information System & data processing

7/29/2019 information System & data processing

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Information SystemsManaging the Digital Firm

Information Systems

& Data Processing


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An intro to digital firm

The growth of the internet, the globalization oftrade, and the rise of information economies haverecast the role of information systems (IS) inbusiness and management.

Internet technology is supplying the foundationfor new business models, new businessprocesses, and new ways of distributingknowledge.

Companies are using internet technology to drivetheir businesses. Companies are relying oninternet and networking technology to conductmore of their work electronically, seamlesslylinking factories, offices, and sales forces aroundthe globe.


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An intro to digital firm (contd.)

Leading-edge firms, such as Cisco Systems, DellComputers, and Procter & Gamble, are extendingthese networks to suppliers, customers, andother groups outside the organization so they canreact instantly to customer demands and market

shifts.

Cisco Systems corporate managers can use IS togenerate financial statements based on up-to-theminute figures on orders, discounts, revenue,

product margins, and staffing expenses.

Executives can constantly analyze performanceat all levels of the organization. This digitalintegration is changing how we organize and

manage a business firm.


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f i S


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4. Determine business value of information

systems

5. Design systems people can control,understand and use in a socially, ethically

responsible manner

MANAGEMENT CHALLENGES


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I f ti S t


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WHY INFORMATION SYSTEMS?

Emergence of the Global Economy

Management and control in a global

marketplace

Competition in world markets

Global work groups

Global delivery systems

The Competitive Business Environment and the Emerging Digital Firm


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I f ti S t


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Transformation of Industrial Economies

Time-based competition

Shorter product life

Turbulent environment

Limited employee knowledge base

The Competitive Business Environment and the Emerging Digital Firm

I f ti S t


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Figure 1-1

Labor Force Composition 1900-2000


0%

10%

20%

30%

40%

50%

60%

70%

1900 1910 1920 1930 1940 1950

Labor Force Composition 1900-2000

1960 1970 1980 1997 2000

Year


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Information Systems


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Data: Streams of raw facts representingevents such as business transactions

Information: Clusters of facts that aremeaningful and useful to human beings in

the processes such as making decisions

What Is an Information System?


Information Systems


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Figure 1-2

Data and Information


What Is an Information System?

Information Systems


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INPUT OUTPUTPROCESS

FEEDBACK

Activities in an Information System



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Information Systems


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Our interest will remain limited to

formal, organizational computer-

based information systems (CBIS)


Information Systems


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Rely on computer hardware and

software

Processing and disseminatinginformation

Computer-Based Information System (CBIS)



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Information Systems


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An organizational and management

solution based on information

technology to a challenge posed by the

environment An important instrument for creating

value for the organization

Stages in the business information

value chain add value to information

A Business Perspective on Information Systems


Information Systems


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Business Processes

Information Processing Activities

Business Value

Management Activities

SupplyChainManagement

EnterpriseManagement

CustomerManagement

KnowledgeManagement

DataCollectionandStorage

TransformationIntoBusinessSystems

Dissemination

Planning Coordinating Controlling Modeling andDecision Making

FirmProfitability

andStrategic

Position

Figure 1-4



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Information Systems


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yManaging the Digital Firm

Sales and marketing

Manufacturing and production

Finance

Accounting

Human resources

Major Business Functions



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Information Systems


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Key Elements:

People: Managers, knowledge workers,data workers, production or service

workers

Structure: Organization chart , groups of

specialists, products, geography

Organizations


Information Systems


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Operating procedures: Standard operatingprocedures (SOP, rules for action)

Politics: Different levels and specialties in an orgcreate different interests and viewpoints. These viewsoften conflict. Conflict is the basis for org politics.

Culture: Each org has a unique culture, or

fundamental set of assumptions, values, and ways ofdoing things, that has been accepted by most of itsmembers.

Organizations


Information Systems


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Levels:

Senior managers: make long-rangestrategic decisions about products and

services people occupying the top mosthierarchy in an org.

Middle managers: Carry out the programsand plans of senior management- middle of

org hierarchy.

Operational managers:monitor the firmsdaily activities.

Management


Information Systems


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Tools managers use to cope with change

Hardware: Physical equipment

Software: Detailed preprogrammedinstructions

Storage: Physical media forstoring data and the software

Computer Technology


Information Systems


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Communications Technology:transfers data from one physical location

to another

Networks:link computers to share dataor resources

Computer Technology


Information Systems


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Managing the Digital Firm

CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

Figure 1-6

TechnicalApproaches

BehavioralApproaches

ManagementScience

OperationsResearch

Sociology

Economics

ComputerScience

Psychology

Information Systems


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Optimize systems performance:

Technology and organization

Organizations mutually adjust to oneanother until fit is satisfactory

Socio-Technical Systems


Information Systems


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SOURCE: Liker, et al, 1987

Figure 1-7

Socio-technical Systems


Information Systems


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TOWARD THE DIGITAL FIRM

The Interdependence Between Organizations and Information Systems

Figure 1-8

Information Systems


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1950s: Technical changes

1960s-70s: Managerial controls

1980s-90s: Institutional core activities

Today: Digital information webs

extending beyond the enterprise


The Widening Scope of Information Systems

Information Systems


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Figure 1-9


The Widening Scope of Information Systems

Information SystemsM i h Di i l Fi


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International network of networks

Universal technology platform: Any

computer can communicate with any othercomputer

World Wide Web and Web sites


The Internet

Information SystemsM i th Di it l Fi


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Communicate and collaborate

Access information

Participate in discussions

Supply information

Find entertainment

Exchange business transactions


What You Can Do on the Internet?



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Flattening organizations

Separating work from location

Reorganizing work-flows

Increasing flexibility

Redefining organizational boundaries


New Options for Organizational Design



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Figure 1-10


Flattening Organizations & Information Systems



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Figure 1-11

Redesigned Work Flow For Insurance Underwriting




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Electronic commerce

Electronic business

Digital market: Information systems links,

buyers and sellers to exchange

information, products, services, payments


The Digital Firm



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CustomersOn-line marketingOn-line salesBuilt-to-order productsCustomer serviceSales force automation

SuppliersProcurementSupply chain management

Business partnersJoint designOutsourcing

Remote offices and work groupsCommunicate plans and policiesGroup collaborationElectronic communicationScheduling

FactoriesJust-in-time productionContinuous inventory

replenishment

Production planning

ELECTRONIC BUSINESS

Electronic Commerce

THE EMERGING DIGITAL FIRM

Figure 1-12



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Internet links buyers, sellers

Lower transaction costs

Goods and services advertised, bought,exchanged worldwide

Business-to-business transactionsincreasing


Electronic Commerce



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Electronic Business: Executing all thefirms business processes with Internettechnology

Intranet: Business builds private, securenetwork based on Internet technology

Extranet: Extension of intranet toauthorized external users

Electronic Business




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Information Architecture and Information Technology Infrastructure


Documents

information System & data processing