Business Information Systems (1) (2)

Topic 1: Business Information Systems Topic 1: Business Information Systems Lecture 1Lecture 1Management Information Systems – Managing the digital firm – Chapter 1Management Information Systems – Managing the digital firm – Chapter 1Laudon & LaudonLaudon & Laudon

What is an Information System??What is an Information System??

A set of Interrelated components working together to: -Collect -Retrieve -Process -Store -Disseminate Information to enable -planning -controlling -Co-ordinating -Decision Making in Businesses and other Organisations

ExamplesePosWesbitesPhones

Activities of an Information SystemActivities of an Information System

Input -The capture and collection of raw data from within the organisation or its external environment

Processing -conversion, manipulation & analysis of data into more useful information

Output-distribution of processed information to people Feedback Output returned to appropriate people to

evaluate or correct input

Why are Information System(IS) important ?? Why are Information System(IS) important ??

The Competitive Business Environment-Three powerful worldwide

changes have altered the environment of business. These are:1. Emergence of the Global Economy2.Transformation of Industrial Economies3. Transformation of the Business

Enterprise

1. Globalisation1. Globalisation

Management and control in a global marketplace Competition in world markets Global work groups Global delivery systems

To become effective and profitable companies need powerful information and communication systems.

2.Transformation of Industrial Economies2.Transformation of Industrial Economies

Major industrial powers have transformed into knowledge and information based service economies.-Productivity-New products & services-Knowledge is now a central productive and strategic asset -Time based competition -Turbulent environment

3.Transformation of the Enterprise3.Transformation of the Enterprise

Transformations in way companies are organised and managed

-New style is flattened, decentralised, flexible arrangement of generalists who rely on instant information to deliver mass customised products and services uniquely suited to specific markets and customers.

- I.T. makes this style of management of possible

Computer-based information systems (CBIS)Computer-based information systems (CBIS)

CBIS is a Formal system A Formal system is a system resting on accepted and

fixed definitions of data and procedures, operating with predefined rules.

Informal I.S.do not have the above features e.g. group of friends (‘’grapevine’’)

CBIS modelled on Formal I.S. only

A Business Perspective on Information SystemA Business Perspective on Information System

O rg an isa tion s M an ag em en t Tec h n o log y

In fo rm ation S ys tem

I.S. are more than computers.Using I.S. effectively requires an understanding of the organisations, management, and I.T. shaping the system. All I.S. can be described as organisational and management solutions to challenges posed by the environment.

OrganisationsOrganisations

Key Elements -People:managers, knowledge workers, data workers, production &service workers-Structure: pyramidal structure of rising authority and responsibility -Standard operating procedures(sops): formal rules for accomplishing tasks developed to cope with expected situations -politics & culture: fundamental set of assumptions & values, different interests & point of view

ManagementManagement

Managers perceive business challenges in the environment; set organisational strategy; allocate human and financial resources; co-ordinate the work -Senior managers: top hierarchy responsible for long range strategic decisions. -Middle managers: middle hierarchy responsible for carrying out plans of senior management -Operational managers: monitor day to day activities of the organisation

All levels are expected to be creative, develop novel solution to a broad range of problems. Each level has different requirements from I.S.

TechnologyTechnology

Computer Hardware: physical equipment for input, processing, and output activities in an I.S.

Computer Software: detailed pre-programmed instructions that control and co-ordinate the work of the computer hardware in the I.S.

Storage Technology: Physical media & software governing the storage and organisation of data

Communications Technology: physical devices and software that link computers and transfer data.

Network: two or more computers linked to share data or resources such as a printer

Contemporary Approaches to Information Contemporary Approaches to Information Systems Systems

M an ag em en tS c ien ce

C om p u te rS c ien ce

O p era tion sR esearch

Tech n ica l ap p roac h es

S oc io log y E con om ic s P ysch o log y

B eh avio ra l ap p roach es

M IS

SociotechnicalSociotechnical SystemSystem

No single perspective effectively captures the reality of I.S. Problems with I.S. - and their solutions- are rarely all technical or all behavioral.

