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Information Systems (IS) in Management & Strategic Information Systems (SIS). Rev: Feb, 2012 Euiho (David) Suh , Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH.

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slide1

Information Systems (IS) in Management & Strategic Information Systems (SIS)

  • Rev: Feb, 2012
  • Euiho (David) Suh, Ph.D.
  • POSTECH Strategic Management of Information and Technology Laboratory
  • (POSMIT: http://posmit.postech.ac.kr)
  • Dept. of Industrial & Management EngineeringPOSTECH
discussion questions 1 2
Discussion Questions (1/2)
  • Which verb is correct ? High-level IS types have been (developed, evolved, expanded) from low-level IS types.Justify your answer.
  • Explain Viewpoint 3. Why is it not necessarily linear? What is implied in this figure?
  • Select a specific IS application and apply the 3-Axis MSS model.
  • Explain why math analysis can change “information” to “decision aids”
  • Select a specific IS application and apply the Viewpoint-4.
  • Mix up Viewpoint 2 and 4 to explain why ERP is necessary .
  • Select a specific IS application and apply Information Strategy Tree.
discussion questions 2 2
Discussion Questions (2/2)
  • Case 3 in textbook (pp. 41~42, Chapter1)
    • How do information technologies contribute to the business success of Sew What? Inc.?
      • Give examples from the case regarding the business value of information technology that demonstrate this conclusion
    • If you were a management consultant to Sew What? Inc., what would you advise Megan Duckett to do at this point to be even more successful in her business?
      • What role would information technology play in your proposals? Provide specific recommendations
  • Discussion Questions in textbook (p. 39, Chapter 1)
    • How can information technology support a company’s business processes and decision making and give it a competitive advantage? Give examples to illustrate your answer.
    • Why are there so many conceptual classifications of information systems?Why are they typically integrated in the information systems found in the real world?
3 axis mss model

Model

IS Type = f(m, d, i)

a?

c?

Intelligence

b?

Data

1. Information Systems in Management

1) The role of IS in Management

3-Axis MSS Model

Ex)

TPS = f(0.1, 0.9, 0)

DSS = f(0.5, 0.3, 0.2)

the view of information systems

1. Information Systems in Management

1) The role of IS in Management

The view of Information Systems

View Point 1

Data

Information

Decision Aids

Knowledge

Reasoning

Statistical

Analysis

Math

Analysis

View Point 2

View Point 3

H

Strategic Value

EIS/ESS

?

Extreme top

E

R

P

DSS

Top

IPS

?

Middle

TPS

low

L

OAS

Extreme low

L

H

IS Expansion

role of is

1. Information Systems in Management

1) The role of IS in Management

Role of IS

View Point 4

Helper

A Function

IS

IS

Financing

Management

Management

IS

Accounting

Financing

Marketing

Marketing

Accounting

IS

Controller

Melting Pot

IS

Financing

IS

Accounting

Marketing

Financing

Accounting

Marketing

All Functions are melted

management hierarchy level 2 2

1. Information Systems in Management

2) Hierarchy Level of IS in Management

Management Hierarchy Level(2/2)

Management Triangle

Types of

management

Problem types

to be dealt with

Political

strategic

Unstructured

Extreme

top

Strategic

Semi –

Structured

and

Structured

Top

Tactical

Middle

Operational

Structured

low

Clerical

Extreme low

strategic it

2. Strategic Information System

1) Introduction

Strategic IT
  • Technology is no longer an afterthought in business strategy, but the cause and driver
  • IT can change the way businesses compete
  • A strategic information system is any information system that uses IT to help an organization…
    • Gain a competitive advantage
    • Reduce a competitive disadvantage
    • Or meet other strategic enterprise objectives
slide11

2. Strategic Information System

1) Introduction

Overview of SIS

Paradigm Shift

Technology-driven

Customer-driven

Globe-driven

Information-driven

MIT(Management Innovation Technology)

  • Dramatic Profit
  • Competitive Advantage

SM(Super Set)

SIS(Subset)

DSS

EIS & ESS

IPS & MIS

OAS

TPS (EDPS)

ERP & BPR

SA

KM

CRM

EC

MOT

strategy tree 1 2

2. Strategic Information System

1) Introduction

Strategy Tree (1/2)

Automation

Information(IT, IS)

Innovation

Work Automation

Automation

Manufacturing Automation

Strategic Information System(SIS)

Success

StrategicUse of Information (IT, IS)

Failure

Non-strategic Information System (NSIS)

Use of Information

Automation

Strategic Use of Information

strategy tree 2 2

2. Strategic Information System

1) Introduction

Strategy Tree (2/2)

Work Automation

Automation

SM

SIS

Manufacturing Automation

Information

Strategic Management (SM)

Success

StrategicManagement

Innovation

NSIS

NSM

Failure

Non-strategic Management (NSM)

Strategic Management

Information Strategy Tree

competitive strategies 1 2

2. Strategic Information System

2) Competitive Strategy & IT

Competitive Strategies (1/2)

Competitive Forces and Strategies

  • Businesses can develop competitive strategies to counter the actions of the competitive forces they confront in the marketplace.
  • Using Competitive Strategies
    • These strategies are not mutually exclusive
      • Organizations use one, some, or all
      • A given activity could fall into one or more categories
    • Not everything innovative serves to differentiate one organization from another
      • Likewise, not everything that differentiates organizations is innovative
competitive strategies 2 2

2. Strategic Information System

2) Competitive Strategy & IT

Competitive Strategies (2/2)

Five Competitive Strategies

Cost Leadership

Differentiation

Strategies

Alliance

Innovation

Growth

  • Cost Leadership Strategy
    • Reducing their costs or increasing the costs of competitors
  • Differentiation Strategy
    • Developing ways to differentiate a firm’s products and services from those of its competitors
  • Innovation Strategy
    • Developing unique products and services or entering unique markets or market inches
  • Growth Strategy
    • Expanding a company’s capacity to produce goods and services, expanding into global markets, diversifying into new products and services, or integrating into related products and services
  • Alliance Strategy
    • Establishing new business linkages and alliances with customers, suppliers, competitors, consultants, and other companies
evaluation of sis

2. Strategic Information System

3) Evaluation of SIS

Evaluation of SIS
  • When you evaluate a SIS…
  • Process automation or innovation
  • If innovation, which Hammer’s principle?
  • Which competing forces to e affected
  • Value chain activities to be reinforced
  • Type of IS
slide18
Note
  • MIT PPT material (SIS)
    • http://ocw.mit.edu/courses/sloan-school-of-management/15-565j-integrating-esystems-global-information-systems-spring-2002/lecture-notes/lecture02.pdf
case study
Case Study

Click Here

  • Domestic case
reference
Reference

O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”, McGraw – Hill, Chapter 1, pp. 3~42

Euiho Suh, “Information & Management (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)

Euiho Suh, “Role of Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)

Euiho Suh, “Strategic Information Systems (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)