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INTRODUCTION CORPORATE INFORMATION SYSTEM & UNDERSTANDING BUSINESS MODEL Session 01. Lecturer : JONATHAN SOFIAN LUSA Reading materials : Applegate : Introduction, chapter 1. MASTER IN MANAGEMENT PROGRAM PPM - School of Management DEC 05 2009 - Week I. 0CT 11 2008. Chapter Outline. 1. - PowerPoint PPT Presentation
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MASTER IN MANAGEMENT PROGRAMPPM - School of Management
DEC 05 2009 - Week I
0CT 11 2008
Lecturer : JONATHAN SOFIAN LUSA
Reading materials :
Applegate : Introduction, chapter 1
INTRODUCTION CORPORATE INFORMATION SYSTEM &
UNDERSTANDING BUSINESS MODEL Session 01
TERMINOLOGY
INFORMATION SYSTEM
INFORMATION TECHNOLOGY
COMPUTER
HARDWARE SOFTWARE
OrganizationManagement
Human Resources
Processes
People and Culture
Standards and Procedures
Rules and Policy
Cost andInvestment
StrategicBusiness
Plan
MacroEnvironment
Outsourcing
Research andDevelopment Products and Services
Market andCustomers
PC Desktop Operating System
InternetIntranet
Extranet
Database
Applications
Notebook and Palmtop
Programming Languages
Printer
Modem MultimediaWorkgroupComputing
Data Mining
Decision SupportSystem
Digital NervousSystemISDN, VSAT
Infrastructure
ElectronicCommerce
ElectronicData
Interchange
INFORMATION SYSTEM
INFORMATION TECHNOLOGY
COMPUTER
HARDWARE SOFTWARE
OrganizationManagement
Human Resources
Processes
People and Culture
Standards and Procedures
Rules and Policy
Cost andInvestment
StrategicBusiness
Plan
MacroEnvironment
Outsourcing
Research andDevelopment Products and Services
Market andCustomers
PC Desktop Operating System
InternetIntranet
Extranet
Database
Applications
Notebook and Palmtop
Programming Languages
Printer
Modem MultimediaWorkgroupComputing
Data Mining
Decision SupportSystem
Digital NervousSystemISDN, VSAT
Infrastructure
ElectronicCommerce
ElectronicData
Interchange
Technology, Business, and Societal Evolution during the 20th
century
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 1 Figure 1- 2
1900 1950 2000
AgriculturalEconomy
IndustrialEconomy
InformationEconomy
Typical mathematical formula:D=B 2 -4AC
Equivalent FORTRAN statement:D=B ** 2-4*A*C
Telegraph
Technology Evolution
Social and Business Evolution
Photos reprinted with permission from AT&T and IBM
OPPOSING VIEWS OF INFORMATION TECHNOLOGY FUNCTION
Business executives view of IT Apprehensive Technocracy New feature focus Little relevance to real
world
IT executives view of business
Short-sighted Lacking in vision Unwilling to exploit IT
VS
Business executives view of IT
1. IT = Cost Center2. IT does not understand
business3. IT does not demonstrates
leadership
IT executives view of business
1. Business lack close relationships
2. IT does not prioritize well3. Senior executives do not
support IT
Alternative Solutions
1. Budget2. Career crossover3. CIO-CEO4. Communicate/market/negotiate5. Education/cross-training6. Liaison7. Location8. Organization (Centralized,
Decentralized, Hybrid )
EVOLVING BUSINESS MODELS Components of business model :
STRATEGY / CONCEPT : describe the opportunity and strategy. VALUE : measures the benefits. CAPABILITIES : define resources needed to execute strategy.
INDUSTRIAL ECONOMY PARADIGM : Relatively clear and steady business model. Easy to define business model.
NETWORK ECONOMY PARADIGM : Somehow, it is quite difficult to define a clear business model. Business model should be explained in detail way.
BUSINESS MODEL
A business model defines how an enterprise interacts with the environment to define a unique strategy, attract the resources and the capabilities required to execute the strategy, and to create value for all stakeholders ( 8th edition, Lynda M Applegate)
A business model guides and assists management in the process of strategy formulation.
A successful business model aligns an organization with its environment well.
Evolving Business Models
What business are you in? What is you business model? Who are our customers? Our suppliers? ASP models
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 2 Figure 2-1
1. New Products TV Cable Package (TV Cable+decoder+Parabola)
2. New Services Bank + Live Insurance + Hospital + Café + Tour + Hotel
3. Efficiency (cheaper, faster, better) ATM Bersama
4. Joint Operation ( services) Billing Telephone, PAM, PLN + Bank
5. Strategic Alliances ( generic + Long term) Insurance lokal + International, School, University
6. Customer Supplier Relationship (cheaper, faster, better) Textile industry
7. Outsourcing Call Center, Customer Service, Security
8. Image Building Joint Venture local + International
Collaboration to Compete (IOS)
OUR LEARNING POINTS FOR TODAY …
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