Chapter 2 Information System in Organization

Organization Concepts  

1.Structure

• Hierarchy
• Functional/business area
• Management (operational, tactical, strategic)  

2.Culture

3.Change-reaction to new requirements (eg. Information systems)

Competitive Strategy Concepts
1. Business Process Reenginering (BPR)
2. Total Quality Management (TQM)
3. Competitive Advantage
4. Strategic Planning 
 
Competitive Strategic Concepts
A strategic information system uses IT to help an organization:

1.  Gain a competitive advantage
2. Reduce a competitive disadvantage
3. Meet other strategic enterprise objectives

Business Process Reenginering
1.Called BPR or simply Reenginering

• Radical
• Seeks improvements

2. High potential
3. High risk 
4. Important enabler of reenginering

• IT
• Process teams
• Case managers

Total Quality Management
1. A collection of principles, techniques, processes & best practices that over time have been proven effective.


2. TQM organizations have processes that continuosly collect, analyze & act on customer information.


3. Activities:

• understanding competitors customers
• understanding of customer needs to predict future customer behaviour

4. TQM organizations integrate customer knowledge with other information & use the planning process to orchestrate action throughout the organization.


5. Plans are reviewed at periodic intervals & adjusted as necessary.


6. The planning process is the glue that holds together all TQM activity.
 
 

Pt 2

Measuring IT Success

1. Efficiency
2. Effectiveness

Challenges & Ethics of IT

1. Applications of IT
2. Potential Harm
3. Potential Risks
4. Possible Responses

The IS Function

• a major functional area of business
• an important contributor to operational efficiency, employee productivity, morale, customer service & satisfaction
• a major source of information & support for decision making
• a vital ingredient in developing competitive products & services in the global marketplace 
• a dynamic & challenging career opportunity
• a key component of today networked business

What is a System?

• a set of interrelated components
• with a clearly defined boundary
• to achieve a common set of objectives
• by accepting inputs & producing outputs
• in an organized transformation process

Basic Functions of System

• Input
• Processing
• Output  

Cybernetic System

1. All systems have input, processing & output
2. A cybernetic system, a self-monitoring, self-regulating, adds feedback & control:

• Feedback is data about the performance of a system
• Control involves monitoring & evaluating feedback to determine whether a system is moving toward the achievement of its goal

Information System Resources

1. People Resources
2. Hardware Resources
3. Software Resources
4. Data Resources
5. Network Resources
6. Information Resources

Data vs Information

1. Data are raw facts about physical phenomena or business transactions
2. Information is data that has been converted into meaningful & useful context ebd users
3. Examples: 

• Sales data is name, quantities & dollar amounts
• Sales information is amount of sales by product type, sales territory or salesperson

IS Activities

1. Input of data resources
2. Processing of data into information
3. Output of information products
4. Storage of data resources
5. Control of system performance 

 

Chapter 1 Foundations of Information Systems in Business Pt 1

What is an Informations System?
An organized combination of people, hardware & software, communications networks, data resources, policies and procedures.

This system stores, retrieves, transform and disseminates information in an organization.

Information Technology

• Hardware, software, networking, data management.

What is E-Business?
Using internet technologies to empower

• Business process
• Electronic commerce
• Collaboration within a company
• Collaboration with customer, suppliers and other business stakeholders

  
Types of Information System:
1. Operations Support System
2. Management Support System

Operations Support System:

• Efficiently process business transaction
• Control Industrial process
• Support communications and collaborations
• Update corporate databases

Types of Operations Support System:
1. Transaction Processing Systems
2. Process Control System
3. Enterprise Collaboration System


Two ways to process transactions:
1. Batch Processing
2. Online Processing




Management Support Systems

1. Provide information and support for effective decision making by managers

• Management information system
• Decision support system
• Executive information system

Types of Management Support System:

1. Management Information Systems (MIS)
2. Decision Support Systems (DSS)
3. Executive Information System (EIS)

Other Information Systems:

1. Expert Systems
2. Knowledge Management System
3. Strategic Information System
4. Functional Business System