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1.1 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Management Information Systems, Second Canadian Edition Second Canadian Edition Chapter 1: Managing the Digital Firm: Canada and the World Chapter 1: Managing the Digital Firm: Canada and the World What exactly is an information system? What exactly is an information system? How are information systems transforming How are information systems transforming organizations and management? organizations and management? How have the Internet and Internet How have the Internet and Internet technology transformed business? technology transformed business? What are the major management challenges What are the major management challenges to building and using information to building and using information systems? systems? OBJECTIVES

1.1 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 1: Managing the Digital Firm: Canada

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1.1Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• What exactly is an information system? What exactly is an information system?

• How are information systems transforming How are information systems transforming organizations and management? organizations and management?

• How have the Internet and Internet How have the Internet and Internet technology transformed business?technology transformed business?

• What are the major management challenges What are the major management challenges to building and using information systems?to building and using information systems?

OBJECTIVES

1.2Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

Information System:Information System:• Interrelated components working together Interrelated components working together

to collect, process, store, and disseminate to collect, process, store, and disseminate information to support decision making, information to support decision making, control, and analysis in an organizationcontrol, and analysis in an organization

1.2 WHAT IS AN INFORMATION SYSTEM?

1.3Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

Functions of an Information System

Figure 1.2

1.2 WHAT IS AN INFORMATION SYSTEM?

1.4Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• Data:Data: Raw facts representing events Raw facts representing events occurring in organizations or their occurring in organizations or their environmentenvironment

• Information:Information: Data that have been shaped Data that have been shaped into a form that is meaningful and useful into a form that is meaningful and useful to human beingsto human beings

1.2 WHAT IS AN INFORMATION SYSTEM?

1.5Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

1.2 WHAT IS AN INFORMATION SYSTEM?

1.6Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

Four Major Systems Defining the Digital Four Major Systems Defining the Digital FirmFirm

• Supply chain management systems (SCM)Supply chain management systems (SCM)• Customer relationship management Customer relationship management

systems (CRM)systems (CRM)• Enterprise systemsEnterprise systems• Knowledge management systemsKnowledge management systems

1.2 WHAT IS AN INFORMATION SYSTEM?

1.7Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

1.8Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• What exactly is an information system? What exactly is an information system?

• How are information systems transforming How are information systems transforming organizations and management? organizations and management?

• How have the Internet and Internet How have the Internet and Internet technology transformed business?technology transformed business?

• What are the major management challenges What are the major management challenges to building and using information systems?to building and using information systems?

OBJECTIVES

1.9Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• Computer Literacy:Computer Literacy: – Knowledge about how computer-based

technologies work– not enough for today’s challenges!

• Information Systems Literacy:Information Systems Literacy: – includes behavioural knowledge about

organizations and individuals using information systems and technical knowledge about computers

1.3 HOW ARE IS’s TRANSFORMING ORGANISATIONS?

1.10Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

Key Elements of IS LiteracyKey Elements of IS Literacy

• Operating Procedures:Operating Procedures: Standard operating Standard operating procedures (SOP, rules for action)procedures (SOP, rules for action)

• People:People: Managers, knowledge workers, data Managers, knowledge workers, data

workers, production or service workersworkers, production or service workers

• Culture:Culture: Assumptions, values and ways of Assumptions, values and ways of doing thingsdoing things

Organizations1.3 HOW ARE IS’s TRANSFORMING ORGANISATIONS?

1.11Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

The Changing Management The Changing Management ProcessProcess

• Separating work from locationSeparating work from location• Reorganizing work-flowsReorganizing work-flows• Increasing flexibilityIncreasing flexibility

– eg ‘mass customization’

• Increasing collaborative work Increasing collaborative work • ““Flattening” the organizationFlattening” the organization

1.3 HOW ARE IS’s TRANSFORMING ORGANISATIONS?

1.12Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

Figure 1.9: Flattening Organizations

1.3 TOWARD THE DIGITAL FIRM

New Options for Organizational Design

1.13Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

Emergence of the Digital FirmEmergence of the Digital Firm• Digitally-enabled relationships with Digitally-enabled relationships with

customers, suppliers, and employeescustomers, suppliers, and employees

• Nearly all significant business Nearly all significant business processes processes (the unique ways in which (the unique ways in which organizations coordinate activities and organizations coordinate activities and information to produce a product or information to produce a product or service)service) are computerized are computerized

1.3 HOW ARE IS’s TRANSFORMING ORGANISATIONS?

1.14Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• What exactly is an information system? What exactly is an information system?

• How are information systems transforming How are information systems transforming organizations and management? organizations and management?

• How have the Internet and Internet technology How have the Internet and Internet technology transformed business?transformed business?

• What are the major management challenges to What are the major management challenges to building and using information systems?building and using information systems?

OBJECTIVES

1.15Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• Intranet: Intranet: – An internal network based on Internet and World

Wide Web technology and standards

• Extranet: Extranet: – Private internet that is only accessible to

authorized outsiders

• E-Commerce:E-Commerce:– The process of buying and selling goods and

services electronically, involving transactions using the Internet

1.4 HOW HAS the INTERNET CHANGED BUSINESS?

1.16Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World1.3 TOWARD THE DIGITAL FIRM

1.17Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• What exactly is an information system? What exactly is an information system?

• How are information systems transforming How are information systems transforming organizations and management? organizations and management?

• How have the Internet and Internet How have the Internet and Internet technology transformed business?technology transformed business?

• What are the major management challenges What are the major management challenges to building and using information systems?to building and using information systems?

OBJECTIVES

1.18Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• The Globalization Challenge: The Globalization Challenge: – How can a firm respond to Global Competition, Global

work groups, and Global delivery systems• The Information Architecture & Infrastructure The Information Architecture & Infrastructure

Challenge: Challenge: – How can a firm develop an information architecture &

IT infrastructure when goals and technologies change rapidly?

• The IS Investment Challenge: The IS Investment Challenge: – How can organizations determine the business value

of information systems?

• The Responsibility and Control Challenge:The Responsibility and Control Challenge: – How can organizations ensure that their information

systems are used in an ethically and socially responsible manner?

1.5 Major Management Challenges

1.19Copyright © 2005 Pearson Education Canada Inc.

Management Information Systems,Management Information Systems, Second Canadian Edition Second Canadian Edition

Chapter 1: Managing the Digital Firm: Canada and the WorldChapter 1: Managing the Digital Firm: Canada and the World

• What exactly is an information system? What exactly is an information system?

• How are information systems transforming How are information systems transforming organizations and management? organizations and management?

• How have the Internet and Internet How have the Internet and Internet technology transformed business?technology transformed business?

• What are the major management challenges What are the major management challenges to building and using information systems?to building and using information systems?

OBJECTIVES