Foundations of information systems
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Foundations of Information Systems. Prof. Dr. Yang Dehua School of Economics and Management Tongji University. Outlines. Foundations of Information Systems Information Technologies and Systems Business Processes Business Process Reengineering Business Continuity Management

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Foundations of information systems

Foundations of Information Systems

Prof. Dr. Yang Dehua

School of Economics and Management

Tongji University


Outlines

Outlines

Foundations of Information Systems

Information Technologies and Systems

Business Processes

Business Process Reengineering

Business Continuity Management

Information Systems for Management

Information Systems for Strategic Advantages

New Economy


Information technologies and systems

Information Technologies and Systems

Information Technology

Hardware

Software

Networks

Data Processing

Information System

Any organized combination of people, hardware, software, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.


Information technologies and systems1

Information Technologies and Systems

Essential Issues of Using IT for Organizations’ Success:

People

Information Technology

Information


Information technologies and systems2

Information Technologies and Systems

Business Success Factors:

Information Technology

Information

BusinessSuccess

People


Information technologies and systems3

Information Technologies and Systems

The Enterprise as A System

Feedback

Feedback

Control

Control

Control

Manufacturing Process

Raw Material

Products

System Boundary

Environment/Other Systems


Information technologies and systems4

Information Technologies and Systems

The Enterprise as A System

Value added processes

Costs and values

Impact factors

Environment


Information technologies and systems5

Information Technologies and Systems

Corporate/

business

strategy

Corporate

environment

Cultural and

contextual issues

Processes

Outputs

(value)

Inputs

(costs)

Information

strategy


Information technologies and systems6

Information Technologies and Systems

IS Components

People Resources

Data Resources

Control of System Performance

Input of Data

Output of Data

Processing Data into Information

Hardware Resources

Software Resources

Storage of Data

Network Resources


Information technologies and systems7

Information Technologies and Systems

Information System Activities

Input of data resources

Processing of data into information

Output of information products

Storage of data resources

Control of system performance


Information technologies and systems8

Information Technologies and Systems

Information Systems Development

High

Data warehousing Data mining

Knowledge Management

Integration

Decision support

Information Management

Data extraction Data filtering

Data Management

Transaction Processing

Low

Information Value

High


Business processes

Business Processes

Porter Value Chain

Primary Processes

Support Processes

Inter-Organizational Business Processes


Business process model

Business Process Model

Value Chains

Firm Infrastructure(3.1%)

Support Processes

Human Resource Management(7.1%)

Technology Development(4.2%)

Primary Processes

Procurement of Resources(27%)

Inbound Logistics

(5.2%)

Productions and Services

(40.3%)

Outbound Logistics

(6.6%)

Marketing and Sales

(4.3%)

Customer Service

(2.2%)

Threats of Substitutes

Buyer Power

New Entrants

Supplier Power


Business process support

ERP

ERP

CRM

SCM

ERP

Production/ Operation

Outbound Logistics

Marketing & Sales

Cusomer Service

Inbound Logistics

Business Process Support

  • IS Support of Primary Business Processes


Business supply chain

Business Supply Chain

  • Up-stream and Down-stream of Supply Chain

  • Supply Chain Flows

    • Material flows

    • Financial flows

    • Information flows

    • Service flows


Inter organizational processes

Inter-organizational Processes

Processes

Processes

Customer

Supplier

Corporation

Inter-organizational Processes

  • Inter-organizational Business Processes


Enterprise best practices

Enterprise Best Practices

  • Norms or Best Practices of Industry

  • Large and Comprehensive Information Systems Adopt Industrial Best Practices

  • Business Process Reengineering(BPR) is Usually Needed When ERP, for Example, Is Implemented


Business processes reengineering

Business Processes Reengineering

The Fundamental Rethinking and Radical Redesign of Business Processes to Achieve Dramatic Improvements in Critical, Contemporary Measures of Performance, Such as Cost, Quality, Services and Speed.


Business process reengineering

Business Process Reengineering

High

Transformational

Business Reengineering

Process Reengineering

Process Simplification

Nature

Automation

Process Improvement

Low

Incremental

Low

Benefits

High

Functional/Internal

Scope

Cross-Functional/External

Business Process Changes

Risk


Business process reengineering1

Business Process Reengineering

Principles

Organize around outcomes,not around tasks

Have those who use the output of a process actually perform the process

Treat geographically dispersed units as if they were centralized

Link parallel activities during the process,rather than at the end of the process

Capture information once at the source


Business process reengineering2

Business Process Reengineering

Procedures

Develop business vision and process objectives

Identify processes to be engineered

Understand and measure existing processes

Identify IT levers

Design and build a prototype of the process

BPR Examples

IBM Customer Credit Company

HP Procurement

Kodak Camera Production


Information systems for management

Information Systems for Management

  • Anthony Model

Top Layer

Strategic Planning

Tactics Management

Middle Layer

Operations Management

Low Layer


Information systems for management1

Information Systems for Management

Major Roles of IS

Support of strategies for competitive advantage

Support of business decision making

Support of business processes and operations


Information systems for management2

Information Systems for Management

Types of Information Systems


Information systems for management3

Information Systems for Management

Managerial Challenges

Business strategies

Business processes

Structure and culture

Customer values

Business value

Inter-networked information systems

IT infrastructure


Information systems for management4

Information Systems for Management

Managerial Challenges

Success and failure with IT

Developing IS solutions

Challenges of ethics and IT

Challenges of IT Careers

The IS functions integration


Information systems for strategic advantages

Information Systems for Strategic Advantages

Five Competitive Model

Bargaining power of customers

Bargaining power of suppliers

Rivalry of competitors

Threat of new entrants

Threat of substitutes


Information systems for strategic advantages1

Information Systems for Strategic Advantages

5 Competitive Forces

Threats of Substitute Products and Services

Supplier Power: Bargaining Power of Suppliers

Rivalry among Existing Companies

Buyer Power: Bargaining of Channels and End Users

Threats of New Entrants


Information systems for strategic advantages2

Information Systems for Strategic Advantages

The Business Strategies

Cost leadership

Differentiation

Innovation

Growth

Alliance

Consolidation

Barrier


The new economy

The New Economy

The Industrial Economy Is Based on:

Mass Production

Mass Transportation

Division of Labour

Financial Capital


The new economy1

The New Economy

The New Economy Is Based on:

Mass Customisation

Data Communication and Computer Networks

Aggregation of Labour

Intellectual Capital


The new economy2

The New Economy

Features of the New Economy

Knowledge

Microsoft’s market value versus book value

Intellectual property and capital

Business intelligence

Digitisation

>50% of Intel’s business is online

Online businesses


The new economy3

The New Economy

Virtualisation

Virtual companies

Virtual processes/Outsourcing/Offshoring

Virtual communities

Molecularization

Market segmentation

Personalization

Object-oriented programming paradigm


The new economy4

The New Economy

Integration/Internetworking

CRM, ERP and SCM to link demand chain

Interorganizational processes integration

Disintermediation

Direct marketing

E-tailing/Purchasing

Digital products


The new economy5

The New Economy

Convergence

Vertical/Horizontal integration

Mobile phones/Pervasive computing and micropayments

Innovation

Make new products

Re-engineer processes

Online auctions


The new economy6

The New Economy

Prosumption

Allow customers to join production processes

Build to order

Online banking

Immediacy

Networked collaboration

Synergy

Online immediacy


The new economy7

The New Economy

Globalisation

Real-time collaboration on software development

24 hour shopping

Pervasive presence

Discordance

Privacy and civil liberty issues

Social exclusion

Hegemony of Western brands and English language

Security issues


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