Information Technology and Control

Information Technology and Control

اسلاید 1: Thomson Learning© 20048-1Chapter EightInformation Technology and Control

اسلاید 2: Thomson Learning© 20048-2Evolution of Organizational Applications of Information Technology1. Operations2. Business Resource3. Strategic Weapon Transaction processing systems Data warehousing Management Information systems Decision Support Systems Executive information systems· Management control systems· Balanced Scorecard Knowledge Management Intranets Enterprise resource planning Extranets E-Commerce Integrated EnterpriseINTERNALEXTERNALLOW SYSTEM COMPLEXITY HIGHDirection of InformationSystemEvolutionMANAGEMENTLEVELTOP(strategy, plans,non-programmed)FIRST-LINE(operational, past,programmed)

اسلاید 3: Thomson Learning© 20048-3A Simplified Feedback Control ModelSet Strategic GoalsMeasure Actual Performance and Compare to StandardsTake Corrective Action as NeededEstablish Standards of Performance

اسلاید 4: Thomson Learning© 20048-4Major Perspectives of the Balanced ScorecardMissionStrategyGoals Internal Business ProcessesDoes the chain of internal activities and processes add value for customers andshareholders?Examples of measures: order-ratefulfillment, cost-per-order FinancialDo actions contribute to improving financial performance? Examples of measures: profits, return on investment Learning and GrowthAre we learning and changing?Examples of measures: continuous process improvement, employee retention, new product introductions CustomersHow well do we serve our customers?Examples of measures: customer satisfaction, customer loyaltySources: Based on Robert S. Kaplan and David P. Norton, “UsingThe 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; andCathy Lazere, “All Together Now,” CFO, February 1998, 28-36.

اسلاید 5: Thomson Learning© 20048-5Example of ERP NetworkCentral DatabaseFinancial andAccountingSalesDistributionPurchasingInventory andManufacturingHuman Resources

اسلاید 6: Thomson Learning© 20048-6Two Approaches to Knowledge ManagementExplicitProvide high-quality, reliable, and fastinformation systems for access of codified, reusable knowledgeTacitChannel individual expertise to provide creative advice on strategic problemsKnowledgeManagementStrategyPeople-to-documentsDevelop an electronic document system thatcodifies, stores,disseminates, and allowsreuse of knowledgeInvest heavily in informationtechnology, with a goal ofconnecting people withReusable, codified knowledgePerson-to-personDevelop networks forlinking people so thattacit knowledge canbe sharedInvest moderately ininformation technology,with a goal of facilitatingconversations and the ex-change of tacit knowledgeTechnologySource: Based on Morten T. Hansen, Nitin Nohria, and Thomas Tierney,“What’s Your Strategy for Managing Knowledge?” Harvard BusinessReview, March-April 1999, 106-116.

اسلاید 7: Thomson Learning© 20048-7Electronic Data Interchange for International TransactionsExport FreightForwarderManufacturer’sBank’ExportCustomsImportCustomsImportClearing AgentCustomerMANUFACTURERCustomer’sBankSuppliers

اسلاید 8: Thomson Learning© 20048-8Key Characteristics of Traditional vs. Emerging Interorganizational RelationshipsTraditional InterorganizationalRelationshipsEmerging InterorganizationalRelationshipsSuppliersCustomersArm’s-length relationshipUse of telephone, mail, someEDI for ordering, invoicing, paymentsDirect access to manufacturer,real-time information exchangeElectronic access to product information, consumer ratings,customer service dataLimited communication withmanufacturerMix of phone response, mailhard copy informationInteractive, electronic relationshipElectronic ordering, invoicing,paymentsSource: Based on Charles V. Callahan and Bruce A. Pasternack,“Corporate Strategy in the Digital Age,” Strategy & Business, Issue 15,Second Quarter 1999, 10-14.