Transcript The Management Framework Company Senior Management

The Management Framework
Company
Senior
Management
Environment
CIO
MIS Director
D.P. Manager
IT
Staff
Users
(Managers
and Staff)
CHALLENGE OF INFO SYSTEMS
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1.28
STRATEGIC: COMPETITIVE & EFFECTIVE
GLOBALIZATION: MULTINATIONAL INFO
INFO ARCHITECTURE: SUPPORT GOALS
INVESTMENT: VALUE OF INFORMATION
RESPONSIBILITY & CONTROL: ETHICS
*
Five Forces To Determine Industry
Profitability
New Entrants
Threat of
New Entrants
Bargaining Power
of Suppliers
Industry
Competitors
Bargaining Power
of Buyers
Suppliers
Buyers
Rivalry Among
Existing Firms
Threat of Substitute
Products or Services
Substitutes
Source: Porter, M., Competitive Advantage, NY: The Free Press, 1985
The Value Chain
Firm Infrastructure
M
A
Human Resources Management
R
G
Technology Development
I
N
Procurement
N
Inbound Operations Outbound
Logistics
Logistics
I
Marketing
& Sales
Service
G
R
A
M
Source: Porter, M., Competitive Advantage, NY: The Free Press, 1985
STRATEGIC QUESTIONS
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Can IT build barriers to entry?
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Can IT build in switching costs?
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Can IT strengthen customer relationships?
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Can IT change the balance of power in supplier relationships?
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Can IT change intra-industry competitive balance?
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Can IT change the basis of competition?
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Can IT generate new products?
Source: Cash, J. I., McFarlan, F. W., McKenney, J. L., and Applegate, L. M., Corporate Information
Systems Management: Text and Cases, Homewood, IL, 1992.
BUSINESS-LEVEL STRATEGY
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2.24
PRODUCT DIFFERENTIATION
FOCUSED DIFFERENTIATION
DATAMINING
SUPPLY CHAIN MANAGEMENT
EFFICIENT CUSTOMER RESPONSE
ENHANCING CORE COMPETENCIES
*
A Framework for Analyzing IT Impact on
Organizations
CONTEXT
External
Environment
• Industry
Structure
• Rate of
Change
• Competitive
Intensity
EXECUTION
Organization
• History
• Current State
• Industry Position Strategy
• Competitive
Benchmarks
Resources
• People/
Leadership
• Technology
• Capital
• Culture
Stimulus for
Change
• Type
• Urgency
• Clarity
• Shared
Understanding
Organization
Structure
ORGANIZATION EFFECTIVENESS
MEASURES
Process
Stakeholder
Results
• Time
• Customer/
Supplier
• Market
Share
• Employee
Satisfaction
• Financial
ROE P/E
• Quality
• Cost
People
• Innovation
Work
Technology
• Shareholder
Satisfaction
Management
Culture
Control
Processes
Competitive Benchmarks
Source: Applegate, L.M., IT-Enabled Business Transformation, Boston: HBS Publishing,
1992
FUNCTIONS OF AN INFORMATION SYSTEM
ENVIRONMENT
Customers
Suppliers
ORGANIZATION
INFORMATION SYSTEM
INPUT
PROCESS
OUTPUT
FEEDBACK
Regulatory
Agencies
1.12
Stockholders
Competitors
THE INFORMATION RESOURCE
INTERNAL &
EXTERNAL DATA
COLLECTION
& STORAGE
COMMUNICATION
DATA
LINKS
TRANSFORMATION
PROCESS
INFORMATION
• Plan
• Control
• Operate
MAJOR TYPES OF SYSTEMS
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2.6
EXECUTIVE SUPPORT SYSTEMS (ESS)
MANAGEMENT INFORMATION SYSTEMS (MIS)
DECISION SUPPORT SYSTEMS (DSS)
KNOWLEDGE WORK SYSTEMS (KWS)
OFFICE AUTOMATION SYSTEMS (OAS)
TRANSACTION PROCESSING SYSTEMS (TPS)
*
INTERRELATIONSHIPS AMONG SYSTEMS
ESS
MIS
DSS
KWS
OAS
TPS
SCADA
2.22
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
GROUPS SERVED
STRATEGIC LEVEL
SENIOR
MANAGERS
MANAGEMENT LEVEL
MIDDLE
MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
LEVEL
2.5
SALES &
MARKETING
OPERATIONAL
MANAGERS
MANUFACTURING
FINANCE
ACCOUNTING
HUMAN
RESOURCES
TPS DATA FOR MIS APPLICATIONS
TPS
Order Processing
MIS
SALES
DATA
System
ORDER FILE
Materials Resource
Planning System
PRODUCTION MASTER FILE
General Ledger
System
ACCOUNTING FILES
2.17
UNIT
PRODUCT
COST
MIS
REPORTS
PRODUCT
CHANGE
DATA
EXPENSE
DATA
MIS FILES
MANAGERS
Phases of IT Assimilation
PHASE 1
Decision to invest
and
project initiation
Stagnation
Block A
PHASE 2
Technology
learning and
adaptation
Narrowly
focused and
not marketed
Stagnation
Block B
PHASE 3
Rationalization
and management
control
Too efficiency
dominated
Source: Cash, J. I., McFarlan, F. W.,
McKenney, J. L., and Applegate, L. M.,
Corporate Information Systems Management:
Text and Cases, Homewood, IL, 1992.
