SMG IS 223 Lecture Notes - Lecture 1: Operational Excellence, Middle Management, Data Management
• Growing interdependence between a firm's ability to use information system and
implement corporate strategies
• Long term goal depends on what its systems can do
• 6 strategic business objectives:
o Operational excellence
o New products, services, and business models
o Customer and supplier intimacy
o Improved decision making
o Competitive advantage
o Survival
What is an information system
• An information system: interrelated components that collect, process, store, and
distribute information to support decision making and control in an organization
o Contain info: on people, places and things within the organization
o Information: data that is shaped to become meaningful and useful
• input→ process→ output
o Input: collect raw data from organization or external environment
o Process: convert to meaningful form
o Output: transfer processed information to people who can use it
o And feedback on output.
Dimensions of IS
• Organization:have a structure that is composed of different levels and specialties.
Division of labor. Senior management: create strategic decisions about products and
services as well as financial performance of the firm. Middle management carries out the
programs and operational management is responsible for monitoring the daily activities
of the business.
o Knowledge workers: engineers, scientists, etc design products and services and
create new knowledge for the firm,
o Data workers: secretaries and clerks assist with scheduling and communications
at all levels of the firm.
o Culture: fundamental set of assumptions, values and ways of doing things that
has been accepted by most of its members
• Management: make sense of out situations faced by organizations, make decisions and
formulate actions plans to solve organizational problems.
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