MIS COURSE: CHAPTER 1

INFORMATION SYSTEM IN
GLOBAL BUSINESS TODAY

Composed by DUONG TO DUNG,

MAY 2017
 CONTENT
1. How are information systems transforming business
, and why are they so essential for running and man
aging a business today?
2. What is an IS? How does it work? What are its man
agement, organization, and technology components
and why are complementary assets essential for ens
uring that IS provide genuine value for organization
?
3. What academic disciplines are used to study IS and
how does each contribute to an understanding of IS
?
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 THE SAN FRANCISCO GIANTS WIN BIG WITH IT

1. Video system called FIELDf/x which digitally rec

ords the position of all players and hit balls in r
eal-time.
2. Qcue: dynamic ticket pricing
3. Secondary online ticket reselling to maximize t
he seat occupation and thus maximizing conces
sion and merchandize sales.
4. Strong wireless networks for fans

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 TELL US YOUR COMPANYS CASE

1. How have your company used IT/IS to get comp

etitive advantages, revenue/profit increases?
2. Lets consider: a bank, a transportation compan
y such as Phuong Trang, or whatever business
model suggested by you.
Lets analyze how IT/IS can help these compani
es.

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How are IS transforming business, and why are they so e
ssential for running and managing a business today?

1. Changes in IT bring new business models, transform s

ocial life (as well as individuals lives), and business pr
actices.
2. Businesses are using IT to sense and respond to rapidl
y changing customer demand, reduce inventories to t
he lowest possible levels, and achieve higher levels of
operational efficiency.
3. Enable Just-in-time inventory
4. Social networking tools used by businesses
5. E-commerce, digital marketing

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How are IS transforming business, and why are they so e
ssential for running and managing a business today?
3 interrelated changes in the technology area: (1) the wide
spread adoption of the mobile computing platform, (2) th
e growing business use of big data, and (3) the growth in
cloud computing.
* Big Data (Ch.6), Cloud Computing (Ch.5)
Mobile
Online collaboration: inter/intra organization
Social technologies
Remote work
A business day without these mobile devices or
Internet access would be unthinkable.
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 FLATTENED WORLD (P.11)

1. Have you read Flattening World by Thomas Fr

iedman, 2005?
2. What are the opportunities and challenges for
businesses (and individuals) worldwide as cons
equences of the flattening world?
Consider the case of Vietnam, and you, your ch
ildren.

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How are IS transforming business, and why are they so e
ssential for running and managing a business today?

Digital Firm: is one in which nearly all of the organization

s significant business relationships with customers, suppl
iers, and employees are digitally enabled and mediated.
Digital firms sense and respond to their environment far
more rapidly than traditional firms, giving them more flexi
bility to survive in turbulent times.
In digital firms, both time-shifting and space-shifting are t
he norm.

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How are IS transforming business, and why are they so e
ssential for running and managing a business today?
What makes IS so essential today? Why are businesses inv
esting so much in IS/IT?
Because almost all businesses reply on IT/IS to conduct bu
siness.
(Can you give us 1 example of firm/industry that does not
use IS/IT in doing its business?)
6 Strategic Business Objectives (that IS helps)
Operational Excellence; New P/S/Business Model; Custo
mer & Supplier Intimacy; Improved Decision Making; Co
mpetitive Advantage; and Survival.

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What is an IS? How does it work? What are its management, organization, and
tech. components

1. IT: consists of all the hardware and software that a fir

m needs to use in order to achieve its business objecti
ves.
2. IS: a set of interrelated components that collect (or ret
rieve), process, store, and distribute information to su
pport decision making and control in the org..
+ Information vs. Data: meaningful, useful vs. raw
+ Input Process Output
To understand IS, we must understand the problems they
are designed to solve, their architectural and design elem
ents, and the org. processes that lead to these solutions.
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What is an IS? How does it work? What are its management, organization, and
tech. components

The field of MIS tries to achieve the broader IS literacy.

MIS deals with behavioral issues as well as technical issu
es surrounding the development, use, and impact of IS u
sed by managers and employees in the firm.
Using IS effectively requires an understanding of the org.,
management, and IT shaping the systems.
An IS creates value for the firm as an organizational and m
anagement solution to challenges posed by the environm
ent.

Why do MBA students

need to study MIS?
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What is an IS? How does it work? What are its management, organization, and
tech. components

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What is an IS? How does it work? What are its management, organization, and
tech. components

IT ISNT JUST TECHNOLOGY: A BUSINESS PERSPECTIVE ON

IS.
An IS is an important instrument for creating value for the
firm. IS enables the firm to increase its revenue or decreas
es its cost by providing info. that helps managers make bett
er decisions or that improves the execution of business pro
cesses.
The value of an IS to a business, as well as the decision to i
nvest in any new IS, is determined by the extent to which t
he system will lead to better management decisions, more
efficient business processes, and higher firm profitability.

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What is an IS? How does it work? What are its management, organization, and
tech. components

IT ISNT JUST TECHNOLOGY: A BUSINESS PERSPECTIVE O

N IS.
From a business perspective, ISs are part of a series of val
ue-adding activities for acquiring, transforming, and distri
buting info. that managers can use to improve decision m
aking, enhance organizational performance, and, ultimate
ly, increase firm profitability.

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What is an IS? How does it work? What are its management, organization, and
tech. components

COMLEMENTARY ASSETS: ORGANIZATIONAL CAPITAL AND THE

RIGHT BUSINESS MODEL.
+ Its not the more $$$ you invest on IS, the more value you gain
.
+ Complementary Assets: are those assets required to derive va
lue from a primary investment.
+ Research indicates the firms that support their technology inv
estments and investments in complementary assets, such as ne
w business models, new business processes, management beha
vior, organizational culture, or training, receive superior returns.
These investments in organization and management are also kn
own as organizational and management capital.
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What academic disciplines are used to study IS and how does each contribute to an understanding of IS?

ISs are sociotechnical systems. Though they are compose

d of machines, devices, and hard physical technology, th
ey require substantial social, organizational, and intellectu
al investments to make them work properly.

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What academic disciplines are used to study IS and how does each contribute to an understanding of IS?

+ TECHNICAL APPROACH: emphasizes mathematically based

models to study IS, as well as the physical technology and for
mal capabilities of these systems. The disciplines that contrib
ute to the technical approach are computer science, manage
ment science, and operations research.
+ BEHAVIORAL APPROACH: issues such as strategic business
integration, design, implementation, utilization, and manage
ment cannot be explored usefully with the models used in th
e technical approach.
Other behavioral disciplines contribute important concepts a
nd methods.

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What academic disciplines are used to study IS and how does each contribute to an understanding of IS?

+ SOCIOTECHNICAL SYSTEMS: Technical + Behavioral

The performance of a system is optimized when both the
technology and the organization mutually adjust to one a
nother until a satisfactory fit is obtained.

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 REVIEW SUMMARY (P.32)
1. How are information systems transforming business
, and why are they so essential for running and man
aging a business today?
2. What is an IS? How does it work? What are its man
agement, organization, and technology components
and why are complementary assets essential for ens
uring that IS provide genuine value for organization
?
3. What academic disciplines are used to study IS and
how does each contribute to an understanding of IS
?
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 REVIEW QUESTIONS
LETS GO THROUGH THEM TOGETHER!

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