HUANG Lihua, Fudan University

Session 5: Summary of IS Concept and

Application Framework

PART I Introduction to the Concept of Information Systems in

Business

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Organization Level in Business

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Discussion Value Chain

• For Mr. Wang’s Pottery Company

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Value Chain in Business

Customer

service

Marketing

& Sales

Outbound

Logistics

Customer

InboundLogistics

Operations

Procurement of Resource

Technology Development

Human Resource Management

Administrative Coordination and Support Service

SupportActivities

PrimaryActivities

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Discussion IS Application

• For Mr. Wang’s Pottery Company

IS

IS IS IS IS

ISIS

IS

IS

HUANG Lihua, Fudan UniversityFeb., - July., 2006

How Technology Support Value Activities----Some Examples

Value Activity Use of Technology

Inbound logistics Just-in-Time Inventory

Operations Process Control Systems

Flexible Manufacturing

Outbound logistics On-lines to the order-entry and processing systems

Marketing and Sales Laptops for direct Sales

After-sale service Electronic dispatch of technical support, CRM

HUANG Lihua, Fudan UniversityFeb., - July., 2006

How Technology Support Value Activities----some examplesSupport Activity Use of Technology

Administrative Coordination and Support Service

Electronic mail, workflow,

BBS

Human resource Online access to personnel files with a skill database

Technology Development Computer-aided design (CAD) and manufacturing

Procurement of Resource Online access to suppliers’ Inventory files, online auction

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Supply Chain Management American Hospital Supply:

(Automated System for Analytical Purchasing, or ASAP,)

storeroom To the ward

Most Hospitals keep a large inventory of suppliers that are replenished regularly by suppliers, but require a large amount of space and staff.

1. Prevailing delivery practice

Baxter Hospital(customer)

HUANG Lihua, Fudan UniversityFeb., - July., 2006

2. Just-in-time supply method storeroom To the ward

If a hospital implements a just-in-time plan in coordination with a distributer, it can give up some of its inventory space in return for more frequent delivers.

To the ward

3.Stockless supply method

A stockless supply plan shifts all inventory responsibilities to the distributor. Deliveries are made daily, sometimes directly to departments that need supplies.

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Firm Value Chain

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Business-Level Strategy

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Business Level Strategy and the Value Chain Model

• Value Web: – Customer-driven network of independent firms – Uses information technology to coordinate

value chains for collectively producing a product or service

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Virtual Company based value web

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Discussion for Mr. Wang Company

• What were the important management steps which allow the company to achieve this application?

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Important Management Issues in IS Application

• Information Systems Planning– Business Driven: Strategy, Business model– Top Management Commitment

• Information Systems Development and Implementation Process– Build information systems architecture and resources

• IT-enabled organizational change– Business process improvement & reengineering– Organizational change management

• IS investment and payback, IT Department org. and management, IS maintenance, IS security, …..

• ……

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Wrap Up

• Concepts– Business Value Chain– Potential IS application in value chain– Management and business issues related to IS

development and application

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Summary for Concept of Information Systems (1)

• Understanding Information Systems from systems perspective

• Understanding Information Systems from business perspective

• Understanding Information Systems from organization level and business function perspective

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Summary for Concept of Information Systems (2)

• Types of Information Systems in businessOrg. Level

Operational Level: TPS

Management Level: MIS, DSS

Strategic Level: ESS, EIS

Business ApplsERP SCM CRM EB/EC

IS role

Non-strategic Information System

Strategic Information System

Content focus

Data processing systemInformation processing systemKnowledge Mgt. system

HUANG Lihua, Fudan UniversityFeb., - July., 2006

Assignment for Session 5• Individual Assignment for Case study: Dell Computer and

Litton. (P66)– Questions 1-3 on P66.– Write and submit onto VCAMPUS

• Individual Preparation for session 6– Reading Materials

• Textbook: chapter 3

– P99. Review Quiz• Write down in your book, not submit

• Group Assignment:– Please design the hardware architecture for Mr. Wang’s Pottery

Company, including computer (server and client device), peripherals, storage device, so on

– Prepare for the CASE QUESTIONS on P.71.