Introduction

1. Introduction Dr. Azuraliza Abu Bakar http://www.ftsm.ukm.my/jabatan/ts/aab/indeks.htm

2. Business in Information Age Organizational Pressures Organizational Responses

3. Business Pressures and Organizational Responses

4. Business in Information Age • Global competition for trade and labor • Need for real time operation • Changing workforce • Customer orientation • Information overload • Social responsibility • Government regulation and deregulation • Ethical issues Organizational Pressures

5. Business in Information Age • Strategic systems • Customer focus and service • Continuous improvement efforts • Business process reengineering • Business alliances • E-commerce Organizational Responses

6. Business in Information Age Global competition for trade and labor Emergence of global economy, trade is less constrained by traditional barriers - borders, language, currency or politics Goods and services are produced profitably Advance telecommunications networks (such as internet) helped facilitate the global economy Labor cost differ widely from country to another Organizational Pressures

7. Business in Information Age Need for real time operation Companies in information age have no more “information float” I.e. time between when a business event occurs and when information captured the event reaches the necessary decision makers High-performance telecommunications technologies can reduce the time Transactions can occur by electronic businesses. Organizational Pressures

8. Business in Information Age Changing workforce Organizational Pressures Changing workforce is rapidly occur esp. in developed countries. IT help the integration of various employees into the traditional workforce

9. Business in Information Age Customer orientation Customer sophistication and expectations increase as they are more knowledgeable about the availability and quality of products and services Demanding more detailed info, features and warranties Companies should be able to deliver information quickly to satisfy their customers or risk losing them. Advance use of internet or e-commerce are required to compete with others Organizational Pressures

10. Business in Information Age Information overload Internet and other telecommunications networks increase the amount of information available to organizations and individuals Existence of so much useful knowledge The need for technologies to help management accessing only important and relevant information for decision making Organizational Pressures

11. Business in Information Age Social responsibility Organizational Pressures Organizational social responsibility. Failure to accept social responsibility can result in employee dissatisfaction and turnover Effect the corporate reputation with the public and government.

12. Business in Information Age Government regulation and deregulation Organizational Pressures

13. Business in Information Age Ethical issues Organizations must deal with ethical issues of their employees, customers and suppliers Ethics in business refer to standards and values for judging whether particular conducts in the workplace is right/wrong Ethical issues is very important for the organization reputation The use of IT may increase many new ethical issues to be handled Surveillance of e-mails and customers privacies Organizational Pressures

14. Business in Information Age • Strategic systems • Customer focus and service • Continuous improvement efforts • Business process reengineering • Business alliances • E-commerce Organizational Responses

15. Business in Information Age Strategic systems Organizations seek to implement systems that will significantly impact the organization’s operations, success or survival Strategic systems provide organizations with strategic advantages in meeting organizational objectives, enabling to increase market shares, better deal with suppliers or prevent competitors from entering their markets As in information age competitors adopt the similar technologies, the need of constant innovation. Organizational Responses

16. Business in Information Age Customer focus and service Organizational Responses The increased power of customers and stiff competition in many industries and market force organizations to adopt customer-focused approach IT plays major role in supporting the traditional activities of customer service, such as providing troubleshooting or helpdesk.

17. Business in Information Age Continuous improvement efforts IT can enhance TQM by improving data monitoring, collection, analysis and reporting increase the speed of inspection, raise the quality of testing and reduce the cost of performing various quality control activities Help avert quality problems before arise Support decision making process by having systems that improve information access and evaluations. Organizational Responses

18. Business in Information Age Business process reengineering BPR introduces a major innovation in an organization’s structure and the way it conducts its business. In the process, technological, human and organizational dimensions of a firm may all be changed. IT plays major role in BPR by providing automation; allows business to be conducted in different locations; provides flexibility in manufacturing; permits quicker delivery to customers; and supports rapid and paperless transactions among suppliers, manufactures and retailers Reduce business process time and increase productivity and competitiveness. Organizational Responses

