Download - Introduction Dr. Azuraliza Abu Bakar
Business in Information Age
OrganizationalPressures
1. Global competition for trade and labor
2. Need for real time operation3. Changing workforce4. Customer orientation5. Information overload6. Social responsibility7. Government regulation and
deregulation8. Ethical issues
Business in Information Age
OrganizationalResponses
1. Strategic systems2. Customer focus and service3. Continuous improvement efforts4. Business process reengineering5. Business alliances6. E-commerce
Business in Information Age
OrganizationalPressures
Emergence of global economy, trade is less constrained by traditional barriers - borders, language, currency or politics
Goods and services are produced profitably
Advance telecommunications networks (such as internet) helped facilitate the global economy
Labor cost differ widely from country to another
Global competition for trade and labor
Business in Information Age
OrganizationalPressures
Companies in information age have no more “information float” I.e. time between when a business event occurs and when information captured the event reaches the necessary decision makers
High-performance telecommunications technologies can reduce the time
Transactions can occur by electronic businesses.
Need for real time operation
Business in Information Age
OrganizationalPressures
Changing workforce is rapidly occur esp. in developed countries.
IT help the integration of various employees into the traditional workforce
Changing workforce
Business in Information Age
OrganizationalPressures
Customer sophistication and expectations increase as they are more knowledgeable about the availability and quality of products and services
Demanding more detailed info, features and warranties
Companies should be able to deliver information quickly to satisfy their customers or risk losing them.
Advance use of internet or e-commerce are required to compete with others
Customer orientation
Business in Information Age
OrganizationalPressures
Internet and other telecommunications networks increase the amount of information available to organizations and individuals
Existence of so much useful knowledge
The need for technologies to help management accessing only important and relevant information for decision making
Information overload
Business in Information Age
OrganizationalPressures
Organizational social responsibility.
Failure to accept social responsibility can result in employee dissatisfaction and turnover
Effect the corporate reputation with the public and government.
Social responsibility
Business in Information Age
OrganizationalPressures
Organizations must deal with ethical issues of their employees, customers and suppliers
Ethics in business refer to standards and values for judging whether particular conducts in the workplace is right/wrong
Ethical issues is very important for the organization reputation
The use of IT may increase many new ethical issues to be handled
Surveillance of e-mails and customers privacies
Ethical issues
Business in Information Age
OrganizationalResponses
1. Strategic systems2. Customer focus and service3. Continuous improvement efforts4. Business process reengineering5. Business alliances6. E-commerce
Business in Information Age
OrganizationalResponses
Organizations seek to implement systems that will significantly impact the organization’s operations, success or survival
Strategic systems provide organizations with strategic advantages in meeting organizational objectives, enabling to increase market shares, better deal with suppliers or prevent competitors from entering their markets
As in information age competitors adopt the similar technologies, the need of constant innovation.
Strategic systems
Business in Information Age
OrganizationalResponses
The increased power of customers and stiff competition in many industries and market force organizations to adopt customer-focused approach
IT plays major role in supporting the traditional activities of customer service, such as providing troubleshooting or helpdesk.
Customer focus and service
Business in Information Age
OrganizationalResponses
IT can enhance TQM by improving data monitoring, collection, analysis and reporting
increase the speed of inspection, raise the quality of testing and reduce the cost of performing various quality control activities
Help avert quality problems before arise
Support decision making process by having systems that improve information access and evaluations.
Continuous improvement efforts
Business in Information Age
OrganizationalResponses
BPR introduces a major innovation in an organization’s structure and the way it conducts its business.
In the process, technological, human and organizational dimensions of a firm may all be changed.
IT plays major role in BPR by providing automation; allows business to be conducted in different locations; provides flexibility in manufacturing; permits quicker delivery to customers; and supports rapid and paperless transactions among suppliers, manufactures and retailers
Reduce business process time and increase productivity and competitiveness.
