EP1140

Business Operations in Information Systems

Evolving more rapidly than Industrial Age

Will continue into the current century

Information Age

Cornerstones of our Economy

Land Labor Capital Information

Creating a Computer-Based Society:

Jobs

From physical to mental

From muscle-power to brain-power

The Nature of Computers

Characteristics Speed Reliability Storage capability

Results Productivity Decision making Cost reduction

Impact on Retailing

Bar codes for pricing and inventory

Shipping

On-line transactions

Impact on Transportation

Cars

Run rapid transit

systems

Load containerships

Track railroad cars

Monitor air traffic

What is a Computer System?

People

Software

Hardware

People

Computer programmer – person who writes programs

Users or End-users – make use of the computer’s capabilities

Function of Computer System

Data handling

I Input

P Process

O Output

S Storage

Database

A collection of related information organized for efficient data storage and retrieval.

Network

Definition– A system that uses communications equipment to connect

computers and their resources.

Types– Local area network (LAN) – connects computers in close

proximity

– Metropolitan are network (MAN) – connect computers between buildings in the same geographic area

– Wide are network (WAN) – connects computers over great distances

Internet

Collection of networks

No ownership

No central source for services available

No comprehensive index of what information is available

What is an online Application?

Any computer program that assists in the execution of a business function which uses the internet to exchange information

E- Business

All the applications and processes enabling a company to service a business transaction

Impact of E- business

INFORMATION SYMMETRY: Condition in which all relevant information is known to all parties involved

Businesses embracing E-business are forced to re-engineer their practices

Some key Business Terms….

Mission Statement– The Mission Statement defines the main purpose

of an organization, the reason for its existence.

Some key Business Terms (cont)

Business Strategy– Strategy of an organization is the roadmap

towards attainment of its long term goals and objectives. Organizational strategy consists of planning, organizing, execution, and control activities. Business level strategy is the firm specific strategy that facilitates in gaining competitive advantage in the market

Some key Business Terms (cont)

Business Objective– A business objective is something the business is

aiming toward or a strategic position it is working to attain. Usually it is a step in the strategy. Objectives are similar to goals, but often have success/failure rather than quantifiable metrics.

Rule 1

Technology is the driving force of business strategy

Rule 2

Information about a product or service is more important than the product itself

Rule 3

Inability to overthrow dominant, outdated business design often leads to business failure.

Rule 4

Use E-commerce to understand customer needs and orient the service experience towards those needs

Rule 5

Technology should enhance the whole customer experience not just the product or service.

Rule 6

Re-configurable business models

Rule 7

Flexible Out sourcing Alliances

Rule 8

Don’t focus on Front-end applications only

Rule 9

Companies must create the ability to plan and implement e-business infrastructure quickly.

Rule 10

Strong Leadership

Journal question of the week

After reading Kalakota’s 10 rules for e-business, what are your thoughts on the major e-business challenges facing Qatari businesses today?

Ref: Pages 6 - 30