muhamad abduhinstitut teknologi bandung1.1 w e e k 1 1 concept of information system

Muhamad Abduh Institut Teknologi Bandung 1.1

W e e k

11CONCEPT OF CONCEPT OF

INFORMATION INFORMATION SYSTEMSYSTEM


THE CHANGING BUSINESS ENVIRONMENT

• GLOBALIZATION

• INDUSTRIAL ECONOMIES

• TRANSFORMATION OF THE ENTERPRISE

*


GLOBALIZATION

• MANAGEMENT & CONTROL

• COMPETITION IN WORLD MARKETS

• GLOBAL WORK GROUPS

• GLOBAL DELIVERY SYSTEMS

*


INDUSTRIAL ECONOMIES

• KNOWLEDGE-BASED ECONOMIES• PRODUCTIVITY• NEW PRODUCTS & SERVICES• KNOWLEDGE AS AN ASSET• TIME-BASED COMPETITION• SHORTER PRODUCT LIFE• TURBULENT ENVIRONMENT• LIMITED EMPLOYEE KNOWLEDGE BASE

*


TRANSFORMATION OF ENTERPRISE

• FLATTENING• DECENTRALIZATION• FLEXIBILITY• LOCATION INDEPENDENCE• LOW TRANSACTION COSTS• EMPOWERMENT• COLLABORATIVE WORK

*


EMERGENCE OF THE DIGITAL FIRM

• DIGITALLY-ENABLED RELATIONSHIPS WITH CUSTOMERS, SUPPLIERS, EMPLOYEES

• CORE BUSINESS PROCESSES VIA DIGITAL NETWORKS

• DIGITAL MANAGEMENT OF KEY ASSETS

• RAPID SENSING & RESPONDING TO CHANGE

*


0%

10%

20%

30%

40%

50%

60%

70%

1900

1910

1920

1930

1940

1950

1960

1970

1980

1997

YEAR

% SERVICE

% WHITE COLLAR

% BLUE COLLAR

% FARMING

LABOR FORCE COMPOSITION 1900-1997


COMPUTER FOR CONSTRUCTION?

1950 2000

Norm

ati

ve c

ost

per

un

it v

alu

e

Construction

Automobiles

Aircraft

Computer

Year


SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK


FUNCTIONS OF AN INFORMATION FUNCTIONS OF AN INFORMATION SYSTEMSYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers SuppliersCustomers Suppliers

Regulatory Stockholders CompetitorsRegulatory Stockholders CompetitorsAgenciesAgencies

ORGANIZATIONORGANIZATION


DATA & INFORMATION

• DATA: STREAMS OF RAW FACTS REPRESENTING EVENTS SUCH AS BUSINESS TRANSACTIONS

• INFORMATION: CLUSTERS OF FACTS MEANINGFUL & USEFUL TO HUMAN BEINGS IN PROCESSES SUCH AS

MAKING DECISIONS

*


COMPUTER-BASED INFORMATION SYSTEMS (CBIS)• FORMAL SYSTEMS

• FIXED DEFINITIONS OF DATA, PROCEDURES

• COLLECTING, STORING, PROCESSING, DISSEMINATING, USING DATA

*


INFORMATION SYSTEMSINFORMATION SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIOINFORMATIONN

SYSTEMSSYSTEMS


ORGANIZATIONS

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

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

*


ORGANIZATIONS

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

• POLITICS: Power to persuade, get things done

• CULTURE: Customs of behavior

*


MAJOR BUSINESS FUNCTIONS

• SALES & MARKETING

• MANUFACTURING

• FINANCE

• ACCOUNTING

• HUMAN RESOURCES

*


COMPUTER TECHNOLOGY

• HARDWARE

• SOFTWARE

• STORAGE

• COMMUNICATIONS

• NETWORKS

*


SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

APPROACHES TO INFO SYSTEMS

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES


SOCIOTECHNICAL PERSPECTIVE

OPTIMIZE SYSTEM PERFORMANCE:

TECHNOLOGY & ORGANIZATION MUTUALLY ADJUST TO

ONE ANOTHER

UNTIL FIT IS SATISFACTORY

*


SYSTEM INTERDEPENDENCE

BUSINESSBUSINESS

StrategyStrategy

RulesRules

ProceduresProcedures

ORGANIZATION ORGANIZATION INFORMATION SYSTEMINFORMATION SYSTEM

HARDWAREHARDWARE

SOFTWARESOFTWARE DATABASEDATABASE

TELE-TELE-COMMUNICATIONSCOMMUNICATIONS

INTERDEPENDENCEINTERDEPENDENCE


• 1950s: TECHNICAL CHANGES• 60s-70s: MANAGERIAL CONTROL• 80s-90s: INSTITUTIONAL

CORE ACTIVITIES

GROWING IMPORTANCE

*

SCOPE OF INFO SYSTEMS


NEW OPTIONS FOR ORGANIZATIONAL DESIGN

• FLATTENING ORGANIZATIONS• SEPARATING WORK FROM LOCATION• REORGANIZING WORK-FLOWS• INCREASING FLEXIBILITY• REDEFINING ORGANIZATIONAL

BOUNDARIES

*


TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS

DATA WORKERSDATA WORKERS

KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS

MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS

OPERATIONAL OPERATIONAL

OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING


MAJOR TYPES OF SYSTEMS

• EXECUTIVE SUPPORT SYSTEMS (ESS)• DECISION SUPPORT SYSTEMS (DSS)• MANAGEMENT INFORMATION SYSTEMS

(MIS)• KNOWLEDGE WORK SYSTEMS (KWS)• OFFICE AUTOMATION SYSTEMS (OAS)• TRANSACTION PROCESSING SYSTEMS

(TPS)

