Managing the Digital Firm

Case Study:
DaimlerChryslers Agile Supply Chain
>Includes Chrysler Group, the Mercedes and Smart Passenger Car

Group, and the Commercial Vehicles Unit. >Operates on 104 plants in 37 countries >Using 14,000 different suppliers >13,000 sales outlets in 200 countries >Known for tough competition and fickle costumers >Survival depends on bringing new models rapidly to market as economically as possible. >An Integrated Volume Planning system-automate and streamline all transactions with suppliers. >A Global Supplier Portal-a common interface and system platform that handles every type of interaction between its suppliers. >A Powerway-replaces the paper base processes with digital links to supplier systems.

Information System

Why information system?

Technology and business innovations that transform global business landscape Internet business culture Business partners that are

fully connected. Internet culture is global

Why information system matter?

1. Capital Management

>wise choices-can out perform competitors

>poor choices-wasting valuable capital

2. Foundation of doing business

>survival and even existence without extensive use of information system is inconceivable. >success depends on the ability to operate globally >digital relationship-adopt well-define digital technologies. >what the organization would like to do depends on what its systems will permit it to do.

The interdependence between organizations and information system

 3.Productivity

Innovations to create new products and make some significant changes in the management.

4.Strategic opportunity and advantage

Short-lived competitive advantages is a foundation for long-term advantages in business.

How much does IT matter?

Information technology and system can be

used to create differentiation from your competitors and it can be used to have strategic advantage in the market place. To measure success in IT investment, it must be accompanied by significant changes in business operations and processes and changes in management culture, attitudes and behavior.

Digital Convergence and the Changing Business Environment

The Changing Contemporary Business Environment

What is Information System?

>can be defined technically as a set of

interrelated components that collect (or retrieve), process, store and distribute information to support decision making and control in an organization. >contains information about significant people, places, and things within the organization and its environment >means data that had been shaped into a form that is meaningful and useful DATA are streams of raw facts representing events occurring in organization

Data and Information

Functions of Information System

Formal information system -computer-based -rely on computer hardware and software technology

A Business Perspective on Information System

-instrument

firm -helps in making better management decisions to cope with governmental regulations or other environmental demands cost of doing business -its primary purpose is to CONTRIBUTE TO CORPORATE VALUE

for creating value for

the

Business Information Value Chain

Information Systems are More than Computers

Dimensions of Information System

ORGANIZATION-the people, structures, business

process, politics and culture MANAGEMENT-make decisions, and formulate action plans to solve organizational problems -must exercise responsible leadership TECHNOLOGY-computer hardware is the physical equipment used for input, processing and output activities in an information system computer software consist of detailed, preprogrammed instructions that control and coordinate computer hardware components

Storage technology includes the physical media for storing data Communication technology links the various pieces of hardware and transfer data from one physical location to another internet an international network of networks both commercial and publicly owned