Management Information Systems Antoine HARFOUCHE PHD Dr

Management Information Systems Antoine HARFOUCHE, PHD

Dr Antoine Harfouche • Ass. Professor at Paris-Nanterre La Defense University. • Ph. D in Information Systems from Paris-Dauphine with collaboration with Georgia State University. • Invited Professor at Indiana University and GSU. • Antoine favors quantitative research approach to study the contextual and cultural issues in IS adoption and ICT 4 D. • He has served as : • Program Chair of ICTO 2016, LCIS 2016, ICTO 2015, Keynote speaker at ITAIS 2014, French session Chair of IBIMA 2010, Track co -Chair of Culture and Tourism at MCIS 2011, Track Co-Chair Digital Divide and E-Government at MCIS 2010, Track Co-Chair of ICT 4 D at MCIS 2014, Keynote speaker at ITAIS 2014 • Reviewer and author for the RAM and JOEUC.

Dr Nancy Pouloudi • Professor in the Department of Management Science and Technology at the Athens University of Economics and Business (AUEB), Greece. • Ph. D in Information Systems from London School of Economics. • Nancy favors an interpretive research approach to the study of organizational and social issues in information systems adoption. • She has acted as Senior Associate Editor of the European Journal of Information Systems and Associate Editor of IT & People and member of the Editorial Boards of Information & Management and the International Journal of Society, Information, Communication and Ethics.

Management Information Systems Context and scope INFORMATION SYSTEMS IN BUSINESS TODAY

Management Information Systems Business and social problems http: //hbr. org/2011/01/the-big-idea-creating-shared-value 5

Complex Social Problems Wicked problem“ describes a problem that is difficult or impossible to solve because of incomplete, contradictory, and changing requirements that are often difficult to recognize. The term "wicked" is used to denote resistance to resolution, rather than evil. Moreover, because of complex interdependencies, the effort to solve one aspect of a wicked problem may reveal or create other problems

Management Information Systems Wicked Problems 7

Management Information Systems Shared value = Social Value + Economical value Solving CS problems through Shared Value offered by ICT • The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. • Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center. 8

Management Information Systems Using IS to create a SV Using ICT to create Shared Value 9

Management Information Systems 10 © Pearson Education 2012

Management Information Systems Social business 11 © Pearson Education 2012

Management Information Systems The aims of this course • The Management Information Systems course aims to understand the evolution of information systems, to explain the strategic role of information systems as a business enabler. • It identifies and explains the impact of information systems applications and emerging technologies on business models and managerial decision making in an exciting and interactive manner. • The course also evaluates the fit between the organization’s strategy and structure, and the information systems architecture and applications. • It interprets the interaction between technologies, employees, managers, customers, processes, data, infrastructure, suppliers, business partners, and environment in a specific organization. • Finally, this course seeks to understand the ethical, security, and privacy challenges of information systems. 12

Technology u u A technology is a process by which inputs are converted to an output. Exp: A computer, a projector, electricity, and software being combined to produce this lecture.

Information Technology allows us to send signals around the world. Examples Internet, television, satellite, GPS, cell phones

IS and IT • IT/ICT refers specifically to technology, essentially hardware, software and telecommunications networks. – Tangible (e. g. servers, PCs, routers, cables), and – Intangible (e. g. software) • IT/ICT facilitates the acquisition, processing, storing, delivery and sharing of information & other digital content. • IS – the means by which people & organizations, utilizing technology, gather, process, store, use & disseminate information (UK Academy of ISs) • Some IS are totally automated by IT. IS ≠ IT

Management Information Systems The Management Information System (MIS) course is composed of • • an introductory session (1. 5 h) 4 lecture sessions (theoretical sessions) (1. 5 h each) 3 tutorial sessions (case study sessions) (3 h each). a concluding session (1. 5 h) • • 16 The ppt of the lecture sessions will be posted on blackboard and on ICTO. info before each session so you can print it before coming to class. For the tutorials sessions, you need to work with your team composed of 5 pacs. You can find your teamwork on blackboard (in the course documents). We will ask you to use this same team for all IS course sessions.

Management Information Systems COURSE CONTENT Tutorial 1 (3 hours) Case study B IT and Geo. Mapping help a Small Business Succeed - Tea Case study A: How Fed. Ex competes globally with IT Tutorial 2 (1 h 30) + 1 h 30 Lab Case study C : Sinosteel Strengthens Business Management with ERP Applications Tutorial 3 (3 hours) Case study D Fresh. Direct uses BI to manage its Online grocery Case study E NBA competing on global delivery

Management Information Systems COURSE CONTENT ASSESSMENT METHODS Cases A and B Teamwork 25% Case C Cases D and E Midterm exam 25% 20 MCQ in one hour Midterm exam 50 % Exam based on a case study

Management Information Systems Session 1 Introduction INFORMATION SYSTEMS IN BUSINESS TODAY Chapters 1 and 3 in the course Text Book

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Learning Objectives • Define an information system and describe its managerial, organizational, and technological components. • Explain why information systems are so essential in business today. • Understand the effects of information systems on business and their relationship to globalization. 20

Management Information Systems Technology is everywhere

Technology is changing companies, society and humains From Putting-Out to factory Putting out Steam engine Factory

