Information Technology and Control

صفحه 1:
1 Chapter Eight Information Technology and Control Thomson Learning © 2004 

صفحه 2:
Evolution of Organizational Applications of Information Technology TOP 3. Strategic Weapon (strategy, plans, INTERNAL EXTERNAL non-programmed) “Knowledge + Extranets Management + E-Commerce * Intranets * Integrated + Enterprise resourcéénterprise planning 2. Business Resource * Management Information systems * Decision Support Systems + Executive information Operations systems Transaction + Management cont processing systemBalanced Scoré Data warehousing FIRST-LINE (operational ۳ programmed) Thomson Learning © 2004 Direction of Information systems System rd Evolution 8-2 

صفحه 3:
A Simplified Feedback Control Model Thomson Learning © 2004 83 

صفحه 4:
Major Perspectives of the Balanced Scorecard = ferhal Business Processes ps the chain of internal activities and processes add value for customers and shareholders? Examples of measures: Jer-rate [llment, cost-per-order ملا 84 Financial Do actions contribute to improving financial performance? Examples of measures: profits, urn on investment Mission Strategy Goals Learning and Growth le we learning and changing? Examples of measures: continuous process improvement, employee retention, new product introductions © 2004 ‘Customers: How well do we serve our customers? Examples of measures: customer satisfaction, customer loyalty 

صفحه 5:
۳5 Example of ERP Network Thomson Learning © 2004 

صفحه 6:
Two Approaches to Knowledge Management Perso person Develop networks for linking people so that tacit knowledge can be shared Invest moderately in information technology, with a goal of facilitating conversations and the ex- change of tacit knowledge 8-6 Knowledge Management Strategy Technology } omson Learning © 2004 Peopl documents Develop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge technology, with a goal of connecting people with Reusable, codified knowledge Invest heavily in information { Th ‘in Your ite or aging Kw” Harare ness 

صفحه 7:
Electronic Data Interchange for ۳۹ International Transactions Thomson Learning © 2004 

صفحه 8:
Key Characteristics of Traditional vs. Emerging Interorganizational Relationships Relationships Interactive, electronic relationship Electronic ordering, invoicing payments Direct access to manufactufe real-time information exchan Electronic access to produc] information, consumer ratir|g customer service data 8-8 raditional interorganizationdEmerging Interorganizationa| Relationships Arm's-length relationship Use of telephone, mail, som EDI for ordering, invoicing, payments Limited communication ۳1۷ manufacturer Mix of phone response, mai hard copy information Thomson Learning © 2004 1 Suppliers Customers Source: Hated op Chores V Calan gad Bruce A Pasternack, ات ‎‘Second Quarter 1380, 10.1‏ 

Chapter Eight Information Technology and Control Thomson Learning © 2004 8-1 Evolution of Organizational Applications of Information Technology 3. Strategic Weapon TOP (strategy, plans, non-programmed) 2. Business Resource INTERNAL EXTERNAL • Extranets • Knowledge • E-Commerce Management • Integrated • Intranets • Enterprise resourceEnterprise planning • Management Information systems • Decision Support Systems • Executive information 1. Operations systems • Transaction · Management control systems processing systems · Balanced Scorecard • Data warehousing MANAGEMENT LEVEL FIRST-LINE LOW (operational, past, programmed) SYSTEM COMPLEXITY Thomson Learning © 2004 Direction of Information System Evolution HIGH 8-2 A Simplified Feedback Control Model Set Strategic Goals Take Corrective Action as Needed Establish Standards of Performance Measure Actual Performance and Compare to Standards Thomson Learning © 2004 8-3 Major Perspectives of the Balanced Scorecard Financial Do actions contribute to improving financial performance? Customers How well do we serve our customers? Examples of measures: customer satisfaction, customer loyalty Sources: Based on Robert S. Kaplan and David P. Norton, “Using The Balanced Scorecard as a Strategic Management System,” Harvard Business Review, January-February 1996, 71-79; Chee W. Chow, Kamal M. Haddad, and James E. Williamson, “Applying the Balanced Scorecard to Small Companies,” Management Accounting 79, No. 2 (August 1997), 21-27; and Cathy Lazere, “All Together Now,” CFO, February 1998, 28-36. Examples of measures: profits, return on investment Mission Strategy Goals Learning and Growth Are we learning and changing? Examples of measures: continuous process improvement, employee retention, new product introductions Thomson Learning © 2004 Internal Business Processes Does the chain of internal activities and processes add value for customers and shareholders? Examples of measures: order-rate fulfillment, cost-per-order 8-4 Example of ERP Network Financial and Accounting Sales Human Resources Central Database Inventory and Manufacturing Purchasing Distribution Thomson Learning © 2004 8-5 Two Approaches to Knowledge Management Explicit Tacit Provide high-quality, reliable, and fast information systems for access of codified, reusable knowledge Channel individual expertise to provide creative advice on strategic problems People-to-documents Person-to-person Knowledge Management Strategy Develop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge Invest heavily in information technology, with a goal of connecting people with Reusable, codified knowledge Technology Thomson Learning © 2004 Source: Based on Morten T. Hansen, Nitin Nohria, and Thomas Tierney, “What’s Your Strategy for Managing Knowledge?” Harvard Business Review, March-April 1999, 106-116. Develop networks for linking people so that tacit knowledge can be shared Invest moderately in information technology, with a goal of facilitating conversations and the exchange of tacit knowledge 8-6 Electronic Data Interchange for International Transactions Suppliers Manufacturer’s Bank’ Customer’s Bank MANUFACTURER Customer Export Freight Forwarder Import Clearing Agent Export Customs Import Customs Thomson Learning © 2004 8-7 Key Characteristics of Traditional vs. Emerging Interorganizational Relationships Traditional InterorganizationalEmerging Interorganizational Relationships Relationships Arm’s-length relationship Suppliers Customers Interactive, electronic relationship Use of telephone, mail, some EDI for ordering, invoicing, Electronic ordering, invoicing payments payments Direct access to manufacture Limited communication with real-time information exchang manufacturer Electronic access to product Mix of phone response, mail information, consumer rating hard copy information customer service data Thomson Learning © 2004 Source: Based on Charles V. Callahan and Bruce A. Pasternack, “Corporate Strategy in the Digital Age,” Strategy & Business, Issue 15, Second Quarter 1999, 10-14. 8-8