BFCC Business Role of Information Systems in Decision Making Paper

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Business Finance

Ben Franklin Career Center

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In your opinion and according to your recommended textbook under introduction, why will business managers participate in information systems decisions? Also, discuss briefly the skills needed by a business manager to participate effectively in information technology decisions.

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Managing and Using Information Systems: A Strategic Approach – Sixth Edition Keri Pearlson, Carol Saunders, and Dennis Galletta © Copyright 2016 John Wiley & Sons, Inc. Introduction Why Should a Manager Study Information Systems? --After all, an entire department is in charge of IT. • Nearly all decisions in organizations rely on information systems at some level. • Personal devices are ubiquitous. • In 2014, 90% of US adults had a cell phone and 87% used the Internet. • Personal experience with technology helps but the corporate setting has many different requirements in the areas of: • Security, Privacy, Risks • Support • Architecture • Firms use IT to enhance their business models or change entire industries. • Managers need to know the basics. © 2016 John Wiley & Sons, Inc. 3 Why Should you Participate in IT Decisions in your Firms? • • • • • • • • IT permeates almost every aspect of business IT enables change in how people work IT is at the heart of Internet-based solutions IT enables or inhibits opportunities/strategies IT combats competitors’ business challenges IT provides customers with a voice IT supports data-driven decision-making IT can help secure key assets © 2016 John Wiley & Sons, Inc. 4 A Business View of Critical Resources • Spending is quite high: Worldwide $3.7 trillion in 2014 • Expenditures span 5 categories • Devices (e.g., PCs, tablets, mobile phones) • Data centers (e.g., servers, storage equipment) • Enterprise (companywide) software • IT Services (e.g., support and consulting services) • Telecommunications (e.g., voice and data services) • If these expenditures do not return value, they will dwindle over time © 2016 John Wiley & Sons, Inc. 5 People and Technology Work Together • Some of the most-used sites focus on Web 2.0 • In Web 2.0, significant content comes from users • • • • Information Sharing User-centered design Interoperability Collaboration • Skilled business managers must balance: • The benefits of introducing new technology • The costs associated with changing the existing behaviors of people in the workplace • Does not require deep technical knowledge • Requires understanding the consequences of the choices made © 2016 John Wiley & Sons, Inc. 6 CTO of @Walmart Labs • What did Jeremy King say in his blog (pg. 4)? • “Every company is a tech company” • Do you believe this is true for most firms, or is Wal-Mart somehow different? Why? • Can you name firms that do not receive key impacts or benefits from technology? © 2016 John Wiley & Sons, Inc. 7 Opportunities and New Strategies from IT • New business opportunities spring up with little warning • Managers must: • Frame the opportunities in an understandable way for business leaders • Evaluate them against business needs and choices • Pursue those that fit into an articulated business strategy. • The quality of available information will impact the quality of their decisions and their implementation • Managers will therefore lead the changes driven by information systems © 2016 John Wiley & Sons, Inc. 8 Competitive Challenges • Competitors spring up—sometimes unexpectedly • General managers are in the best position to • See those threats • Attempt to combat them, using technology as a tool • They need an understanding of • The capabilities of the organization • How those capabilities, together with IS, can • Create competitive advantage • Change the competitive landscape for an entire industry © 2016 John Wiley & Sons, Inc. 9 Managers Need to be Aware of the importance of: • Customer pull • Customers now have power using social media • Entire business models sometimes need to be redesigned • Data-driven decision making • Now available: more data than ever before • From social media • From large data stores in firms • Predictive analytics tools can help with analysis of that data • Securing key assets • A balance is needed • Too little security endangers assets of the firm and its customers • Too much reduces operational convenience © 2016 John Wiley & Sons, Inc. 10 What Happens if Management Doesn’t Participate? • • • • Breakdown in servicing customers Sales decline Damaged reputation Poor spending: • Overspending and excess capacity, or • Underspending and restricted opportunity • Inefficient business processes © 2016 John Wiley & Sons, Inc. 11 Failing to Consider IS Strategy • Leads to: • IS that fail to support business goals (e.g., Victoria’s Secret site overload) • IS that fail to support organizational systems (e.g., workers buying mobile devices but the IT department only supports desktop PCs) • Misalignment between business goals and organizational systems © 2016 John Wiley & Sons, Inc. 12 Skills Managers Need for Their IT Decisions • Visionary role • Structural • • • • • • • • • • Creativity Curiosity