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1、Chapter 1The Information Age in Which You Live:Changing the Face of BusinessINTRODUCTIONManagement information systems (MIS) helping people perform all tasks related to information processing and management. 3 key resources:PeopleInformationTechnology MIS RESOURCE #1: INFORMATIONInformation is often
2、 aggregated data that has meaning such as average age, youngest and oldest customer, and a histogram of customer agesData raw factsMIS RESOURCE #1: INFORMATIONBusiness intelligence collective information that supports important, strategic decision makingMIS RESOURCE #2: PEOPLEPeople are the most imp
3、ortant resource in any organization, with a focus onTechnology literacy knowing how/when to apply technologyInformation literacy knowing how to use informationEthical responsibilitiesMIS RESOURCE #3: INFORMATION TECHNOLOGYFINANCIAL IMPACT OF INFORMATION TECHNOLOGYIT can definitely impact break-even
4、analysisFixed costs costs you incur even if you dont sell anythingVariable costs costs you incur when you sell something (COGS)Revenue how much you sell one unit forFINANCIAL IMPACT OF INFORMATION TECHNOLOGYReduce Fixed CostsReduce Variable CostsIncrease RevenueRecommendation EnginesLong-Tail Econom
5、icsMany othersINDUSTRY IMPACT OF INFORMATION TECHNOLOGYPorters Five Forces Model helps business people understand the relative attractiveness of an industry and the industrys competitive pressures.Buyer & Supplier PowerBuyer power high when buyers have many choices and low when their choices are few
6、Supplier power high when buyers have few choices and low when choices are manyThe inverse of each otherThreat of Substitute Products and Services and New EntrantsThreat of substitute products and services high when there are many alternatives for buyersThreat of new entrants high when it is easy for
7、 competitors to enter the marketRivalry among existing competitors high when competition is fierceSTRATEGY IMPACT OF INFORMATION TECHNOLOGYPorter identified 3 generic business strategies for beating the competitionOverall cost leadershipDifferentiationFocusSTRATEGY IMPACT OF INFORMATION TECHNOLOGYCo
8、st leadership - offering the same or better quality product or service at a price that is less than what any of the competition is able to do Differentiation - offering a product or service that is perceived as being “unique” in the marketplaceFocus - focusing on offering products or services to a particular segment or buyer group, within a segment of a product line, to a specific geographic market, etc Run-Grow-Transform (RGT) Fra
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