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Foundations of Information Systems
Prof. Dr. Yang DehuaSchool of Economics and Manag
ementTongji University
Outlines Foundations of Information Systems
Information Technologies and Systems Business Processes Business Process Reengineering Business Continuity Management Information Systems for Management Information Systems for Strategic Advantages New Economy
Information Technologies and Systems
Information Technology Hardware Software Networks Data Processing
Information SystemAny organized combination of people, hardware, s
oftware, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.
Information Technologies and Systems Essential Issues of Using IT for Organiz
ations’ Success: People Information Technology Information
Information Technologies and Systems Business Success Factors:
Business Success
Information Technology
Information
People
Information Technologies and Systems
The Enterprise as A System
Raw Material
Manufacturing Process
Products
Control
Feedback Feedback
Control Control
Environment/Other Systems
System Boundary
Information Technologies and Systems The Enterprise as A System
Value added processes Costs and values Impact factors Environment
Information Technologies and Systems
Corporate/businessstrategy
Informationstrategy
Cultural and contextual issues
Processes
Inputs(costs)
Outputs(value)
Corporateenvironment
Information Technologies and Systems IS Components
Control of System Performanc
e
Processing Data into Infor
mation
Input of Data
Output of Data
Storage of Data
People Resources
Software Resources
Network Resources
Hardware Resources
Data Resources
Information Technologies and Systems Information System Activities
Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance
Information Technologies and Systems Information Systems Development
Data Management
Information Management
Knowledge Management
Data extraction Data filtering
Data warehousing Data mining
Transaction Processing
Decision support
Information Value Low High
Integration
High
Business Processes Porter Value Chain
Primary Processes Support Processes
Inter-Organizational Business Processes
Business Process Model Value Chains
Supplier Power
New Entrants
Firm Infrastructure(3.1%)
Human Resource Management(7.1%)
Technology Development(4.2%)
Procurement of Resources(27%)
Inbound Logistics
(5.2%)
Productions and Services
(40.3%)
Outbound Logistics
(6.6%)
Marketing and Sales
(4.3%)
Customer Service
(2.2%)
Support Processes
Primary Processes
Threats of Substitutes
Buyer Power
Business Process Support IS Support of Primary Business Proces
ses
Inbound Logistics
Production/ Operation
Outbound Logistics
Marketing & Sales
Cusomer Service
ERP ERPERP CRMSCM
Business Supply Chain Up-stream and Down-stream of Suppl
y Chain Supply Chain Flows
Material flows Financial flows Information flows Service flows
Inter-organizational Processes Inter-organizational Business Process
es
Supplier Corporation Customer
Inter-organizational Processes
Processes Processes
Enterprise Best Practices Norms or Best Practices of Industry Large and Comprehensive Informatio
n Systems Adopt Industrial Best Practices
Business Process Reengineering(BPR) is Usually Needed When ERP, for Example, Is Implemented
Business Processes Reengineering
The Fundamental Rethinking and Radical Redesign of Business Processes to Achieve Dramatic Improvements in Critical, Contemporary Measures of Performance, Such as Cost, Quality, Services and Speed.
Business Process Reengineering
Risk
Business Process Changes
Cross-Functional/ExternalScopeFunctional/Internal
Low
Transformational
Incremental
Process Improvement
Automation
Process Simplification
Process Reengineering
High
Benefits
Business Reengineering
Low High
Nature
Business Process Reengineering Principles
Organize around outcomes,not around tasks Have those who use the output of a process act
ually perform the process Treat geographically dispersed units as if they w
ere centralized Link parallel activities during the process,rather
than at the end of the process Capture information once at the source
Business Process Reengineering Procedures
Develop business vision and process objectives Identify processes to be engineered Understand and measure existing processes Identify IT levers Design and build a prototype of the process
BPR Examples IBM Customer Credit Company HP Procurement Kodak Camera Production
Information Systems for Management Anthony Model
Strategic Planning
Tactics Management
Operations Management
Top Layer
Middle Layer
Low Layer
Information Systems for Management Major Roles of IS
Support of strategies for competitive advantage
Support of business decision making
Support of business processes and operations
Information Systems for Management Types of Information Systems
T ransactionProcessing
Process Control EnterpriseCollaboration
OperationsSupportSystems
MIS DSS EIS
ManagementSupportSystems
Information Systems
Information Systems for Management Managerial Challenges
Business strategies
Business processes
Structure and culture
Inter-networked information
systems
Customer values
Business value
IT infrastructure
Information Systems for Management Managerial Challenges
Success and failure with IT Developing IS solutions Challenges of ethics and IT Challenges of IT Careers The IS functions integration
Information Systems for Strategic Advantages
Five Competitive Model Bargaining power of customers Bargaining power of suppliers Rivalry of competitors Threat of new entrants Threat of substitutes
Information Systems for Strategic Advantages
5 Competitive Forces
Threats of Substitute Products and Services
Buyer Power: Bargaining of Channels and End
Users
Supplier Power: Bargaining Power of Supplie
rs
Threats of New Entrants
Rivalry among Existing Companie
s
Information Systems for Strategic Advantages The Business Strategies
Cost leadership Differentiation Innovation Growth Alliance Consolidation Barrier
The New Economy The Industrial Economy Is Based on:
Mass Production Mass Transportation Division of Labour Financial Capital
The New Economy The New Economy Is Based on:
Mass Customisation Data Communication and Computer Net
works Aggregation of Labour Intellectual Capital
The New Economy Features of the New Economy Knowledge
Microsoft’s market value versus book value Intellectual property and capital Business intelligence
Digitisation >50% of Intel’s business is online Online businesses
The New Economy Virtualisation
Virtual companies Virtual processes/Outsourcing/Offshoring Virtual communities
Molecularization Market segmentation Personalization Object-oriented programming paradigm
The New Economy Integration/Internetworking
CRM, ERP and SCM to link demand chain Interorganizational processes integration
Disintermediation Direct marketing E-tailing/Purchasing Digital products
The New Economy Convergence
Vertical/Horizontal integration Mobile phones/Pervasive computing and micro
payments Innovation
Make new products Re-engineer processes Online auctions
The New Economy Prosumption
Allow customers to join production processes Build to order Online banking
Immediacy Networked collaboration Synergy Online immediacy
The New Economy Globalisation
Real-time collaboration on software development
24 hour shopping Pervasive presence
Discordance Privacy and civil liberty issues Social exclusion Hegemony of Western brands and English langua
ge Security issues