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http://bm.nsysu.edu.tw/tutorial/mis/ Information Systems in Global Business Today Objective data Better information Performance improvement NBA teams with information technology Basketball Fast-paced, high-energy sport Big business NBA player’s average salary 5 Millions per year

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http://bm.nsysu.edu.tw/tutorial/mis/


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Information Systems inGlobal Business Today

Objective data

Better information

Performance improvement


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NBA teams withinformation technology

  • Basketball

    • Fast-paced, high-energy sport

    • Big business

      • NBA player’s average salary

        • 5 Millions per year

      • Constantly on the watch for performance improvement

        • Statistics

          • Strength & weakness in offensive & defensive

          • Opponents & its own team


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  • Traditional basketball statistics

    • Fail to capture all of the detail

      • Do not associate with every play

    • Decisions on

      • Change team tactics

      • How to take advantages of opponents’ weakness

        are made on gut instincts

        not based on hard data


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  • Synergy Sports Technology

    • Games are dissected and tagged

      • Hundreds of descriptive categories

        • Which players have the ball

        • What type of play is involved

        • Results

      • Link to high-resolution video

        fine-grained statistics


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  • Coach and player

    • Use an index to locate the exact video clip

      • Download to laptops or ipods

    • ex: find all the fast-break plays of

      • Games with a team (ex. Phoenix Sun)

      • Entire season

    • Analyze the strengths and weakness of individual players


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  • Reveal

    • Which offensive and defensive moves are

      the most effective for each team player

  • Objective data

  • Better information

  • Performance improvement


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    1.1 The role of Information Systems in business today

    1.2 Perspectives on Info Systems

    1.3 Contemporary approaches to IS


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    Role of Info Systems

    • In 2008, American business invest more than 50% of all invested capital in information technology

      • Land

      • facility

      • Machine

      • Process/office equipment

      • Human resources

      • ….


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    • Managers need to know

      • How to invest money wisely

      • How to make wise decisions

        • Information technology

        • Information systems


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    Role of Info Systems

    • How information systems are transforming business

      • Landline telephone, fax & copy machines

      • Cellular phone, smart phones, emails, teleconferencing

      • Online shopping

      • UPS move 3.7 billion packages in 2007

        • More than 10 millions per day


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    • Blogs

    • Social networks

      • Facebook, myspace

    • eCommerce, Internet advertisement

      • Google, eBay, amazon, itune

    • Federal security and accounting laws

      • Keep email message for 5 years


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    • What’s new in management info systems

      • Technology, Management, Organizations

        • Table 1-1

      • Technology

        • Cloud computing

        • More powerful, energy efficient computing

        • Growth on software as a service

        • Netbooks, open source software

        • Mobile digital platform


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    • Management

      • Online collaboration, knowledge sharing

        • Social network

      • Business intelligence

      • Mobile digital platform to accelerate decision making

      • Virtual meeting proliferate


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    • Organization

      • Web 2.0 enable employees to interact as online community

      • Telework

      • Outsourcing product/service

      • Co-creation of business value via customers, suppliers


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    Role of Info Systems

    • Globalization opportunities

      • Reduce the cost to operate on a global scale

        • Shop in a worldwide marketplace

        • Obtain info reliably 24 hours a day

        • Find low cost suppliers in other nations

        • Communicate real time with minimal cost

          • Skype, instant messages, emails


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    Role of Info Systems

    • The emerging digital Firm

      • Digital firm

        • Business relationships with customers, suppliers, and employees are digitally enabled

        • Core business processes are accomplished through digital network

          • Business process:

            • The set of logical related tasks and behaviors

            • Order, customer service


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    • Digital Firm

      • Core assets are managed thru digital means

        • Intellectual property

        • Core competence

        • Financial & human resources


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    • Sense and response to their environment rapidly

      • Time shifting

        • Business conduct continuously

        • 24x7

      • Space shifting

        • Work take place in a global workshop


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    Role of Info Systems

    • Essential for conducting day-to-day business

      • E-commerce firm

        • Amazon, eBay, Google

      • Service industry

        • Finance, insurance, travel

      • Retail

        • Wal-mart

      • Manufacturing


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    Growing interdependence between

    Firm’s ability to use IT &

    Firm’s ability to implement corporate strategies


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    • Strategic business objectives & IT

      • Operational excellence

      • New products, Services, & Business models

      • Customer & Supplier Intimacy

      • Improved Decisions Making

      • Competitive Advantage

      • Survival


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    • Operational excellence

      • Info systems lead to higher levels of efficiency and productivities

        • Walmart: efficient retail stores

          • Checkout

          • Continuous replenishment systems

          • Automated distribution centers


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    • New products, services & business models

      (a major enabling tool: IT)

      • Business model

        • How a company produces, delivers, and sells a product or service to create wealth

    • Music industry

      • Apple: itune

      • Records, tapes, CD

    • Video rentals


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    • Customer and supplier intimacy

      • Know your customers, serve customers well

        • More repeat sales

        • Raise more revenue and profits

      • Engage your suppliers,

        • Suppliers will provide more vital inputs

        • Lower cost

      • High-end hotels

        • Customer profile

          • Preferred room type: non-smoking

      • JC Penney & TAL Apparel LTD

        • 香港聯業集團 – 益大成衣


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    • Improved decision making

      • Verizon

        • Real-time info on customer complaints, network performance,… to allocate repair resources

      • Use real-time data from marketplace

        Better decisions (?)

