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Purposes of Information Systems

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Title: MIS and You Author: VELIANIT Last modified by: luj Created Date: 9/4/2006 3:13:49 PM Document presentation format: On-screen Show (4:3) Company – PowerPoint PPT presentation

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Title: Purposes of Information Systems


1
Purposes of Information Systems
2
Why Firms Seek Competitive Advantage (Porters
Five-Force Model)
  • Rivalry among existing competitors
  • Threat of new entrants
  • Threat of substitute product and services
  • Bargaining power of buyers
  • Bargaining power of suppliers

3
Information Systems for Competitive Advantage
  • Businesses continually seek to establish
    competitive advantage in the marketplace.
  • There are eight principles
  • The first three principles concern products.
  • The second three principles concern the creation
    of barriers.
  • The last two principles concern establishing
    alliances and reducing costs.

4
Organizational Change
  • Organizational change deals with how
    organizations plan for, implement and handle
    change. Overcoming resistance to change can be
    the hardest part of bringing information systems
    into a business. Too many computer systems and
    new technologies have failed because managers and
    employees were not prepared for change.
  • A change model identifies the phases of change
    and the best way to implement it
  • Unfreezing is the process of removing old habits
    and creating a climate receptive to change
  • Moving is the process of learning new work
    methods, behaviors and systems
  • Refreezing involves reinforcing changes to make
    the new process second nature, accepted and part
    of the job

5
Information Systems for Problem Solving
  • Information systems can be used to solve
    problems.
  • Problem definition
  • A problem is a perceived difference between what
    is and what is not.
  • A problem is a perception.
  • A good problem definition defines the differences
    between what is and what ought to be by
    describing both the current and desired
    situations.
  • Different problem definitions require the
    development of different information systems.
  • All personnel in the organization must have a
    clear understanding of which definition of the
    problem the information system will address.

6
Decision Making and Problem Solving
  • Problem solving is the most critical activity a
    business organization undertakes. Problem solving
    begins with decision making.
  • In the intelligence stage, potential problems and
    /or opportunities are identified and defined
  • In the design stage, alternative solutions to the
    problem are developed
  • In the choice stage, a course of action is
    selected
  • In the implementation stage, action is taken to
    put the solution into effect
  • In the monitoring stage, the implementation of
    the solution is evaluated to determine if the
    anticipated results were achieved and modify the
    process

7
The Decision Process
  • Three decision processes (method by which a
    decision is to be made) are structured,
    semi-structured, and unstructured.
  • Structured decision process is one for which
    there is an understood and accepted method for
    making the decision.
  • Semi-structured process is one for part of which
    there is no accepted method for making the
    decision.
  • Unstructured process is one for which there is no
    agreed on decision making process.
  • The terms structured and unstructured refers to
    the decision process-not the underlying subject.

8
Relationship of Decision Level and Decision Type
9
Optimization, Satisficing, and Heuristic
  • Optimizing is finding the best solution and best
    fit for problems that can be modeled
    mathematically with a low degree of estimation
    risk. For example, find how many iPads to produce
    to meet a profit goal.
  • Satisficing is finding a good, but not
    necessarily the best, solution. Satisficing does
    not look at all possible solutions, but at those
    that are likely to give good results. Satisficing
    is a practical decision method because it is
    sometimes too expensive to analyze every
    alternative to get the best solution. For
    example, when you have to select a location for a
    new plant.
  • Heuristics are guidelines or procedures that
    usually find a good solution by using rules of
    thumb.

10
Different Types of Information Systems for
Different Types of Decisions
  • Automated information systems are those by which
    the computer hardware and program components do
    most of the work.
  • Humans start the programs and use the results.
  • Augmentation information systems are those in
    which humans do the bulk of the work.
  • These systems augment, support, or supplement the
    work done by People (email, instant messaging,
    video-conferencing, etc) to aid in decision
    making.

11
How Decision Level, Decision Type and IS Type
Are Related
12
Information Systems for Decision Making
  • Decision making in organizations is varied and
    complex.
  • Decisions occur at three levels in organizations
    (decision levels)
  • Operational decisions concern day-to-day
    activities.
  • Information systems that support operational
    decision making are called transaction processing
    systems (TPS).
  • Managerial decisions concern the allocation and
    utilization of resources.
  • Information systems that support managerial
    decision making are called management information
    systems (MIS).
  • Strategic decision making concern broader-scope
    organizational issues.
  • Information systems that support strategic
    decision making are called executive information
    systems (EIS).

13
Knowledge Management System
  • A knowledge management system (KMS) is an
    information system for storing and retrieving
    organizational knowledge.This knowledge can be
    in the form of data, documents, or employee
    know-how.
  • KMS goal is to make the organization knowledge
    available to
  • Employees
  • Vendors
  • Customers
  • Investors
  • Press and who else who needs the knowledge

14
Summary
  • Organizations develop and use information systems
    to gain competitive advantage, to solve problems,
    and to assist in decision making
  • Eight principles of competitive advantage.
  • A problem is a perceived difference between what
    is and what ought to be.
  • Decisions vary according to whether a structured
    or unstructured process is used to make them.
  • Automated information systems are those in which
    the computer and program side of the five
    components do most of the work.
  • Augmentation information systems are those in
    which humans do most of the work.
  • Another way to consider information systems and
    decision making is to consider the steps of the
    decision process.
  • Different types of information systems are used
    for different steps of the decision process.
  • Decisions can be made at the operational (TPS),
    managerial (MIS), and strategic (EIS) levels.

15
Video
  • Interview Question According to your survey, you
    like sociable environments, but will
    follow-through on tasks that are important. How
    do you prioritize and keep on track toward your
    objectives? How do you manage procrastination and
    talkative co-workers?
  • How to evaluate the responses to this question?
    PeopleKeys will compare the applicants response
    to a benchmark set by the actual job description
    - then once the interview process is complete -
    PeopleKeys will tell you which applicant(s) are
    best suited for the position.
  • PeopleKeys is a tool for understanding the
    strengths and weaknesses of individuals based on
    personality traits that can be used for hiring,
    training, retention, and much more.

16
Guides
  • Ethics Guide
  • Do you see evidence of a digital divide in your
    campus, hometown, neighborhood? What solutions do
    you offer to reduce the digital divide?
  • Problem Solving Guide
  • What is the difference between egocentric and
    empathetic thinking?
  • How does empathetic thinking relate to problem
    definition?
  • In business, is empathetic thinking smart?
  • Reflections Guide
  • Summarize the efforts you have taken to build an
    employment record that will lead to job offers
    after graduation.
  • Describe one way in which you have a competitive
    advantage over your classmates.
  • How can you use student alliances to obtain a job?
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