Information Systems. CSM21 Strategic Information Management Introduction. Matthew Casey

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1 Information Systems CSM21 Strategic Information Management Introduction Matthew Casey What are Information Systems? Systems used to manage, collate and distribute information Essential for modern organisations Foundation of business processes They are not technology Such systems could be manual, rather than technological However, manual systems are impractical for the volume of information that is processed daily by an organisation Spring 2007 Matthew Casey 2 Business process examples: Developing a new product, Generating and fulfilling an order, Hiring staff. Distribution of knowledge example of UniS Intranet. Contains information for staff and students, library services, research applications, job vacancies. Matthew Casey 1 Matthew Casey 2

2 IT and IS Data and Information What is Information Technology? Any form of technology used by people to handle information What are Information Systems? Integrated components processing, storing and disseminating information Interdisciplinary study of systems that provide information to users in organisations Data Streams of raw facts Information Data interpreted in a meaningful way Informatics The study of information, information systems and information technology Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4 th Edition. Oxford / New York: Oxford University Press Spring 2007 Matthew Casey 3 Spring 2007 Matthew Casey 4 Information Systems: interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization For example, a set of numbers is data, whereas information is interpreting these numbers as a set of exam marks. Information Technology: the foundation upon which IS are built. Matthew Casey 3 Matthew Casey 4

3 Experiences of IT and IS Examples of IT Hardware (PC, UNIX server) Software ( , Internet, Windows, Word) Consumer devices (mobiles) Examples of IS e-commerce systems Enterprise business systems, such as student record systems Uses technology to integrate the business MIS Management Information Systems The study of information systems focusing on their use in business and management Approaches Technical Behavioural Sociotechnical Traditionally MIS was concerned with managers Now covers organisations in a broader sense As IT professionals you need to appreciate the context in which technology is used Spring 2007 Matthew Casey 5 Spring 2007 Matthew Casey 6 IT infrastructure is the foundation upon which IS are built. Matthew Casey 5 Matthew Casey 6

4 Why is IS Important? Global Economy For an organisation to survive and prosper, it needs: Information at different locations Support for product and service delivery Improved efficiency and reduced costs to meet legislative / ethical / moral constraints Environment: Global economy Knowledge- or information-based society Modern business structure Technology as an opportunity for businesses Spring 2007 Matthew Casey 7 Growing percentage of UK economy relies upon import and export Organisations have become international In the UK in 2004 (Mahajan, 2006): We imported more than exported (by 35.0b) Goods deficit 60.9b and services surplus 25.9b The export of goods is falling, services is growing Computer services ranked as the top growth industry in the last 10 years Mahajan, S. (Ed) (2006). United Kingdom Input-Output Analyses, 2006 Edition. London, UK: Office for National Statistics. [Accessed ] Spring 2007 Matthew Casey 8 The emergence of the Internet provided new business models, such as e-business and e-commerce. Furthermore, this trend is increasing, especially with web services and the like. Such global IT infrastructure is eliminating technical, geographic and cost carriers for global organisations. Most organisations require IS to operate (core). Some even have IS as their reason for operating, for example e-commerce web sites. More traditional examples include companies that have adopted IS to run their business, such as IBM. Digital links include e-commerce, e-business and business-to-business (b2b). Matthew Casey 7 Matthew Casey 8

5 UK Import/Export: 2004 Information-based Society Mahajan 2006:14 United Kingdom Gross Domestic Product (GDP) at current market prices Gross Value Added (GVA) at current basic prices Covering the period Mahajan 2006:33 ICT is largest growing industry in the UK Weighted 382% growth from 1992 to 2004 Change of employment profiles: Less manufacturing More service industry Low wage countries: Manufacturing shifted off-shore IT off-shoring: code and support Spring 2007 Matthew Casey 9 Spring 2007 Matthew Casey 10 Matthew Casey 9 Matthew Casey 10

