© Farhan Mir© Farhan Mir
20201414 IMSIMS
MIS MIS BBA (Hons) Morn & Eve 6BBA (Hons) Morn & Eve 6thth (Module 2)(Module 2)Management, Management, Organizations, Decision Organizations, Decision Making, Strategy and Making, Strategy and ISIS
Course Lecturer: Farhan MirCourse Lecturer: Farhan Mir
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Expected TopicsExpected TopicsIntroduction to IS
Management & Decision MakingIT FundamentalsTransaction Processing and Reports SystemDSSKnowledge-Based SystemsSystem DevelopmentMIS in the Fundamental Areas of Business (Will be covered through case studies)Contemporary Issues & Trends (You will cover it through your research work and Presentations/ Seminars)
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Once we have seen how IS Once we have seen how IS could enhance the could enhance the effectiveness of effectiveness of
Organizational Functions Organizational Functions (Overall Performance) now we (Overall Performance) now we could explain their pivotal role could explain their pivotal role in Organizations & Strategy in Organizations & Strategy
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Organizations & PeopleOrganizations & People
Organizations StructureStructure CultureCulture PoliticsPolitics Environment Environment LeadershipLeadership Nature of Business (Routine Vs Non-Routine)Nature of Business (Routine Vs Non-Routine) New trends in organizations (Globalization)New trends in organizations (Globalization)
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Organization and Organization and Behavioral AspectsBehavioral Aspects People (always bring Psychological issues)
AttitudeAttitude PersonalitiesPersonalities MotivationMotivation ResistanceResistance The biggest problem area for/ in ISThe biggest problem area for/ in IS Skills & abilities (Learning/ Training)Skills & abilities (Learning/ Training) Career DevelopmentCareer Development
© Farhan Mir© Farhan Mir
20201414 IMSIMS
IS Impact on OrganizationIS Impact on Organization
EconomicCost Reduction
Transaction CostTransaction Cost
Agency CostAgency Cost
StructuralFlatter ModelsPost Industrial Models (Knowledge)
Behavioral
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Transformation of Transformation of OrganizationsOrganizations
Flattening (Need for Agility)Decentralization (More focus on Behavioral Approaches)Flexibility Location Independence (Globalization Pressures)Low Transaction CostEmpowerment (Employee needs to respond quickly)Collaborative Work (More teams are emerging)Overall Performance (Effectiveness)
Competitive Advantage
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Managers & Decision Managers & Decision MakingMakingDecision Making
The process by which managers respond to The process by which managers respond to opportunities and threats by analyzing options, opportunities and threats by analyzing options, and making decisions about goals and courses of and making decisions about goals and courses of action.action.
Decisions in response to opportunities—occurs when managers respond to ways to improve organizational performance.
Decisions in response to threats—occurs when managers are impacted by adverse events to the organization.
© Farhan Mir© Farhan Mir
20201414 IMSIMS
What Makes Decision What Makes Decision Making so Difficult? Making so Difficult?
Complexity
Uncertainty
Organizational & Environment Pressure
Individual Decision Making Limitations
Experience, Beliefs & Perceptions of the Decision Maker
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Structured and Structured and Unstructured ProblemsUnstructured Problems
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Decisions are classified as:Unstructured: Non-routine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making
Structured: Repetitive, routine, handled using a definite procedure
Managers and Decision Making
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Realities facing Managers Realities facing Managers and Decision Makingand Decision Making
Managers perform high-volume, high speed work involving a large number of topics.Managers are often under stress.Managers often take shortcuts.Satisficing (sounds like?) nature of decision making Political motivations may impact decisions.Decisions should be transparent. (need for open communication)
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Why Information Is Why Information Is IncompleteIncomplete
Figure 7.2
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Where IS Lies in Where IS Lies in Organizations?Organizations?
Traditional Roles (Past)A Separate Department having little A Separate Department having little influence in overall Organizational postureinfluence in overall Organizational posture
It was used to provide information onlyIt was used to provide information only
“Operational Role”
Current & Future StatusLinking all Departments (at heart of Linking all Departments (at heart of organizational operations)organizational operations)
Progressively involved in planning and Progressively involved in planning and Objective settingObjective setting
Used as a business-creator/ initiator Used as a business-creator/ initiator (Strategic Role)(Strategic Role)
© Farhan Mir© Farhan Mir
20201414 IMSIMS
But Information Systems But Information Systems in organizations also act in organizations also act as an “Enabling” & as an “Enabling” & “Filtering Tool”“Filtering Tool”
THE FIRM
INFORMATIONINFORMATION SYSTEMSSYSTEMS
THE ENVIRONMENT:THE ENVIRONMENT:
RESOURCES & CONSTRAINTS
GOVERNMENTS
COMPETITORS
FINANCIAL INSTITUTIONS
CULTURE
KNOWLEDGE
TECHNOLOGY
[CUSTOMERS!!]
