digitalfirm_bab1_r[1]
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Transcript of digitalfirm_bab1_r[1]
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Objective
What is the role of information systems in todayscompetitive business environment?
What exactly is an information system? What domanagers need to know about information systems?
How are information systems transforming organizationsand management?
How has the Internet and Internet technologytransformed business?
What are the major management challenges to buildingand using information systems?
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Management Challenges
1. Design competitive and effective systems
2. Understand system requirements of global businessenvironment
3. Create information architecture that supportsorganizations goal4. Determine business value of information systems
5. Design systems people can control, understand and usein a socially, ethically responsible manner
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WHY Information SYSTEMS ?
Four powerful worldwide changes thathave altered the business environment:
3. Emergence of the Global Economy4. Transformation of Industrial Economies5. Transformation of the Business
Enterprise6. The Emerging Digital Firm
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WHY Information SYSTEMS ?
Emergence of the Global Economy
Management and control in a globalmarketplace
Competition in world markets Global work groups
Global delivery systems
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WHY Information SYSTEMS ?
Transformation of Industrial Economies
Time-based competition
Shorter product life
Turbulent environment
Limited employee knowledge base
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WHY Information SYSTEMS ?
Labor Force Composition 1900-2000
0%
10%
20%
30%
40%
50%
60%
70%
1900 1910 1920 1930 1940 1950
Labor Force Composition 1900-2000
1960 1970 1980 1997 2000
Year
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WHY Information SYSTEMS ?
Transformation of the Business Enterprise
Flattening
Decentralization Flexibility Location independence
Low transaction and coordination costs Empowerment Collaborative work and teamwork
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WHY Information SYSTEMS ?
Emergence of the Digital Firm
Digitally-enabled relationships with customers,suppliers, and employees
Core business processes accomplished viadigital networks
Digital management of key corporate assets
Rapid sensing and responding to environmentalchanges
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WHY Information SYSTEMS ?
4 Major Systems Defining the Digital Firm Supply chain management systems
Customer relationship managementsystems Enterprise systems
Knowledge management systems
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WHY Information SYSTEMS ?
(1) A set of interrelated components thatcollect
(or retrieve), process, store, and distributeinformation to support decision making andcontrol in an organization(Laudon & Laudon, 2002).
What Is an Information System?
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(2) A business application of the computer. It is made up of the database , applicationprograms , manual and
machine procedures andencompasses the computer systems that do the
processing (TechEncyclopedia, 1999).
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Hierarchy of Information
Charts
Intelligence
Knowledge
Information
DataData & Information
3 rd Generation (2003)
_____________________________________________________________________________________________________
2 nd Generation (1996-2002)
_____________________________________________________________________________________________________
1 st Generation
(1990s)
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WHY Information SYSTEMS ?
Informasi: Sumber / data yang
diolah yangmempunyai nilaisangat penting
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WHY Information SYSTEMS ?
Data and Information
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WHY Information SYSTEMS ?
INPUT OUTPUTPROCESS
FEEDBACK
Activities in an Information System
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WHY Information SYSTEMS ?
Functions of an Information System
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WHY Information SYSTEMS ?
Rely on computer hardwareRely on computer hardwareand softwareand software
Processing andProcessing and
disseminating informationdisseminating information
Computer-Based Information System (CBIS)
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WHY Information SYSTEMS ?
Information Processing Activities
Business Value
Management Activities
SupplyChainManagement
EnterpriseManagement
Customer Management
KnowledgeManagement
DataCollectionandStorage
TransformationIntoBusinessSystems
Dissemination
Planning Coordinating Controlling Modeling andDecision Making
FirmProfitability
andStrategicPosition
Business Processes
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WHY Information SYSTEMS ?
ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY
MANAGEMENTMANAGEMENT
INFORMATIONINFORMATION
SYSTEMSSYSTEMS
Information Systems
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WHY Information SYSTEMS ?