Stagnation
Block C
PHASE 4
Widespread
technology
transfer
Sample IT Architecture
Applications
T
O
O
L
S
Information
Analysis
(e.g., Lotus 123G)
Information
Packaging and
Delivery
Communications
(e.g., Commander EIS)
Conferencing)
(e.g., E-Mail,
Knowledge-Based
Systems
Application
Development
(e.g., Expert System)
(e.g., CASE)
Communications
F
O
U
N
D
A
T
I
O
N
Wide area network
Local area network
Information Management
Client server architecture
DB2 relational database
Data feeds from internal and external sources
Industry
News/IRI
Dow
Jones
External Systems
Sales
Manufacturing
Accounting
Purchasing
Internal Business Operations and Transaction Systems
Source: Applegate, L., Frito-Lay, Inc.: A Strategic Transition (C), Harvard Business School Case #9-190-071, 1990
Logistics
LEARNING OBJECTIVES
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3.2
DESCRIBE CHARACTERISTICS OF
ORGANIZATIONS
RELATE INFO SYSTEMS TO ORGANIZATIONS
COMPARE MODELS DESCRIBING SYSTEM
ORIGINS
*
LEARNING OBJECTIVES
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COMPARE THEORIES OF ORGANIZATIONS
ANALYZE IMPACT OF INFO SYSTEM ON
ORGANIZATION
DESCRIBE IMPLICATIONS OF SYSTEM
DESIGN & IMPLEMENTATION
*
3.3
MANAGEMENT CHALLENGES
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3.4
DIFFICULTIES OF MANAGING CHANGE
ADJUSTING TECHNOLOGY AND
ORGANIZATION FOR OPTIMAL FIT
*
TRANSFORMATION
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1.7
KNOWLEDGE-BASED ECONOMIES
PRODUCTIVITY
NEW PRODUCTS & SERVICES
KNOWLEDGE AS AN ASSET
TIME-BASED COMPETITION
SHORTER PRODUCT LIFE
TURBULENT ENVIRONMENT
LIMITED EMPLOYEE KNOWLEDGE BASE
*
TRANSFORMATION OF
ENTERPRISE
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1.8
FLATTENING
DECENTRALIZATION
FLEXIBILITY
LOCATION INDEPENDENCE
LOW TRANSACTION COSTS
EMPOWERMENT
COLLABORATIVE WORK
*
ORGANIZATIONS & INFORMATION
TECHNOLOGY
ORGANIZATIONS
3.5
MEDIATING FACTORS:
Environment
Culture
Structure
Standard Procedures
Politics
Management Decisions
Chance
INFORMATION
TECHNOLOGY
IMPLEMENTING CHANGE
TASK
RESISTANCE
TECHNOLOGY
PEOPLE
MUTUAL
ADJUST
MENT
STRUCTURE
3.25
Source: Leavitt, Handbook of Organization (1965)
LEARNING OBJECTIVES
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4.2
EVALUATE SCHOOLS OF MANAGEMENT
THINKING
DESCRIBE LEVELS, TYPES, STAGES OF
DECISION MAKING
COMPARE INDIVIDUAL & ORGANIZATIONAL
DECISION MAKING
*
LEARNING OBJECTIVES
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4.3
ASSESS CHANGING MANAGEMENT PROCESS
EXPLAIN HOW INFO SYSTEMS AID
MANAGERS & DECISION MAKING
*
MANAGEMENT CHALLENGES
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4.4
WHAT MANAGERS DO
INTRODUCTION TO DECISION MAKING
INDIVIDUAL MODELS OF DECISION MAKING
HOW INFORMATION TECHNOLOGY HAS
CHANGED MANAGEMENT PROCESS
