Management Information System (managing the digital firm)


1.
What could account for differences in the uses of information systems in different organizations?
Your Answer:
What could account for differences in the uses of information systems in different organizations?
  Every organization has its own culture and politics. Organizations differ in structure, standard operating procedures, goals, the group served, social roles, leadership styles, incentives, surrounding environments, type of tasks they perform, and management decisions. Thus, each organization is unique and will make use of technology in different ways to express its worldview, and to maintain its competitive advantage.

2.
Discuss the concept of the reciprocal relationship that organizations have with their environments.
Your Answer:
Discuss the concept of the reciprocal relationship that organizations have with their environments.
  Organizations are open to, and dependent on, the social and physical environment that surrounds them. Without financial and human resources – people willing to work reliably and consistently for a set wage or revenue from customers – organizations could not exist. Organizations must respond to legislative and other requirements imposed by governments, as well as the actions of customers and competitors. On the other hand, organizations can influence their environments. They can form alliances with others to influence the political process, and they advertise to influence customer acceptance of their products.

3.
List at least five mediating factors affecting the two-way relationship between organizations and information technology. Which two factors are, in your opinion, least amendable to management influence? Support your answer.
Your Answer:
List at least five mediating factors affecting the two-way relationship between organizations and information technology. Which two factors are, in your opinion, least amendable to management influence? Support your answer.
  The mediating factors are environment, culture, structure, standard procedures, business processes, politics, management decision, and change.

4.
List the five organizational structures and give an example of each.
Your Answer:
List the five organizational structures and give an example of each.
 
  • Entrepreneurial structure – small start-up business
  • Machine bureaucracy – midsized manufacturing firm
  • Divisionalized bureaucracy – Fortune 500 firms such as General Motors
  • Professional bureaucracy – law firms and school systems
  • Adhocracy—consulting firms such as the Rand Corporation

5.
Define Porter's value chain competitive forces models and include in your answer how these models are used by organizations to obtain competitive advantages.
Your Answer:
Define Porter's value chain competitive forces models and include in your answer how these models are used by organizations to obtain competitive advantages.
  Value chain model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems best can be applied to achieve a competitive advantage. Primary activities are those activities that are most directly related to the production and distribution of a firm's products or services. Support activities are activities that make the delivery of a firm's primary activities possible. They consist of the organization's infrastructure, human resources, technology, and procurement. Organizations have competitive advantage when they provide more value to their customers or when they provide the same value to customers at a lower price.

Competitive forces model is used to describe interaction of external influences, specifically threats and opportunities that affect an organization's strategy and ability to compete. Competitive advantages can be achieved by enhancing the firm's ability to deal with customers, suppliers, substitute products and services, and new entrants to its market, which in turn may change the balance of power between a firm and other competitors in the industry in the firm's favor.


Management Information System (managing the digital firm)


1.
Describe five factors to consider when assessing the growing impact of IT in business firms both today and over the next ten years.
Your Answer:
Describe five factors to consider when assessing the growing impact of IT in business firms both today and over the next ten years.
  Five factors include:
  • Internet growth and technology convergence
  • Transformation of the business enterprise
  • Growth of a globally connected economy
  • Growth of knowledge and information-based economies
  • Emergence of the digital firm.

2.
Businesses firms are going through a period whereby they are transforming in order to become digital firms. Discuss how they are using technology in order to do this.
Your Answer:
Businesses firms are going through a period whereby they are transforming in order to become digital firms. Discuss how they are using technology in order to do this.
  A digital firm is one in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Digital firms use the Internet and networking technology to make data flow seamlessly among different parts of the organization; streamline the flow of work; and create electronic links with customers, suppliers, and other organizations.

3.
The emergence and strengthening of the global economy is one of the worldwide changes altering today's business environment. Other than the Internet, how have information systems been part of this trend?
Your Answer:
The emergence and strengthening of the global economy is one of the worldwide changes altering today's business environment. Other than the Internet, how have information systems been part of this trend?
  Companies are distributing core business functions in product design, manufacturing, finance, and customer support to locations and other countries where the work can be performed more cost effectively. Information systems provide the communication and analytic power that firms need to conduct trade and manage business on a global scale.

