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2.mis Chapter Two Application of Is

This document discusses how information systems can support management, organizational strategy, and decision making. It defines strategic, tactical, and operational information and the types of management each supports. Decision making ranges from unstructured to structured as you move down the management levels. Information systems can help with monitoring the external environment, competitors, and a firm's value chain. The roles of managers are discussed along with how information and communication technologies can enable interpersonal, informational, and decisional roles.

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Endash Haile
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38 views37 pages

2.mis Chapter Two Application of Is

This document discusses how information systems can support management, organizational strategy, and decision making. It defines strategic, tactical, and operational information and the types of management each supports. Decision making ranges from unstructured to structured as you move down the management levels. Information systems can help with monitoring the external environment, competitors, and a firm's value chain. The roles of managers are discussed along with how information and communication technologies can enable interpersonal, informational, and decisional roles.

Uploaded by

Endash Haile
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER TWO: APPLICATION OF

IS:
MANAGEMENT, ORGANIZATION AND
STRATEGY
OBJECTIVES

1. Analyse information requirement by level of


management
2. Identify basic competitive strategies and explain
how a business can use IT to confront the
competitive forces faced by a business
3. Identify types and Models of decision making
and the type of information systems available at
each stage
4. Analyse the Roles of managers and the type of
information system to support each role
DIMENSIONS IS

1. A strategic information system is any information


system that uses IT to help an organization…

A. Gain a competitive advantage

B. Or meet other strategic enterprise objectives


DISCUSSION POINTS

1. What is decision making?

2. What are the types of decision making?


THE BEHAVIOURAL: MANAGERIAL ROLES AND IS

 The behavioural model states that the behaviour of managers are


more informal, less systematic, more reactive, less reflective and
less well organized (page 87).

 Managerial roles; are expectations of the activities that managers


should perform in an organization.

 Mintzberg identified ten roles of managers.

 Discussion Point:

1. What are these roles? What ICT can we use to support each role?
1. INTERPERSONAL ROLE

1. Figurehead role:- when a manager represents an organisation


symbolically. Tele-presence systems.

2. Leader role: When a manager motivates and inspires his


subordinates to do their job effectively. Telepresence, social
networks, Twitter.

3. Liaison role: when a manager establishes a network of


connection inside and outside the organisation.

This can be supported by Electronic communication system such


as telephones Smartphones, social networks, email and office
networks
INFORMATIONAL ROLES

1. Monitor: When a manager looks for key information about internal


activity of the organisation and its environment.

 Support systems: transaction processing systems, management information


system and Internet.

2. Disseminator: When a manager passes valuable information along to


others in the unit.

 Support systems : office automation systems and e-mails.

3. Spokesperson: When a manager passes valuable information to those


outside the unit - superiors and persons in the environment.

 support Systems: office automation systems, professional software systems,


workstations and websites.
DECISIONAL ROLES

1. Entrepreneur: when a manager initiates changes and makes


constant improvements within an organisation.
 No support system is available for this role so far.

2. Disturbance handler: when a manager reacts to unanticipated


events.
 No support system is available so far.

3. Resource allocator: when a manager determines which unit should


get which resource.
 Decision Support Systems.

4. Negotiator: when a manager resolves disputes both within the unit


and between the unit and its environment.
 no support system for this role so far.
DECISION MAKING AND IS

 Decision-making :is the process of making choice from many possible


alternative courses of actions.

 FOUR PHASES OF DECISION-MAKING ACTIVITY


1. Intelligence activity: searching the business environment, the
investigation and problem identification activities. (MIS, internet, etc).

2. Design activity: inventing and developing possible courses of actions. It is


possible to use decision support systems.

3. Choice activity: analysing and selecting a course of action from those


available (Decision support systems).

4. Implementation and Review activity: assessing the effect of the


implemented decision in solving the problem. Simple management
reporting system is suitable (MIS).
TYPES OF DECISION MAKING

 Decisions exist in a continuum between structured (programmable)


and unstructured (non-programmable) decisions.

