printers ,handheld PDAS but also software such as Windows.

21. Lecture 1 Information Systems in Global Business Today
IS Vs IT
Payroll System
INFORMATION TECHNOLOGY
Hardware
Software
Databases
Networks
Other related components
Inventory System
are used to build
INFORMATION SYSTEMS
Marketing System
Customer Service System

22. What is an Information System Technical perspective
Lecture 1 Information Systems in Global Business Today
What is an Information System Technical perspective
Technical Definition:
An information system can be defined technically as a set of interrelated components that collects, process, store and distribute information to support decision making and control in an organization

23. Information System Resources
Lecture 1 Information Systems in Global Business Today
Information System Resources
Data Vs. Information
Data – raw facts or observations, objective measurements of the characteristics of entities such as people, places, things and events
Information – data that has been converted to a meaningful and useful context for specific end users.

24. Lecture 1 Information Systems in Global Business Today
Types of Data
Data
Represented by
Alphanumeric data
Numbers, letters, and other characters
Image data
Graphic images or pictures
Audio data
Sound, noise, tones
Video data
Moving images or pictures

25. Chapter 1 Information Systems in Global Business Today
Perspectives on Information Systems
Data and Information
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.
Figure 1-3 25

26. Functions of an Information System?
Lecture 1 Information Systems in Global Business Today
Functions of an Information System?
Three activities in an information system produce the information that organization need to make decision, control operation, analyze problems and create new products.
Ex: Toyota vehicle order management system
Feedback
Input
Processing
Output
Feedback (most imp) is output returned for evaluation and correction of input.

27. Dimension of Information Systems
Lecture 1 Information Systems in Global Business Today
Dimension of Information Systems
To fully understand IS require an understanding of organization, management and information technology
An Information systems represents a combination of management, organization and technology elements
Understanding of these three dimensions is termed as information system literacy.

28. Dimensions of an Information Systems
Lecture1 Information Systems in Global Business Today
Dimensions of an Information Systems
Information Systems Are More Than Computers
Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.
Figure 1-5 28

29. Organization Dimension
Organization dimension of information system involves organization hierachy,functional specialities,business processes,culture.

30. Lecture 1 Information Systems in Global Business Today
Organization
Levels in an Firm (Ex Lse)
Senior Management
Middle management
Scientist and knowledge workers
Operational management
Production and service workers
Data workers

31. Major Business Functions table1-2
PURPOSE
Selling the organization product and services
Producing and delivering products and services
Managing the organization financial assets and records
Attracting, developing and maintaining the labor force; maintaining employee’s records
FUNCTION
Sales and Marketing
Manufacturing and Production
Finance and Accounting
Human resources

32. Management dimension Involves leadership Strategy and
Management behavior

33. Technology dimension Computer hardware Software
Data management technology
Networking and telecommunications
Internet
In short, Information system provides a solution to the problem facing the firm and represents a combination of management ,organization and technology elements.

34. What is an Information System Business Perspective
Lecture 1 Information Systems in Global Business Today
What is an Information System Business Perspective
Information systems contribute to corporate value.
They enable the firm to increase revenue and decrease cost.
Ultimately increase a firms profitability by providing information that helps managers make better decisions or improve execution of business process.

35. Interactive session/Assignment
Management Virtual Meetings:
Q: If you are in charge of small business, would you choose to implement videoconferencing? What factors you will consider in your decision?