© Farhan Mir© Farhan Mir
20201414 IMSIMS
Transformation of Transformation of OrganizationsOrganizations
Flattening (Need for Agility)Decentralization (More focus on Behavioral Approaches)Flexibility Location Independence (Globalization Pressures)Low Transaction CostEmpowerment (Employee needs to respond quickly)Collaborative Work (More teams are emerging)Overall Performance (Effectiveness)
Competitive Advantage
© Farhan Mir© Farhan Mir
20201414 IMSIMS
17
Competitive Forces ModelCompetitive Forces Model
THE FIRMTRADITIONAL COMPETITION
NEW MARKET ENTRANTS
SUPPLIERS CUSTOMERS
SUBSTITUTE PRODUCTS & SERVICES
© Farhan Mir© Farhan Mir
20201414 IMSIMS
18
Strategies Used With the Strategies Used With the Competitive Forces ModelCompetitive Forces Model
Product differentiation involves developing new and unique products and services not easily duplicated by competitors
low-cost producer (provide same value but at a lower cost than competitors)
Focused differentiation involves
Narrowing the market by developing niches for Narrowing the market by developing niches for specialized products or services where a business specialized products or services where a business can compete better than its rivalscan compete better than its rivals
Use of customer data (data mining, credit card Use of customer data (data mining, credit card
transactions, Internet behaviortransactions, Internet behavior))
© Farhan Mir© Farhan Mir
20201414 IMSIMS
19
Examples of Systems for Each Examples of Systems for Each StrategyStrategy
Product differentiationLevi Strauss’ s Personal Pair (Levi Strauss’ s Personal Pair (mass mass customizationcustomization or or one-to-one marketing) one-to-one marketing)
Hallmark’s computer generated cardsHallmark’s computer generated cards
Build to order products (Dell)Build to order products (Dell)
Focus (market niche)
Customer data analysis through CRMCustomer data analysis through CRM
Hilton Hotels customer databaseHilton Hotels customer database
Low cost producerCAD systems used in the automobile or airline CAD systems used in the automobile or airline industryindustry
Insurance claim adjusters use of pen-based Insurance claim adjusters use of pen-based computerscomputers
Wal-Mart point of sale terminals sending Wal-Mart point of sale terminals sending information directly to suppliersinformation directly to suppliers
© Farhan Mir© Farhan Mir
20201414 IMSIMS
© Farhan Mir© Farhan Mir
20201414 IMSIMS
21
Primary Activities of the VC Primary Activities of the VC ModelModel
Inbound logistics - receiving and storing of materials
Wal-Mart’s continuous replenishment Wal-Mart’s continuous replenishment systemsystem
stockless inventory systemsstockless inventory systems
Operations - transformation of inputs to finished goods or the process of providing a service
computer controlled machinery used by computer controlled machinery used by Gillette for producing razor bladesGillette for producing razor blades
Outbound logistics - storing and distributing the product
airline reservation systemairline reservation system
automated shipping scheduling systemsautomated shipping scheduling systems
© Farhan Mir© Farhan Mir
20201414 IMSIMS
New Strategies based on New Strategies based on ISIS
SynergiesPartnerships within and outside the organization to Partnerships within and outside the organization to support adtivitiessupport adtivities
Alliance between Bank of New York and JP Morgan ChaseAlliance between Bank of New York and JP Morgan Chase
Enhancing Core CompetenciesFocusing on particular expertise to gain advantage over Focusing on particular expertise to gain advantage over otherother
P&G InnovationNet for knowledge sharing and learningP&G InnovationNet for knowledge sharing and learning
Network-Based StrategiesNetwork EconomicsNetwork Economics
Cost of adding new members is quite low as compared to gains yielded by expansion of network
Virtual Company ModelVirtual Company Model
© Farhan Mir© Farhan Mir
20201414 IMSIMS
23
Management IssuesManagement Issues
Opportunities
Firms face a continuing stream of IT-based Firms face a continuing stream of IT-based opportunities to achieve strategic opportunities to achieve strategic advantages advantages
Challenges
Some firms face big hurdles in Some firms face big hurdles in implementing contemporary systems; implementing contemporary systems; resistance to change.resistance to change.
Once an advantage is achieved, there are Once an advantage is achieved, there are difficulties in sustaining the advantage.difficulties in sustaining the advantage.
Organizations often cannot change fast Organizations often cannot change fast enough to accommodate new technologies enough to accommodate new technologies (Kodak).(Kodak).
© Farhan Mir© Farhan Mir
20201414 IMSIMS
24
Solutions: What Managers Can Solutions: What Managers Can DoDo
Managers cannot depend on IS professionals to tell them about strategic opportunities
Managers must understand what is happening in their industry in general and the role of technology in particular
How do you do this?
© Farhan Mir© Farhan Mir
20201414 IMSIMS
ReferencesReferences
Charles Parker, Thomas Case. (2000). “Management Information Systems: Action & Strategy”. (2nd Ed). Chapter 2 & 4
James O’Brien. (1998). “Introduction to Information Systems: A Networked Enterprise Perspective”. (2nd Ed). Chapter 10,12
Kenneth C. Laudon & Jane P. Laudon (2011). “Management Information Systems: Managing a Digital Firm”.(7th Ed). Chapter 3
Grover S. Kearns (1997). Alignment of Information
Systems Plans with Business Plans: (http://hsb.baylor.edu/ramsower/ais.ac.97/papers/kearns.htm)