1. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER ONE MANAGEMENT INFORMATION SYSTEMS: BUSINESS DRIVEN MIS CHAPTER ONE MANAGEMENT INFORMATION SYSTEMS: BUSINESS DRIVEN MIS

2. 1-2 COMPETING IN THE INFORMATION AGE  Examples of the power of business and technology Amazon – Not a technology company; primary business focus is selling books Netflix – Not a technology company; primary business focus is renting videos Zappos – Not a technology company; primary business focus is selling shoes

3. 1-3 COMPETING IN THE INFORMATION AGE  The core drivers of the information age Data Information Business intelligence Knowledge

4. 1-4 THE CHALLENGE: DEPARTMENTAL COMPANIES Common Departments Working Independently

5. 1-5 Common Departments Working Interdependently THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS

6. 1-6 THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS  Systems thinking – A way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

7. 1-7 THE SOLUTION: MANAGEMENT INFORMATION SYSTEMS  Management Information Systems (MIS) – A business function, like accounting and human resources, which moves information about people, products, and processes across the company to facilitate decision-making and problem-solving

8. 1-8 IDENTIFYING COMPETITIVE ADVANTAGES  Business strategy – A leadership plan that achieves a specific set of goals or objectives such as  Developing new products or services  Entering new markets  Increasing customer loyalty  Attracting new customers  Increasing sales

9. 1-9 IDENTIFYING COMPETITIVE ADVANTAGES  Competitive advantage – A product or service that an organization’s customers place a greater value on than similar offerings from a competitor  First-mover advantage – Occurs when an organization can significantly impact its market share by being first to market with a competitive advantage

10. 1-10 IDENTIFYING COMPETITIVE ADVANTAGES  Competitive intelligence –The process of gathering information about the competitive environment to improve the company’s ability to succeed  Competitive intelligence tools Porter’s Five Forces Model Porter’s Three Generic Strategies Porter’s Value Chain Analysis

11. 1-11 THE FIVE FORCES MODEL – EVALUATING INDUSTRY ATTRACTIVENESS Porter’s Five Forces Model

12. 1-12 THE THREE GENERIC STRATEGIES CHOOSING A BUSINESS FOCUS Porter’s Three Generic Strategies

13. 1-13 VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES  Business process – A standardized set of activities that accomplish a specific task, such as a specific process  Value chain analysis – Views a firm as a series of business processes that each add value to the product or service

14. 1-14 VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES Porter’s Value Chain

15. 1-15 VALUE CHAIN ANALYSIS – EXECUTING BUSINESS STRATEGIES Value Chain and Porter’s Five Forces Model