Information Systems and Business ProcessManagement, Organization, and Technology

Information Systems?What is information systems? DataInformationKnowledgeWisdomWhy We need information systems? Changes: Old Economy Vs New EconomyUncertaintyOrganizational learning

How Information Systems are Transforming Business? Global Fortune: competitive business environment - global logistics and global scale.Economic TransformationShifting from agro-based society to knowledge-based societyTransformation of business organizationDesentralization, flat organization, flexibility, empowerment, collaboration.

Business Pressures, Organizational Responses and IT SupportBusiness Pressures:Market pressures: Need for Real-Time Operations, Powerful CustomersTechnology pressures: Technological Innovation and Obsolescene, Information OverloadSocietal pressures: Social responsibility, Government regulationsOrganizational and Social Responses:Strategic Systems and Restructuring Business ProcessGlobal networks and alliances

What Is a Business Process? Business process is a network of:Activities (processes)Resources (inputs)Facilities (inputs)Information (both inputs and outputs)Processes interact to achieve business functionBusiness systems are integrated processes2-*

Component of a Business ProcessActivities transform resources and information of one type into resources and information of another type.Resources items of value, such as customers, suppliers, employees, distributors, and so onFacilities structures used within resources. Ex: inventories, databasesInformation activities use information to know how to transform inputs to outputs.

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Portion of Inventory Management Business Process: An Example2-*Figure 2-1

Dimensions of information systemsOrganizationsManagementTechnologyIt isnt just a technology: A Business perspective on information systemsComplementary assets: Organizational capital and the right business modelPerspectives on Information Systems

The Interdependence between Organizations and ITThere is a growing interdependence between a firms information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.

Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.Information Systems Are More Than Computers

Recent IT TrendsComputer Hardware: Faster, Cheaper, MobileComputers have become smaller and fasterHardware prices have droppedTrend over time is for more mobile computers

Recent IT TrendsCloud computing platformA flexible collection of computers on the Net begins to perform tasks traditionally performed on desktop computersMobile digital platformIt emerges to compete with the PC as a business system. Small portable lightweight, low cost, net centric subnotebook computers.

Recent IT TrendsBig Data PhenomenonA collection of huge data sets in various formats and relatively unstructured that it becomes difficult to process using on-hand data management tools.Challenges: capture, curation, storage, search, sharing, transfer, analysis, and visualization.

Recent IT Trends: SoftwareComputer Software: Custom and Prewritten, Standardized and Integrated

Growth in Software as a service: Major business applications are now delivered online as an Internet service rather than as boxed software or custom systems

Recent IT Trends: SoftwareComputer Software: Integrated, Downloadable, SocialDownloadableBit-size software programs for smart phones downloadable from App storesDownload speeds have increased so that even large files can be downloaded by users SocialGrowth of Web 2.0 (social media) applications (such as Facebook, LinkedIn)Used by companies for marketing and branding activitiesCollaboration tools connect employees across distance

Managing IT in an E-WorldIT has become more pervasiveIT does not exist only in the back-officeMore and more employees are reliant upon IT for their daily workManagement of IT has changedBusiness managers and users expect more from ITThe management of IT has become more complex than ever

Whats New in IS: ManagementManagement adopts online collaborationBusiness Intelligence Virtual meetingsWeb 2.0 applications in BusinessTeleworksCo-creation of business value

Management Paradigm 1880 1900 1920 1940 1960 1980 2000BehavioralCognitive Technical - RationalMade to order, mass customization, TQMReengineeringKnowledge-based FirmsHuman RelationNetworks - Virtual OragnizationsOrganizational LearningClassicalContemporaryPostmodern

Socio Technical Approach in ISTaskTechnologyStructurePeople

Information Systems FrameworkIS ApplicationsManagement ChallengesOrganizational Concept: technical, behavioral, knowledgeAnalysis and Design Technology: hardware, software dan networksInformation Systems

Systems?Basic Elements:Inputs Activities (process)OutputsControlFeedbackBoundaryInterfacesEnvironment

The Evolution of IS Management Era ApplicationsAccounting Batch systemsOperational Online systemsInformation Interactive systemsNetwork Strategic sytemsInternet Web-based systems

Atribute of InformationRelevanceAccuracyTimeliness

Constraints:impartiality (bias free)validity reliabilityconsistency

IT and Firm CompetitivenessBuzzword: Competitive AdvantageCompetitive - Classic (Porter, 1985)Cost LeadershipDifferentiationCompetitive - Neo (Laudon & Laudon, 2010)Combination of Cost Leadership and Differentiation Jargon: knowledge managementInformation Technology as a strategic enabler

Managing IT in OrganizationsNeed for New Information TechnologyNeed for Reliable Information Technology(Based on Nolan and McFarlan 2005)DefensiveOffensive

Managing IT in OrganizationsSupport ModeLow Need for New Information TechnologyLow Need for Reliable Information TechnologyIT primarily for back-office functions

Managing IT in OrganizationsFactory ModeLow Need for New Information TechnologyHigh Need for Reliable Information TechnologyDependent on IT for business operations, but do not invest in new IT to compete in new ways

Managing IT in OrganizationsStrategic ModeHigh Need for New Information TechnologyHigh Need for Reliable Information TechnologyDependent on IT for operations and on new IT investments to implement new business strategies

Managing IT in OrganizationsTurnaround ModeHigh Need for New Information TechnologyLow Need for Reliable Information TechnologyCompanies in the Support quadrant may enter this mode by taking advantage of a new technology with the goal of entering the Strategic mode

Managing IT in OrganizationsSource: Ross, Beath, dan Goodhue (1996)

Managing IT in OrganizationsIT Leadership Roles

IT and Value Chain Primary Activities: Inbound logistics Outbound Logistics Operations MarketingSupporting Activities: Information TechnologyResearch and DevelopmentHuman Resource

Managing Information TechnologyShifting role of IT in organization (technical - managerial)Shifting in IT success (efficiency - competitiveness)Inovative capabilities: IT knowledge, IT investment, and IT strategy.

Source: Utomo (2000)

Management ChallengesBusiness Process ChangeTechnology hurdleshardware & softwarebig datatelecommunicationpower supplyLegal, ethical & social issuesSecurity & privacy

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