Information systems literacy: Broad-basedunderstanding of information systems that
includes behavioral knowledge aboutorganizations and individuals using informationsystems and technical knowledge aboutcomputers.
Computer literacy: Knowledge aboutinformation technology, focusing onunderstanding how computer-basedtechnologies work
A Business Perspective on Information Systems
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WHY Information SYSTEMS ?
Sales and marketing
Manufacturing
Finance
Accounting
Human resources
Major Business Functions
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WHY Information SYSTEMS ?
Key Elements: People: Managers, knowledge workers,
data workers, production or serviceworkers
Structure: Organization chart , groups of specialists, products, geography
Organizations
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WHY Information SYSTEMS ?
Operating procedures: Standard operatingprocedures (SOP, rules for action)
Politics: Power to persuade, get things done
Culture: Customs of behavior
Organizations
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WHY Information SYSTEMS ?
Levels: Senior managers: make long-
range strategic decisions aboutproducts and services
Middle managers: Carry outthe programs and plans of senior management
Operational managers: monitor the firms daily activities
Management
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WHY Information SYSTEMS ?
Tools managers use to cope with change
Hardware: Physical equipment
Software: Detailed preprogrammedinstructions
Storage: Physical media for storing data and the software
Computer Technology
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Communications Technology: transfersdata from one physical location to another
Networks: link computers to share data or resources
Computer Technology
WHY INFORMATION SYSTEMS?
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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
TechnicalApproaches
BehavioralApproaches
ManagementScience
OperationsResearch
Sociology
Economics
ComputerScience
Psychology
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Optimize systems performance:
Technology and organization
Organizations mutually adjust to one another until fit is satisfactory
Socio-Technical Systems
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
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Socio-technical Systems
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
SOURCE: Liker, et al, 1987Figure 1-7
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TOWARD THE DIGITAL FIRM
The Interdependence Between Organizations and Information Systems
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1950s: Technical changes
1960s-70s: Managerial controls
1980s-90s: Institutional core activities
Today: Digital information webs extendingbeyond the enterprise
TOWARD THE DIGITAL FIRM
The Widening Scope of Information Systems
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TOWARD THE DIGITAL FIRM
The Widening Scope of Information Systems
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International network of networks
Universal technology platform: Any computer
can communicate with any other computer
World Wide Web and Web sites
TOWARD THE DIGITAL FIRM
The Internet
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Communicate and collaborate
Access information
Participate in discussions
Supply information
Find entertainment
Exchange business transactions
TOWARD THE DIGITAL FIRM
What You Can Do on the Internet?
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Flattening organizations
Separating work from location
Reorganizing work-flows
Increasing flexibility
Redefining organizational boundaries
TOWARD THE DIGITAL FIRM
New Options for Organizational Design
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TOWARD THE DIGITAL FIRM
Flattening Organizations & Information Systems
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Redesigned Work Flow For Insurance Underwriting
TOWARD THE DIGITAL FIRM
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Electronic commerce
Electronic business
Digital market: Information systems links,buyers and sellers to exchange information,products, services, payments
TOWARD THE DIGITAL FIRM
The Digital Firm
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TOWARD THE DIGITAL FIRM
Customers On-line marketing On-line sales Built-to-order products Customer service Sales force automation
Suppliers Procurement Supply chain management
Business partners Joint design Outsourcing
Remote offices and work groups Communicate plans and policies Group collaboration Electronic communication Scheduling
Factories Just-in-time production Continuous inventory
replenishment
Production planning
ELECTRONIC BUSINESS
Electronic Commerce
THE EMERGING DIGITAL FIRM
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Electronic Business: Executing all thefirms business processes with Internettechnology
Intranet: Business builds private, securenetwork based on Internet technology
Extranet: Extension of intranet to authorizedexternal users
Electronic Business
TOWARD THE DIGITAL FIRM
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Information Architecture and Information Technology Infrastructure
TOWARD THE DIGITAL FIRM
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