Part two: Part two:

Conceptualize InformatioConceptualize Information Systems from various Pn Systems from various P

erspectiveserspectives

Data, information and knowledgeData, information and knowledge What is Information Systems ?What is Information Systems ?

Information systems from systems perspectiveInformation systems from systems perspective Information Systems from function perspectiveInformation Systems from function perspective Information systems from application Information systems from application

perspectiveperspective Information systems from business perspectiveInformation systems from business perspective Information systems from information Information systems from information

managementmanagement

11、、 DATA & DATA & INFORMATION & INFORMATION &

KWONLEDGEKWONLEDGE DATA: DATA: Streams of raw facts representing events such as Streams of raw facts representing events such as

business transactions, simple observations of the state of business transactions, simple observations of the state of the worldthe world

Easily structuredEasily structured Easily captured on machinesEasily captured on machines Often quantifiedOften quantified Easily transferredEasily transferred

INFORMATION: INFORMATION: Data endowed with relevance and purpose, or, Clusters Data endowed with relevance and purpose, or, Clusters

of facts meaningful & useful to human beings in of facts meaningful & useful to human beings in processes such as making decisions. processes such as making decisions.

Requires unit of analysisRequires unit of analysis Need consensus on the meaning Need consensus on the meaning Human mediation necessaryHuman mediation necessary

DATA & INFORMATION DATA & INFORMATION & KWONLEDGE& KWONLEDGE

KNOWLEDGEKNOWLEDGE Information from the human mind Information from the human mind

(includes reflection, synthesis, context )(includes reflection, synthesis, context ) Information synthesized and Information synthesized and

contextualized to provide value.contextualized to provide value. Hard to structure Hard to structure Difficult to capture on machining Difficult to capture on machining Hard to transfer Hard to transfer

•SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process.

1.What is Information Systems ?

Example: a manufacturing system

INPUTof raw materials

OUTPUT of finished products

Manufacturing

PROCESS

Control byManagement

Control signals

Control signals

Feedback signals

Feedback signals

System Boundary

Environment

Operational Process

Management Process

What is Information Systems？

From Systems Perspective

Control

Input Process

Memory

Output

DataPeople

Software

network

computer

From function Perspective

Corporate

Function Structure

Human

Resource、、、

What is Information System？

Marketing

Financial

Executive

Level

Management

Level

Knowledge

work

TransactionLevel

Marketing

And SalesProduction Finance

& Accountingother

From function Perspective

Corporate

Information system

HRIS、、、

ExecutiveInformationsystem

DSSMIS,

TransactionInformationSystem

Marketing

And SalesProduction Finance

& Accountingother

What is Information System？

Marketing IS

Financial IS

KnowledgeWork Systems

What is Information What is Information Systems?Systems?

From Application PerspectiveFrom Application Perspective CASE: Cisco SystemsCASE: Cisco Systems

Founded in late 1984.Founded in late 1984. Industry characteristics: Industry characteristics:

Technology change fastTechnology change fast Many players: compete intensivelyMany players: compete intensively Complex environment: many technologies co-Complex environment: many technologies co-

existexist CEO&P: “if you don't stay ahead of trends, CEO&P: “if you don't stay ahead of trends,

they'll destroy everything you work for and they'll destroy everything you work for and tragically disrupt the lives of your tragically disrupt the lives of your employees.”.employees.”.

Cisco Systems’s Cisco Systems’s StrategyStrategy

Vision: to provide an end-to-end single vendor Vision: to provide an end-to-end single vendor solution that provides more value as integrated solution that provides more value as integrated set than any best-of-breed implementation from set than any best-of-breed implementation from multiple vendors.multiple vendors.

Goal: to be the market leader in all of the Goal: to be the market leader in all of the markets in which it operates.markets in which it operates.

Products:Products: A broad range of network hardware products;A broad range of network hardware products; IOS software which provides network services and IOS software which provides network services and

enables networked applicationsenables networked applications Professional services in network service design and Professional services in network service design and

implementationimplementation Technical service and supportTechnical service and support

Cisco’s ProductsCisco’s Products

Cisco Systems’s StrategyCisco Systems’s Strategy Customer satisfactionCustomer satisfaction

To provide complete solutions to targeted markets and to To provide complete solutions to targeted markets and to maintain close ties with the customermaintain close ties with the customer. .

