Week 01 topic 01 information systems in the 2010s

Information Technology for ManagersInformation Technology for Managers POSITIONING IT TO OPTIMISE PERFORMANCE 7 • Characteristics of an agile organisation; • Opportunities created by the

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John von Neumann Institute - Vietnam National University Ho Chi Minh City Information Technology for Managers

BMIT5103

Week 01 - Topic 01

INFORMATION SYSTEMS IN THE 2010s

BMIT5103 Course Information Technology for Managers

Dr Huy Nguyen

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STUDY GUIDE

TOPIC 01

“Information Systems in the 2010s”

• Learning outcomes:

1 Role of IT in optimising performance;

2 Why the business value of IT is determined by people, businessprocesses & organisational culture;

3 Role of IT in BPM & the performance measurement process;

4 Strategic planning process, SWOT analysis & competitive models;

5 How IT impacts your career & the positive outlook for IS managementcareers

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Information Technology for Managers

1 Importance of being an agile enterprise;

2 Capability of IT in improving profitability by enabling ways to connectwith & push content through social networks & mobile devices;

3 Factors which determine the business value of IT & IS;

4 BPM cycle & its challenges;

5 Support of IT in enabling an organisation to respond towards businesspressure;

6 SWOT analysis & strategic planning analysis;

7 Porter’s competitive forces & value chain model;

8 Importance of learning IT

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STUDY GUIDE

TOPIC 01

1 Positioning IT to optimise performance Chapter 1, pp 5 - 8

2 Core concepts of IS & IT Chapter 1, pp 8 - 11

3 Business performance management &

4 Strategic planning & competitive models Chapter 1, pp 16 - 21

5 Why IT is important to your career & IT careers Chapter 1, pp 22 - 24

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AGENDA

• Positioning IT to optimise performance

• Core concepts of IS & IT

• Business performance management & measurement

• Strategic planning & competitive models

• Why IT is important to your career & IT careers

5

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POSITIONING IT TO OPTIMISE PERFORMANCE

7

• Characteristics of an agile organisation;

• Opportunities created by the mass migration of users from PCs to mobile devices;

• Ways to assess the value of an innovation;

• Doing business with a comprehensive business model.

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AGILITY & MOBILITY

• Identify and capture opportunities more quickly than rivals;

• Adapt rapidly because of struggling economic recoveries and advances in mobile technology;

• IT in the hands of customers:

• Adapt to market conditions and gain a competitive edge;

• Mobile market opportunities:

• Connect with public and private networks, to access digital content fromanywhere at any time, and to get work done

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BUSINESS INNOVATION & DISRUPTION OF

THE STATUS QUO

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• Value of innovation:

• Generates new profit pools;

• Increases demand for products and services;

• Attracts new customers;

• Opens new markets;

• Sustains the business for years to come

• Transforms those IT commodities into competitive assets;

• Improve employee performance and profit margins.

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• A comprehensive business model includes:

• Products and services;

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AGENDA

11

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CORE CONCEPTS OF IS & IT

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GENERIC DEFINITION & FOUR BASIC

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MAJOR CAPABILITIES OF IS & SUPPORTED

BUSINESS OBJECTIVES

• Major capabilities:

• Perform high-speed, high-volume, numerical computations;

• Provide fast, accurate communication and collaboration unrestricted by time and location;

• Store huge amounts of information that is accessible via private networks and the Internet;

• Automate semiautomatic business processes and manually done tasks;

• Enable automation of routine decision making and facilitate complex decision making.

• Supported business objectives:

• Improve productivity (productivity is a measurement or the ratio of inputs to outputs);

• Reduce costs and waste;

• Improve the ability to make informed decisions;

• Facilitate collaboration;

• Enhance customer relationships;

• Develop new analytic capabilities;

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AGENDA

17

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BUSINESS PERFORMANCE MANAGEMENT &

MEASUREMENT

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• Definition of performance management & ways to manage

performance;

• Performance management process;

• Business environmental pressures & their impact;

• Organisational responses to pressure & opportunities;

• Green IT to reduce carbon & energy footprints;

• Ethical issues.

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BUSINESS PERFORMANCE MANAGEMENT & MEASUREMENT

DEFINITION OF PERFORMANCE MANAGEMENT

& WAYS TO MANAGE PERFORMANCE

• Requirements to manage performance:

• Measurable;

• Right indicators.

