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Chapter 1

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Administrative Studies
ADMS 2511
Alison Weir

Chapter 1 – Summary Management Information Systems  Deal with the planning for – and the development, management, and use of – information technology tools to help people perform all of the tasks related to information processing and management Information Technology  Relates to any computer-based tool that people use to work with information and to support the information and information-processing needs of an organization  Using technology to organize information  Without understanding properly you will not be able to be successful without implementation of the technology to do regular tasks Both terms are used interchangeably throughout an organization (and throughout this book) The Importance of Planning for IT  Application Portfolio o A prioritized list of existing and potential IT systems, organized by application o Applications that have to be added, or modified if they already exist  The IT architecture outlines the way an organization’s information resources should be used to accomplish its mission o Encompasses both the technical and managerial aspects of information resources  Technical: Hardware and operating systems, networking, data management systems, and application software  Managerial: Specify how managing the IT department will be accomplished, how the functional area managers will be involved, how IT decisions are made IT Strategic Plan  A set of long-range goals that describe the IT infrastructure and identify the major IT initiatives needed to achieve the organization’s goals  Must meet 3 objectives o Must be aligned with the organization’s strategic plan o Must provide for an IT architecture that enables users, applications, and databases to be seamlessly networked and integrated o Must efficiently allocate IS development resources among competing projects so the projects can be completed on time and within budget and have the required functionality IT Steering Committee  a committee, composed of a group of mangers and staff representing various organizational units, set up to establish IT priorities and to ensure that the management information systems function is meeting the needs of the enterprise  Major task is to link corporate and IT strategy together, to approve allocation of resources for MIS function and establish performance measures for the MIS function and ensure they are met IS operational plan  Such plan consists of a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan  Consists of o Mission – the mission of the IS function (derived from the IT strategy) o IS environment – a summary of the information needs of the functional areas and the of the organization as a whole o Objectives of the IS function – The best current estimate of the goals of the IS function o Constraints on the IS function – Technological, financial, personnel, and other resource limitations on the IS function o The application portfolio – a prioritized inventory of present applications and a detailed plan of projects to be developed or continued during the current year o Resource allocations and project management: A listing of who is going to do what, how and when IT planning is crucial when developing a new product or services, such as the drug-dispensing kiosks Business Process and Business Process Management Business Process  A collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers  A process has inputs and outputs and activities may be measured  Processes may have as low as 1 or several functional areas  Example: Accounting Business Process →Accounts Payable, Accounts Receivable, Cash Receipts, Invoice Billing, Etc.  May lead to competitive advantage if they innovate and become more efficient than competitors  May lead to liabilities if they become inefficient  Example: Purchase tickets online, the firm must have up to date prices, if not firm will hurt  The following are significant measures of competitive performance in the organization: o Customer satisfaction, cost reduction, cycle and fulfillment time, quality, product differentiation, productivity  IT is the key enabler of achieving business process excellence o Business Process Reengineering (BPR) is an approach that improves the efficiency and effectiveness of an organizations business process o Starts off by viewing the process from a “clean sheet” perspective and then reconstructing them to improve business functions  A less radical, less disruptive and more incremental approach was developed to replace the BPR was called BPM (Business Process Management) Business Process Management  A management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes  Initially BPM helps companies improve profitability by decreasing costs and increasing revenues. Overtime, created a competitive advantage by improving organizational flexibility Information Systems: Concepts and Definitions  One of the primary goals of information systems is to economically process data into information and knowledge Data Items  An elementary description of things, events, activities and transactions that are recorded, classified and stored, but not organized to convey any specific meaning  Numbers, letters, figures, sounds, or images. A student grade in a class, number of hours an employee worked in a certain week, price of a ring tone Information  Data that have been organized so that they have meaning and value to the recipient o Example: GPA are data, but a student’s name coupled with his or her GPA is information Knowledge  Consists of data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current business problem Information Technology Architecture  A high-level map or plan of the information assets in an organization o A guide for current operations and a blueprint for future directions o Analogous to architecture of a house. Shows how all aspects of information technology in an organization fit together Information Technology Infrastructure  Consists of the physical facilities, IT components, IT services, and IT personnel that support the entire organization o IT components (Platform): Computer hardware, software, and communications technologies that provide the foundation for all of an organization’s information systems. o IT Personnel: Use IT components to produce IT services o IT services: data management, systems development, and security concerns The Global Web-Based Platform Globalization  The integration and interdependence of economic, social, cultural, and ecological facets of life, enabled by rapid advances in information technology Three Stages of Globalization  Globalization 1.0 – countries o Lasted from 1492-1800. During this era, the force behind globalization was how much muscle, horsepower, wind power or steam power a country had and could deploy  Globalization 2.0 – companies o Lasted from 1800-2000. During this era, the force behind globalization was multinational companies. Headquarters in one country, but operated in several countries  First half was driven by fall in transportation costs  Steam engine and railroads  Second half was driven by fall of telecommunications costs  Telephones, computers, satellites, fiber optic cable, and the Internet and World Wide Web  Globalization 3.0 – Groups and Individuals o Around year 2000, we entered globalization 3.0. This era was driven by the convergence of 10 forces that Friedman calls “flatteners” o Friedman’s Ten Flatteners  Fall of the Berlin wall  Shifted the world toward free-market economies and away from centrally plann
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