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Management Information Systems

Notes 1.5.3 Approach of this Text – Socio-technical Systems

MIS combined the theoretical work of computer science, management science, and operations
research with a practical orientation toward building systems and applications. Technology
must be changed and designed in such way as to fit organizational and individual needs. At
times, the technology may have to be “de-optimized” to accomplish this fit.

Self Assessment

Fill in the blanks:
12. The ................................ approach to information systems emphasizes mathematically based
models to study information systems, a well as the physical technology and formal
capabilities of these systems.
13. The ................................ approach takes into account the very nature of human beings.

1.6 Management Challenges

Is this new technology worth the headaches and heartaches associated with all the problems that
can and will arise? Yes. The opportunities for success are endless. The new technologies do offer
solutions to age-old problems. Improvements are possible to the way you operate and do
business.

1.6.1 The Strategic Business Challenge

Companies spend thousands of dollars on hardware and software, only to find that most of the
technology actually goes unused. “How can that be?” you ask. Usually because they didn’t pay
attention to the full integration of the technology into the organization. Merely buying the
technology without exploiting the new opportunities it offers for doing business smarter and
better doesn’t accomplish much. Think and rethink everything you do and figure out how you
can do it better. Change is inevitable, and information must be managed just as you would any
other resource.
Creating a digital firm and obtaining benefit is a long and difficult journey for most organizations.
Despite heavy information technology investments, many organizations are not realizing
significant business value from their business systems, nor or they become digitally enabled.
The power of computer hardware and software has grown much more rapidly than the ability
of organizations to apply and to use this technology. To fully benefit form information
technology, realize genuine productivity, and take advantage of digital firm capabilities, many
organizations actually need to be redesigned. They will have to make fundamental changes in
organizational behavior, develop new business models and eliminate the inefficiencies of
outmoded organizational structures. If organizations merely automate what they are doing
today, they are largely missing the potential of information technology.

1.6.2 The Globalization Challenge

The world becomes smaller every day. Competition increases among countries as well as
companies. A good Management Information System meets both domestic and foreign
opportunities and challenges. The rapid growth in international trade and the emergence of a
global economy call for information systems that can support both producing and selling goods
in many different countries. In the past, each regional office of a multinational corporation
focused on solving its own unique information problems. Given language, cultural and political

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