Bài giảng Management information systems - Chapter 1: The Information Age in Which You Live: Changing the Face of Business

Chapter 1The Information Age in Which You Live:Changing the Face of BusinessINTRODUCTIONManagement information systems (MIS) – helping people perform all tasks related to information processing and management. 3 key resources:PeopleInformationTechnology MIS RESOURCE #1: INFORMATIONInformation is often aggregated data that has meaning such as average age, youngest and oldest customer, and a histogram of customer agesData – raw factsMIS RESOURCE #1: INFORMATIONBusiness intelligence – collective information that supports important, strategic decision makingMIS RESOURCE #2: PEOPLEPeople are the most important resource in any organization, with a focus onTechnology literacy – knowing how/when to apply technologyInformation literacy – knowing how to use informationEthical responsibilitiesMIS RESOURCE #3: INFORMATION TECHNOLOGYFINANCIAL IMPACT OF INFORMATION TECHNOLOGYIT can definitely impact break-even analysisFixed costs – costs you incur even if you don’t sell anythingVariable costs – costs you incur when you sell something (COGS)Revenue – how much you sell one unit forFINANCIAL IMPACT OF INFORMATION TECHNOLOGYReduce Fixed CostsReduce Variable CostsIncrease RevenueRecommendation EnginesLong-Tail EconomicsMany othersINDUSTRY IMPACT OF INFORMATION TECHNOLOGYPorter’s Five Forces Model helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures.Buyer & Supplier PowerBuyer power – high when buyers have many choices and low when their choices are fewSupplier power – high when buyers have few choices and low when choices are manyThe inverse of each otherThreat of Substitute Products and Services and New EntrantsThreat of substitute products and services – high when there are many alternatives for buyersThreat of new entrants – high when it is easy for competitors to enter the marketRivalry among existing competitors – high when competition is fierceSTRATEGY IMPACT OF INFORMATION TECHNOLOGYPorter identified 3 generic business strategies for beating the competitionOverall cost leadershipDifferentiationFocusSTRATEGY IMPACT OF INFORMATION TECHNOLOGYCost leadership - offering the same or better quality product or service at a price that is less than what any of the competition is able to do Differentiation - offering a product or service that is perceived as being “unique” in the marketplaceFocus - focusing on offering products or services to a particular segment or buyer group, within a segment of a product line, to a specific geographic market, etc Run-Grow-Transform (RGT) FrameworkRun-grow-transform (RGT) framework – the allocation in terms of percentages of IT dollars on various types of business strategies