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Chapter 1

ADM 2372 - Chapter 1 Notes - Business Driven Information Systems-1.docx

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James Bowen

ADM 2372 Management Information Systems (MIS) Jan 11 , 2012 Chapter 1 “Information Systems and Business Strategy” Section 1.1 - Information Systems in Business: - Everywhere in business. - Impact on business operations: o Functions receiving greatest benefit from I.T: Customer service, finance, sales/marketing, IT operations, Operations mgmt., HR, and Security. o Project goals as a result of IT: Reduce costs/improve productivity, improve customer satisfaction/loyalty, create competitive advantage, growth, streamline supply chain, and global expansion. o Organizations typically operate by functional areas or functional silos that act independently of one another. Information Systems Basics: - Information Systems (IS): Any computer-based tool that people use to work with information and that supports the information and information-processing needs of an organization. o An information system can be an important enabler of business success and innovation. - Management Information Systems (MIS): The function that plans for, develops, implements, and maintains IS hardware, software, and applications that people use to support the goals of an organization. o MIS is a business function, similar to accounting, finance, operations, and human resources. - When beginning to learn about information systems it is important to understand the following: The difference between data, information, and knowledge, IS resources, and IS cultures. Data – Information – Knowledge: - Data: Raw facts that describe the characteristic of an event. - Information: Data converted into a meaningful and useful context. - Knowledge: Information that can be enacted upon i.e. “actionable information.” IS Resources: People use information systems to work with information. ADM 2372 Management Information Systems (MIS) Jan 11 , 2012 Chapter 1 “Information Systems and Business Strategy” IS Cultures: 1. Information-Functional Culture: Use information as a means of exercising influence or power over others. 2. Information-Sharing Culture: Departments trust each other to use information (especially about problems and failures) to improve performance. 3. Information-Inquiring Culture: Search for information to better understand the future and align themselves with current trends and new directions. 4. Information-Discovery Culture: Open to new insights about crisis and radical changes and seek ways to create competitive advantage. Roles and Responsibilities in IS: - Chief Information Officer (CIO): Oversees all uses of IS and ensures the strategic alignment of IS with business goals and objectives. - Broad CIO Roles: 1. Manager: Ensuring the delivery of all IS projects, on time, and within budget. 2. Leader: Ensuring the strategic vision of IS is in line with the strategic vision of the organization. 3. Communicator: Building and maintaining strong executive relationships. - Chief Technology Officer (CTO): Responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IS. - Chief Security Officer (CSO): Responsible for ensuring the security of information systems. - Chief Privacy Officer (CPO): Responsible for ensuring the ethical and legal use of information. - Chief Knowledge Office (CKO): Responsible for collecting, maintaining, and distributing the organization’s knowledge. Skills Pivotal for Success in Executive IS Roles: - Ability to communicate effectively. - Strategic thinking and planning. - Understanding business processes and operations. - Negotiation/sales skills. - Through knowledge of technology options. - Technical proficiency. The Gap between Business Personnel and IS Personnel: - Business personnel possess expertise in functional areas such as marketing, accounting, and sales, while the IS personnel have the technological expertise. o This typically causes a communications gap between the business personnel and IS personnel. ADM 2372 Management Information Systems (MIS) Jan 11 , 2012 Chapter 1 “Information Systems and Business Strategy” Improving Communications: - Both groups, business and IS, must seek to increase their understanding of one another. - It is the responsibility of the CIO to ensure effective communication between business personnel and IS personnel. Efficiency and Effectiveness Metrics: - Efficiency IS Metric: Measures the performance of the information system itself including throughput, speed, and availability. - Effectiveness IS Metric: Measures the impact IS has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases. - Benchmarking – Baselining Metrics: o Regardless of what is measured, how it is measured, and whether it is for the sake of
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