11SheuSheu

L Ch1: LEARNING OBJECTIVESL Ch1: LEARNING OBJECTIVES What is an information system?What is an information system? COMPUTER LITERACY versus INFORMATION COMPUTER LITERACY versus INFORMATION

SYSTEMS LITERACYSYSTEMS LITERACY Understand impact of information systems on Understand impact of information systems on

organization & management organization & management Understand MAJOR MANAGEMENT Understand MAJOR MANAGEMENT

CHALLENGES TO BUILDING, USING CHALLENGES TO BUILDING, USING INFORMATION SYSTEMSINFORMATION SYSTEMS

DESCRIBE ELECTRONIC COMMERCE & DESCRIBE ELECTRONIC COMMERCE & ELECTRONIC BUSINESS, RELATIONSHIP TO ELECTRONIC BUSINESS, RELATIONSHIP TO INTERNET & DIGITAL TECHNOLOGYINTERNET & DIGITAL TECHNOLOGY

SheuSheu 22

Some TermsSome Terms COMPUTER-BASED INFORMATION SYSTEMS (CBIS)COMPUTER-BASED INFORMATION SYSTEMS (CBIS)

• Formal systemsFormal systems• Fixed definition of data, proceduresFixed definition of data, procedures• Collecting, storing, processing, dissemination, using dataCollecting, storing, processing, dissemination, using data• Information system may not be computer-basedInformation system may not be computer-based• CBIS is broader than MISCBIS is broader than MIS

Data vs Information vs KnowledgeData vs Information vs Knowledge• Data: stream of raw facts before they have been organized into a meaningful formData: stream of raw facts before they have been organized into a meaningful form• Information: data that have been shaped into a form that is meaningful & useful to humaInformation: data that have been shaped into a form that is meaningful & useful to huma

nn• Knowledge: abstracted / generalized understanding of information. Organized body of inKnowledge: abstracted / generalized understanding of information. Organized body of in

formationformation KNOWLEDGE- AND INFORMATION-INTENSE PRODUCTSKNOWLEDGE- AND INFORMATION-INTENSE PRODUCTS

• PRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & PRODUCTS THAT REQUIRE A GREAT DEAL OF LEARNING & KNOWLEDGE TO PRODUCEKNOWLEDGE TO PRODUCE

SheuSheu 33

More TermsMore Terms

Knowledge workers:Knowledge workers:

Data Workers:Data Workers:

Production (or service) Workers:Production (or service) Workers:

Internet /Intranet /ExtranetInternet /Intranet /Extranet

44SheuSheu

BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT GLOBALIZATIONGLOBALIZATION

– Management & ControlManagement & Control– Competition in world marketsCompetition in world markets– Global work groupGlobal work group– Globally deliveredGlobally delivered– Future dep on ability to operate globally Future dep on ability to operate globally

INDUSTRIAL ECONOMIESINDUSTRIAL ECONOMIES– Industrial eco => knowledge/info – based econ.Industrial eco => knowledge/info – based econ.– Knowledge-and-info-intense productKnowledge-and-info-intense product– Time-base competitionTime-base competition– Shorter product life (NB MKT life / R&D cycle time)Shorter product life (NB MKT life / R&D cycle time)

TRANSFORMATION OF THE ENTERPRISETRANSFORMATION OF THE ENTERPRISE– Centralized => Centralized => DECENTRALIZATIONDECENTRALIZATION– Structured org. / specialist => Structured org. / specialist => FLEXIBLE / GENERALISTFLEXIBLE / GENERALIST– Location dependent => LOCATION INDEPENDENCELocation dependent => LOCATION INDEPENDENCE– LOW TRANSACTION COSTSLOW TRANSACTION COSTS

55SheuSheu

FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENT

Customers Suppliers Customers Suppliers

Regulatory Regulatory Stockholders CompetitorsStockholders Competitors

AgenciesAgencies

ORGANIZATIONORGANIZATION

66SheuSheu

New Roles of Information Systems in OrgNew Roles of Information Systems in Org

Technical changes => managerial control => InstitutiTechnical changes => managerial control => Institutional core activities (fg 1.7)onal core activities (fg 1.7)