Confidence Focus on business solutions • Flexibility • Informational and Interpersonal • • • • Project management Analytical Organizational Planning Leading Controlling Communication Listening Information gathering Interpersonal skills © 2016 John Wiley & Sons, Inc. 13 Upcoming Material 1. Information Systems Strategy Triangle: Alignment of IT and the business 2. Links between IS and business strategy 3. Links between IS and organizational strategy 4. Collaboration and individual work 5. Business processes 6. Architecture and infrastructure 7. Participating in decisions about IS security 8. The business of IS 9. Governance of IS resources 10. Sourcing 11. Project and change management 12. Business intelligence 13. Ethical use of information © 2016 John Wiley & Sons, Inc. 14 Assumptions © 2016 John Wiley & Sons, Inc. 15 Assumptions About Management • Interpersonal • Figurehead • Leader • Liaison • Informational • Decisional • • • • Entrepreneur Disturbance Handler Resource Allocator Negotiator • Monitor • Disseminator • Spokesperson © 2016 John Wiley & Sons, Inc. 16 Assumptions About Business – Functional View © 2016 John Wiley & Sons, Inc. 17 Process View © 2016 John Wiley & Sons, Inc. 18 Assumptions about the Nature of Information • Data – simple observations • Information – data + relevance + purpose • Knowledge – information + context + synthesis + reflection © 2016 John Wiley & Sons, Inc. 19 Data, Information, and Knowledge Data Definition Simple observations of Data endowed with the state of the world relevance and purpose Characteristics • • Example Information Easily structured Easily captured on machines • Often quantified • Easily transferred • Mere facts Daily inventory report of all items • • • Requires unit of analysis Data that have been processed Human mediation necessary Knowledge Information from the human mind (includes reflection, synthesis, context) • Hard to structure • Difficult to capture on machines • Often tacit • Hard to transfer Daily inventory report Report of which items need of items with low levels to be reordered after considering inventory levels, of stock anticipated labor strikes, and a flood affecting a supplier © 2016 John Wiley & Sons, Inc. 20 Characteristics of Information Across Levels Supervisory and Lower-Level Management Short: day to day Top Management Middle Management Time Horizon Long: years Medium: weeks, months, years Level of Detail Highly aggregated Less accurate More predictive Summarized Integrated Often financial Source Primarily external Primarily internal with Internal limited external Decision Extremely judgmental Relatively judgmental Uses creativity and analytical skills © 2016 John Wiley & Sons, Inc. Very detailed Very accurate Often nonfinancial Heavy reliance on rules 21 Economics of Information vs Things Things Information Wear out Doesn’t wear out but can become obsolete or untrue Are replicated at the expense of the manufacturer Is replicated at almost zero cost without limit Exist in a tangible location Does not physically exist When sold, possession changes hands When sold, seller may still possess and sell again Price based on production costs Price based on value to consumer © 2016 John Wiley & Sons, Inc. 22 Internet of Things (IoT) • Combine information and things = IoT • From the 1970s: Coke machine at Carnegie Mellon University • From the 1980s: Elevators that call for service without people knowing there is a problem • Today: • Self-driving cars • Internet-connected (and controllable) thermostats, stoves, alarm systems • Pets that are trackable online • Heart monitors that alert doctors or hospitals of a problem • Digital video recorders that can be controlled around the world • Quad-copters (drones) that can • Record video marked with location data • Return to the point of origin if it goes out of range of the “pilot” • Notify regarding its location and avoid objects in a database © 2016 John Wiley & Sons, Inc. 23 The Term “Information Systems” Composed of: • Technology • People • Processes Information Technology vs Information Systems • The term “IT” tends to be more fashionable • But IT actually refers to just the technology • Many people interchange the terms © 2016 John Wiley & Sons, Inc. 24 Managing and Using Information Systems: A Strategic Approach – Sixth Edition Keri Pearlson, Carol Saunders, and Dennis Galletta © Copyright 2016 John Wiley & Sons, Inc.
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Role of information systems in decision making




The role of this paper is to interpret and fathom the purpose and roles that information systems have
in making decisions in the management sector and to debate and confer the prospects of how managers in
different organizations can be able to make adequate use of information systems. The paper will also briefly
discuss the relevant skills a manager needs to effectively participate in decision making in the information
systems sector.
Role of Information Systems in Decision Making
Progression in the information systems technology over the years has led to the possibilities of
managers being able to implement and make decisions through the wide variety of systems that have al...

Fhcreo_Obhqernh33 (536)
Duke University

Great study resource, helped me a lot.


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