I want to write essay about Management Information System The first paragraph about Management Information System ( introduction)write about MIS for example:what is the MIS ?how it works?The second paragraph about FIGURE 1.7 THE BUSINESS INFORMATION VALUE CHAINI upload itThe third paragraph about FIGURE 1.8 VARIATION IN RETURNS ON INFORMATION TECHNOLOGY INVESTMENTI upload itthe fourth paragraph about FIGURE 3.8 PORTER’S COMPETITIVE FORCES MODELI upload it the fifth paragraph about FIGURE 3.9 THE VALUE CHAIN MODELthe sixth paragraph is conclusion. also I want one sources and APA format.I want around 3 papers.
figure_1.7_the_business_information_value_chain.pdf
figure_1.8_variation_in_returns_on_information_technology_investment.pdf
3.8_porter_s_competitive_forces_model.pdf
3.9_the_value_chain_model.pdf
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28
Part 0ne 0rganizations,
‘..:.,i
Management, and the Networked Enterprise
–
Business Processes
.EE.EF
wwwanasemen’1
Data
Collection
and
Storage
Transformation
into Business
Systems
wwWW
Dissemination
Planning
Coordinating
lnformation Processing Activities
Controiling
Modeling and
Decision
Making
Management Aclivities
Business Value
From a business perspective, information systems are part of a series of value-adding activities for acquiring,
transforming, and distributing information that managers can use to improve decision making, enhance organizational
performance, and, ultimately, increase firm profitability.
to use IT as a solution to challenges generated by the business environment.
You can use this diagram as a starting point for anah.zing any information
srrstem or lnformation svstent problem lrou encounter.
Revieu. the diagranl at the beginning of thls chapter. The cliagram shou.s
horv the San Francisco Giants’ svstems solved the business problem presented b-v the need to generate revenue in a high15. competitive industr5,
These svstems pror.ide a solutior-r that takes advantage of opportnnities
pror,’ided b5r neu’ digital technologv and the Internet. Thev opened up nei,’
channels for selling tickets and interacting r,r,ith custorrrers, optimized ticke.
pricing, and used ne*’tools to anaiyze plaver perfbrmance. These slrstems
^/ere essential in improving the Giants’s overall business performance. Thr
diagram also i1lr-rstrates horv management, technologr., and organizationaelements u.ork together to create the svstems.
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An’areness of the orgauizational and managerial dimensions of informatior.
s-vstems can help us understand urhy some firms achieve better results fro1.
their information systems than others. Studies of returns from lnformatiot
‘
,u
iijmlllirHtr
,IlNtii.
rtl
r ]/illtii,,.,,,,.uLllltiil
Chapter
I
Information Systems In Global BusinessToday
iri.iii:f i.i3
&
*
I
Productivity
(relative to
industry
average)
,s
?i
_qd
‘1.0
^ t–
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25
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lT Capital Stock (relaiive to industry average)
.
.-ough, on average, investrnents in information technology produce returns far above those
-rned by other investments, there is considerable variation across firms.
‘-:: Based on Brynjo fsson and H tt (2000).
rrr-roiogy investments shorr that there is considerable variation in the
,irns firms receive (see Figure 1.8). Some lirms inr.est a great deal and
:ive a great deal (qr”radrant 2); otl-rers invest an equal amount and receirre
returns (quadrant 4). Sti11 other firms invest 1itt1e and receive much
aclrant 1), nrhereas others lnvest little ar-rd receive 1itt1e (quadrant 3).
s suggests that investing in inlormation technolog_r,r cloes not b}, itself
.r.antee good returns. What accollnts for this l,ariation amo11g firms?
ire ansn er lies in the concept of complementar. assets. Information
.tto1og5. lnvestments alone cannot make organizatior-rs and managers
: effective Llnless they are accompanied by sr-rpportir.e rralues, structLrres,
:rehavior patterns in the organtzalton and other complementartr assets.