The New Role of I.S. in Organizations The New Role of I.S. in Organizations 1. Widening Scope 0f Information Systems There now is interdependence between organisations

and information systems. In contemporary systems there is a growing

interdependence between organisational business strategy, rules and procedures the organisation’s Information Systems

Changes in strategy, rules, and procedures increasingly require changes in hardware, software, databases, and telecommunications.

Existing systems can act as a constraint on organisations. Often what a organisation would like to depends on what its systems will permit it to do

The New Role of I.S. in OrganizationsThe New Role of I.S. in Organizations

2. The Network Revolution and the Internet One reason I.S. play such a large role in organizations and

affect so many people is the soaring power and declining cost of computer technology.

The Internet is an international network of networks that is a collection of hundreds of thousands of private and public networks.

Of special importance to organizations is the World Wide Web. This is a system of universally accepted standards for storing, retrieving, formatting, and displaying information in a networked environment.

All web pages maintained by an organization or individual on the world wide web are called a Web site.


3. New options for design Organizations turning into networked enterprises

allowing information to be instantly distributed within and beyond the organization

Flattening OrganizationsFewer levels of management, with lower level employees being given decision making authority.


4. Separating work from location organize globally while working locally e.g. e-mail Intranets


5. Reorganising Work Flows - I.S. have been progressively

replacing manual work procedures with automated work procedures, work flows, and work processes.


6. Increasing Flexibility of Organisations Companies can use I.S. to organise in more flexible

ways, increasing their ability to respond to changes in the marketplace and to take advantage of new opportunities.

I.S. gives both large and small companies flexibity to overcome some of the limitations of their size.


7. The Changing Management Process I.S. is recasting the process of management,

providing powerful new capabilities to help managers plan, organise, lead, and control.

Enterprise resource planning (ERP) is a business management system that integrates all facet of the so they can become part of a co-ordinated by sharing information.


8. Redefining Organisational BoundariesSystem linking a company to its customers, distributors, orsuppliers are interorganised systems because they automate theflow of information across organisational boundaries

The Digital Firm:Electronic Commerce and The Digital Firm:Electronic Commerce and Electronic BusinessElectronic Business

Above changes are creating new ways of conducting business electronically both inside and outside the company.

Electronic market is a market place that is created by computer and communication technologies that link many buyers and sellers. Now buyers and sellers can complete purchase and sale transactions digitally, regardless of their location.


Electronic commerce is the process of buying and selling goods and services electronically involving transactions using the internet, networks, and other digital technologies.

The internet has emerged as the primary technology platform for electronic commerce.

Companies are developing intranets.


An intranet is an internal network based on internet and world wide web technology and standards.

Electronic Business refers to the use of the internet and other digital technology for organisational communication and co-ordination and the management of the firm

The Challenge of I.S. - Key Management IssuesThe Challenge of I.S. - Key Management Issues (1) The strategic Business Challenge:

• Using information systems to gain a competitive advantage?• Or Competitive necessity?• Can you replace manual labour?• Can you use digital marketing techniques?• When do you adopt new technologies?

(2) The Globalisation Challenge: • Global marketplace??

• Music• Internet is global

The Challenge of I.S. - Key Management IssuesThe Challenge of I.S. - Key Management Issues (3) The Information Architecture challenge:

Managers need information??? One affect of IS hat organisations have ‘grown’ Information Architecture in simply is a way of getting information

to mangers ePOS data & Loyalty card data

AirLiners considering an additional flight to ‘Oslo’ Website clicks

Music retailer analysing sales data in Dec found a lot of 65+ females buying heavy metal cds???

The Challenge of I.S. - Key Management The Challenge of I.S. - Key Management IssuesIssues

(4) The The I.S. investments challenge: How can organizations determine the business value of I.S.?

A major problem raised by the development of powerful, inexpensive computers involves not technology but management and organisations

Calculate return on Investment?? Competitive necessity Vs competitive advantage

(5) The responsibility and control Challenge: How can the organisations design systems that people can control and understand?

I.S. are now essential to business, government and daily life that organisations must take steps to ensure they are accurate, reliable, and secure.

The potential for massive fraud, error, abuse, and destruction is enormous

The Challenge of I.S. - Key Management The Challenge of I.S. - Key Management IssuesIssues

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Business Information Systems (1) (2)