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CHAPTER 2

CHAPTER 2. Information Systems: Concepts and Management. CHAPTER OUTLINE. Types of Information Systems Why We Use Information Systems Competitive Advantage and Strategic Information Systems (SIS). 2.1 Type of Information Systems: Inside an Organization.

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CHAPTER 2

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  1. CHAPTER 2 Information Systems: Concepts and Management

  2. CHAPTER OUTLINE Types of Information Systems Why We Use Information Systems Competitive Advantage and Strategic Information Systems (SIS)

  3. 2.1 Type of Information Systems: Inside an Organization

  4. Type of Information Systems: Outside an Organization • Supply Chain Management • Electronic Commerce

  5. Why We Use Information Systems • Improve operational efficiency • Support organizational learning • Achieve competitive advantages

  6. Amount of Output Efficiency = Amount of Input Goals Achieved Effectiveness = Planned Goals Improving Operational Efficiency • Doing things faster and cheaper • Result: increased productivity • Being efficient is different from being effective Efficiency – doing things the right way Effectiveness – doing the right thing

  7. Support Organizational Learning • Gain Business Intelligence (BI) • Understand and improve business processes • Understand Markets and Customers • Allow better decision-making (to be more effective)

  8. Achieve Competitive Advantages • Determine the organizational strategy • Leverage IS/IT to help achieve defined strategy • Technologies can be disruptive so companies must keep reinventing themselves

  9. Competitive Advantage and Strategic Information Systems Michael Porter’s competitive forces model (Porter, 1985)

  10. Porter’s Value Chain Model Primary Activities

  11. Sources of Competitive Advantages • Cost Leadership • Differentiation • Innovation • Customer-orientation

  12. Industrial Robots Seevideoof warehouse robots at work

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