‘ .ress firms need to change hor’r. ther. do business before thev can reallr.
rhe adr.antages ol neu. infbrmation technologies.
‘ i-ne firms fail to adopt the right business model that suits the ner,r,
rlology, or seek to preserrre an old business model that rs doomed b-. neu.
–ology. For instance, recording labe1 con-rpanies refused to change their
r -isiness mode1, l.hich r,r,as based on phr.sicai music stores for distribur:rther than adopt a ne^, ot-i1ine distribution t’node1. As a result, online
music sales are dominated not b. record companies but br, a technolrirpan-y called Apple Compnter.
omplementary assets are those assets required to derive r.a1ue frorn
-rrary investment (Teece, 19BB). For instance, to reaTtze value frorn
:tobiies requires substantial complemet-rtarv investments in highr,r,avs,
. gasoline stations, repaft facilities, and a 1egal regulatory structure to
: ,indards and control drivers.
29
!r”
3C
Part 0ne
Research indicates that firms that support their technology investments
assets, such as new business models,
with investments in complementary
new business processes, management behavior, organizational culture,
or training, receive superior returns, whereas those firms failing to make
these complementary investments receive less or no returns on their information technology investments (Brynjoifsson, 2003; Brynjolfsson and Hitt,
2000; Laudon, 1974’). These investments in organization and. rnanagement
are also known as organtizational and management capital.
Thble 1.3 lists the major complementary investments that firms need to
make to realize vaiue from their information technologv investments. Some
of this investment involves tangible assets, such as burldings, machinery,
and tools. Hol.ever, the value of investments in information technology
depends to a large extent on complementary investments in management
and organization.
Key organizalional complementary investments are a supportive business culture that values efficiency and effectiveness, an appropriate business mode1, efficient business processes, decentralization of authority,
highI1. distributed decision rights, and a strong information system (iS)
development team.
Important managerial complementary assets ate strong senior
management support for change, incentive systems that monito r ancT rewatd
individual innovation, an emphasis on teamwork and collaboration, training
programs, and a management culture that values flexibility and knowledge.
Important social investments (not made by the firm but by the society at
large, other firms, governments, and other key market actors) are the Internet
0rganizational assets
Supportive organizational culture that values efficiency and effectiveness
Appropriate business model
Efficient business processes
Decentralized authority
Distributed decision-making rights
Strong lS development team
Managerial assets
Strong senior management support for technology investment and change
lncentives for management innovation
Teamwork and collaborative work environments
Training programs to enhance management decision skills
Management culture that values flexibility and knowledge-based decision
making.
Social assets
The lnternet and telecommunications infrastructure
lT-enriched educational programs raising labor force computer literacy
Standards (both government and private sector)
Laws and regulations creating fair, stable market environments
Technology and service firms in adjacent markets to assist implementation
-&tr:-r
lroErr:.4,
Chapter
1
Information Systems in Global BusinessToday
ind the supporting Internet culture, educational systems, network and com-
luting standards, regulations and laws, and the presence of technology and
)ervice firms.
Throughout the book l,e emphasize a framework of anal)rsis that consid_
:rs technology, management, and organizattonaT assets and their interac-ons. Perhaps the single most important theme in the book, reflected in case
, -ridies and exercises, is that managers need
to consider the broader organi.tlon and management dime:-rslons of information SlrStems to understand
-lrrent problems as r,r.e11 as to derive substantlal above-average returns from
eir information technolog__v investments. As Srss rr.ill see thror_rghout the
:rt, firms that can address these related dlmensions of the IT inr.estment
r’e, on average, richlv ren arded.
.
WunT AcADEMIc DIScIPLINES ARE USED
To
STUDY INFORMATION SYSTEMS AND HOW DOES
EACH CONTRIBUTE TO AN UNDERSTANDING OF
INFORMATION SYSTEMS?
lnformation s.vstems is a multidisciplinary fie1d. No single theorl,
rerspectir.e dominates. Figrire 1.9 illustrates the major disciplines that con_
”.rte problems, issues, and solutions in the stndrr of information svstems.
