Mis Foundation of Information Systems in Business (1)

8/13/2019 Mis Foundation of Information Systems in Business (1)

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Ir. Muhril Ardiansyah, M.Sc., Ph.D. 1

Foundation Of Information

Systems In Business


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Learning Objectives:

Understand the concept of a system and how

it relates to information systems.


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What Is An Information System?

An Information System can be any organized

combination Of:

- people,

- hardware,

- software,

- communications networks,

- policies.


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What Is An Information System?

(continued)

People rely on modern information systems

to communicate using a variable:

- physical devices (hardware).

- information processing instruction and

procedures (software).

- communications channels (network).

- stored data (data resources).


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Examples Of Information Systems:

Smoke signals for communication

Card catalog in a library

The cash register


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Real World Case:

Heidelberg: Using IT To Build Smart Products And Services

Consider Heidelberger Druckmaschinen AG ofGermany, the number one maker of high end endprinting presses for printers and print mediaproducers throughout the world. For all of its longhistory, the company has offered repair services to its

customers.

Several years ago, Heidelberg developed the abilityto monitor its equipment remotely using built insensors, networking microprocessors, and other

information technologies.


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Real World Case:


(continued)

Heidelberg soon found that it could provide

maintenance much more cost effectively with the smart

products.

Now with its machines communicating continuouslyover the internet, relaying information about their status

between the print shops and Heidelbergs regional and

global technical support specialists, the company has

the access and insight to optimize printing performancein customers shops and minimize maintenance and

repair costs for Heidelberg as well as its customers.


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Real World Case:


(continued)

With such smart services, Heidelberg now offers total

supports of its products, which for example, can extend

even to the removal and resale of its machines.

Thus the self monitoring and networking capabilities

built into its products provide a strategy opportunity for

Heidelberg to use information technology to become a

partner in the successful operations of its customers,

while reducing its costs and creating new sources of

revenue from smart services.


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Real World Case:


(continued)

Questions:

Why should manufacturing companies build

smart products and provide smart services?

What business benefits can be gained?

Provide several examples beyond discussed

in this case


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Real World Case:


(continued)

Questions (continued)

What information technologies are used by thecompanies in this case to build smart products andprovide smart services?

What are some limitations of a smart products andsmart services strategies?

Use the internet to investigate how Heidelberg, isproceeding in its use of smart products and services.


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Computer Based Information System

& Information Technologies:

1. Computer hardware technologies.

2. Computer software technologies.

3. Telecommunications network technologies.

4. Data resource management technologies.


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The Major Areas Of Information Systems

Knowledge Needed By Business Professionals

1. Foundation concepts.

concept about the components and roles of

information systems.

2. Information technologies.

hardware, software, networks, data

management, many internet basedtechnologies.


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The Major Areas Of Information Systems

Knowledge Needed By Business Professionals

(continued)

3. Business applications.

operations, management, competitive advantage ofa business.

4. Development processes.plan, develop, and implement information systemsto meet business opportunities.

5. Management challenges.

the challenges of effectively and ethically managinginformation technology at end user, enterprise, andglobal levels of a business.


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The Fundamental Roles Of

Information System In Business

There are three fundamental reasons:

1. Support of its business processes and

operations.

2. Support of decision making by its employeesand managers.

3. Support of its strategies for competitive

advantage.


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Trends In Information Systems:

1. Data processing: 1950s1960s

- electronic data processing systems

-- transaction processing, record keeping,

and traditional accounting applications.

2. Management reporting: 1960s1970s

- management information systems

-- management reports of pre specified

information to support decision making.


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Trends In Information Systems

(continued):

3. Decision support: 1970s1980s

- decision support systems

4. Strategic and User Support: 1980s1990s

- end user computing systems

- executive information systems

- expert systems

- strategic information systems


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Trends In Information Systems

(continued):

4. Electronic Business and Commerce: 1990s

2000s

- internet based e business and e

commerce systems


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The Role Of E Business In Business

Many business today are using internet

technologies to Web enable business

process and to create innovative e business

application.


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The Role Of E Business In Business

(continued)

E business:

the use of internet technologies to work and

empower business process, electronic

commerce, and enterprise collaborationwithin a company and with its customers,

suppliers, and other business stakeholders.


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Business Today

Manufacturing and

production

Accounting

and finance

Engineering

and

research

Supply chain management:

procurement, distribution, andlogistics

Customer relationship management:

Marketing, Sales, Customer Service

Company

Boundary

Internet

Internet


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Business Today (continued)

Company

Boundary

Suppliers and other

business partners

Consumers and business

customers

Extranets

Extranets


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Intranet:

the internet and internet like networks inside

the enterprise.

Extranet:

the internet and internet like networks

between an enterprise and its tradingpartners.


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Electronic commerce:

the buying, selling, marketing, and servicing

of products, services, and information over a

variety of computer networks.


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Types Of Information Systems

Information Systems

Operations

Support SystemsManagement

Support Systems


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(continued)

Operations

Support

Systems

Specialized

ProcessingSystems

Transaction

ProcessingSystems

Process

ControlSystems

Enterprise

CollaborationSystems


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(continued)

Management

Support

Systems

Management

InformationSystems

Decision

SupportSystems

Executive

InformationSystems

Specialized

ProcessingSystems


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(continued)

Operations support systems:

- Transaction processing systems

-- process data resulting from business

transactions, update operationaldatabases, and produce business

documents.

