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Information Economics

06 PBM Faiza Nur Hanifah (1501180382) Chandra Vasandani ( 1501193113 ). Information Economics. Information Economics. a concept that explains how useful the economics level of a system investment and information technology to the company.

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Information Economics

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  1. 06 PBM FaizaNurHanifah (1501180382) Chandra Vasandani (1501193113) Information Economics

  2. Information Economics a concept that explains how useful the economics level of a system investment and information technology to the company. This concept has been introduced since 1988 by Marylin Parker and Robert Benson

  3. Old Information Economics (IE) IE is a tool to measure Information System value on business. Information system value on business supposedly based on the growth of performance that happens in company’s line of business. IE included in the strategic planning of information technology. Parker stated that the use of common planning strategy for the business plan is not suitable for IT strategy. Instead the IT strategic plan becomes a method that changes the way allocation of capital and operating resources company.

  4. What IT produced for the company? it’s clear that IT should produce something as a sustainable company invest in computer systems and applications. IT investment cost a lot of money, is it worth to implement?

  5. IE Limitation and Scope To provide clear definitions of IE, Parker states as follows : 1. The concept is not a strategic plan, the development of competition, or traditional economy. 2. Nor is the solution of centralization or decentralization of IT on company

  6. New Information Economics Change the understanding of the relationship of IT with the business where once passive to active. Emphazise on strategy to bottom line value chain - Without real action from bottom lines then everything will be meaningless.

  7. Define The Target companies should invest in IT that directly support business strategies and efficient operations. Benson offers a healthy mindset in the management of IT as follows : 1. Right result 2. Right decision a good IT project make the company able to move where the budget structure and bottom business process become costs under control and increase its impact on the bottom layer.

  8. The Current Reality 1. Low cost at lights-on and the impact on business processes under the reduced rate. 2. Heightened lights-on budget but without the impact of changes in business processes lower level. 3. Heightened lights-on budget and the impact on lower-level business processes as well high.

  9. Underlay Strategy Towards Value Chain. How to reduce costs and generate a great impact for the bottom layer? all you need is a process business planning and IT / IS effective, resource decision-making adequate, and planning and budget easily implemented.

  10. Mistakes • The absence of a relationship between process management, business planning, IT planning, priority setting, budgeting, and performance measurement. • various management activities above do not have the perspective of the organization or the absence of willingness to remove obstacles

  11. Critical Success Factors 1. Business and IT planning processes need to be connected. 2. Innovation in IT is able to make an impact on business planning and generate new business strategies and improve the way to The current implementation of business strategy. 3. IT prioritized the investments based on business strategy. 4. All costs and IT investments, including the development, operation, maintenance, services aligned with business strategy. 5. Business management and IT teams to consistently perform management processes and so that the contribution of IT to the business unit's performance undercoat becomes apparent. 6. Business IT and technical performance can be tracked . 7. The process of planning and management process focuses on the entire cost of IT that is daily operating costs and project . 8. IT and business managers to effectively participate in the management of this process.

  12. Therefore, the purpose of the economics of New Information (NIE) project is the want to get a better / useful through the correct selection process, eliminate waste (because of no benefit) of assets and sources power, it also improves the performance of the assets and resources available.

  13. Implementation / Practice of NIE • Implementation / Practice NIE 1: strategic planning demand / supply • Implementation / Practice NIE 2: innovation and creative • Implementation / Practice NIE 3: perform priority • Implementation / Practice NIE 4: alignment • Implementation / Practice NIE 5: performance measurement

  14. THANK YOU

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