6 Computer Services UK Labour Force UK Workforce Jobs (Seasonally Adjusted 11/12/2006) Workforce (1000s) Education, health Distribution, hotels, restaurants Banking, finance, insurance Manufacturing Construction Other services Transport & communication Agriculture, fishing Mahajan 2006:37 United Kingdom Gross Domestic Product (GDP) at current market prices Gross Value Added (GVA) at current basic prices Covering the period Spring 2007 Matthew Casey 11 0 Mining, utilities Year Office for National Statistics (2006). Labour Market Statistics Integrated FR, Workforce jobs by industry: Standard Industrial Classification (1992). [Accessed ]. Spring 2007 Matthew Casey Matthew Casey 11 Matthew Casey 12

7 Modern Business Structure Technology The way businesses operate has changed significantly Change from hierarchical organisations to a flatter structure Customer focus and the need for flexibility to capitalise on markets and beat competition Relies on instant information Technology as a means to deliver information at the right time to the right place Spring 2007 Matthew Casey 13 Technology can make an organisation: Flexible More efficient Some completely depend upon technology Is IT a commodity (Carr 2003)? On a par with railways, electricity supply, No longer providing competitive advantage Carr, N.G. (2003). IT Doesn t Matter. Harvard Business Review, vol. 81(5), pp Carr, N.G. (2005). The End of Corporate Computing. MIT Sloan Management Review, vol. 46(3), pp Spring 2007 Matthew Casey 14 Hierarchical business organisations had people in specific roles working to specific Standard Operating Procedures. In order to be flexible and competitive, businesses now have more flattened structures where people have more general roles, relying on the access to (near) instant information to fulfil the role they are performing at any given time. For example, a task force set up to produce a proposal for work, learning about the opportunity and targeting the customer s needs. For example, such flatter organisations have been implemented by AT&T, IBM and General Motors, removing approximately middle managers. This, of course, brings in ethical considerations. Technology now underpins all aspects of business. Carr (2003) argues that it has developed into an infrastructural technology, like railways, electricity, etc. As such, no competitive advantage is gained explicitly by using IT, but businesses would not be able to operate without out. Furthermore, IT can no longer been seen as a matter for strategy, just like a company does not consider electricity supply as a matter of strategy. Advantage may only be gained for a short time. See also: Matthew Casey 13 Matthew Casey 14

8 Module Aim Learning Outcomes To equip you with knowledge of how to approach the evaluation of an organisation s IS needs and to propose how IS can be used Provide an understanding of IS as opposed to IT Organisations and business processes Impact on organisations of IS Analysing organisations and strategy Planning and managing change To give you the skills necessary to: Consider the relationship between the strategic goals of an organisation and possible IT solutions Investigate the strategic options there are for an organisation s use of IT Critically evaluate the role of IT and IS within the management of modern, global organisations Recognise that IT professionals need to be able to apply a range of different techniques to discover how an organisation may successfully use IS Contrast the types of organisational change that can occur, reflecting upon sociological issues Define an appropriate strategy for an organisation that identifies ways in which the organisation s aims can be achieved Spring 2007 Matthew Casey 15 Spring 2007 Matthew Casey 16 Matthew Casey 15 Matthew Casey 16

9 Learning Outcomes Key Concepts Propose how an organisation may exploit new technologies in order to successfully implement organisational and technological change Formulate a business systems proposal for the implementation of IS within an organisation, taking into account technological, sociological and human factors, and including costs, benefits and risks IT is a tool Used to achieve organisational goals efficiently and to minimise costs To handle large volumes of information and complex processing To provide opportunities IT directors must Understand the relevant technology Understand the environment in which it is to be used Develop relevant IT strategies to meet an organisation s goals Exploit the opportunities that IT can bring within an organisation s strategy Assess available solutions financially to determine benefit Relating a Computing degree to the real-world Applying your knowledge of IT to a business context Using your knowledge of (software) engineering approaches to the development of strategic solutions Spring 2007 Matthew Casey 17 Spring 2007 Matthew Casey 18 Matthew Casey 17 Matthew Casey 18

10 Topics Introduction Information Systems in Organisations: Business processes and functions Organisation types and strategy Management and decision making Organisational Analysis and Change: Organisational analysis Organisational change Service provision Spring 2007 Matthew Casey 19 Topics Planning and Managing Change: Planning change Finance of change Managing change Spring 2007 Matthew Casey 20 Matthew Casey 19 Matthew Casey 20