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ROLE OF MANAGERS
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INTERPERSONAL: Figureheads, leaders, liaison
INFORMATIONAL: Receive & disseminate critical
information
DECISIONAL: Initiate activities, handle
disturbances, allocate resources, negotiate
conflicts
*
3.28
LEVELS OF DECISION MAKING
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4.19
STRATEGIC: Long-term objectives; resources;
policies
MANAGEMENT CONTROL: Monitor use of
resources; performance
KNOWLEDGE-LEVEL: Evaluate potential
innovations; knowledge
OPERATIONAL: How to carry out specific day-today tasks
*
TYPES OF DECISIONS
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4.20
STRUCTURED: Repetitive; routine; definite
procedure;
certainty
SEMISTRUCTURED: One or more factors not
structured; risk
UNSTRUCTURED: Unique; non-routine;
uncertainty; requires judgment
*
INFO SYSTEMS, LEVELS, DECISIONS
ORGANIZATIONAL LEVEL
TYPE OF
DECISION
STRUCTURED
OPERATIONAL
KNOWLEDGE
TPS
OAS
SEMISTRUCTURED
PRODUCTION
COST OVERRUNS
MIS
BUDGET
PREPARATION
PROJECT
SCHEDULING
DSS
KWS
4.21
STRATEGIC
ACCOUNTS
RECEIVABLE
ELECTRONIC
SCHEDULING
UNSTRUCTURED
MANAGEMENT
PRODUCT DESIGN
FACILITY
LOCATION
ESS
NEW PRODUCTS
NEW MARKETS
DECISION SUPPORT SYSTEMS
(DSS)
MANAGEMENT LEVEL COMPUTER SYSTEM
COMBINES DATA, MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED &
UNSTRUCTURED DECISION MAKING
*
DECISION SUPPORT SYSTEM
TPS
USER
INTERFACE
DSS DATA
BASE
EXTERNAL
DATA
DSS SOFTWARE SYSTEM
MODELS
OLAP TOOLS
DATAMINING TOOLS
USER
GROUP DECISION-SUPPORT SYSTEM (GDSS)
INTERACTIVE COMPUTER-BASED SYSTEM
FACILITATES SOLUTION OF UNSTRUCTURED
PROBLEMS BY DECISION MAKERS WORKING
AS GROUP
*
LEARNING OBJECTIVES
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EXPLAIN ORGANIZATIONAL KNOWLEDGE
MANAGEMENT
DESCRIBE USEFUL APPLICATIONS FOR DISTRIBUTING,
CREATING, SHARING KNOWLEDGE
EVALUATE ROLE OF ARTIFICIAL INTELLIGENCE IN
KNOWLEDGE MANAGEMENT
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LEARNING OBJECTIVES
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DEMONSTRATE HOW ORGANIZATIONS USE EXPERT
SYSTEMS, CASE-BASED REASONING TO CAPTURE
KNOWLEDGE
DEMONSTRATE HOW NEURAL NETWORKS & OTHER
TECHNIQUES IMPROVE KNOWLEDGE BASE
*
KNOWLEDGE MANAGEMENT IN THE
ORGANIZATION
KNOWLEDGE MANAGEMENT:
SYSTEMATICALLY & ACTIVELY
MANAGING AND LEVERAGING
STORES OF KNOWLEDGE
IN AN ORGANIZATION
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KNOWLEDGE MANAGEMENT IN THE
ORGANIZATION
KNOWLEDGE MANAGEMENT:
 Office Automation Systems (OAS)
 Knowledge Work Systems (KWS)
 Group Collaboration Systems (GCS)
 Artificial Intelligence Applications (AI)
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CREATE KNOWLEDGE
KNOWLEDGE WORK SYSTEMS:
