Foundations of Information Systems in Business

1. Foundations of Information Systemsin Business Syafrizal Helmi

2. Chapter Objectives • Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.

3. An IS Framework for Business Professionals

4. Give examples to illustrate how electronic business, electronic commerce, or enterprise collaboration systems could support a firm’s business processes, managerial decision making, and strategies for competitive advantage.

6. Chapter Objectives • Provide examples of the components of real world information systems. Illustrate that in an information system, people use hardware, software, data, and networks as resources to perform input, processing, output, storage, and control activities that transform data resources into information products.

7. Chapter Objectives • Provide examples of several major types of information systems from your experiences with business organizations in the real world. • Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.

8. There are four reasons why IT makes a difference to the success of a business: • Capital management • Foundation of doing business • Productivity • Strategic opportunity and advantage

9. Capital Management: • IT is the largest single component of capital investment in the world • The success of your business in the future may well depend on how you make IT investment decisions.

10. Figure 1-1 Information Technology Capital Investment Source: Based on the data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, Tables 5.2 and 5.8, 2004.

11. Most businesses today could not operate without extensive use of information systems and technologies.

12. Foundation IT • Using IT to Growth business

14. IT is vital to the development of new products.

15. IT can increase market share.

16. IT can help a business become a high-quality, low-cost producer

17. Figure 1-2 The Interdependence between Organizations and Information Systems

18. Productivity • IT is one of the most important tools managers have to increase productivity and efficiency of businesses

19. IT Increase Productivity

20. Strategic Opportunity and Advantage: • Create competitive advantage: IT makes it possible to develop competitive advantages.

23. Strategic Opportunity and Advantage: • Differentiate yourself from your competitors: Amazon has become the largest book retailer in the United States on the strength of its huge online inventory and recommender system. It has no rivals in size and scope.

24. Create new services: eBay has developed the largest auction trading platform for millions of individuals and businesses. Competitors have not been able to imitate its success.

26. New Business Models: Dell Computer has built its competitive advantage on an IT enabled build-to-order business model that other firms have not been able to imitate.

28. Growing impact of IT in business firms can be assessed from the following five factors: • Internet growth and technology convergence : Growth in e-business, e-commerce, and e-government, eTrade.com, making many traditional business models obsolete: the corner music store and video store.

29. 2. Transformation of the business enterprise : Flattening, Decentralization, Flexibility, Location independence, Low transaction and coordination costs, Empowerment, Collaborative work and teamwork

30. 3. Growth of a globally connected economy : Management and control in a global marketplace, Competition in world markets, Global workgroups, Global delivery systems

31. 4. Growth of knowledge and information-base economies : Knowledge and information-based economies, New products and services, Knowledge as a central productive and strategic asset, Time-based competition, Shorter product life, Turbulent environment, Limited employee knowledge base

32. Emergence of the digital firm : Digitally enabled relationships with customers, suppliers, and employees, Core business processes accomplished using digital networks, Digital management of key corporate assets

33. People Information Systems Resources Software Hardware Networks Data Components of an Information System

34. Control of System Performance Input of Data Resources Processing Data Output of Information Products Storage of Data Resources What is an Information System?

35. Environment Control by Management Feedback Signals Feedback Signals Control Signals Control Signals Input of Raw Materials Output of Finished Products Manufacturing Process System Boundary Other Systems What is a System?

37. Components of an Information System

38. Functions of an Information System

40. Attributes of Information Quality

41. Information Systems Are More than Computers

42. Penggunaan SI secara efektif membutuhkan pemahaman dari organisasi, manajemen, dan IT yang membentuk sistem tersebut.

43. Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations Major Roles of Information Systems

44. Figure 1-7 The Business Information Value Chain

45. The Internet Company Boundary Suppliers and Other Business Partners Supply Chain Management Procurement, Distribution, and Logistics Extranets Engineering & Research Accounting, and Finance Manufacturing and Production Intranets Customer Relationship Management Marketing Sales Customer Service Extranets Consumer and Business Customers The e-Business Enterprise

46. 1970-1980 1950-1960 1960-1970 1980-1990 1990-2000 Strategic & End User Management Reporting Data Processing Electronic Commerce Decision Support Electronic Data Processing - TPS Management Information Systems Decision Support Systems - Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce History of the role of Information Systems

48. Information Systems Operations Management Support Support Systems Systems Transaction Process Enterprise Management Decision Executive Processing Control Collaboration Information Support Information Systems Systems Systems Systems Systems Systems Types of Information Systems

49. Other Categories of Information Systems Expert Systems Knowledge Management Systems Functional Business Systems Strategic Information Systems Cross-Functional Information Systems

50. The Information Systems Development Process