1. Management Information Systems
Islamia University of Bahawalpur
Delivered by:
Tasawar Javed
Lecture 5

2. Information System For Competitive Advantage
Learning objectives
General system model of firm
Environmental Resource Flows
Managing physical resources---SCM
Competitive Advantage
Porter’s Value Chains

3. The Firm & its Environment
Firm is a physical system that is managed through the use of a virtual system
Physical system of the firm is an open system in that it interfaces with its environment
Firm takes resources from its environment, transforms the resources into products or services and returns the transformed resources to the environment

4. The General Systems Model of the Firm
Standards
Info &
Data
Information
Decisions
Management
Information
processor
Data
Physical
resources
Physical
resources
Input
Resources
Transformation
process
Output resources

5. The General Systems Model of the Firm
Flow of resources from the environment, through the firm, and back to environment
Flow of virtual resources are at the top
Flow of physical resources are at bottom
It includes:
The physical resource Flow
The virtual resource Flow
The firm’s control Mechanism
The Feedback Loop

6. The General Systems Model of the Firm
The Physical resource Flow
It includes: personnel, material, machines, and money
Personnel are hired by the firm then…
Transformed to higher skill levels through T&D
Materials enter in the firm as raw input & transformed in to finished goods
Machines are purchased, used and scrapped
Money enters in firm in the form of sales receipts, investment, and loans and transformed into payments to suppliers, tax
Physical resources are used to produce to product & services

7. The General Systems Model of the Firm
The Virtual Flow
Data, information and info in the form of decisions
Two way flow of data and info that connects the firm to its environment

8. The General Systems Model of the Firm
The Firm’s control Mechanism
It enables the firm to control its own operation includes
The performance standards the firm must meet
The firm’s management, and
An information processor that transforms data into information
The Feedback Loop
Composed of the virtual resources
Data are gathered from the firm & from the environment and entered into the into information processor, which transform data into info
Info goes to management to make decisions to affect necessary changes in the physical system
Info processor uses standards to determine when the firm is not performing as planned

9. The Firm in its environment
As we know environment is very important in the firm’s success
Firm exist for the purpose of providing products and services that meet environment needs
Environment varies firm to firm
School is different than sports ground and so on
The environmental elements are organizations & individuals that exist outside the firm
These elements exist in a larger system called a society

10. The Firm in its environment
society
Government
Financial
community
Global
community
suppliers
The Firm
customers
Labor union
Competitors
Stake holder or
owners

11. Managing the physical resource Flow - SCM
Manage resources from supplier to firms and then to customers
It should be timely and efficient
It includes following activities:
Forecasting customer demand
Scheduling production
Establishing transportation networks
Ordering replenishment stock from supplier
Receiving stock from suppliers
Managing inventory- RM, work in process, finished goods
Executing production
Transporting resources to customers
Tracking the flow of resources from supplier, through the firm & customers

12. Thank you!!!
Q&A