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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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