Ir. Muhril Ardiansyah, M.Sc., Ph.D.1 Foundation Of Information Systems In Business.

Ir. Muhril Ardiansyah, M.Sc., Ph.D. 1

Foundation Of Information Systems In Business


Learning Objectives:

Understand the concept of a system and how it relates to information systems.


What Is An Information System?

An Information System can be any organized combination Of:

- people,

- hardware,

- software,

- communications networks,

- policies.


What Is An Information System? (continued) People rely on modern information systems to

communicate using a variable:

- physical devices (hardware).

- information processing instruction and

procedures (software).

- communications channels (network).

- stored data (data resources).


Examples Of Information Systems:

Smoke signals for communication Card catalog in a library The cash register


Real World Case:Heidelberg: Using IT To Build Smart Products And Services

Consider Heidelberger Druckmaschinen AG of Germany, the number one maker of high end end printing presses for printers and print media producers throughout the world. For all of its long history, the company has offered repair services to its customers.

Several years ago, Heidelberg developed the ability to monitor its equipment remotely using built in sensors, networking microprocessors, and other information technologies.


Real World Case:Heidelberg: Using IT To Build Smart Products And Services (continued)

Heidelberg soon found that it could provide maintenance much more cost effectively with the smart products.

Now with its machines communicating continuously over the internet, relaying information about their status between the print shops and Heidelberg’s regional and global technical support specialists, the company has the access and insight to optimize printing performance in customer’s shops and minimize maintenance and repair costs for Heidelberg as well as its customers.



With such smart services, Heidelberg now offers total supports of its products, which for example, can extend even to the removal and resale of its machines.

Thus the self monitoring and networking capabilities built into its products provide a strategy opportunity for Heidelberg to use information technology to become a partner in the successful operations of its customers, while reducing its costs and creating new sources of revenue from smart services.



Questions: Why should manufacturing companies build

smart products and provide smart services?

What business benefits can be gained?

Provide several examples beyond discussed in this case



Questions (continued) What information technologies are used by the

companies in this case to build smart products and provide smart services?

What are some limitations of a smart products and smart services strategies?

Use the internet to investigate how Heidelberg, is proceeding in its use of smart products and services.


Computer Based Information System & Information Technologies:

1. Computer hardware technologies.

2. Computer software technologies.

3. Telecommunications network technologies.

4. Data resource management technologies.


The Major Areas Of Information Systems Knowledge Needed By Business Professionals

1. Foundation concepts.

concept about the components and roles of information systems.

2. Information technologies.

hardware, software, networks, data management, many internet based technologies.


The Major Areas Of Information Systems Knowledge Needed By Business Professionals (continued)3. Business applications. operations, management, competitive advantage of

a business.

4. Development processes. plan, develop, and implement information systems

to meet business opportunities.

5. Management challenges. the challenges of effectively and ethically managing

information technology at end user, enterprise, and global levels of a business.


The Fundamental Roles Of Information System In Business

There are three fundamental reasons:

1. Support of its business processes and operations.

2. Support of decision making by its employees and managers.

3. Support of its strategies for competitive advantage.


Trends In Information Systems:

1. Data processing: 1950s – 1960s - electronic data processing systems -- transaction processing, record keeping, and traditional accounting applications.

2. Management reporting: 1960s – 1970s - management information systems -- management reports of pre specified information to support decision making.


Trends In Information Systems (continued):

3. Decision support: 1970s – 1980s

- decision support systems

4. Strategic and User Support: 1980s – 1990s

- end user computing systems

- executive information systems

- expert systems

- strategic information systems


Trends In Information Systems (continued):

4. Electronic Business and Commerce: 1990s – 2000s

- internet based e business and e

commerce systems


The Role Of “E Business” In Business

Many business today are using internet technologies to Web enable business process and to create innovative e business application.


The Role Of E Business In Business (continued) E business:

the use of internet technologies to work and empower business process, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders.


Business Today

Manufacturing and production

Accounting and finance

Engineering and research

Supply chain management: procurement, distribution, and

logistics

Customer relationship management: Marketing, Sales, Customer Service

Company Boundary

Internet

Internet


Business Today (continued)

Company

Boundary

Suppliers and other business partners

Consumers and business customers

Extranets

Extranets



Intranet:

the internet and internet like networks inside the enterprise.

Extranet:

the internet and internet like networks between an enterprise and its trading partners.



Electronic commerce:

the buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks.


Types Of Information Systems

Information Systems

Operations Support Systems

Management Support Systems


Types Of Information Systems (continued)

Operations Support Systems

Specialized Processing Systems

Transaction Processing Systems

Process Control

Systems

Enterprise Collaboration Systems


Types Of Information Systems (continued)

Management Support Systems

Management Information

Systems

Decision Support Systems

Executive Information

Systems

Specialized Processing Systems


Types Of Information Systems (continued) Operations support systems: - Transaction processing systems -- process data resulting from business transactions, update operational databases, and produce business documents. Examples: Sales and inventory, processing and accounting systems.


Types Of Information Systems (continued) Operations support systems (continued):

- Process control systems.

-- minor and control industrial process.

Examples: Petroleum refining, power

generation, steel producing

systems.


