Information System

1. Introduction to IS and
Their Capabilities

2. What are IS?
An organized set of components for collecting,
transmitting, storing, and processing data in
order to deliver information for action.c

3. What are IS?
• Most IS in today’s organizations are built
around the It of computers and
telecommunications
– Help run its day-to-day business
– Plan for the future
– Help to cooperate with its business partners and
compete in the marketplace

4. What do systems do for organizations?
• IS in organizations include systems that
support business operations of the firm,
systems that support its management, and
systems that assist general knowledge work.

5. Interorganizational Systems
Support of
Knowledge Work
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Management
Support
Operational
Support
Office
Information
Systems
Executive
Information
Systems
Decision
Support
Systems
Management
Reporting
Systems
Transaction
Processing
Systems
Professional
Support
Systems

6. What do systems do for organizations?
• Possible business results from IS:
1. Enhanced competitive position
2. Increased productivity
3. Improved quality of products or services leading to
higher customer satisfactions
4. Improved decision making ability
5. Ability to respond faster to the demands of the
marketplace
6. Enhanced ability to communicate and collaborate
within the firm and with customers and suppliers
7. Enhanced goodwill of employees

7. The Enabling Technologies
• Principal IT  computers + telecommunications
– Software + hardware
– Computer network, internet, world wide web
• IT are used by organizations to further
organizational goals
– Increasing sales
– Speeding up order processing
– Improving team work

8. New organizational Environment
• Traditional organizational structures
– Clear and lasting assignment of roles to all
members
– Clear lines of responsibility and commands
– Clear setting of the boundaries of the firm against
the environment
– Ex: functional structure, divisional structure

9. Functional Structure
Chief Executive Officer
(CEO)
Executive Staff
Marketing
and Sales
Production
Accounting and
Finance
Human Resource

10. Divisional Structure
President
(CFO)
Industrial
Products Division
Consumer
Product Division
Government Contract
Division

11. New Organizational Environment
• Virtual organization
– An organization whose structure is to large degree
created by using IS rather than following
organizational charts

12. Network
Organization
Core Firm
Management
Marketing and Sales
Research and Development
ManufacturingManufacturing
Manufacturing
Logistics
Information
Services
After-sale
Services
Virtual Organization
Customers
Firms acting as
Corporate partners

13. Cluster
Organization
CEO’s
Cabinet
Middle Managers
Project
Team
Business
Unit
Alliance
Team
Staff
Unit

14. Capabilities of IS
Capability Example of Use
Fast and accurate data processing, with
large capacity storage and rapid
communication between sites
Consolidating financial results in a global
corporation
Instantaneous access to information An executive of a supermarket chain
checking yesterday’s sales in the morning
Means of coordination • Planning and controlling the sales for
next quarter
• Planning, scheduling, and running a
workgroup project
Boundary spanning Investigating the competitive
opportunities in a new market
Support for decision making Drawing up the budget for the sales
division to support projected sales
volume

15. Capabilities of IS
Capability Example of Use
Supporting organizational memory and
learning
Using electronic descriptions of your
previous products to design new products
Routinizing organizational practice Processing an insurance policy in
electronic form with the support of a
workflow system
Differentiation of products and services • Thanks to a flexible manufacturing
system, customers can order individual
versions of your products
• Customer can check the status of your
international delivery with half-hour
accuracy
Modeling Your product is engineered and tested
electronically until a final physical
prototype is made
Automation Your assembly line or your data center is
run without human participation

16. Business Process Redesign
• Business process: set of related tasks performed
to achieve a defined work product.
• Business process redesign: rethink and streamline
the business processes of a firm in order to
produce business results.
• Radical redesign of major business processes:
Business Reengineering  major gains in costs,
quality, time-to-market, and fundamentally
changes the way organization work.

17. Using IS capabilities in BPR
How to Redesign a Business Process Exploited Capability of Information System
Transform unstructured process into a
routine transaction.
Routinizing organizational practice.
Make process independent of geography by
rapidly transferring information across large
distance.
Rapid communication between sites.
Fully or partially automate a process by
replacing or reducing human labor.
Automation.
Bring complex analytical methods to bear
on a process.
Support for problem solving.
Modeling.
Supporting organizational memory and
learning.
Speed up a process by altering sequence of
tasks and performing multiple tasks in
parallel.
Means of coordination.

18. Using IS capabilities in BPR
How to Redesign a Business Process Exploited Capability of Information System
Enable collection, storage, and
dissemination of knowledge to improve the
quality of a process.
Instantaneous access to information.
Boundary spanning
Allow detailed tracking of the status of a
process, and of its inputs and outputs.
Instantaneous access to information.
Directly connect the parties within a
process and thus avoid communication
through an intermediary.
Means of coordination.
Increase the variety of products and
services resulting from the process to satisfy
the customer
Differentiation of products and services.

19. Capabilities
of IS
Business
Results
Business
Process
Redesign
• Fast and Accurate Data
Processing
• Instantaneous Access to
Information
• Means of Coordination
• Boundary Spanning
• Support for Decision
Making
• Supporting
Organizational Memory
and Learning
• Routinizing
Organizational Practice
• Differentiation of
Products and Services
• Modeling
• Automation
• Transform into a Routine
transaction
• Make Independent of
Geography
• Automate
• Use Analytical Methods
• Speed up Process by
Performing Tasks in
Parallel
• Improve the Process
Quality
• Allow tracking
• Directly Connect the
Parties
• Increase the Variety of
Products and Services
• Enhanced Competitive
Position
• Increased Productivity
• Improved Quality
Leading to Higher
Customer Satisfaction
• Improved Decision-
Making Ability
• Ability to Respond Faster
• Enhanced Ability to
Communicate and
Collaborate
• Enhanced Goodwill of
Employee

20. Human Side of IS
in Organizations and in Society
• A system appropriate for the firm and its users
has to be carefully identified and
implemented from the sociotechnical
perspective, seeking the technology that
would best support the people in
organization.
• Principal ethical issues: privacy, accuracy,
property, access