Lecture Business driven information systems (4/e): Chapter 1 - Paige Baltzan

CHAPTER ONE

MANAGEMENT
INFORMATION
SYSTEMS
BUSINESS DRIVEN
MIS
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor
use. Not authorized for sale or distribution in any manner. This document may not be copied,
scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


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CHAPTER ONE OVERVIEW
 SECTION 1.1 – BUSINESS DRIVEN MIS
• Competing in the Information Age
• The Challenge: Departmental Companies
• The Solution: Management Information Systems

 SECTION 1.2 – BUSINESS STRATEGY
• Identifying Competitive Advantages
• The Five Forces Model – Evaluating Industry
Attractiveness
• The Three Generic Strategies – Choosing a Business
Focus
• Value Chain Analysis – Executing Business Strategies


SECTION 1.1
BUSINESS

DRIVEN MIS

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor
use. Not authorized for sale or distribution in any manner. This document may not be copied,
scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


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LEARNING OUTCOMES
1. Describe the information age and the
differences between data, information,
business intelligence, and knowledge
2. Identify the different departments in a
company and why they must work together to
achieve success
3. Explain systems thinking and how
management information systems enable
business communications


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COMPETING IN THE
INFORMATION AGE
Did you know . . .
 Avatar, the movie, took over 4 yrs
to make and cost $450 million
 Lady Gaga’s real name is Joanne
Angelina Germanotta

 It costs $2.6 million for a 30second advertising time slot
during the Super Bowl


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COMPETING IN THE
INFORMATION AGE

act - The confirmation or validation of
an event or object
nformation age - The present time,
during which infinite quantities of facts
are widely available to anyone who
can use a computer


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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

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COMPETING IN THE
INFORMATION AGE
 The core drivers of the information age
• Data
• Information
• Business intelligence
• Knowledge


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Data
 Data - Raw facts that describe the characteristics
of an event or object


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Information
 Information - Data converted into a meaningful
and useful context


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Business Intelligence
 Business intelligence Information collected from

multiple sources such as
suppliers, customers,
competitors, partners, and
industries that analyzes
patterns, trends, and
relationships for strategic
decision making


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Knowledge
 Knowledge - Skills, experience, and
expertise coupled with information and
intelligence that creates a person’s
intellectual resources
 Knowledge worker – Individual
valued for their ability to interpret and
analyze information


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THE CHALLENGE:
DEPARTMENTAL COMPANIES

Common Departments Working Independently


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THE SOLUTION: MANAGEMENT
INFORMATION SYSTEMS

Common Departments Working Interdependently


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THE SOLUTION: MANAGEMENT
INFORMATION SYSTEMS


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THE SOLUTION: MANAGEMENT
INFORMATION SYSTEMS


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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

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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


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MIS Department
Roles and Responsibilities
 Chief information officer (CIO) – Oversees all
uses of IT and ensures the strategic alignment
of IT with business goals and objectives
 Chief knowledge officer (CKO) - Responsible
for collecting, maintaining, and distributing the
organization’s knowledge
 Chief privacy officer (CPO) – Responsible for
ensuring the ethical and legal use of
information


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MIS Department

Roles and Responsibilities
 Chief security officer (CSO) –
Responsible for ensuring the security of IT
systems
 Chief technology officer (CTO) –
Responsible for ensuring the throughput,
speed, accuracy, availability, and
reliability of IT


SECTION 1.2
BUSINESS
STRATEGY

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor
use. Not authorized for sale or distribution in any manner. This document may not be copied,
scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


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LEARNING OUTCOMES
4. Explain why competitive advantages are
temporary
5. Describe Porter’s Five Forces Model and
explain each of the five forces
6. Compare Porter’s three generic strategies
7. Demonstrate how a company can add value
by using Porter’s value chain analysis

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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


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IDENTIFYING COMPETITIVE
ADVANTAGES


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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