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Week 2 Managing The Digital Firm

The document discusses information systems and their relevance to organizations. It defines an information system as a set of components that collect, process, store, and distribute information to support decision making. Information systems transform raw data into useful information. They can impact organizational design by flattening structures and separating work from location. The emergence of digital firms enabled by electronic commerce, business, and markets is also discussed.

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Afzal Khan
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65 views16 pages

Week 2 Managing The Digital Firm

The document discusses information systems and their relevance to organizations. It defines an information system as a set of components that collect, process, store, and distribute information to support decision making. Information systems transform raw data into useful information. They can impact organizational design by flattening structures and separating work from location. The emergence of digital firms enabled by electronic commerce, business, and markets is also discussed.

Uploaded by

Afzal Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Week 2

MANAGING THE
DIGITAL FIRM

WHY INFORMATION SYSTEMS?

What Is an Information System? Its relevance to MIT?

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization

WHY INFORMATION SYSTEMS?

What Is an Information System?

Data: Streams of raw facts representing


events such as business transactions

Information: Clusters of facts that are


meaningful and useful to human beings in the processes such as making decisions Knowledge?

WHY INFORMATION SYSTEMS?

Activities in an Information System

INPUT

PROCESS

OUTPUT

FEEDBACK

WHY INFORMATION SYSTEMS?

Information Systems & MIT

ORGANIZATIONS

TECHNOLOGY

IT Management

MANAGEMENT

What is the difference between IT and IS? Or is there a difference?

WHY INFORMATION SYSTEMS?

Major Business Functions

Sales and marketing


Manufacturing

Finance
Accounting Human resources

WHY INFORMATION SYSTEMS?

Organizations

Key Elements: People: Managers, knowledge workers,


data workers, production or service workers

Structure: Organization chart , groups of


specialists, products, geography

WHY INFORMATION SYSTEMS?

Organizations

Operating procedures: Standard operating


procedures (SOP, rules for action)

Politics: Power to persuade, get things done


Culture: Customs of behavior

TOWARD THE DIGITAL FIRM

The Interdependence Between Organizations and Information Systems

TOWARD THE DIGITAL FIRM

New Options for Organizational Design

Flattening organizations
Separating work from location

Reorganizing work-flows
Increasing flexibility Redefining organizational boundaries

TOWARD THE DIGITAL FIRM

Flattening Organizations & Information Systems

Figure 1-10

TOWARD THE DIGITAL FIRM

The Digital Firm

Electronic commerce
Electronic business Digital market: Information systems links, buyers and sellers to exchange information, products, services, payments

TOWARD THE DIGITAL FIRM

Electronic Commerce

Internet links buyers, sellers


Lower transaction costs

Goods and services advertised, bought, exchanged worldwide Business-to-business transactions increasing

Constitutional IS

TPS MIS DSS ESS

WHY INFORMATION SYSTEMS?

The Competitive Business Environment and the Emerging Digital Firm

4 Major Systems Defining the Digital Firm Supply chain management systems Customer relationship management systems Enterprise systems Knowledge management systems

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