Information Systems for Business Operations

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1 Information Systems for Business Operations MBA 8125 Week 1 Sources: Laudon & Laudon (2006) Straub (2002) Stacie Petter Outline Why Study IT? Information Systems Basics e-commerce Management Challenges 2 1

2 Reasons to Care about IT Capital Management Organizations make large investments in IT Foundation of Doing Business The goals of a firm can be achieved or hindered by choices made regarding IT Productivity Firms using IT wisely can achieve productivity gains Strategic Opportunity and Advantages IT is helpful to identify opportunities for strategic advantage 3 Interdependence between Organizations and Information Systems Business Strategy Rules Processes Figure 1.2 (Laudon & Laudon 2006) 4 2

3 Management Tool: The Leavitt Diamond Organizational Objectives Technology Management Processes Organizational Structure Roles, People, Skills 5 Outline Why Study IT? Information Systems Basics e-commerce Management Challenges 6 3

4 Functions of an Information System Suppliers ENVIRONMENT Customers ORGANIZATION Regulatory Agencies Stockholders Competitors Figure 1.6 (Laudon & Laudon 2006) 7 Types of Information Systems Figure 2.2 (Laudon and Laudon 2006) 8 4

5 Anthony Triangle Strategic planning Knowledge workers Managerial planning & control Knowledge workers Operational control SCM Transactional systems ERP Mfg. Mkt. Fin. Acc.... EIS, ESS Competitiveness Unstructured information OLAP, DW, DM Effectiveness MSS, ES Semi-structured information DSS, GDSS, MSS, ES, OA MRS Efficiency Structured information CRM TPS, OLTP, EDP, ADP Computer Information Systems Robinson of Business V.C. Storey Georgia State University 9 Critical Information Systems for Today s Business Practices Enterprise Systems (ERP) Coordinates processes of the firm Supply Chain Management Systems (SCM) Automates relationships with suppliers for planning, sourcing, manufacturing, and delivery of products and services Customer relationship management (CRM) Develops coherent, integrated view of relationships with customers Knowledge Management Systems (KMS) Create, capture, store, and disseminate firm expertise and knowledge 10 5

6 Outline Why Study IT? Information Systems Basics e-commerce Management Challenges 11 Electronic Commerce Buying and selling of goods and services electronically Synonyms for e-commerce: net-enablement, netenhancement, e-business, e-organization, e-world Benefits Internet links buyers, sellers Lowers transaction costs Goods and services can be advertised, bought, and exchanged worldwide 12 6

7 Categories of Electronic Commerce Business-to-Consumer (B2C) Retailing of products and services directly to individual customers Business-to-Business (B2B) Sales of goods and services among businesses Consumer-to-Consumer (C2C) Individuals use web for private sales or exchange 13 Why do Organizations Invest in e-commerce? Digitization of Products Inexpensive Telecommunications Widespread Diffusion of Computers Increased Pressure on Costs and Margins Changing Organizational Models Rapidly Shrinking Cycle Times Intelligent Products and Services Demand for Mass Customization 14 7

8 Outline Why Study IT? Information Systems Basics e-commerce Management Challenges 15 Management Challenges Business Environment Challenges Technology Challenges 16 8

9 Business Models Defines an enterprise Describes how an enterprise delivers products or services Shows how the enterprise creates wealth 17 Internet Business Models Virtual Storefront: Sells goods, services Information Broker: Provides information on products, pricing, etc. Transaction Broker: Provides rates, terms from various sources Online Marketplace: Enables buyers and sellers to meet Content Provider: Creates revenue by providing client content for a fee and by advertising revenues Online Service Provider: Provides service, support for individuals and business Virtual Community: Chat room, online meeting place Portal: Initial point of entry to specialized content, services on the web 18 9

10 Management Challenges: Business Environment Finding a Successful Business Model Organizational Change Challenges Trust, Security and Privacy 19 Management Challenges: Information Systems Investment: Obtaining Business Value from Information Systems Strategic Choices: Determining Necessary Assets to Ensure Effective Use of Technology Globalization: Understanding Business and System Requirements of a Global Economic Environment Infrastructure: Supporting Goals in Rapidly Changing Environments Ethics and Security: Ensuring Systems Are Used in an Ethical and Socially Responsible Prentice Hall 20 10

11 Some Questions to Think About How do we manage IT as a ubiquitous resource? How do we understand the role of information technology in the firm? How do firms adapt to changes in technology? What, in general, are the challenges and risks of information technology management? 21 11

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