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Summary Management Information Systems 15th Edition (chapter 1, 2, 3 and 4)

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Detailed summary of the book "Management Information Systems" 15th Edition, chapter 1 to 4.

Voorbeeld 3 van de 28  pagina's

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  • Chapter 1, 2, 3, 4
  • 30 september 2019
  • 28
  • 2018/2019
  • Samenvatting
  • mis
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Summary MIS book semester 1 2018: part one: Organizations, Management, and the
Networked Enterprise

Chapter 1: Information Systems in Global Business Today
Friendly society: between true company and charity  receives both government support and
corporate sponsorship money, but must maximize revenues.

1-1: How are information systems transforming global business, and why are they so essential for
running and managing a business today?
Information systems & technology are transforming the global business environment. Global
investment in information technology has expanded 30 percent in period 2005-2015 (America +
Europe account for an estimated 70 percent of this investment)

How Information Systems Are Transforming Business
Changes in technology and new, innovative business models have transformed social life and
business practices.
Business are using information technology to sense and respond to rapidly changing customer
demand, reduce inventories (=inventarissen) to the lowest possible levels, and achieve higher
levels of operational efficiency.

What’s New in Management Information Systems
5 changes are of paramount (=grootste belang) importance.
1) IT Innovations. Continuing stream of information technology innovations is transforming
the traditional business world, (f.e. cloud computing, big data, use of social networks by
managers to achieve business objectives).
These innovations are enabling entrepreneurs (=ondernemers) and innovative traditional
firms to create new products and services, develop new business models and transform
the day-to-day conduct (=dagelijks gedrag) of business.
2) New Business Models. Netflix, Apple Itunes, Amazon etc.
Netflix: “Internet TV”  challenging cable and broadcast producers of TV shows.
3) E-commerce Expanding. YouTube, Netflix, Twitter are the new face of e-commerce. E-
commerce is changing how firms design, produce and deliver their products and services.
The traditional marketing and advertising industry have been disrupted. Especially services
have grown in the e-commerce world. Growth in social commerce is spurred by powerful
growth of the mobile platform. Information systems and technologies are the foundation
of this new services-based e-commerce.
4) Management Changes. New mobile smartphones, high-speed Wi-Fi, tablets, remote
salespeople on the road  only seconds away from their managers’ questions and
oversight. Enterprise-wide information systems  managers no longer operate in a fog of
confusion but instead have online, nearly instant access to important information they
need for accurate and timely decisions. Wikis and blogs are becoming important corporate
tools for communication, collaboration and information sharing.
5) Changes in Firms and Organizations. New business firms put less emphasis on hierarchy
and structure and more emphasis on employees taking on multiple roles and tasks and
collaborating with others on a team (more emphasis on competency & skills rather than
position in hierarchy). Some characteristics:
- competency & skills
- higher speed
- more accurate decision making, based on data and analysis.

,2

- greater willingness to listen to consumers (using social media).
- better understanding of importance of information technology (creating and
managing business firms and other organizations).
 A lot of managers rely on the mobile digital platform to coordinate suppliers &
shipments, satisfy customers, and manage their employees.

Globalization Challenges and Opportunities: A Flattened World
“Flat”: Internet and global communications have greatly reduced the economic and cultural
advantages of developed countries  globalization presents both challenges and opportunities for
business firms.
A lot of manufacturing (fabricerende) jobs have been reduced due to automated factories and
enterprise information systems (wages in the tech sector are rising at 5 percent annually).

The Emerging Digital Firm
All changes (globalization)  fully digital firm: nearly all organization’s significant business
relationships with customers, suppliers, and employees are digitally enabled and mediated
(bemiddeld). Core business processes are accomplished through digital networks spanning the
entire organization or linking multiple organizations.
Business processes: set of logically related tasks and behaviors that organizations develop over
time to produce specific business results and the unique manner in which these activities are
organized and coordinated  competitive strength.
Digital firms: use both time shifting (referring to business being conducted continuously, 24/7
rather than “work days” 09:00-17:00) and space shifting (work takes place in a global workshop as
well as within national boundaries, accomplished physically wherever in the world it is best
accomplished).

Strategic Business Objectives of information Systems
A lot of companies rely on information systems to conduct business.

A growing interdependence between a
firm’s ability to use information
technology and its ability to implement
corporate strategies and achieve
corporate goals  see picture:
interdependence between organizations
and information systems.
Increasing market share,
high-quality/low-cost producing,
developing new products and increasing
employee productivity depend more
often on the kinds and quality of information systems.

Six business objectives to achieve using and investing in information systems:
1) Operational excellence
Greater excellence (higher level of efficiency and productivity)  higher profitability.

2) New Products, Services, and Business Models
Business model: describes how a company produces, delivers and sells a product or service
to create wealth (rijkdom). For example Apple (tapes & CDs  online iPod technology)

, 3

3) Customer and Supplier Intimacy
Knowing your customers (preferences  individualized marketing campaigns) and
suppliers  more purchasing and better vital inputs.

4) Improved Decision Making
Real-time data  informed decisions: for example individual employee information
(performance rating and compensation history)  managers review employee
performance ratings  can make faster human resource decisions (transfer/promotion).

5) Competitive Advantage
One/more of the six business objectives achieved (charging less for superior products and
responding to customers and suppliers in real time) competitive advantage (higher sales
and profits).

6) Survival
For example, an ATM, banks need this in order to survive in the retail banking business.
Information retention (behoud)  recording management requirements.

1-2: What is an information system? How does it work? What are its management, organization,
and technology components? Why are complementary (combining  emphasize quality) assets
essential for ensuring that information systems provide genuine value for organizations?
Information technology (IT): all hardware and software that a firm needs to use in order to
achieve its (six) business objectives. Not only machines, computers, mobile devices etc. but also
software (Windows f.e.). Can be best understood by looking from both technology and business
perspective.

What Is an Information System?
Information system: set of interrelated (samenhangende) components that collect/retrieve
processes, store, and distribute information to support decision making (analyse problems,
visualize complex subjects, and create new products) and control in an organization.
Data (streams of raw facts, random) 
information (data that has been
shaped into a meaningful and useful
form), see picture.
Input (captures/collects raw data) 
processing (converts raw input into a
meaningful form)  output (transfers
processed information to people who
will use it).
Feedback: output  returned to
appropriate members of the
organization to evaluate/correct input
stage.

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