• Performance measurement process:

• Decide on desired performance levels;

• Determine how to attain the performance levels;

• Periodically assess where the organization stands with respect to its goals, objectives, and measures;

• Adjust performance and/or goals.

• Business environmental pressures;

• Impact of business environment factors;

• Green IT to reduce carbon and energy footprints;

• Ethical issues

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BUSINESS PERFORMANCE MANAGEMENT & MEASUREMENT

BUSINESS ENVIRONMENTAL PRESSURES &

THEIR IMPACT

21

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AGENDA

23

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STRATEGIC PLANNING & COMPETITIVE MODELS

• Definition of strategic analysis (SWOT);

• Strategic planning;

• Porter’s competitive forces model & strategies;

• Adaptive & innovative organisations;

• IS & IT failures.

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DEFINITION OF STRATEGIC ANALYSIS (SWOT)

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• Scanning and review of the political, social, economic, and technical environment of the organization;

• Rules to perform a SWOT analysis:

• Be realistic about the strengths and weaknesses of your organization;

• Be realistic about the size of the opportunities and threats;

• Be specific and keep the analysis simple, or as simple as possible;

• Evaluate your company’s strengths and weaknesses in relation to those

of competitors (better than or worse than competitors);

• Expect conflicting views because SWOT is subjective, forward-looking,and based on assumptions

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STRATEGIC PLANNING

• Strategy responds:

• What is the long-term direction of our business?

• What is the overall plan for deploying our resources?

• What trade-offs are necessary? What resources will it need to share?

• What is our position vis-à-vis competitors?

• How do we achieve competitive advantage over rivals in order toachieve or maximize profitability?

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PORTER’S COMPETITIVE FORCES MODEL &

STRATEGIES

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• Basic of Competitive forces model:

• Profit = Total revenue – Total cost

• Profit margin = Selling price – Cost of the item

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PORTER’S VALUE CHAIN MODEL

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ADAPTIVE & INNOVATIVE ORGANISATIONS

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• Value chain => value system => value network;

• Real-time, on-demand IT support;

• Innovation and creativity;

• Information systems failures.

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AGENDA

31

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WHY IT IS IMPORTANT TO YOUR CAREER & IT

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WHY IT IS IMPORTANT TO YOUR CAREER & IT CAREERS

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WHY IT IS IMPORTANT TO YOUR CAREER & IT CAREERS

MANAGEMENT ISSUES

• Recognizing opportunities for using IT and Web-based systems for

strategic advantage and threats associated with not using them;

• Who will build, operate, and maintain the information systems?

• How much IT?

• What social networking activities should be pursued?

• How important is IT?

• Globalization;

• Ethics and social issues.

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- Positioning IT to optimise performance:

• Characteristics of an agile organisation;

• Opportunities created by the mass migration of users from PCs to mobile devices;

• Ways to assess the value of an innovation;

• Doing business with a comprehensive business model.

- Core concepts of IS & IT:

• Generic definition & four basic functions of an IS;

• Components of an IS;

• Major capabilities of IS & supported business objectives.

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STUDY GUIDE

TOPIC 01

• Content summary (cont.):

- Business performance management & measurement:

• Definition of performance management & ways to manage performance;

• Performance management process;

• Business environmental pressures & their impact;

• Organisational responses to pressure & opportunities;

• Green IT to reduce carbon & energy footprints;

• Ethical issues.

- Strategic planning & competitive models:

• Definition of strategic analysis (SWOT);

• Strategic planning;

• Porter’s competitive forces model & strategies;

• Adaptive & innovative organisations;

• IS & IT failures.

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STUDY GUIDE

TOPIC 01

37

• Content summary (cont.):

- Why IT is important to your career & IT careers:

• IT defines & creates businesses & markets;

• IT as a career;

• Earning in the IT field;

• IT job prospects.

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STUDY GUIDE

TOPIC 01

• Study questions:

1 Explain the characteristics of an agile organisation;

2 Describe a business model and give one example;

3 Describe the building blocks of an IS;

4 Describe the impact of the business environment & describe ways for

an organisation to respond;

5 Explain Porters’ five forces model & give an example of each force;

6 Why IT is a major enabler of business performance & success;

7 How mobile technology has influenced opportunities for entrepreneurs;

8 How innovation can lead to profitable growth for businesses;

9 How green IT impacts the bottom line;

10 Why IS might fail

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THANK YOU FOR YOUR ATTENTION !

NEXT TOPIC: IT INFRASTRUCTURE & SUPPORT SYSTEMS

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