introduction dr. azuraliza abu bakar

Introduction

Dr. Azuraliza Abu Bakarhttp://www.ftsm.ukm.my/jabatan/ts/aab/indeks.htm

Business in Information Age

OrganizationalPressures

OrganizationalResponses

Business Pressures and Organizational Responses



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



1. Strategic systems2. Customer focus and service3. Continuous improvement efforts4. Business process reengineering5. Business alliances6. E-commerce



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



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



Changing workforce is rapidly occur esp. in developed countries.

IT help the integration of various employees into the traditional workforce

Changing workforce



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



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



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



Government regulation and deregulation



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



1. Strategic systems2. Customer focus and service3. Continuous improvement efforts4. Business process reengineering5. Business alliances6. E-commerce



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



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



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



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



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 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

Components of Information Systems (CBIS)

Hardware

Database

Software

People

Network Procedures

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


• 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


• 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


• 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


• 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


• 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

introduction dr. azuraliza abu bakar

Documents

business pressures

information overload

relevant information

information available

information float

business event

business process

business alliances