-‘ study of
feneral, the fie1d can be divided into technical and behar.ioral approaches.
-echnical
– : p roaches
,l
l
Behavioral
Approaches
-dy of information systems deals with issues and insiqhts contr buted from technrcal and
oraidiscrplines.
3t
Chapter
3
Information Systems, 0rganlzations, and
a’ -l’::
lB :;; – ;.u
I-,n’-
)ES
ERGIES,
Substitute proclucts
New market enlranls
,
Ls
The
do bettcr
automotivc
rline retail,
3r on earth,
leader witir
the relatr:cl
rch, Goog,kr
Firnr
Competitors
Customots
$uppliers
are deterln porter’s competitive forces model, the strategic position of the firm and its strategies
forces in
four
other
also
by
but
mined not only by competition with rts traditional direct competitors
suppliers.
products,
and
customers,
lhe industry’s environment: new rnarket entrants, substitute
: advantagr:
rers do not,
it ls verv easS’ in the present times fbr a nelt’
rrlsirnization to start a business. The ner,r’entrants Ttave a distinct advan’
fficiently-
tr:llrxed government norms,
anv evelrt,
L
They can consult the historical records on the existing players, analyzt: their weaknesses, and plug those mistakes. They are able to enter the
rrlrrket r,r,,ith innor.,ative and improved products oI selvices. For example,
n,htrn Klnetic came to India, Bajaj was aleadet in the tu’o-r’rrheeler market.
Kirrt:tic figured out that there r,vas aneed for a gearless scooter that could
hr: starled easily and effortlessly, and this is how it captured the market.
roductivitv
Lnslate in
tlt,Jr:.
lrr
te5r achievr:
identify ils
lI youl oA/Ll
ldvantagcsl
mode1.
FrsridtE*t$ a*d Scrvie
rapid advancement in technologSr, the
rSui:gtltule
c,
life-cyc1e of products and even
With
sr:rrrices is becoming shorter. Constant innovation and upgradation can lead
to the manufacturing of substitute products and new improved ways of
rrtnclering services. These substitute products and services are the greatest
tltlcat to an established organizalton. For example, BSNL lras a major player
rn landline telephony. But with the u.idespread use of ce11 phones, providers
sttr:h as Spice and Airtel have taken away a major portion of BSNIIs market
rompetitivr:
Figure 3.i)1.
rs, and tllo
crtance ot ;l
rts. Portet’s
shirre.
*
long durlln to oth(ll’
l and Pepsi
r
0rist*mers
lvith so man)r options avatlahle in the market, the customer has become
it rnajor competitive force. Organtzations cannot take the loyalty of the
r)ustomer lor granted. The customer is alrvays looking for better options.
Organization, therefore, cannot aflord to be complacent. They need to pay
atlention to retaining their customers by being sensltive to therr changing
rlr:rnands.
SerppEi*ns
It
strong(rr,
rrket. Wilh
L)rganizaLtons depend on theil suppliers to provide them rvith right quantit5r
rrt prodr-rcts at the right price and al the right time’ An5r de1a5r in this chain
Strategy
103
104
Part 0ne
Organizations, Management, and the Networked Enterprise
can affect the delivery schedule of products or services. Moreover, as
I:adian .market is pri.ce-sensitive, any sudden increase in the cost of mat
adversely impacts tlte organization- For exampl e, to manufactlte a car, a
is dependent on suppliers for window glasses, t5,res, electrical wires, lights
and 1ocks, and sc’on. A failure to procure any of the pieces, however minute,
due to price or time constraints can throw off the entire production r- _
“vuoa
TheTata Nano was initially priced at one lakh rupees. when the plant had toi
be shifted from west Bengai to Gujarat, suppliers demanded.tttatTata Motors,t
pay raised prices (due to addltional transportation costs) or the suppliers beX
given space inside the Nano plant in Gajarat, where they will charge at the..j
existing rates. If the supplies r4/ere to cost higher, the price of Nano wouldlf
rtave to be increasedbeyond one lakh. This could lead to a loss of image f61
the firm. so Thta Motors had to accede to the demands of the suppliers andX
provide them space within their Gujaratplant for their operations.