4.
Discuss the digital firm in terms of the organization's significant business relationships with customers, suppliers, and employees.
Your Answer:
Discuss the digital firm in terms of the organization's significant business relationships with customers, suppliers, and employees.
  In a truly digital firm, all these relationships are digitally enabled and mediated. Key corporate assets are managed through information systems, which mean that any piece of information required to support key business decisions is available anytime, anywhere in the firm. These firms have a near total reliance on a set of information technologies to organize and manage all their assets. Information technology is not simply useful; it is the core of the business and the primary management tool.

5.
An organization coordinates work through a structured hierarchy and formal, standard operating procedures. Define what this means.
Your Answer:
An organization coordinates work through a structured hierarchy and formal, standard operating procedures. Define what this means.
  The hierarchy arranges people in a pyramid structure of rising authority and responsibility. The upper levels of the hierarchy consist of managerial, professional, and technical employees, whereas the lower levels consist of operational personnel. Standard operating procedures are formal rules that have been developed over a long time for accomplishing tasks. These rules guide employees in a variety of procedures, from writing an invoice to responding to customer complaints. Most procedures are formalized and written down, but others are informal work practices that are not formally documented.


Management Information System (managing the digital firm)


1.
Distinguish between decision-support systems and executive support systems
Your Answer:
Distinguish between decision-support systems and executive support systems
  Decision-support systems address problems where a procedure for arriving at the solution may not be fully predefined in advance. They use mostly internal information but can bring in data from external sources. They have more analytical power than other systems. They are interactive and user-friendly.
Executive support systems are not designed primarily to solve specific problems, but to address nonroutine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution. They are designed to incorporate data about external events, and they also draw summary information from internal MIS and DSS. They employ the most advanced graphics software and tend to make less use of analytical models.

2.
What are "business processes"? What purposes do they serve in the firm?
Your Answer:
What are "business processes"? What purposes do they serve in the firm?
  "Business processes" are the manner in which work is organized, coordinated, and focused to produce a valuable product or service. They are concrete workflows of material, information, and knowledge – sets of activities. They also refer to the unique ways in which organizations coordinate work, information, and knowledge, and the ways in which management chooses to coordinate work. They can be a source of competitive strength if they enable the company to innovate better or to execute better than its rivals. They can also be a liability if they are based on out-dated ways of working back in key organizational responsiveness and efficiency. Many business processes support the major functional areas of the firm. Others are cross-functional, cutting across traditional organizational structures, grouping employees from different functional specialties to complete a piece of work.

3.
Describe at least two challenges in using enterprise systems.
Your Answer:
Describe at least two challenges in using enterprise systems.
  First, they are very difficult and costly to build, and require large technology investments as well as fundamental changes in the way the business operates. Second, they require complex pieces of software and large investments in time, money, and expertise. Enterprise software is deeply twined with corporate business processes, and it might take three to five years to fully implement the system. Third, enterprise systems are integrated, so it is difficult to make changes in only one part of the business without affecting other parts as well. This can lead to a brittle and hard-to-change system that will bind the firm to outdated business processes and systems. Fourth, the Company may fail to achieve benefits from enterprise systems if integrating business processes using the generic models provided by standard ERP software prevents the firm from using unique business processes that have been sources of advantage over competitors.

4.
What is the function of a CRM system?
Your Answer:
What is the function of a CRM system?
  Today, businesses are viewing their customers as long-term assets to be nurtured through customer relationship management (CRM). The ideal CRM system provides end-to-end customer care from the receipt of an order through product delivery and beyond, focusing on managing all of the ways that a firm deals with its existing and potential customers. To do this, all information about any specific customer is consolidated across the company.
There are five objectives: present a unified view of the customer, get a consistent message to the customer, care for the customer from one end of the transaction to the other, nurture long-term customer relationships, and identify and reward the best customers.

5.
What is the role of knowledge management systems in the organization?
Your Answer:
What is the role of knowledge management systems in the organization?
  Creating knowledge—these systems provide knowledge workers with graphics, analytical, communication, and document management tools as well as access to internal and external sources of data to help them generate new ideas.

Discovering and codifying knowledge – artificial intelligence systems can elicit and incorporate expertise from human experts or find patterns and relationships in vast quantities of data.

Sharing knowledge – group collaboration systems can help employees access and work simultaneously on the same document from many different locations and coordinate their activities.

Distributing knowledge – office systems and communications tools can distribute documents and other forms of information among information and knowledge workers and link offices to other business units outside and inside the firm.