Types Of Information Systems (continued) Operations support systems (continued):

- Enterprise collaboration systems.

-- support team, workgroup, and enterprise

communications and collaboration.

Examples: email, chat, video

conferencing groupware

systems.


Types Of Information Systems (continued) Management support systems:

- Management information systems

-- provide information in the form of pre

specified reports and displays to support

business decision making.

Examples: Sales analysis,

production performance,

cost trend reporting systems.


Types Of Information Systems (continued) Management support systems (continued):

- Decision support systems

-- provide interactive ad hoc support for the

decision making processes of managers

and other business professionals.

Examples: product pricing,

profitability forecasting,

risk analysis.


Managerial Challenges Of Information Technology

The Business Enterprise: Strategies/Processes/Structure/Culture

Information Technology

Customer Value Business Value

Business/IT Challenges

Business/IT Developments

Business/IT Goals


Managerial Challenges Of Information Technology (continued)

•Speed and flexibility requirements of product

development, manufacturing, and

delivery cycles,

•Integration of e business and e

commerce into the organization’s

strategies, process, structure, and culture

Business/IT ChallengesBusiness/IT Developments

* Use of the internet, intranets,

extranets, and the WEB

Business/IT Goals

•Give customers what they want,

when and how they want it, at the lowest cost

• Coordination of manufacturing and business process with suppliers and

customers


Developing Information System (IS) Solutions

Investigate Analyze

Design

ImplementMaintain


The IS (Information System) Functions: A major functional area of business equally

as important to business success, as the function of:

- accounting,

- finance,

- operations management,

- marketing,

- human resource management.


The IS (Information System) Functions (continued): An important contributor to:

- operational efficiency,

- employee productivity,

- customer service and satisfaction.

A major source of information and support needed to promote effective decision making by managers and business professionals.


The IS (Information System) Functions (continued): A vital ingredient in developing competitive

products and services that give an organization a strategic advantage in the global market place.


Foundation Concepts: The Components Of Information Systems: Technology: the computer network are systems of information

processing component that use a variety of: hardware,

software, data management, and telecommunication network technologies.

Applications: the electronic business and commerce applications

involve interconnected business information systems.


Foundation Concepts: The Components Of Information Systems (continued):

Development:

that developing ways to use information technology in business includes designing the basic components of information system.

Management:

the managing information technology emphasizes the quality, strategic business value, security.


What Is A System?

Systems have three basic functions:1. Input:

Involves capturing and assembling elements that enter the system to be processed.

Example: - raw materials,

- energy,

- data.


What Is A System? (continued)

Systems have three basic functions (continued):2. Processing: involves transformation processes that convert input into output. Example: - manufacturing process,

3. Output: involves transferring elements that have been produced by a transformation process to their ultimate destination. Example: - finished products, - human services


Stakeholders In The Business Environment

Management

Information System

Economic Resources: people,

money, material, machines, land, facilities, energy,

information

Business Process: market, develop,

produce, and deliver, products

and services, support customers,

other processes

Goods and Services: products, services,

payments, contributions, information, other effects

INPUT

PROCESSING

OUTPUT

CONTROL

FEEDBACK

Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community, Government Agencies, Suppliers


Components Of An Information System

Control System Performance

Input Of Data Resources

Processing Data Into

Information

Output Of Information Products

Storage Of Data Resources

PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES (communications media and network support); DATA RESOURCES (data and knowledge bases);

SYSTEM ACTIVITIES


Examples Of Information System Resources And Products

Information Systems Resources And Products

People Resources

Hardware Resources

Software Resources

Data Resources

Network Resources

Information Products


Information Systems Resources And Products People resources: - specialist (system analysts, software developers, system operators). - end users (anyone else who uses information systems).

Hardware resources: - machines (computers, video monitor, magnetic disk drives, printers, optical scanners). - media (floppy disks, magnetic tape, optical disks, plastic cards, paper forms).


Information Systems Resources And Products (continued) Software resources:

- programs (operating system program, spreadsheet

programs, word processing programs).

- procedures (data entry procedures, error correction

procedures).

Data resources:

- product description, customer records, employee

files, inventory databases.


Information Systems Resources And Products (continued) Network resources: - communications media, communication processors, network access and control software.

Information products: - management reports and business documents using text and graphics displays, audio responses, and paper forms.


Business Examples

INFORMATION SYSTEM ACTIVITIES

Input. (optical scanning of bar coded tags on

merchandise) Processing. (calculating employee pay, taxes, and

other payroll deductions) Output. (producing reports and displays about sales

performance) Storage. (maintaining records on customers,

employees, and products) Control. (generating audible signals to indicate proper


Recognizing Information Systems

As a business professional, You should be able

to recognize the fundamental components of

information systems You encounter.

You should be able to identify:

** The people, hardware, software, data, and network resources they use.

** The types of information products they produce.

** The way thy perform input, processing, output, storage, and control activities.


Real World Case 4Continental Airlines: This Call Is Being Monitored

Ir. Muhril Ardiansyah, M.Sc., Ph.D.1 Foundation Of Information Systems In Business.

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Transcript of Ir. Muhril Ardiansyah, M.Sc., Ph.D.1 Foundation Of Information Systems In Business.