1
STM.qTEGTH$ FORML’LATEffi BY
IruF&RMATgffi[N *
Organizations are always facing competitive forces. Tb counter these forces,,$
companies adopt some of the following information-systems-enabledlX
strategies:
r
Low-cost
Leadership
I
I
The organizations need to reduce their operational costs so as to deliver the X
product or service at t]ne most optimum price. Information systems play an i
important role in lmanagingthe operational cost of an organization. For exam- ,j
p1e, Shoppers stop’s uses the J.D. Armstrong (JDA) information system to
3
reduce its operational expenses. JDA has various modules, such as the mer- .l
chandize .ma.nager:nent module that helps shoppers Stop formulate purchase;
orders and decide on the margins at which they buy items from the vendors. The warehouse rnanagernent module enables Shoppers stop to manage,:
stored items in the warehouse. This module also provides aid in transporting the right quantity of item from the warehouse to a partiutlar store. The
auto-replenishment module helps the comparry rnar,age stocks. This module
autornatically orders replenishment as the stock reaches the minimum 1evel,
It is very important to forecast properly so that ll:’e organtzation doesn,t end
up ordering products for which there wi11be no d.ernand in the future. The
Arthurp1anningmodu1eoftheJDAhe1psaccomp1ishthistask’
1
,
Produet BifferentlatEsm
Companies constantly strive to provide their customers with products or services that are different from those available in the market. This creates a
positive attitude towards the brand in the eyes of the consumer. For examp1e, e-commerce sites in India provide the cash-on-delivery (coD) facility
to customers because a certain section of the Indian populaiion is not comfortable purchasing products online using credit cards or internet banking,
The Punjab State Power corporation Limited (pspcl-), the sole power-generation and distribution company inp:unjals, introduced the facility that would
:
Chapter
3
Information Systems, 0rganizations, and Strategy
:,’r;nable subscribers to be their electricity bills online. Customers who would
j^rrr*r” have to wait in long queues, now simply needed to 1og into the PSPCL
instantlY PaY the biil’
website
-rutrt” to
3.3 lists a nurnber of companies that have developed IT:based prodhave found difficult to copy, or alleast a
[ets and services that other firms
long tirtre to coPY’
‘
.Focus;il *i i;nc iUia{l{€t$
ft,,fl,,.,rution systems help organizations record the buying behaviour and
information enables companies to serve customcle:natrrjs of the customers. This
efficient mannel For example, organizations often offer loyalty cards
,rs ir’,
make purchases, that infornation gets
t0 Cpstonters, so that when the customer
,,
in the central database of the organtzation and also on the :n:ragnetic
purchase lhat canlse
,hip u,”r the loyalty card. Orgamzations give points lor each
how organizattons reward 1oya1
acctrrnrrlated andredeemed al alater date. This is
rer:orclocl
loyalty cards to
using the card.
purchase
made
every
points
for
eustolners. The customer collects
gets
five polnts,
customer
lbr exarnple, for a purchase of 1009 of coffee or tea, the
lor a purchase of 2509, the customer gets 15 points, and so on’
Day offer
customt: rs. The Fresh and Ground Stores of Cafd Coffee
,t$tr**:gthsffi
()onr;rapies
ustsr#aE’ ai’!d StiPFIier E*tti*maey
have found it to their advantage to encourage relations between
ffi
and suppliers. e-Commerce co7′{panies like Flipkart al1ou’ custompurchases made
er$ to rtte the suppiiers. Since the companles keep track of all
on their webcustomer
the
viewedby
by tSer i;ustomer, and also of all the items
Otgantzations
dala.