 STRUCTURED (PROGRAMMABLE) DECISIONS:


 are repetitive and routine and can be pre-specified by a set of rules
or decision procedures .

 are usually deterministic, in which the outcome can be known if a


specified sequences of activities (algorithms) are performed.

 the decision procedure specifies the information requirement


before the decision rules are applied.

 can be automated.
UNSTRUCTURED(NONPROGRAMMED) DECISIONS

 When it is difficult to specify in advance the decision


procedures and the information requirement because of the
frequent changes of events in the external environment of the
organisation.

 most non-programmed decisions need the attention of the


higher level management, and they are not easy to be
automated.

SEMI STRUCTURED DECISION


 part of the decision procedures can be pre-specified but the
procedures are not complete enough to arrive to a definite
decision.
TYPES OF DECISIONS AND IS REQUIREMENTS BY MGMT
LEVEL

The decision type changes from unstructured


decision to structured decision as:

 one moves down from strategic management to

 operational management or vice versa.


CATEGORIES OF INFORMATION

i)STRATEGIC INFORMATION (top management): This is


used by senior managers to plan the objectives of
their organization, and to assess whether the
objectives are being met in practice.
 Example is Board of Directors whose duties include to
plan product range , plan expression into new markets
and to establish at least 5-year plan and annual plans
for the corporation.
 Information needed includes highly summarized
information regarding corporation activities to-date
 e.g sales, transactions, Forecasts, awareness of
competitor activities, and awareness of overall
economic climate.
CATEGORIES OF INFORMATION

ii) TACTICAL INFORMATION (middle management): This


is used by middle management to decide how the
resources of the business should be employed and to
monitor how they are being and have been employed.

 Example, Sales Managers whose duties include


ensuring that sales target are met, determining
monthly sales plan, and correcting variances from
plan.

 Examples of information needed -monthly sales


analysis, market conditions, competitors' activity.
CATEGORIES OF INFORMATION

iii)OPERATIONAL INFORMATION (low-level


management): This is used at the lower level
management for daily or hourly running of their
section.
 Users of operational information includes
foremen, sectional heads, sales clerk etc, to
ensure that specific tasks are planned and carried
out properly within the factory or office.

 Information needed includes prices of items ,


customers credit rating , stock availability etc.
FOCUS ON INDIRECT ACTION(GENERAL) ENVIRONT

1. Economic: Opportunities for new ventures based on current or


expected developments,
Extracting data on: inflation, interest rates, GDP, per capita income,
etc. from the databases of public institutions to make strategic
decisions.

2. Political: political stability and instability, the system of


administration; democratic, authoritarian or feudalistic, legal
condition, the court system, etc.

3. Social: Demographic, cultural, social institutions and social


structure.

4. Technological: level of technology attained, knowledge, skill, types


FOCUS ON MICRO ENVIRONMENT

1. Competitors: capability & performance of the organisation by


market, competitors & their market shares, the degree of
competition.

2. Suppliers: Raw material, supplies and other inputs.

3. Regulators: Identifying the institutions that regulate the operation of


a business.

4. Partners: the individuals, organisations and systems that support the


objective of the organisation financially or materially.

 Competitive strategy concepts: A firm can survive and succeed if it


successfully develops strategies to confront five competitive forces
THE VALUE CHAIN AND IS

Leveraging technology in value chain: Value chain


highlights specific activities where
1. Competitive strategies can be applied (porter
1985).
2. Information Systems can have a strategic impact
Discussion Question:
1. What is a value chain?
2. What IS can we use to improve efficiency in the
value chain?
THE VALUE CHAIN AND IS

 Value chain activities can be categorised as:


1. Primary activities- activities that add values to the customer .

2. Support activities: facilitate the accomplishment of the


primary activities.

 The value chain of a firm can be linked to the value chains of


suppliers, customers, and other stakeholders through the value
web.

 A value web is a collection of independent firms who use


information technology to coordinate their value chains to
collectively produce a product or service for a market.
THANK YOU

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