Week 01 topic 01 information systems in the 2010s

Week 01 - Topic 01 INFORMATION SYSTEMS IN THE 2010s BMIT5103 Course Information Technology for Managers Dr Huy Nguyen BMIT5103 John von Neumann Institute - Vietnam National University Ho Chi Minh City Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” • Learning outcomes: Role of IT in optimising performance; Why the business value of IT is determined by people, business processes & organisational culture; Role of IT in BPM & the performance measurement process; Strategic planning process, SWOT analysis & competitive models; How IT impacts your career & the positive outlook for IS management careers Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” • Topics overview: Importance of being an agile enterprise; Capability of IT in improving profitability by enabling ways to connect with & push content through social networks & mobile devices; Factors which determine the business value of IT & IS; BPM cycle & its challenges; Support of IT in enabling an organisation to respond towards business pressure; SWOT analysis & strategic planning analysis; Porter’s competitive forces & value chain model; Importance of learning IT Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” No Focus areas Assigned readings Positioning IT to optimise performance Chapter 1, pp - Core concepts of IS & IT Chapter 1, pp - 11 Business performance management & measurement Chapter 1, pp 12 - 15 Strategic planning & competitive models Chapter 1, pp 16 - 21 Why IT is important to your career & IT careers Chapter 1, pp 22 - 24 Information Technology for Managers BMIT5103 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 Information Technology for Managers BMIT5103 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 Information Technology for Managers BMIT5103 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 Information Technology for Managers BMIT5103 POSITIONING IT TO OPTIMISE PERFORMANCE 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 from anywhere at any time, and to get work done Information Technology for Managers BMIT5103 POSITIONING IT TO OPTIMISE PERFORMANCE BUSINESS INNOVATION & DISRUPTION OF THE STATUS QUO • 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 Information Technology for Managers BMIT5103 POSITIONING IT TO OPTIMISE PERFORMANCE BUSINESS MODELS • Method of doing business by which a company can generate sales revenue and profit to sustain itself; • How the company creates or adds value in terms of the goods or services the company produces; • A comprehensive business model includes: • Products and services; • Business process; • Customers; • Resources; • Supply chain; • Business partners; • Revenue model Information Technology for Managers 10 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS DEFINITION OF STRATEGIC ANALYSIS (SWOT) • • 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 Information Technology for Managers 25 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS 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 we achieve competitive advantage over rivals in order to achieve or maximize profitability? Information Technology for Managers 26 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS • PORTER’S COMPETITIVE FORCES MODEL & STRATEGIES Basic of Competitive forces model: • Profit = Total revenue – Total cost • Profit margin = Selling price – Cost of the item Information Technology for Managers 27 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS PORTER’S VALUE CHAIN MODEL Information Technology for Managers 28 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS ADAPTIVE & INNOVATIVE ORGANISATIONS • • • • Value chain => value system => value network; Real-time, on-demand IT support; Innovation and creativity; Information systems failures Information Technology for Managers 29 BMIT5103 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 Information Technology for Managers 30 BMIT5103 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 Information Technology for Managers 31 BMIT5103 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 Information Technology for Managers 32 BMIT5103 WHY IT IS IMPORTANT TO YOUR CAREER & IT CAREERS IT AS A CAREER • • Nature of IS and IT work; Typical IT careers: • • • • • • CTO; CIO; IT architect; IT manager; IT project manager Careers aligned between business and IT work: • Enterprise architect; • Business architect, data architect… Information Technology for Managers 33 BMIT5103 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 Information Technology for Managers 34 BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” • Content summary: - 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 Information Technology for Managers 35 BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” • 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 Information Technology for Managers 36 BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” • 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 Information Technology for Managers 37 BMIT5103 STUDY GUIDE TOPIC 01 “Information Systems in the 2010s” • Study questions: Explain the characteristics of an agile organisation; Describe a business model and give one example; Describe the building blocks of an IS; Describe the impact of the business environment & describe ways for an organisation to respond; Explain Porters’ five forces model & give an example of each force; Why IT is a major enabler of business performance & success; How mobile technology has influenced opportunities for entrepreneurs; How innovation can lead to profitable growth for businesses; How green IT impacts the bottom line; 10 Why IS might fail Information Technology for Managers 38 BMIT5103 THANK YOU FOR YOUR ATTENTION ! NEXT TOPIC: IT INFRASTRUCTURE & SUPPORT SYSTEMS Information Technology for Managers 39 [...]... social issues Information Technology for Managers 34 BMIT5103 STUDY GUIDE TOPIC 01 Information Systems in the 2010 s” • Content summary: - 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... architect; • Business architect, data architect… Information Technology for Managers 33 BMIT5103 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... - Core concepts of IS & IT: • Generic definition & four basic functions of an IS; • Components of an IS; • Major capabilities of IS & supported business objectives Information Technology for Managers 35 BMIT5103 STUDY GUIDE TOPIC 01 Information Systems in the 2010 s” • Content summary (cont.): - Business performance management & measurement: • • • • • • Definition of performance management & ways to... COMPETITIVE MODELS PORTER’S VALUE CHAIN MODEL Information Technology for Managers 28 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS ADAPTIVE & INNOVATIVE ORGANISATIONS • • • • Value chain => value system => value network; Real-time, on-demand IT support; Innovation and creativity; Information systems failures Information Technology for Managers 29 BMIT5103 AGENDA • Positioning IT to optimise performance... 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... 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 Information Technology for Managers 25 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS STRATEGIC PLANNING • Strategy responds: • • • • • What is the long-term direction of our business? What is the overall plan for deploying... MEASUREMENT BUSINESS ENVIRONMENTAL PRESSURES & THEIR IMPACT Information Technology for Managers 21 BMIT5103 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 Information Technology for Managers 22 BMIT5103 AGENDA • Positioning IT to optimise... Business performance management & measurement • Strategic planning & competitive models • Why IT is important to your career & IT careers Information Technology for Managers 23 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS • Definition of strategic analysis (SWOT); • Strategic planning; • Porter’s competitive forces model & strategies; • Adaptive & innovative organisations; • IS & IT failures Information. .. 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 Information Technology for Managers 20 BMIT5103 BUSINESS PERFORMANCE... advantage over rivals in order to achieve or maximize profitability? Information Technology for Managers 26 BMIT5103 STRATEGIC PLANNING & COMPETITIVE MODELS • PORTER’S COMPETITIVE FORCES MODEL & STRATEGIES Basic of Competitive forces model: • Profit = Total revenue – Total cost • Profit margin = Selling price – Cost of the item Information Technology for Managers 27 BMIT5103 STRATEGIC PLANNING & COMPETITIVE