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Foundations of Information Systems

Explore the essential components, technologies, and strategies behind information systems for management and business success.

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Foundations of Information Systems

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  1. Foundations of Information Systems Prof. Dr. Yang Dehua School of Economics and Management Tongji University

  2. Outlines Foundations of Information Systems Information Technologies and Systems Business Processes Business Process Reengineering Business Continuity Management Information Systems for Management Information Systems for Strategic Advantages New Economy

  3. Information Technologies and Systems Information Technology Hardware Software Networks Data Processing Information System Any organized combination of people, hardware, software, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.

  4. Information Technologies and Systems Essential Issues of Using IT for Organizations’ Success: People Information Technology Information

  5. Information Technologies and Systems Business Success Factors: Information Technology Information BusinessSuccess People

  6. Information Technologies and Systems The Enterprise as A System Feedback Feedback Control Control Control Manufacturing Process Raw Material Products System Boundary Environment/Other Systems

  7. Information Technologies and Systems The Enterprise as A System Value added processes Costs and values Impact factors Environment

  8. Information Technologies and Systems Corporate/ business strategy Corporate environment Cultural and contextual issues Processes Outputs (value) Inputs (costs) Information strategy

  9. Information Technologies and Systems IS Components People Resources Data Resources Control of System Performance Input of Data Output of Data Processing Data into Information Hardware Resources Software Resources Storage of Data Network Resources

  10. Information Technologies and Systems Information System Activities Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance

  11. Information Technologies and Systems Information Systems Development High Data warehousing Data mining Knowledge Management Integration Decision support Information Management Data extraction Data filtering Data Management Transaction Processing Low Information Value High

  12. Business Processes Porter Value Chain Primary Processes Support Processes Inter-Organizational Business Processes

  13. Business Process Model Value Chains Firm Infrastructure(3.1%) Support Processes Human Resource Management(7.1%) Technology Development(4.2%) Primary Processes Procurement of Resources(27%) Inbound Logistics (5.2%) Productions and Services (40.3%) Outbound Logistics (6.6%) Marketing and Sales (4.3%) Customer Service (2.2%) Threats of Substitutes Buyer Power New Entrants Supplier Power

  14. ERP ERP CRM SCM ERP Production/ Operation Outbound Logistics Marketing & Sales Cusomer Service Inbound Logistics Business Process Support • IS Support of Primary Business Processes

  15. Business Supply Chain • Up-stream and Down-stream of Supply Chain • Supply Chain Flows • Material flows • Financial flows • Information flows • Service flows

  16. Inter-organizational Processes Processes Processes Customer Supplier Corporation Inter-organizational Processes • Inter-organizational Business Processes

  17. Enterprise Best Practices • Norms or Best Practices of Industry • Large and Comprehensive Information Systems Adopt Industrial Best Practices • Business Process Reengineering(BPR) is Usually Needed When ERP, for Example, Is Implemented

  18. Business Processes Reengineering The Fundamental Rethinking and Radical Redesign of Business Processes to Achieve Dramatic Improvements in Critical, Contemporary Measures of Performance, Such as Cost, Quality, Services and Speed.

  19. Business Process Reengineering High Transformational Business Reengineering Process Reengineering Process Simplification Nature Automation Process Improvement Low Incremental Low Benefits High Functional/Internal Scope Cross-Functional/External Business Process Changes Risk

  20. Business Process Reengineering Principles Organize around outcomes,not around tasks Have those who use the output of a process actually perform the process Treat geographically dispersed units as if they were centralized Link parallel activities during the process,rather than at the end of the process Capture information once at the source

  21. Business Process Reengineering Procedures Develop business vision and process objectives Identify processes to be engineered Understand and measure existing processes Identify IT levers Design and build a prototype of the process BPR Examples IBM Customer Credit Company HP Procurement Kodak Camera Production

  22. Information Systems for Management • Anthony Model Top Layer Strategic Planning Tactics Management Middle Layer Operations Management Low Layer

  23. Information Systems for Management Major Roles of IS Support of strategies for competitive advantage Support of business decision making Support of business processes and operations

  24. Information Systems for Management Types of Information Systems

  25. Information Systems for Management Managerial Challenges Business strategies Business processes Structure and culture Customer values Business value Inter-networked information systems IT infrastructure

  26. Information Systems for Management Managerial Challenges Success and failure with IT Developing IS solutions Challenges of ethics and IT Challenges of IT Careers The IS functions integration

  27. Information Systems for Strategic Advantages Five Competitive Model Bargaining power of customers Bargaining power of suppliers Rivalry of competitors Threat of new entrants Threat of substitutes

  28. Information Systems for Strategic Advantages 5 Competitive Forces Threats of Substitute Products and Services Supplier Power: Bargaining Power of Suppliers Rivalry among Existing Companies Buyer Power: Bargaining of Channels and End Users Threats of New Entrants

  29. Information Systems for Strategic Advantages The Business Strategies Cost leadership Differentiation Innovation Growth Alliance Consolidation Barrier

  30. The New Economy The Industrial Economy Is Based on: Mass Production Mass Transportation Division of Labour Financial Capital

  31. The New Economy The New Economy Is Based on: Mass Customisation Data Communication and Computer Networks Aggregation of Labour Intellectual Capital

  32. The New Economy Features of the New Economy Knowledge Microsoft’s market value versus book value Intellectual property and capital Business intelligence Digitisation >50% of Intel’s business is online Online businesses

  33. The New Economy Virtualisation Virtual companies Virtual processes/Outsourcing/Offshoring Virtual communities Molecularization Market segmentation Personalization Object-oriented programming paradigm

  34. The New Economy Integration/Internetworking CRM, ERP and SCM to link demand chain Interorganizational processes integration Disintermediation Direct marketing E-tailing/Purchasing Digital products

  35. The New Economy Convergence Vertical/Horizontal integration Mobile phones/Pervasive computing and micropayments Innovation Make new products Re-engineer processes Online auctions

  36. The New Economy Prosumption Allow customers to join production processes Build to order Online banking Immediacy Networked collaboration Synergy Online immediacy

  37. The New Economy Globalisation Real-time collaboration on software development 24 hour shopping Pervasive presence Discordance Privacy and civil liberty issues Social exclusion Hegemony of Western brands and English language Security issues

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