Information Systems: Concepts and Management

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CHAPTER 2

• Information Systems Concepts and Management

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CHAPTER OUTLINE

• 2.1 Types of Information Systems
• 2.2 Competitive Advantage and Strategic
  Information Systems
• 2.3 Why Are Information Systems Important to
  Organizations and Society?
• 2.4 Managing Information Resources

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2.1 Types of Information Systems

• Computer-based information systems (CBIS) use
  computer technology to perform some or all of
  their tasks and are composed of
• Hardware
• Software
• A Database
• A Network
• Procedures
• People

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Information Systems Inside Your Organization
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Information Technology Outside Your Organization
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Application Programs

• An application program is a computer program
  designed to support a specific task, a business
  process or another application program.

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Breadth of Support of Information Systems

• Functional area information systems
• Enterprise resource planning systems
• Transaction processing systems
• Interorganizational information systems

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Information Systems Support for Organization
Employees

• Office automation systems
• Functional area information systems
• Business intelligence systems
• Expert Systems
• Dashboards

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2.2 Competitive Advantage and Strategic
Information Systems

• Competitive Advantage
• Strategic Information Systems (SIS)

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Porters Competitive Forces Model

• The best-known framework for analyzing
  competitiveness is Michael Porters competitive
  forces model (Porter, 1985).

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Porters Competitive Forces Model
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Porters Competitive Forces Model

• Threat of entry of new competitors is high when
  it is easy to enter a market and low when
  significant barriers to entry exist.
• A barrier to entry is a product or service
  feature that customers expect from organizations
  in a certain industry.
• For most organizations, the Internet increases
  the threat that new competitors will enter a
  market.

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Porters Competitive Forces Model

• The bargaining power of suppliers is high when
  buyers have few choices and low when buyers have
  many choices.
• Internet impact is mixed. Buyers can find
  alternative suppliers and compare prices more
  easily, reducing power of suppliers.
• On the other hand, as companies use the Internet
  to integrate their supply chains, suppliers can
  lock in customers.

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Porters Competitive Forces Model

• The bargaining power of buyers is high when
  buyers have many choices and low when buyers have
  few choices.
• Internet increases buyers access to information,
  increasing buyer power.
• Internet reduces switching costs, which are the
  costs, in money and time, to buy elsewhere. This
  also increases buyer power.

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Porters Competitive Forces Model

• The threat of substitute products or services is
  high when there are many substitutes for an
  organizations products or services and low where
  there are few substitutes.
• Information-based industries are in the greatest
  danger from this threat (e.g., music, books,
  software). The Internet can convey digital
  information quickly and efficiently.

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Porters Competitive Forces Model

• The rivalry among firms in an industry is high
  when there is fierce competition and low when
  there is not.

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Porters Value Chain Model

• This model identifies specific activities
  where organizations can use competitive
  strategies for greatest impact.
• Primary activities
• Support activities

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Porters Value Chain Model
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Strategies for Competitive Advantage

• Cost Leadership
• Differentiation
• Innovation
• Operational Effectiveness
• Customer-orientation

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2.3 Why are Information Systems Important to
Organizations Society

• IT will reduce the number of middle managers.
• IT will change the managers job.
• IT impacts employees at work.
• IT provides quality-of-life improvements.

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Ergonomic Products
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When ergonomics doesnt work
When all else fails.
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Enabling People with Disabilities to Work with
Computers
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The Robot Revolution
See Invasion of the Humanoid Robots
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The Robot Revolution
See video of Big Dog robot in action
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The Robot Revolution (continued)
See ASIMO commercial
See video of ASIMO in action
Hondas ASIMO robot
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DeLaval Voluntary Milking System
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Improvements in Health Care
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Improvements in Health Care (continued)
The Pill Cam Wireless endoscopy
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The daVinci Surgical Robot
The robot
The surgeons console
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The daVinci Surgical Robot (continued)
The daVinci robot in use
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Medical Simulation
Two physicians perform a procedure on a simulated
human (mannequin)
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Managing Information Resources

• Which IT Resources are Managed and By Whom?
• The Role of the IS Department

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Traditional Major IS Functions

• Managing systems development and systems project
  management
• Managing computer operations
• Staffing, training, developing IS skills
• Providing technical services
• Infrastructure planning, development, control

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New (Consultative) IS Functions

• Initiating and designing strategic information
  systems
• Incorporating the Internet and e-commerce into
  the business
• Managing system integration
• Educating non-IS managers about IT
• Educating IS staff about the business
• Supporting end-user computing
• Partnering with executives
• Managing outsourcing
• Innovate
• Ally with vendors and IS departments in other
  organizations

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Supporting End Users

• One form of end-user support is the help desk,
  where IS staffers help users troubleshoot
  problems with their systems.
• This video shows the first help desk.