Business process reengineering
Business in Information Age
OrganizationalResponses
Alliances with other firms or competitors can be beneficial
Several types of alliances: sharing resources, establishing permanent supplier-company relationships, creating joint research efforts
More permanent type, links manufacturers, suppliers and finance corporation (keiretsu)
IT supports the electronic data interchange
Supply chain management, enterprise resource planning(ERP)
Business alliances
Business in Information Age
OrganizationalResponses
Business in EC is the newest, perhaps most promising
EC is multifaceted concept involcing the exchange of products, services, information, or money with the support of computers and networks.
Applications of EC - e-transfer of funds between buyers and suppliers, to Internet based marketing, to intranet and extranet-based information networks.
E-commerce
Why you need to know about IT?
• Interesting
• Facilitates work in organizations
• Offers career opportunities
• IT is used by all departments
What is an IS• Information Systems
– Collects, processes, stores, analyzes and disseminates information for a specific purpose
• Data– Raw facts or elementary
descriptions of things, events, activities and transactions that are captured, recorded, stored and classified, but not organized to convey any specific meaning, e.g. students GPA, bank balances etc.
• Information– Collection of facts(data)
organized in some manner, meaningful to the recipient. E.g. students names with GPA, customer names with bank balances
• Knowledge– Information that been
organized and processes to convey understanding, experiences, accumulated learning, or expertise.
– Information is processes to extract critical implications and to reflect past experience and expertise.
What is an Information System?
• A system that collects, processes, stores, analyzes, and disseminates information.
CollectInputs
ProcessAnd
Transform
ProduceOutputs
Store
Data
Instructions
Calculations
Reports
Capabilities of Information Systems• Transaction such as sales of
goods, paycheck issued, bank deposit, etc.
• Transaction processing systems: IS that capture, record, store and update data
• E.g. Point Of Sales (POS)
• Computerized cash registers and bar code readers
Fast and accurate transaction
Capabilities of Information Systems
• IS must provide both enormous storage for corporate data
• Fast access
Large capacities,Fast access storage
Capabilities of Information Systems
• Networks enables organizational employees and computers to communicate instantly
• Allow data, voice, images, documents and videos to be transmitted
• Provide nearly instant access to information for decision makers; reduce information float
Fast communicationsMachine-machineHuman-human
Capabilities of Information Systems
• IS can be designed to reduce the enormous amount of information available (information load)
• E.g. executive information systems(EIS) provide structured information that is tailored tailored to each executive according to his critical success factors
• Software that prioritize information for managers to criteria that being preset
ReduceInformation overload
Capabilities of Information Systems
• IS span boundaries inside organizations or between organization along the entire supply chain
• Facilitates decision making across functional areas, business process reengineering and communications
• Along the supply chain it facilitates shorter cycle times for product delivery, reduce inventory and increase customer satisfaction
Spanboundaries
Capabilities of Information Systems
• DSS help decision makers in organization at all levels
• E.g. EIS support executive decision making
• It makes information available for all level of employees that they have authority and responsibility to make more and larger decisions
Support for Decision making
Capabilities of Information Systems
• IS are viewed as a profit center and expected to give organization advantage over its competitors
Competitiveweapon
Key Technical Trends to Monitor• Constantly improving
cost-performance ratio
• Increasing storage and memory
• User friendly interfaces
• Client/server architecture
• Network computers
• Enterprisewide computers
• Intranets and extranets
• Data warehousing
• Data mining• Object-oriented
environment• Electronic document
management• Multimedia• Intelligent systems• Portable computing• Internet expansion• Electronic commerce• Integrated home
computing
General IT trendsConstantly improving cost-performance ratio
Storage and memory
Graphical and other user friendly interfaces
Client/server architecture
Network computers
Enterprise computing
Intranets and extranets
Data warehousing
Data mining
O-O environment
Electronic document management
Multimedia and virtual reality
Intelligent systems and agents
Portable computing
Electronic commerce(EC)
Integrated home computing
Discussion Questions
• Why is the study of information systems important to you, regardless your major
• “One person’s data is another person’s information” Explain this statement with an example
• What does it mean we live in an Information Age
• What are the capabilities of information systems that businesses must have to compete (and survive) in the Information Age
• Discuss the general technological trends for IT