INFORMATION SYSTEMS THAT AID
KNOWLEDGE WORKERS TO CREATE,
INTEGRATE NEW KNOWLEDGE IN
ORGANIZATION
*
AI
CAPTURE & CODIFY KNOWLEDGE
ARTIFICIAL INTELLIGENCE (AI)
SYSTEMS:
AI: COMPUTER-BASED SYSTEMS WITH
ABILITIES TO LEARN LANGUAGE,
ACCOMPLISH TASKS, USE PERCEPTUAL
APPARATUS, EMULATE HUMAN EXPERTISE &
DECISION MAKING
*
AI
CAPTURE & CODIFY KNOWLEDGE
ARTIFICIAL INTELLIGENCE (AI)
SYSTEMS:
EXPERT SYSTEMS
NEURAL NETS
FUZZY LOGIC
GENETIC ALGORITHMS
INTELLIGENT AGENTS
*
AI
AI FAMILY
ARTIFICIAL
INTELLIGENCE
NATURAL
LANGUAGE
ROBOTICS
PERCEPTIVE
SYSTEMS
EXPERT
SYSTEMS
INTELLIGENT
MACHINES
AI
BUSINESS
INTERESTS IN AI
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PRESERVE EXPERTISE
CREATE KNOWLEDGE BASE
MECHANISM NOT SUBJECT TO FEELINGS, FATIGUE,
WORRY, CRISIS
ELIMINATE ROUTINE / UNSATISFYING JOBS
ENHANCE KNOWLEDGE BASE
*
THE CHANGING MANAGEMENT
PROCESS
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1.23
ENTERPRISE RESOURCE PLANNING (ERP)
ELECTRONIC COMMERCE
ELECTRONIC BUSINESS
ELECTRONIC MARKET
*
LEARNING OBJECTIVES
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10.3
DEMONSTRATE HOW INTERNET TECHNOLOGY
USED FOR INTRA- AND
INTERORGANIZATIONAL ELECTRONIC
BUSINESS
EXAMINE CHALLENGES OF INTERNET TO
BUSINESS
& SOCIETY
*
VIRTUAL ORGANIZATION
MANUFACTURING
DESIGN
COMPANY
COMPANY
SALES & MARKETING
COMPANY
CORE
CO
MPANY
FINANCE COMPANY
1.27
LOGISTICS
COMPANY
CHALLENGES & OPPORTUNITIES
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UNPROVEN BUSINESS MODELS
BUSINESS PROCESS CHANGE REQUIREMENTS
CHANNEL CONFLICTS
TECHNOLOGY HURDLES
LEGAL ISSUES
SECURITY & PRIVACY
*
10.33
GLOBALIZATION
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1.6
MANAGEMENT & CONTROL
COMPETITION IN WORLD MARKETS
GLOBAL WORK GROUPS
GLOBAL DELIVERY SYSTEMS
*
LEARNING OBJECTIVES
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IDENTIFY FACTORS BEHIND BUSINESS
INTERNATIONALIZATION
COMPARE GLOBAL STRATEGIES FOR
DEVELOPING BUSINESS
DEMONSTRATE HOW INFO SYSTEMS
SUPPORT GLOBAL STRATEGIES
*
INTERNATIONAL INFORMATION SYSTEMS
INFRASTRUCTURE
GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES
CORPORATE GLOBAL STRATEGIES
ORGANIZATIONAL STRUCTURE
MANAGEMENT & BUSINESS PROCEDURES
TECHNOLOGICAL PLATFORM
INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE
IT-Enabled Business
Transformation Module
Scope of Change
Function
Organization
InterOrganization
Anticipatory
Stimulus
for
Change
Crisis
Source: Applegate, L.M., IT-Enabled Business Transformation, Boston: HBS Publishing, 1992
“The modern age has a false sense of superiority
because of the great mass of data at its disposal.
The valid criterion of distinction is (not the
quantity of data available but) rather the extent
to which man knows how to form and master
the materials at his command.”