INF 0116BUSSINESS INFORMATION

SYSTEM

LECTURE # 2Information Systems in Global

Business today

ABDULLA, ALI A

Objectives

• Identify and describe important features of organizations that managers need to know about in order to build and use information systems successfully

• Evaluate the impact of information systems on organizations

• Assess how information systems support the activities of managers in organizations

Objectives

• Analyze how information systems support various business strategies for competitive advantage

ORGANIZATIONS AND INFORMATION SYSTEMS

The Two-Way Relationship between Organizations and Information Technology

• Stable, formal social structure that takes resources from the environment and processes them to produce outputs

• A social unit of people that is structured and managed to meet a need or to pursue collective goals.

What is an Organization?

Organization

• All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks.

• Organizations are open systems--they affect and are affected by their environment.

ORGANIZATIONS AND INFORMATION SYSTEMS

Common feature of organization

• All organizations have some similar “structural” features.

Shared features of all Organization

• Clear division of labor • Hierarchy• Explicit rules and procedures• Impartial judgments• Technical qualifications for positions• Maximum organizational efficiency

Routines and Business Processes

• Routines are patterns of individual behavior.• Business processes are a collection of

routines.• Business firms are a collection of business

processes.• Business processes enable organizations to

cope with all recurring expected situations.

Routines, Business Processes, and Firms

• Structures• Goals• Constituencies• Leadership styles• Tasks• Surrounding environments

Unique Features of Organizations

Environments and Organizations Have a Joint Relationship

Level of Information System in an Organization

Level of system cont..

• Operational level system– Information systems that monitor the basic

activities and transactions of the organization• Knowledge-level system– Information systems that support knowledge and

data workers in an organization.• Management-level system– Information systems that support the monitoring,

controlling, decision making, and administrative activities of middle managers.

• Strategic-level system:– Information systems that support the long-range

planning activities of senior management .

Level of system cont..

How Information System help Organizations (Business process)

• Achieve great efficiencies by automating parts of processes

• Rethink and streamline processes• Customer Relationship Management (CRM)

– Manages all ways used by firms to deal withexisting and potential new customers

– Uses information system to coordinate entire business processes of a firm

– Provides end-to-end customer care– Provides a unified view of customer across the company– Consolidates customer data from multiple sources and

provides analytical tools for answering questions

IS vs Business process cont..

• Supply Chain Management (SCM)– Close linkage and coordination of activities involved in

buying, making, and moving a product– Integrates supplier, manufacturer, distributor, and

customer, logistics, time– Reduces time, redundant effort, and inventory costs– Network of organizations and business processes– Helps in procurement of materials, transformation of

raw materials into finished products– Helps in distribution of the finished products to

customers

End of Lecture 2Any Question?