Product leadershipProduct leadership ““Cisco Power Network”Cisco Power Network”

Strategic acquisitionsStrategic acquisitions To meet customer’s changing needs.To meet customer’s changing needs. To keep up with the rapidly evolving market.To keep up with the rapidly evolving market.

business partnerships,business partnerships, Computer manufacturer,software developer, reseller, Computer manufacturer,software developer, reseller,

system integrator,consulting company.system integrator,consulting company. Global networked business modelGlobal networked business model Redesign its organization and business process and Redesign its organization and business process and

implemented a broad number of IT initiatives aimed at implemented a broad number of IT initiatives aimed at streamlining its operations streamlining its operations

                               

Information Systems: CISCO Information Systems: CISCO applicationsapplications

Oracle ERP- Financial SystemOracle ERP- Financial System

Peoplesoft ERP- Human resource Management SystemPeoplesoft ERP- Human resource Management SystemInbound Inbound LogisticsLogistics

ProductiProductionon

OutboundOutboundLogisticsLogistics

DistributiDistributionon

MarketiMarketingng& Sale& Sale

CustomCustomer er ServiceService

Oracle ERP-Oracle ERP-ProcurementProcurement

SystemSystem

Oracle Oracle ERP- ERP- ProductioProduction n ManagemManagementent

SystemSystem

Web Interface INTERNET: Cisco Connection Online to CSC e Distribution MarketPlace Product Customer promotion Service- SaleForceAuto

客户

INTRANET: Cisco Employee Connection- OA System and Infrastructure

New Product Introduction

EXTRANET:

Cisco Suppliers

Connection

-SCM

-”Single Enterprise”

-Direct Fulfillment

-Dynamic Replenishment

-

What is Information What is Information Systems?Systems?

From ApplicationFrom Application ：： application in application in value chainvalue chain Enterprise Resource PlanningEnterprise Resource Planning （（ ERPERP ）） Supply Chain ManagementSupply Chain Management （（ SCM)SCM) e-business, e-commercee-business, e-commerce Customer Relationship Management(CRM)Customer Relationship Management(CRM) Knowledge ManagementKnowledge Management （（ KMKM ）） Business IntelligenceBusiness Intelligence （（ BI)BI) Office AutomationOffice Automation （（ OAOA ）） …………

What is What is Information Information

Systems?Systems?---From Business Perspective---From Business Perspective

1) Old Business Process

reception

Credit Department

Bus. Prac. Dept.

Price Dept.

Clerical Off.

When an IBM field salesman called in with a request for financing, he or she reached one of fourteen people sitting around a conference room table.

The person talking the call logged the request for a deal on a piece of paper

A specialist entered the information into a computer system and checked the potential borrower’s creditworthiness.The specialist wrote the result of the credit check on the piece of paper and dispatched it to business practice department.

A person modified the standard loan covenant in response to customer request, and attachment the special term to the request form.

A pricer keyed the data into a personal computer spreadsheet to determined the appropriate interest rate to charge the customer, and wrote the rate on a piece of paper and delivered to a clerical group.

An administrator turned all this information into a quote letter and delivered to the field sales representative by Federal Express.

IBMSalesman

IBMSalesman

CASE1 ： IBM Credit Corporation

2 ） General Improvement : [1) Install a control desk: -- the time would be longer.

(2) Add urgent processing program: --disturb the original sequence of clerk transaction process. It made other transaction and application process would be need more then 7 days.

Customer Complain ： the entire process was too long ， customer cannot know the status of the deal 。

IBM Salesman

dealer

IBM Salesman

IS

If the deal is more complex, ask experts for help to process.

3 ） The business process based on application of information systems

4 ） Effectiveness

The time needed in process an application would be induced to 4 hours from 7 days averagely.

CASE1 ： IBM Credit Corporation

Case 2 ： FORD change in Procurement Process

1 ） Old business process

PurchasingWhen purchasing department wrote a purchase order, it sent a copy to accounts payables.

VendorThe vendor sent an invoice to accounts payables when they delivered goods.

Receiving When material control received the goods, it sent a copy of the receiving document.

AccountPayables

Thus, the account payables received three documents from various senders ： Purchasing order, invoice and receiving document. It was up to account payables to match the purchasing against the receiving document and the invoice. If they matched, the department issued payment. Otherwise, an accounts payable clerk would investigate the discrepancy, hold up payment, generate documents and all in all gum up the works.

2 ） Business process IS enabled

PurchasingReceiving Goods

IS

（ 1 ） When the purchasing department initiates an order, it enters the information into an information system ；

（ 1 ） （ 2 ）（ 2 ） When the goods arrive at the receiving dock,the clerk checks the DB to see if they correspond to an outstanding purchase order. If so, he or she accepts them and enters the transaction into the computer system. If receiving can’t find an entry for the received goods, it simply returns the goods 。

Case 2 ： FORD change in Procurement Process

3 ） effectiveness after use of information system

After Ford instituted this new process, since there are no discrepancies between the financial record and the physical record, material control is simpler and financial information is more accurate. Ford has achieve a 75% reduction in head count (from more than 400 to 125 head counts).

Case 2 ： FORD change in Procurement Process

Case : A Process Equipment Technology Co., Ltd. Customer ServiceCustome

r

staff

Service charge

Maintenance Engineer

Maintenance Engineer

Operations staff

When equipment fails, the customer by telephone, fax or letter to inform the company's service center.

