1. Chapter 0. Introduction
Managing and Using Information Systems: A Strategic Approach
by Keri Pearlson
PowerPoint Slides prepared by Gene Mesher
Copyright © 2001 John Wiley & Sons, Inc.

2. Copyright ã 2001 John Wiley & Sons, Inc. All rights reserved
Copyright ã 2001 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written consent of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. Adopters of the textbook are granted permission to make back-up copies for their own use only, to make copies for distribution to students of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

3. THE CASE FOR PARTICIPATING IN DECISIONS ABOUT INFORMATION SYSTEMS

4. Why Managers Need to Participate in IS Decisions
“Dialogue among managers routinely crosses all business functions in formal as well as informal settings, with one general exception: IS. Management continues to tolerate ignorance in this area relative to other specialized business functions. Culturally, managers can claim ignorance of IS issues without losing prestige among colleagues. On the other hand, admitting a lack of knowledge regarding marketing or financial aspects of the business will earn colleagues contempt.” (Pearlson, p.2)

5. Why Managers Need to Participate: A Business View
US companies spending $6,000 per employee on IT, use is growing exponentially.
Managers must decide how best to use these funds.

6. People and Technology Work Together…
Incorporating IT into a business enables people to focus on customer satisfaction and other revenue and profit-generating activities.
Skilled business managers must balance costs associated with changing existing workplace behaviors.
Issues include why or why not adopt new technology and when to replace people with technology.

7. Rapid Change in Technology
Rapid Change in Technology means:
A rapidly changing business environment.
Competitors are coming from unexpected places.
New business opportunities are coming with little advanced warning.
Managers must develop an information model to discuss specific issues with co-workers, customers and others.

8. The Case for Participating in Decisions about IS
What if a Manager Doesn’t Participate?
Profits = Revenue – Expenses. Decisions about IS have a direct impact on business profits.
Not considering IT business & organizational strategy leads to one of three consequences:
1. IS that fail to support business goals
2. IS the fail to support organizational systems
3. A misalignment between bus. and org. strategies

9. The Case for Participating in Decisions about IS
Information Systems Must Support Business Goals
IT is a major investment but poorly planned systems can result in
Customer dissatisfaction
Excessive production costs
Delays in meetings business goals

10. Info Systems Must Support Organizational Systems
Organizational systems: the people, work processes, structure and plan that enable these to work together
If IS fails to support organizational systems
Resources and goals are poorly aligned because technology gets deployed without careful thinking about how it will be used
E.g., implementing systems without training
Or setting up an ERP without thinking about current work practices

11. WHAT SKILLS ARE NEEDED TO PARTCIPATE EFFECTIVELY IN INFORMATION TECHNOLOGY DECISIONS?

12. Participating in IS Decisions
Focus on business solutions
Curiosity
Creativity
Project Management
Communication
Interpersonal skills
Analytical skills
Organizational skills
Planning skills
Flexibility

13. BASIC ASSUMPTIONS

14. Classic Management Model (Stoner)
Managers engage in the following activities to meet corporate goals:
Planning: think in advance about goals and actions. Actions use a method, plan or logic.
Organizing: coordinating and directing human and material resources to reach corporate goals.
Leading: lead others and create environment to help subordinates do their best.
Controlling: attempt to assure the organization is moving towards its goal, including keeping the organization on track.

15. Managerial Roles (cf. Mintzberg 1973)
Formal
Authority and Status
Model used to describe
the chaotic nature of
the environment in which
managers actually work.
Interpersonal
Figurehead
Leader
Liaison
Informational Roles
Monitor
Disseminator
Spokesman
Decisional Roles
Entrepreneur
Disturbance handler
Resource allocator
Negotiator

16. Functional View of the Firm
Info flows vertically up between line positions and mgmt.
After analysis is flows across to other functions.
Functional view is used when similar activities are being explained,
Coordinated, communicated or executed.
Executive Management I N F O L W S A C T N G O P S M K T N G S
A L E S

17. Porter’s Value Chain Model of the Firm
Process view: used when examining the flow of information
through a business.
Firm Infrastructure
Margin
Human Resource Mgmt.
Technology Development
Procurement
Inbound
Logistics
Marketing
& Sales
Operations
Outbound
Logistics
Service
Margin

18. Information Ecology (Davenport)
Data
Simple Observations
of the world:
Easily structured
Easily captured on machines
Often quantified
Easily transferred
Information
Data endowed with
relevance & purpose:
Requires unit of analysis
Need consensus on the meaning
Human mediation necessary
Knowledge
Info. from the mind includes reflection, context, synthesis:
Hard to structure
Difficult to capture on machines
Often tacit
Hard to transfer

19. Information Ecology Data = simple observations
Information = data endowed with relevance and purpose.
Knowledge = information that has been situationalized and contextualized to provide value.

20. System Hierarchy Management Information Systems People Technology
Process

21. System Hierarchy Infrastructure = hardware, software, data and network
Architecture means strategy
Information System = combination of people, process which facilitates the communication of data, information and knowledge through an organization
Management monitors overall performance, develops business requirements and business strategy. IS needs to meet this strategy.

22. End of Chapter 0