From factory to virtual company IS

Management Information Systems Let us define IS • What is an information system (IS)? • What is its impact on organizations? 24

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Perspectives on Information Systems Are More Than Computers 2 1 3

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Perspectives on Information Systems • Technological dimension of 1 information systems 26 – Computer hardware and software – Data management technology – Networking and telecommunications technology • Networks, the Internet, intranets and extranets, World Wide Web – IT infrastructure: provides platform that system is built on

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Technological dimension Perspectives on Information Systems Data and Information Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. 27

Management Information Systems Technological dimension

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY 2 Organizational dimension of the Information Systems • Competitive advantage can not be created just by having the best technology. • People must accept it and used it in a clever and strategic way. 29

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Organizations and Information Systems • Features of organizations • Use of hierarchical structure • Accountability, authority in system of impartial decision making • Adherence to principle of efficiency • Routines and business processes • Organizational politics, culture, environments and structures 30

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY How Information Systems Impact Organizations and Business Firms FLATTENING ORGANIZATIONS Information systems can reduce the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lowerlevel employees more decisionmaking authority. 31

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Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage THE VALUE CHAIN MODEL This figure provides examples of systems for both primary and support activities of a firm and of its value partners that can add a margin of value to a firm’s products or services. 33

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Perspectives on Information Systems The Business Information Value Chain 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. 34

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • Value web: – Collection of independent firms using highly synchronized IT to coordinate value chains to produce product or service collectively – More customer driven, less linear operation than traditional value chain 35

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage THE VALUE WEB The value web is a networked system that can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand. 36

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • Network-based strategies – Take advantage of firm’s abilities to network with each other – Include use of: • Network economics • Virtual company model • Business ecosystems 37

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • Traditional economics: Law of diminishing returns – The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional outputs • Network economics: – Marginal cost of adding new participant almost zero, with much greater marginal gain – Value of community grows with size – Value of software grows as installed customer base grows 38

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY The Role of Information Systems in Business Today Virtual company • In the emerging, fully digital firm – Significant business relationships are digitally enabled and mediated – Core business processes are accomplished through digital networks – Key corporate assets are managed digitally • Digital firms offer greater flexibility in organization and management – Time shifting, space shifting 39

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage – Virtual company uses networks to ally with other companies to create and distribute products without being limited by traditional organizational boundaries or physical locations – E. g. Li & Fung manages production, shipment of garments for major fashion companies, outsourcing all work to over 7, 500 suppliers 40

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Perspectives on Information Systems 3 Management dimension of information systems – Managers set organizational strategy for responding to business challenges – In addition, managers must act creatively: • Creation of new Business models • Occasionally re-creating the organization 41

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • Four generic strategies for dealing with competitive forces, enabled by using IT – Low-cost leadership – Product differentiation – Focus on market niche – Strengthen customer and supplier intimacy 42

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • Low-cost leadership – Produce products and services at a lower price than competitors while enhancing quality and level of service – Examples: Wal-Mart • Product differentiation – Enable new products or services, greatly change customer convenience and experience – Examples: Google, Nike, Apple 43

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • Focus on market niche – Use information systems to enable a focused strategy on a single market niche; specialize – Example: Hilton Hotels • Strengthen customer and supplier intimacy – Use information systems to develop strong ties and loyalty with customers and suppliers; increase switching costs – Example: Netflix, Amazon 44

Management Information Systems CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY Using Information Systems to Achieve Competitive Advantage • The Internet’s impact on competitive advantage – Transformation, destruction, threat to some industries • E. g. travel agency, printed encyclopedia, newspaper – Competitive forces still at work, but rivalry more intense – Universal standards allow new rivals, entrants to market – New opportunities for building brands and loyal customer bases 45

Management Information Systems CONCLUSION

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY The Role of Information Systems in Business Today Information Technology Capital Investment Information technology capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009. 47

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Conclusion • Investing in information technology does not guarantee good returns • Considerable variation in the returns firms receive from systems investments • Factors: – Adopting the right business model – Investing in complementary assets (organizational and management capital) 48 © Pearson Education 2012

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY Perspectives on Information Systems Variation in Returns On Information Technology Investment Although, on average, investments in information technology produce returns far above those returned by other investments, there is considerable variation across firms. 49 © Pearson Education 2012

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY The Role of Information Systems in Business Today • How information systems are transforming business – Increased business use of Web 2. 0 technologies – Cloud computing, mobile digital platform allow more distributed work, decision-making, and collaboration • Globalization opportunities – Internet has drastically reduced costs of operating on global scale – Presents both challenges and opportunities 50 © Pearson Education 2012

Management Information Systems CHAPTER 1: INFORMATION IN BUSINESS SYSTEMS TODAY The Role of Information Systems in Business Today • Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals • Business firms invest heavily in information systems to achieve six strategic business objectives: 1. 2. 3. 4. 5. 6. 51 Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival

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- Websites: www. technologyreview. com - Articles: Carr, N. G. (2003). “ IT Doesn’t Matter”. Harvard Business, Review. 3566, pp. 41– 49. http: //www. roughtype. com/? p=644 Letters to the Editor (2003). “Does IT Matter? An HBR debate”. Harvard Business Review. Web exclusive: www. johnseelybrown. com/Web_Letters. pdf