11 Delivery Support Lectures and seminars: 30 contact hours in Weeks 1 to 10 Case studies Used throughout as tutorials on key topics ULearn Module notes, calendar, coursework and resources Make sure you can all access the module I expect you all to: Turn up on time Interact, discuss, ask and answer questions Post questions relevant to the whole class on ULearn Check your daily for announcements Submit work on time You should expect me to: Turn up on time Interact, discuss, ask and answer questions Respond to ULearn discussions on Monday and Thursday Answer s promptly (within 2 working days) Mark your work and give appropriate feedback within 2 weeks Office hours: Monday 3:00 to 4:00, Thursday 10:00 to 11:00 for an appointment Spring 2007 Matthew Casey 21 Spring 2007 Matthew Casey 22 Matthew Casey 21 Matthew Casey 22

12 Assessment Coursework Coursework: 40% Investigating and presenting current trends Group presentation, individual written submission Developing a strategic proposal for a case study Individual written submission Examination: 60% 2 questions out of 3 from all module topics Revision lecture at end of module Perform a review of current trends on a specific theme selected from examples Individual written review Group investigation and (informal) class presentation Using the knowledge you ve gained to define a strategy for an organisation to overcome its problems In two parts: Coursework 1 (10%): organisational strategy Coursework 2 (30%): proposal for strategic change Spring 2007 Matthew Casey 23 Spring 2007 Matthew Casey 24 Matthew Casey 23 Matthew Casey 24

13 Coursework 1 Coursework 2 Organisational strategy Group investigation Selected theme for presentation Presentation for peer feedback and dissemination Group size from 4 to 6 aim for 5 people Maximum number of groups allowed: 8 Individual written literature review 10% of module Deadline Presentation Week 6 (during classes) Review Week 8: Monday 5 th March 12:00 noon Electronic submission: ULearn assignment Proposal for strategic change Analysis of case study Mission statement Informatics strategy Plan for changing the business 30% of module Deadline Week 11: Monday 23rd April 12:00 noon Electronic submission: ULearn assignment Spring 2007 Matthew Casey 25 Spring 2007 Matthew Casey 26 Matthew Casey 25 Matthew Casey 26

14 Texts Texts Laudon, K.C. & Laudon, J.P. (2002). Management Information Systems: Managing the Digital Firm, 7th Edition. Upper Saddle River, New Jersey: Prentice-Hall International, Inc. Also 8E (2004), 9E (2006) Beynon-Davies, P. (2002). Information Systems: An Introduction to Informatics in Organisations. Basingstoke, UK.: Palgrave Macmillan Publishers Ltd. Whiteley, D. (2004). Introduction to Information Systems: Organisations, Applications, Technology and Design. Basingstoke, UK.: Palgrave Macmillan Publishers Ltd. Schwalbe, K. (2005). Information Technology Project Management, 4th Edition. Boston, MA: Thomson Course Technology. Laudon, K.C. & Laudon, J.P. (2004). Essentials of Management Information Systems: Managing the Digital Firm, 6th Edition. Upper Saddle River, New Jersey: Prentice Hall International, Inc. Module material mostly based upon Laudon & Laudon (2002, 2004, 2006) and Beynon-Davies (2003) Some material based upon Whiteley (2004) Some on current business articles/statistics Most of Planning and Managing Change based upon my own experiences and those of Malcolm McKee (LogicaCMG) Spring 2007 Matthew Casey 27 Spring 2007 Matthew Casey 28 Matthew Casey 27 Matthew Casey 28

15 Texts Topic Introduction Information Systems in Organisations Organisational Analysis and Change Planning and Managing Change 2006, 9E 1 2, 3, 15.1, , , 8E 1 2, 3, 13.1, 14, Laudon & Laudon 13.2, , 7E 1 2, 3, 11.1, 14, , , 6E , 3, 16, , 5, 16, 17, 18, 19, 20 16, 33, Beynon- Davies Spring 2007 Matthew Casey 29 Matthew Casey 29