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1、Management Information Systems: Managing the Digital Firm,Xie Jing Email: bmy_,1,Chapter,Managing the Digital Firm,OBJECTIVES,Management Information Systems Chapter 1 Managing the Digital Firm,Explain why information systems are so important today for business and management Evaluate the role of inf
2、ormation systems in todays competitive business environment Assess the impact of the Internet and Internet technology on business and government,Define an information system from both a technical and business perspective and distinguish between computer literacy and information systems literacy Iden
3、tify the major management challenges to building and using information systems,OBJECTIVES (Continued),Management Information Systems Chapter 1 Managing the Digital Firm,Management Information Systems Chapter 1 Managing the Digital Firm,DaimlerChrysler Case,Challenge: 104 plants, 37 countries, 14,000
4、 suppliers Solutions: Integrated Volume Planning System connects demand side of business with suppliers, reducing inventories. Powerway helps 3,400 suppliers track parts and quality, reducing errors. Demonstrates ITs role in operational excellence, better quality products, and agilitytime to market
5、Illustrates the emerging digital firm landscape where information can flow seamlessly among business partners to create a superior customer experience,WHY INFORMATION SYSTEMS?,Management Information Systems Chapter 1 Managing the Digital Firm,Capital management Foundation of doing business Productiv
6、ity Strategic opportunity and advantage,Why Information Systems Matter,There are four reasons why IT makes a difference to the success of a business:,Management Information Systems Chapter 1 Managing the Digital Firm,IT is the largest single component of capital investment in the United States. Abou
7、t $1.8 trillion is spent each year by American businesses. Managers and business students need to know how to invest this capital wisely. The success of your business in the future may well depend on how you make IT investment decisions.,Capital Management:,WHY INFORMATION SYSTEMS?,Management Inform
8、ation Systems Chapter 1 Managing the Digital Firm,Information Technology Capital Investment,Figure 1-1,WHY INFORMATION SYSTEMS?,Source: Based on the data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, Tables 5.2 and 5.8, 2004.,Management Informatio
9、n Systems Chapter 1 Managing the Digital Firm,Most businesses today could not operate without extensive use of information systems and technologies. IT can increase market share. IT can help a business become a high-quality, low-cost producer. IT is vital to the development of new products.,Foundati
10、on of doing business:,WHY INFORMATION SYSTEMS?,Management Information Systems Chapter 1 Managing the Digital Firm,The Interdependence between Organizations and Information Systems,Figure 1-2,WHY INFORMATION SYSTEMS?,Management Information Systems Chapter 1 Managing the Digital Firm,IT is one of the
11、most important tools managers have to increase productivity and efficiency of businesses. According to the Federal Reserve Bank, IT has reduced the rate of inflation by 0.5 to 1% in the last decade. For firms this means IT is a major factor in reducing costs. It is estimated that IT has increased pr
12、oductivity in the economy by about 1% in the last decade. For firms this means IT is a major source of labor and capital efficiency.,WHY INFORMATION SYSTEMS?,Productivity:,Management Information Systems Chapter 1 Managing the Digital Firm,Create competitive advantage: IT makes it possible to develop
13、 competitive advantages. New Business Models: Dell Computer has built its competitive advantage on an IT enabled build-to-order business model that other firms have not been able to imitate.,WHY INFORMATION SYSTEMS?,Strategic Opportunity and Advantage:,Management Information Systems Chapter 1 Managi
14、ng the Digital Firm,Create new services: eBay has developed the largest auction trading platform for millions of individuals and businesses. Competitors have not been able to imitate its success. Differentiate yourself from your competitors: Amazon has become the largest book retailer in the United
15、States on the strength of its huge online inventory and recommender system. It has no rivals in size and scope.,WHY INFORMATION SYSTEMS?,Strategic Opportunity and Advantage:,Management Information Systems Chapter 1 Managing the Digital Firm,Carr has written that whatever advantages firms build using
16、 IT can be easily copied by competitors. This view is not supported by the evidence: Amazon, eBay, Dell, Wal-Mart and Apples iTunes are just a few firms that have built and maintained technology-based advantages.,How Much Does IT Matter?,WHY INFORMATION SYSTEMS?,Management Information Systems Chapter 1 Managing the Digital Firm,Commoditization of technology is typically a spur to innovation and new business models, products and services. Competitive advantage derives not from the