        • Bikes sales


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    • Competitive advantages

      Doing things better than your competitors

      • Dell Computer

        • Made to Order

        • Web-based order entry models

        • Mass customization


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    • Survival

      • Necessities of doing business

        • ATM

      • Regulations

      • Accountability of public firms and their auditors


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    1.2 Perspectives on Info Systems

    • What is an Information System

    • Dimensions of Information Systems

    • Business perspective on Info Systems

    • Complementary Assets

      • 互補性資產

      • (配套資產)


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    • Information systems

      Business perspective

      • A set of interrelated components

        • Collect (or retrieve), process, store, and distribute information

        • Support decision making and control

        • Help analyze problems, visualize complex subjects, and create new products

      • Contain info about people, places, things


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    • Information

      • Data have been shaped into forms that are meaningful and useful to human beings

    • Data

      • Streams of raw facts representing events

    • Supermarket checkout

      • Data: product identification codes

      • Info: most popular items


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    • Information systems

      Technical perspective

      • Activities in an information system

        • Input

          • Captures or collects raw data

        • Process

          • Convert raw input into a more meaningful form

        • Output

          • Transfer processed info to the people

        • (Feedback)

          • Help evaluate or correct input


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    • Dimensions of information systems

      • Information system literacy

        • Broader understanding of information systems

          • Management dimension

          • Organizational dimension

          • Technical dimension

      • Computer literacy

        • Knowledge of info technology


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    • Dimensions of information systems

      • Using IS effectively requires an understanding

        • Organizations

        • Managements

        • Technology


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    • Organizations perspective

      • Key elements of an organization

        • People, structure, business processes, and culture.

      • Structure

        • Organization require many different kinds of skills and people

          • Knowledge workers

          • Data workers

          • Production and service workers

        • Different levels and specialists

        • Division of labor


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    • Business functions

      • Sales and marketing, manufacturing and production, finance and accounting, human resources

        (IS is created to support functions)

    • Organization coordinate work

      • Through a structured hierarchy

        • Authority and responsibility

      • Through its business processes

        • Formal rules for accomplishing tasks

        • ex. invoice, customer complaints

          (IS is created to support coordination)


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    • Culture

      • Fundamental sets of assumptions, values, ways of doing things

      • Accepted by most of its members

    • Organizational politics

      • Different levels and specialists create different interests and points of view


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    • Management perspective

      • Management’s job

        • Make sense out of many situations faced by organization

        • Make decisions

        • Formulate action plans to solve organizational problems

        • Set the organizational strategy

        • Allocate the human and financial resources

        • Exercise responsible leadership

          How managers perform their jobs will greatly shape their Information systems


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    • Technology perspective

      • Computer hardware

      • Software

      • Storage technology

      • Communication technology

        • Network

          Internet

      • Elastic

        • Network can be added or removed freely

        • Failures occur in parts of system, the rest will continue to operate


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    • New “Universal” technology platform

      • Foundation of new products, services, strategy, and business model

      • Intranet:

        • internal corporate network based on Internet technology

      • Extranet:

        • private intranet extended to authorized users outside the organization

      • World wide web (WWW)

        • Internet service

        • Universal standard for storing, retrieving, formatting, and displaying info


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    • Business perspective on Info Systems

      • Important instruments for creating values

        • Real economic value

          • Increase in productivity

          • Increase in revenue

          • Superior long-term strategic positioning

        • “Costs of doing business”

          • Governmental regulations

          • Environmental demands

          • Required to stay in business


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    • Information value chain

      • Raw info

        • Systematically acquired

        • Transformed thru various stages

          Add value to that information

        • Better management decision

        • More efficient business process

        • Higher firm profitability


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    • Complementary Assets and Organizational Capital

      • Complementary assets

        • Assets required to derive value from a primary investment

      • Automobiles

        • Requires substantial complementary investment in highway, parking lot, …..


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    • Primary Investment: Information Technology

    • Complementary Assets:

      • New business processes

      • Management behavior

      • Organizational culture

      • Training

      • ……

    • Organizational and management capital

      • Investment in organization and management


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    1.3 Contemporary Approaches

    • Information systems is multidisciplinary

      • Technical Approach

      • Behavioral Approach

      • Sociotechnical Systems


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    Operations

    Research

    Computer

    Science

    Management

    Science

    Sociology

    Psychology

    Economics


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    • Technical Approach

      • Mathematically emphasis

        • Computer science

          • Computation capability, efficiency in data storage & access

        • Management science

          • Models for decision making

        • Operations research

          • Mathematically optimization of company’s resources


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    • Behavioral Approach

      Concern with behavioral issues

      • Sociology

        • How organizations shape the development of systems

        • How systems affect individual

    • Economics

      • How info systems change the cost structures

  • Psychology

    • How human decision makers perceive and use information


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    • Sociotechnical systems

      • The success and failure of information systems are rarely all technical or all behavior

      • Optimal performance is achieved

        • Jointly optimizing both the social and technical systems

          • Ex: recently installed enterprise-wised financial reporting system

            • Can not guarantee it will be used

          • Ex: recently introduced business procedure and process

            • Can not assure that employee will be more productive


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    • To fit organizational and individual needs

      • Technology may have to be “de-optimized”

    • To allow technology to operate and prosper

      • Organization and individual must also be changed

        • Training, learning,

        • Planed organizational change


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    Interactive session

    (Minicase)

    • Management

      • Virtual meetings: smart management

      • P.40

    • Technology

      • UPS competes globally with information technology

      • P. 53


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