Interdependence with org & business strategies (fg 1.Interdependence with org & business strategies (fg 1.6)6)

Creating great impacts and opport. Creating great impacts and opport. – Enabling new business modelEnabling new business model

• Fewer levels / more power for lower-levelFewer levels / more power for lower-level• Manage employee globallyManage employee globally• Redefine Org. boundary: Virtual org. (fg 1.9)Redefine Org. boundary: Virtual org. (fg 1.9)• (mfg driven) Mass production => (Customer-driven) Customization / (mfg driven) Mass production => (Customer-driven) Customization /

(technology-enable) Mass customization(technology-enable) Mass customization– Network revolution & internetNetwork revolution & internet

• What you can do on internet tbl 1.3What you can do on internet tbl 1.3– Changing management process Changing management process

• ERP (Skip hierarchical reports)ERP (Skip hierarchical reports)• EC & EB (tbl 1.5, fg 1.11)EC & EB (tbl 1.5, fg 1.11)

SheuSheu 77

ELECTRONIC COMMERCEELECTRONIC COMMERCEvs ELECTRONIC BUSINESSvs ELECTRONIC BUSINESS

EC:EC: INTERNET LINKS BUYERS, SELLERSINTERNET LINKS BUYERS, SELLERS LOWERS TRANSACTION COSTSLOWERS TRANSACTION COSTS GOODS & SERVICES ADVERTISED, BOUGHT, EXCHANGGOODS & SERVICES ADVERTISED, BOUGHT, EXCHANG

ED WORLDWIDEED WORLDWIDE BUSINESS-TO-BUSINESS TRANSACTIONS INCREASINGBUSINESS-TO-BUSINESS TRANSACTIONS INCREASING

EB:EB: INTRANET: BUSINESS BUILDS PRIVATE, SECURE NETINTRANET: BUSINESS BUILDS PRIVATE, SECURE NET

WORKWORK• E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFFE-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS EFF

ECTIVE COMMUNICATION & CONTROLECTIVE COMMUNICATION & CONTROL

• VIRTUAL ORGANIZATION (fg 1.9)VIRTUAL ORGANIZATION (fg 1.9)

SheuSheu 88

ENTERPRISE RESOURCE PLANNINGENTERPRISE RESOURCE PLANNING

SOFTWARE INTEGRATES ALL FACETS:SOFTWARE INTEGRATES ALL FACETS: PLANNING, MANUFACTURING, PLANNING, MANUFACTURING,

INVENTORY, SALES, FINANCE, INVENTORY, SALES, FINANCE, ACCOUNTINGACCOUNTING

TRANSACTIONS ALERT ALL INVOLVED TRANSACTIONS ALERT ALL INVOLVED FACTORSFACTORS

UPDATES FILES, SPEEDS ACTION, CUTS UPDATES FILES, SPEEDS ACTION, CUTS COSTCOST

**

99SheuSheu

CHALLENGE OF INFO SYSTEMSCHALLENGE OF INFO SYSTEMS STRATEGIC:STRATEGIC:

– The power of IT grown much rapidly than the ability of org to take adv The power of IT grown much rapidly than the ability of org to take adv of the IT.of the IT.

– How can org. use IT to enhance competitiveness & effectivenessHow can org. use IT to enhance competitiveness & effectiveness GLOBALIZATION:GLOBALIZATION:

– How can firm understand the business & sys req. of a global How can firm understand the business & sys req. of a global environment.environment.

INFO ARCHITECTURE & CULTURAL INERTIAINFO ARCHITECTURE & CULTURAL INERTIA– How can org. design info sys architecture to fully support business How can org. design info sys architecture to fully support business

goal.goal.– How to overcome organizational inertia. (Often require re-design org How to overcome organizational inertia. (Often require re-design org

and change many people’s job and work behaviors)and change many people’s job and work behaviors) INVESTMENT:INVESTMENT:

– A new system costs a lot. Is the investment worthwhile?A new system costs a lot. Is the investment worthwhile? RESPONSIBILITY & CONTROL:RESPONSIBILITY & CONTROL:

– How can org design system that people can control & understandHow can org design system that people can control & understand– How can we ensure that IS is used ethically & responsibly?How can we ensure that IS is used ethically & responsibly?