;itc, tltr:y can make -puggestions to cllstomels Lrased on that
n:akc deliberate efforts to involve suppliers in key decisions so that the supplicrs fi:e1 a sense ofbelonging towards tlte otgantzation. For example, cornpanies lili.r: Flat and Volkswagen have a dedicated Internet portal which provides
* platfi-rrm for communication between the suppliers and members of the
oruanization. Fiat shares all the important information relating to technology,
rcrluirt:ment, planning, quality, and compliance standards with the suppliers
nsitrg tlris portal. Similarly suppliers also use this portal to communicate with
orgirnization regarding any queries concerning contracts andbids. Volkswagen
uscs its platform to request for quotations from suppliers, who can also give
fer:cllrack to the Volksu,agen engineers working on product development.
cLrstoprLrrs
.
:.
,
TABI-fi 3.3
: ,
1,:.
1
a
‘.,lmazon; 0ne-click shopping
Amazon holds a patent on one-click shopping that it licenses to other
online retailers.
0nline music: Apple iPod and
The iPod is an integrated handheld player backed up with an online
iTunes
library of over 13 million songs.
Golf club customization: Ping
Customers can select from more than 1 million different golf club options;
a build-to-order system ships their customized clubs within 48 hours.
0nline person-to-person
PayPal enables the transfer of money between individual bank
accounts and between bank accounts and credit card accounts.
payment: PayPal
105
–
E
Chapter
MDM technology have enabled Flipkart to be a
provider of online retail services irlndia.
Re trievecl fiom http :./,/ wq’rv. maasll60. co mr’ ;
ng Efticiency W}ile Reducing Administrative Burdens lor
es: MaaSll60.
3
Information Systems, Organizations, and Strategy
t07
Flipkart’i Retrieved from http: / / content. maas36 0.com/ www /
coatent/cslcs-maas360-mdm-flipkart.pdf; Nair, Radhika P,
‘Flipkart to throw open its logistics arm’eKart’ to deliver packages of competitors”, The Economic Times (2014). Retrieved
lrom http:,” /a:’ticles.economictimes. indiatimes.com/
201 4-02-1
3,/
news/47305247-1 _logistics-arm-payzippy-sachin-bansa1.
CASH $T[JSY &UHSTHONS
J. Do you think Flipkart was in need of MDM technology? How is it adding value to the finn?
Z. How are the employees benefiting from this
technologv? How is the management benefiting
fi”orn the deployrnent of this technology?
3. Discuss the key features of’MDM
as proviclecl by
IBM’s MaaS360.
you think the technoiogy provides any competitive edge to Fiipkart?
4. Do
KEY APPLEEATI&NS OF STffiATEGTC
INFORIUATISN SYSTEMIS
There is no clear-cut distinction between rnanagernent information systems
anci strategic information systems. But when the information systems help
organizatio:ns gain competitive ad.va:ntage, it is said to be using the strategic
irrfbrmation systern. This competitle advantage ca:n be provided in the fo1lowing ways:
Cornpetitive Advantage in Selling
Strategic information systems assist organizations with innovating new
models of the product or service. They also help customers find product
details online, and enable them to make payrnents over the Internet using
clebit cards, credit cards and electronic fund transfers (EFT). The sales teams
can rernain connected to the central dalfuase and know the current status
of the avallfule products. The organtzattons can forecast trends by anaTyzing
the past and current trends using strategic inforrnatton systems. They can
develop electronic kiosks where the customet can get tnforrnation regarding
the products.
Reduclng Costs
Organizations use strategic information systems to reduce costs and increase
revenue. Retail stores use such systems to manage inventory. For example,
Walmart uses the Retail Link software to connect each store to the central
warehouse. Each time a product is so1d, the inforrnation is eiectronicaily sent
to the central database. This helps replenish inventory as soon as the stock
reaches the minimum 1evel. Strategic information systems a …
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