Examples: Sales and inventory,

processing and accounting

systems.


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(continued)

Operations support systems (continued):

- Process control systems.

-- minor and control industrial process.

Examples: Petroleum refining, power

generation, steel producing

systems.


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(continued)

Operations support systems (continued):

- Enterprise collaboration systems.

-- support team, workgroup, and enterprise

communications and collaboration.

Examples: email, chat, video

conferencing groupware

systems.


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(continued)

Management support systems:

- Management information systems

-- provide information in the form of pre

specified reports and displays to support

business decision making.

Examples: Sales analysis,

production performance,

cost trend reporting systems.


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(continued)

Management support systems (continued):

- Decision support systems

-- provide interactive ad hoc support for the

decision making processes of managers

and other business professionals.

Examples: product pricing,

profitability forecasting,

risk analysis.


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Managerial Challenges Of Information

Technology

The Business

Enterprise:

Strategies/Processes/Structure/Culture

Information

TechnologyCustomer Value

Business Value

Business/IT

Challenges

Business/IT

Developments

Business/IT

Goals


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Managerial Challenges Of Information

Technology (continued)

Speed and flexibility

requirements of productdevelopment,

manufacturing, and

delivery cycles,

Integration of e

business and ecommerce into the

organizations

strategies, process,

structure, and culture

Business/IT Challenges

Business/IT

Developments

* Use of theinternet,

intranets,

extranets, and

the WEB

Business/IT Goals

Give customerswhat they want,

when and how they

want it, at the

lowest cost

Coordination ofmanufacturing and

business process

with suppliers and

customers


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Developing Information System (IS)

Solutions

Investigate Analyze

Design

ImplementMaintain


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The IS (Information System)

Functions:

A major functional area of business equally

as important to business success, as the

function of:

- accounting,- finance,

- operations management,

- marketing,- human resource management.


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Functions (continued):

An important contributor to:

- operational efficiency,

- employee productivity,

- customer service and satisfaction.

A major source of information and support

needed to promote effective decision makingby managers and business professionals.


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Functions (continued):

A vital ingredient in developing competitive

products and services that give an

organization a strategic advantage in the

global market place.


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Foundation Concepts: The

Components Of Information Systems:

Technology:

the computer network are systems of informationprocessing component that use a variety of:hardware,

software,data management,

and telecommunication network technologies.

Applications:the electronic business and commerce applicationsinvolve interconnected business information systems.


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Foundation Concepts: The Components Of

Information Systems (continued):

Development:

that developing ways to use information

technology in business includes designing the

basic components of information system.

Management:

the managing information technologyemphasizes the quality, strategic business

value, security.


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What Is A System?

Systems have three basic functions:

1. Input:

Involves capturing and assembling elements

that enter the system to be processed.

Example: - raw materials,

- energy,

- data.


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What Is A System? (continued)

Systems have three basic functions (continued):2. Processing:

involves transformation processes that convert input

into output.

Example: - manufacturing process,

3. Output:

involves transferring elements that have been

produced by a transformation process to their

ultimate destination.

Example: - finished products,

- human services


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Stakeholders In The Business

Environment

Management

Information System

Economic

Resources: people,

money, material,

machines, land,

facilities, energy,

information

Business Process:

market, develop,

produce, and

deliver, products

and services,

support customers,

other processes

Goods and Services:

products, services,

payments, contributions,

information, other effects

INPUT

PROCESSING

OUTPUT

CONTROL

FEEDBACK

Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community,

Government Agencies, Suppliers


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Components Of An Information

System

Control System Performance

Input Of Data

Resources

Processing

Data Into

Information

Output Of

Information

Products

Storage Of Data Resources

PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and

procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES

(communications media and network support); DATA RESOURCES (data and knowledge bases);

SYSTEM ACTIVITIES


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Examples Of Information System

Resources And Products

Information Systems Resources And

Products

People

Resources

Hardware

Resources

Software

Resources

Data

Resources

Network

Resources

Information

Products


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Products

People resources:

- specialist (system analysts, software

developers, system operators).

- end users (anyone else who uses

information systems).

Hardware resources:

- machines (computers, video monitor, magnetic disk

drives, printers, optical scanners).

- media (floppy disks, magnetic tape, optical disks,

plastic cards, paper forms).


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Products (continued)

Software resources:

- programs (operating system program, spreadsheet

programs, word processing programs).

- procedures (data entry procedures, error correctionprocedures).

Data resources:

- product description, customer records, employeefiles, inventory databases.


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Products (continued)

Network resources:

- communications media, communication

processors, network access and control

software.

Information products:

- management reports and business

documents using text and graphics displays,

audio responses, and paper forms.


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Business Examples

INFORMATION SYSTEM ACTIVITIES

Input. (optical scanning of bar coded tags on

merchandise)

Processing. (calculating employee pay, taxes, and

other payroll deductions)

Output. (producing reports and displays about sales

performance)Storage. (maintaining records on customers,

employees, and products)

Control. (generating audible signals to indicate proper


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Recognizing Information Systems

As a business professional, You should be able

to recognize the fundamental components of

information systems You encounter.

You should be able to identify:

** The people, hardware, software, data, and network

resources they use.

** The types of information products they produce.** The way thy perform input, processing, output,

storage, and control activities.


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Real World Case 4

Continental Airlines: This Call Is Being Monitored

Documents

Mis Foundation of Information Systems in Business (1)