Center staff registered customer feedback, cross-head handle.

Customer files, analyze whether the person in charge of access to solve the problem and specify the person responsible - the maintenance engineer.

Failure analysis, maintenance preparation, went to the customer site.

Fault diagnosis, troubleshooting. If you have questions, then by fax, phone to the company headquarters (Shenzhen) technician.Repair is completed, visit the customer in charge.

Maintenance engineers to report to the management of the maintenance. Staff the registration process the results.

Customer Service Process Based on Internet Information Systems

CustomerService center

Maintenance Engineer

Technology Support

Information Systems

(Call Center)

BBS Database

Cases database

Diagnosis Expert Sys.

1

2 3

4

Internet

case ： A Process Equipment Technology Co., Ltd. Customer ServiceUse of information systems, personal experience into the corporate staff experience, groupware to eliminate distance barriers, sharing knowledge and experience, improve service levels.

Wrap-up: from casesWrap-up: from cases

CasesCases IBM CreditIBM Credit

ApplicationApplicationFord Ford PurchasiPurchasing ng

Huawei Huawei Service Service

Challenge Challenge by by EnvironmenEnvironmentt

Customer Customer ComplainComplain

DownsizinDownsizingg

Promote Promote service service levellevel

By use of ITBy use of IT YesYes YesYes YesYes

ManagemenManagement Changet Change

Process Process change, change, procedure procedure changechange

Procedure Procedure and rule and rule changechange

ReasonabReasonable the le the service service process process

OrganizatioOrganizational Changenal Change

Job redesign Job redesign Business Business right right systems systems redesignredesign

Add a tech. Add a tech. Support Support Dept; Dept; performance performance evaluation evaluation changechange

Wrap-up: from casesWrap-up: from cases Understanding of Information Systems Understanding of Information Systems ：： An An

Information System is an organizational and Information System is an organizational and management solution , based on information management solution , based on information technology, to a challenge posed by the technology, to a challenge posed by the environment.environment.

Management ChangeManagement Change ：： Business Process ChangeBusiness Process Change ，， Procedure changeProcedure change ，， Business right redesignBusiness right redesign ，……，……

Organization changeOrganization change ：： JobJob ，， employee qualificationemployee qualification ，， performance evaluation performance evaluation

policypolicy ，……，…… Business value changeBusiness value change 。。

Information Systems: From Business Perspective

ORGANIZA-

TIONS

TECHNOLOGY

MANAGEMENT

INFORMATIONINFORMATION

SYSTEMSSYSTEMS

An Information System is an organizational and management solution , based on information technology, to a challenge posed by the environment.

ORGANIZATIONSORGANIZATIONS

PEOPLE:PEOPLE: Managers, knowledge Managers, knowledge workers, data workers, production workers, data workers, production or service workersor service workers

STRUCTURE:STRUCTURE: Organization Organization chart, groups of specialists, chart, groups of specialists, products, geographyproducts, geography

**

ORGANIZATIONSORGANIZATIONS

OPERATING PROCEDURES:OPERATING PROCEDURES: Standard Operating Procedures Standard Operating Procedures (SOP),(SOP), rules for action rules for action

POLITICS:POLITICS: Power to persuade, get Power to persuade, get things donethings done

CULTURE:CULTURE: Behavior of staff, Behavior of staff, employee employee

**

MAJOR MAJOR BUSINESS FUNCTIONSBUSINESS FUNCTIONS

Sales & MarketingSales & Marketing Manufacturing and operationManufacturing and operation FinanceFinance AccountingAccounting Human ResourceHuman Resource …………

**

INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

Hardware Hardware Software Software Data processing & storageData processing & storage CommunicationCommunication NetworkNetwork Application systemsApplication systems

**

SOCIOTECHNICAL SOCIOTECHNICAL PERSPECTIVEPERSPECTIVE

Optimize System Performance :Optimize System Performance :

Technology & Organization Mutually Technology & Organization Mutually Adjust to One Another Until Fit Is Adjust to One Another Until Fit Is

Satisfactory Satisfactory

**

SOURCE: Liker, et al, 1987

Solution: System Solution: System InterdependenceInterdependence

BUSINESSBUSINESS

StrategyStrategy

Business Business ProcessProcess

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

ApplicationApplicationDATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE

SOFTWARESOFTWARE

What is Information What is Information Systems?Systems?

BusinessProcess

Information systems

IT Infrastructure

IT Architecture

Corporation Strategy

•From Information Management Perspectives

Information Systems HierarchyInformation Systems Hierarchy

Information Systems

Management

People Technology(IT)

Process

WhatWho

How

To facilitate the communication of

data,information and knowledge throughout

an organization

To oversee the design and structure of the

system and monitors its overall performance

Thanks for Your AttentionThanks for Your Attention