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INFORMATION SISTEM &

TECHNOLOGY

by

Kudang B. Seminar, PhD

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Organization

Structures

People and

Cultures

Management

Strategies

Information

Systems and

Technologies

Business

Processes

Sociotechnological

Environment

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Management of IS

Resource and Activities

Development of IS

Solutions to Business Problems

Applications of IS

To Operations, Managemnet, and Strategic Advantage

Technology of IS

Hardware, Software, Telecomunications,& Data Management

Foundation Concepts of IS

Fundamental Behavioral and Technical Concepts

What to be known about the IS?

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Performance

Control System

Data InfoProcess

Data Store

N E T W A R E

Information System (IS) Model

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Information Production

Chapter 1 Foundations of Information Systems in Business6

Fundamental Roles of IS in Business

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Chapter 1 Foundations of Information Systems in Business7

The IS Function

The IS function is…

A major functional area of business

An important contributor to operational efficiency, employee productivity, morale, customer service and satisfaction

A major source of information and support for decision making

A vital ingredient in developing competitive products and services in the global marketplace

A dynamic and challenging career opportunity

A key component of today’s networked business

Chapter 1 Foundations of Information Systems in Business8

Trends in Information Systems

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Data

ProcessingSales Analysis

Data Information

Data Sales person

Sales Values

Sales Units

Data vs Information

Data: raw facts or observations

Information : data that have been transformed into a meaningful and useful context for specific end users

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Sales Data

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Sales Information

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Geographical Data Acquisition

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Stored Geographical Data

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Various Data Displays

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Information Quality

Time Dimension• Timeliness

• Currency

•Frequency

•Time period

Content Dimension• Accuracy

• Relevance

• Completeness

• Conciseness

•Scope

•Performance

Form Dimension• Clarity

• Detail

• Order

• Presentation

•Media

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Definitions of IT

Any equipment or interconnected system or subsystem

of equipment, that is used in the automatic acquisition,

storage, manipulation, management, movement, control,

display, switching, interchange, transmission, or

reception of data or information by the executive agency.

(ITMRA/The Information Technology (IT) Management

Reform Act of 1996.)

Electronic technology to collect, process, store, retrieve,

produce and disseminate information. (Gunton, 1994)

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Subsystems of IT

Computer System

Telecommunication

System

IT

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Digital Processing For Spatial Data Analysis

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Data Acquisition & Analysis

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Output Devices for Various Types of Information

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Trend of Telecommunication

Technology

Toward the use of the Internet and other open

and interconnected local & global digital

networks for multimedia with heavy use of

high speed fiber optic lines and satellite

channels to form a global information

superhighway system.

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Information Superhighway

An advanced high speed Internet-like

network that connects individual

households, businesses, government

agencies, libraries, schools, universities,

and other institutions with interactive

voice, video, data and multimedia

communications.

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Shift Paradigm in Business

EDI

(ELECTRONIC DATA INTERCHANGE)

E-Mail

LAN/

WAN

Video

Conference

Fax Voice

mail

Pagers

Cable-

Television

Phone/

Celullar

Merging Computing &

Communications

Chapter 1 Foundations of Information Systems in Business24

Purposes of Information Systems

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National Gobel in Brief

Products : TV, Audio, Refrigerator, Air Conditioner, Washing Machine,

Electric Fan, Electric Iron, Pump, Car Audio, Pants Press

Brand :

Established : July 27, 1970

Audio Factory Air Conditioner Factory Refrigerator Factory

NABEL, 3/7/2003

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Transaction Processing Systems

Sample: Order Transaction

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Process Control Systems:Pengaturan PH Tanaman HidroponikBerbasis Komputer

Potted

flower

Relay

ComputerWTB

Selenoid

valve

Selenoid

valve

Base Acid

Marriot

tubes

pH meter

Storage tank

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Process Control Systems:

Industrial Automation

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Collaboration Systems:

Office Meeting & Discussion Forums

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Decision Making

• Decision Making: a process of choosing among

alternative courses of action for the purpose of

attaining a goal or goals

Managerial Decision Making is synonymous with the

whole process of management (Simon, 1977)

Decision Support System (DSS) is an interactive, flexible

and adaptable Computer-Based Information System

(CBIS), specially developed for supporting the solution

of a particular management problem for improved

decision making (Turban 1993).

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Decision Support Systems

Decision-support systems (DSS) assist management decision

making by combining data, sophisticated analytical models,

and user-friendly software into a single powerful system that

can support semi-structured or unstructured decision making.

American Airlines Price & route selections

General Accident Insurance

Customer buying patterns & fraud selection

Frito-Lay, Inc. Price, advertising, & promotion selection

Burlington Coat Factory

Store location & inventory mix

Examples

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Spatial Based Decision

Support System

DSS for Land Selection for Paddy and Maize

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Plant Health Monitoring

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Tomato Grading Systems

IT-Based Grading

Mannual

Grading

Tomato Quality STandard

Green Breakers Turning Pink Light Red Red

Fase HijauFase Masak

Hijau

Fase Pecah

WarnaFase Matang

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Group Decision Support Systems (GDSS)

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Expert Systems

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Expert system (ES) is a system that employs

human knowledge captured in a computer to

solve problems that ordinarily require human

expertise (Turban 1993). A well-designed

expert system imitates the reasoning process

used by experts to solve specific problems. ES

can assist human beings to solve a specific

problem using specific (narrow) area of

expertise (referred to as domain).

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Executive Information Systems (EIS)

An integrated EIS package combines the ability to

organize and present data in such a manner that it

provides information supporting the analytical,

communicative, and planning needs of executive users.

Numerous general-purpose applications are combined

into one program to support electronic mail, company

internal and external news reporting, word processing,

electronic calendars, address lists, and presentation

graphics.

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DNC’s EIS Main Menu

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DNC’s EIS - Dashboard

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DNC’s EIS – Sub Menu

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Customer

Manufacturing

Information

Systems

Quality Control

Information

Systems

Marketing

Information

SystemsFinancial

and Accounting

Systems

Geographic

Information

Systems

Human

Resources

Systems

Functional Business Systems

Eleventh EditionJames A. O’Brien 46Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

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Eleventh EditionJames A. O’Brien 49Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

The e-Business Enterprise

Manufacturingand

Production

Engineering &Research

Accounting,and Finance

Suppliers and Other Business Partners

Supply Chain ManagementProcurement, Distribution, and Logistics

Customer Relationship ManagementMarketing Sales Customer Service

Consumer and Business Customers

Company

Boundary

Intranets

The Internet

Extranets

Extr

an

ets

Eleventh EditionJames A. O’Brien 50Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Management Challenges of the E-business Enterprise

•Business Strategies•Business Processes•Business Needs

•Customer Relationships•Business Partners•Suppliers•Business Customers

Ethical ConsiderationsPotential Risks?Potential Laws? Possible Responses?

•IS Human Resources•IS Development

•IT Infrastructure•IS Performance

•Organization Structure•and Culture•User Acceptance

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Information

Database

Knowledge

Vision & Missions of humans as vice vigerent of earth

High Quality

Decision

Making

(intelectually &

emotionally)

Eleventh EditionJames A. O’Brien 52Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Summary (cont)

• An information system uses the resources of

people, hardware, software, data, and networks

to perform input, processing, output, storage

and control activities. – Transform

organizational processes

• Information systems perform three vital roles in

business firms. They support:

– Business processes and operations,

– Business decision making; and

– Strategic competitive advantage