*


TYPICAL TPS APPLICATIONSSales & Marketing Systems

MAJOR FUNCTIONS OF SYSTEMS:

• Sales management, market research, promotion, pricing, new products

MAJOR APPLICATION SYSTEMS:

• Sales order info system, market research system, pricing system

*


TYPICAL TPS APPLICATIONSManufacturing & Production Systems

MAJOR FUNCTIONS OF SYSTEMS:• Scheduling, purchasing, shipping, receiving,

engineering, operations

MAJOR APPLICATION SYSTEMS:• Materials resource planning systems,

purchase order control systems, engineering systems, quality control systems

*


TYPICAL TPS APPLICATIONSFinance & Accounting Systems


• Budgeting, general ledger, billing, cost accounting


• General ledger, accounts receivable, accounts payable, budgeting, funds management systems

*


TYPICAL TPS APPLICATIONSHuman Resources Systems


• Personnel records, benefits, compensation, labor relations, training


• Payroll, employee records, benefit systems, career path systems, personnel training systems

*


TYPICAL TPS APPLICATIONSOther Types (e.g., University)


• Admissions, grade records, course records, alumni


• Registration system, student transcript system, curriculum class control system, alumni benefactor system

*


KNOWLEDGE LEVEL• INPUTS: DESIGN SPECS• PROCESSING: MODELLING• OUTPUTS: DESIGNS, GRAPHICS• USERS: TECHNICAL STAFF

EXAMPLE: ENGINEERING WORK STATION

KNOWLEDGE WORK SYSTEMS (KWS)


OFFICE AUTOMATION SYSTEMS (OAS)

• TOWARD A “PAPERLESS” OFFICE

• REDESIGN OF WORK FLOW

• INTEGRATED SOFTWARE

• ERGONOMIC DESIGN

• BRIGHT, CHEERFUL WORK SPACE

EXAMPLE: PRESENTATION GRAPHICS


MANAGEMENT LEVEL

• INPUTS: HIGH VOLUME DATA

• PROCESSING: SIMPLE MODELS

• OUTPUTS: SUMMARY REPORTS

• USERS: MIDDLE MANAGERS

EXAMPLE: ANNUAL BUDGETING

MANAGEMENT INFORMATION SYSTEMS (MIS)


• STRUCTURED & SEMI-STRUCTURED DECISIONS

• REPORT CONTROL ORIENTED

• PAST & PRESENT DATA

• INTERNAL ORIENTATION

• LENGTHY DESIGN PROCESS

*

MANAGEMENT INFORMATION SYSTEMS (MIS)


MISMIS

MIS FILESMIS FILES

SALES DATA

UNIT PRODUCT COST

PRODUCT CHANGE DATA

EXPENSE DATA

MISREPORTS

MANAGERSMANAGERS

TPS

Order Processing

System

Materials Resource

Planning System

General Ledger

System

ORDER FILE

PRODUCTION MASTER FILE

ACCOUNTING FILES

TPS DATA FOR MIS APPLICATIONS


MANAGEMENT LEVEL

• INPUTS: LOW VOLUME DATA

• PROCESSING: INTERACTIVE

• OUTPUTS: DECISION ANALYSIS

• USERS: PROFESSIONALS, STAFF

EXAMPLE: CONTRACT COST ANALYSIS

DECISION SUPPORT SYSTEMS (DSS)


• FLEXIBLE, ADAPTABLE, QUICK

• USER CONTROLS INPUTS/OUTPUTS

• NO PROFESSIONAL PROGRAMMING

• SUPPORTS DECISION PROCESS

• SOPHISTICATED MODELING TOOLS

*

DECISION SUPPORT SYSTEMS (DSS)


STRATEGIC LEVEL

• INPUTS: AGGREGATE DATA

• PROCESSING: INTERACTIVE

• OUTPUTS: PROJECTIONS

• USERS: SENIOR MANAGERS

EXAMPLE: 5 YEAR OPERATING PLAN

EXECUTIVE SUPPORT SYSTEMS (ESS)


• TOP LEVEL MANAGEMENT

• DESIGNED TO THE INDIVIDUAL

• TIES CEO TO ALL LEVELS

• VERY EXPENSIVE TO KEEP UP

• EXTENSIVE SUPPORT STAFF

*

EXECUTIVE SUPPORT SYSTEMS (ESS)


INTERRELATIONSHIPS AMONG SYSTEMS

ESS

TPSKWS

OAS

DSSMIS


CONSTRUCTION MANAGEMENT AND ADMINISTRATION

• Accounting and Payroll• Cost Engineering• Company and Project Finance• Project Planning and Scheduling• Material Management• Equipment Management• Office Administration• Education and Training


CONSTRUCTION ENGINEERING

• Estimating

• Productivity Improvement

• Operation Simulation

• Quality Assurance

• Surveying

• Computer-aided engineering analysis

• Computer-aided design and drafting


CONSTRUCTION AUTOMATION

• Automated Data Acquisition

• Automated Process Control and Robotics


AUTOMATED DATA ACQUISITION

CPT


AUTOMATED PROCESS CONTROL

3DMC


ROBOTICS

Robo-Wrapper


W e e k

11CONCEPT OF CONCEPT OF

INFORMATION INFORMATION SYSTEMSYSTEM

muhamad abduhinstitut teknologi bandung1.1 w e e k 1 1 concept of information system

Documents

data information data

data workers

knowledge workers

info systems mis behavioral

digital firm

service workers structure

organization chart

human beings