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Unit 1: Management Information Systems
differences among countries, this focus frequently resulted in chaos and the failure of central Notes
management controls. To develop integrated, multinational, information systems, businesses
must develop global hardware, software and communication standards; create cross-cultural
accounting and reporting structures; and design transnational business processes.
1.6.3 The Information Architecture Challenge
You have to decide what business you are in, what your core competencies are, and what the
organization’s goals are. Those decisions drive the technology, instead of the technology driving
the rest of the company. Purchasing new hardware involves more than taking the machine out
of the box and setting it on someone’s desk. Remember the triangle of hardware, software, and
persware. Take care of the people and they will take care of the rest! Information architecture
describes how to incorporate technology into the mainstream processes in which the business is
involved. How will the new Information System support getting the product produced and
shipped? How will Advertising and Marketing know when to launch ad campaigns? How will
Accounting know when to expect payment?
Many companies are saddled with expensive and unwieldy information technology platforms
that cannot adapt to innovation and change. Their information systems are so complex and
brittle that they act as constraints on business strategy and execution.
Notes Meeting new business and technology challenges may require redesigning the
organization and building new information architecture and information technology
infrastructure.
Did u know? What is IT Architecture?
A conceptual design for the execution of information technology in an organization,
together with its hardware, software, and network technology platforms, data resources,
application portfolio, and IS organization.
1.6.4 The Information Systems Investment Challenge
Too often managers look at their technological investments in terms of the cost of new hardware
or software. They overlook the costs associated with the non-technical side of technology. Is
productivity up or down? What is the cost of lost sales opportunities and lost customer confidence
from a poorly managed E-Business Web site? How do you determine if your Management
Information System is worth it?
A major problem raised by the development of powerful, inexpensive computers involves not
technology but management and organizations. It’s one thing to use information technology to
design, produce, deliver and maintain new products. It’s another thing to make money doing it.
How can organizations obtain a sizeable payoff from their investments in information systems?
How can management make sure that the management information systems contribute to
corporate value?
1.6.5 The Responsibility and Control Challenge
Remember, humans should drive the technology, not the other way around. Too often we find
it easier to blame the computer for messing up than to realize it’s only doing what a human
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