19. Business in Information Age Business alliances Alliances with other firms or competitors can be beneficial Several types of alliances: sharing resources, establishing permanent supplier-company relationships, creating joint research efforts More permanent type, links manufacturers, suppliers and finance corporation (keiretsu) IT supports the electronic data interchange Supply chain management, enterprise resource planning(ERP) Organizational Responses

20. Business in Information Age E-commerce Business in EC is the newest, perhaps most promising EC is multifaceted concept involcing the exchange of products, services, information, or money with the support of computers and networks. Applications of EC - e-transfer of funds between buyers and suppliers, to Internet based marketing, to intranet and extranet-based information networks. Organizational Responses

21. Interesting • Facilitates work in organizations • Offers career opportunities • IT is used by all departments Why you need to know about IT?

22. Information Systems Collects, processes, stores, analyzes and disseminates information for a specific purpose Data Raw facts or elementary descriptions of things, events, activities and transactions that are captured, recorded, stored and classified, but not organized to convey any specific meaning, e.g. students GPA, bank balances etc. Information Collection of facts(data) organized in some manner, meaningful to the recipient. E.g. students names with GPA, customer names with bank balances Knowledge Information that been organized and processes to convey understanding, experiences, accumulated learning, or expertise. Information is processes to extract critical implications and to reflect past experience and expertise. What is an IS

23. What is an Information System? • A system that collects, processes, stores, analyzes, and disseminates information. Calculations Data Collect Inputs Process And Transform Produce Outputs Instructions Reports Store

24. Components of Information Systems (CBIS) Hardware Software People Database Network Procedures

25. Transaction such as sales of goods, paycheck issued, bank deposit, etc. Transaction processing systems: IS that capture, record, store and update data E.g. Point Of Sales (POS) Computerized cash registers and bar code readers Capabilities of Information Systems Fast and accurate transaction

26. IS must provide both enormous storage for corporate data Fast access Capabilities of Information Systems Large capacities, Fast access storage

27. Networks enables organizational employees and computers to communicate instantly Allow data, voice, images, documents and videos to be transmitted Provide nearly instant access to information for decision makers; reduce information float Capabilities of Information Systems Fast communications Machine-machine Human-human

28. IS can be designed to reduce the enormous amount of information available (information load) E.g. executive information systems(EIS) provide structured information that is tailored tailored to each executive according to his critical success factors Software that prioritize information for managers to criteria that being preset Capabilities of Information Systems Reduce Information overload

29. IS span boundaries inside organizations or between organization along the entire supply chain Facilitates decision making across functional areas, business process reengineering and communications Along the supply chain it facilitates shorter cycle times for product delivery, reduce inventory and increase customer satisfaction Capabilities of Information Systems Span boundaries

30. DSS help decision makers in organization at all levels E.g. EIS support executive decision making It makes information available for all level of employees that they have authority and responsibility to make more and larger decisions Capabilities of Information Systems Support for Decision making

31. IS are viewed as a profit center and expected to give organization advantage over its competitors Capabilities of Information Systems Competitive weapon

32. Constantly improving cost-performance ratio Increasing storage and memory User friendly interfaces Client/server architecture Network computers Enterprisewide computers Intranets and extranets Data warehousing Data mining Object-oriented environment Electronic document management Multimedia Intelligent systems Portable computing Internet expansion Electronic commerce Integrated home computing Key Technical Trends to Monitor

33. General IT trends Constantly improving cost-performance ratio O-O environment Storage and memory Electronic document management Graphical and other user friendly interfaces Multimedia and virtual reality Client/server architecture Intelligent systems and agents Network computers Portable computing Enterprise computing Electronic commerce(EC) Intranets and extranets Integrated home computing Data warehousing Data mining

34. Discussion Questions • Why is the study of information systems important to you, regardless your major • “One person’s data is another person’s information” Explain this statement with an example • What does it mean we live in an Information Age • What are the capabilities of information systems that businesses must have to compete (and survive) in the Information Age • Discuss the general technological trends for IT