Transcript Document

Foundations of Information
Systems
Prof. Dr. Yang Dehua
School of Economics and
Management
Tongji University
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
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.
Information Technologies and
Systems

Essential Issues of Using IT for
Organizations’ Success:



People
Information Technology
Information
Information Technologies and
Systems

Business Success Factors:
Information
Technology
Information
Business
Success
People
Information Technologies and
Systems

The Enterprise as A System
Feedback
Feedback
Control
Control
Raw Material
Control
Manufacturing
Process
System Boundary
Environment/Other Systems
Products
Information Technologies and
Systems

The Enterprise as A System




Value added processes
Costs and values
Impact factors
Environment
Information Technologies and
Systems
Corporate
environment
Corporate/
business
strategy
Cultural and
contextual issues
Processes
Outputs
(value)
Inputs
(costs)
Information
strategy
Information Technologies and
Systems

IS Components
People Resources
Input of
Data
Control of
System
Performance
Processing
Data into
Information
Data Resources
Output
of Data
Hardware Resources
Software Resources
Storage of
Data
Network Resources
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
Information Technologies and
Systems

Information Systems Development
Data warehousing
Data mining
High
Integration
Decision
support
Information
Management
Data extraction
Data filtering
Data Management
Low
Knowledge
Management
Transaction
Processing
Information Value
High
Business Processes

Porter Value Chain



Primary Processes
Support Processes
Inter-Organizational Business Processes
Business Process Model

Value Chains
New Entrants
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
Outbound
Logistics
Marketing
and Sales
Customer
Service
(6.6%)
(4.3%)
(2.2%)
(40.3%)
Supplier
Power
Threats of
Substitutes
Buyer
Power
Business Process Support

IS Support of Primary Business
Processes
ERP
SCM
Inbound
Logistics
Production/
Operation
ERP
Outbound
Logistics
CRM
ERP
Marketing &
Sales
Cusomer
Service
Business Supply Chain


Up-stream and Down-stream of Supply
Chain
Supply Chain Flows




Material flows
Financial flows
Information flows
Service flows
Inter-organizational Processes

Inter-organizational Business Processes
Inter-organizational Processes
Processes
Processes
Supplier
Corporation
Customer
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
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.
Business Process
Reengineering
Business Process Changes
Transformational
High
Business Reengineering
Process Reengineering
Process Simplification
Nature
Risk
Automation
Process Improvement
Low
Incremental
Low
Benefits
Functional/Internal
Scope
High
Cross-Functional/External
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
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
Information Systems for
Management

Anthony Model
Strategic Planning
Tactics Management
Operations Management
Top Layer
Middle Layer
Low Layer
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
Information Systems for
Management

Types of Information Systems
Inform
ationSystem
s
Operations
Support
System
s
Transaction
Processing
ProcessControl
M
anagem
ent
Support
System
s
Enterprise
Collaboration
M
IS
DSS
EIS
Information Systems for
Management

Managerial Challenges
Business strategies
Business processes
Structure and
culture
Internetworked
information
systems
IT infrastructure
Customer
values
Business
value
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
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
Information Systems for
Strategic Advantages

5 Competitive Forces
Threats of Substitute
Products and Services
Supplier Power:
Bargaining Power of
Suppliers
Rivalry among
Existing
Companies
Threats of New
Entrants
Buyer Power:
Bargaining of Channels
and End Users
Information Systems for
Strategic Advantages

The Business Strategies







Cost leadership
Differentiation
Innovation
Growth
Alliance
Consolidation
Barrier
The New Economy

The Industrial Economy Is Based
on:




Mass Production
Mass Transportation
Division of Labour
Financial Capital
The New Economy

The New Economy Is Based on:




Mass Customisation
Data Communication and Computer
Networks
Aggregation of Labour
Intellectual Capital
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
The New Economy

Virtualisation




Virtual companies
Virtual processes/Outsourcing/Offshoring
Virtual communities
Molecularization



Market segmentation
Personalization
Object-oriented programming paradigm
The New Economy

Integration/Internetworking



CRM, ERP and SCM to link demand chain
Interorganizational processes integration
Disintermediation



Direct marketing
E-tailing/Purchasing
Digital products
The New Economy

Convergence



Vertical/Horizontal integration
Mobile phones/Pervasive computing and
micropayments
Innovation



Make new products
Re-engineer processes
Online auctions
The New Economy

Prosumption




Allow customers to join production processes
Build to order
Online banking
Immediacy



Networked collaboration
Synergy
Online immediacy
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