Foundation Of Information Systems In Business Ir Muhril

Foundation Of Information Systems In Business Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 1

Learning Objectives: n Understand the concept of a system and how it relates to information systems. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 2

What Is An Information System? n An Information System can be any organized combination Of: - people, - hardware, - software, - communications networks, - policies. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 3

What Is An Information System? (continued) n People rely on modern information systems to communicate using a variable: - physical devices (hardware). - information processing instruction and procedures (software). - communications channels (network). - stored data (data resources). Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 4

Examples Of Information Systems: n Smoke signals for communication n Card catalog in a library n The cash register Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 5

Real World Case: Heidelberg: Using IT To Build Smart Products And Services n Consider Heidelberger Druckmaschinen AG of Germany, the number one maker of high end printing presses for printers and print media producers throughout the world. For all of its long history, the company has offered repair services to its customers. Several years ago, Heidelberg developed the ability to monitor its equipment remotely using built in sensors, networking microprocessors, and other information technologies. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 6

Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) Heidelberg soon found that it could provide maintenance much more cost effectively with the smart products. Now with its machines communicating continuously over the internet, relaying information about their status between the print shops and Heidelberg’s regional and global technical support specialists, the company has the access and insight to optimize printing performance in customer’s shops and minimize maintenance and repair costs for Heidelberg as well as its customers. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 7

Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) With such smart services, Heidelberg now offers total supports of its products, which for example, can extend even to the removal and resale of its machines. Thus the self monitoring and networking capabilities built into its products provide a strategy opportunity for Heidelberg to use information technology to become a partner in the successful operations of its customers, while reducing its costs and creating new sources of revenue from smart services. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 8

Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) Questions: n Why should manufacturing companies build smart products and provide smart services? What business benefits can be gained? Provide several examples beyond discussed in this case Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 9

Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued) Questions (continued) n What information technologies are used by the companies in this case to build smart products and provide smart services? n What are some limitations of a smart products and smart services strategies? n Use the internet to investigate how Heidelberg, is proceeding in its use of smart products and services. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 10

Computer Based Information System & Information Technologies: 1. 2. 3. 4. Computer hardware technologies. Computer software technologies. Telecommunications network technologies. Data resource management technologies. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 11

The Major Areas Of Information Systems Knowledge Needed By Business Professionals 1. Foundation concepts. concept about the components and roles of information systems. 2. Information technologies. hardware, software, networks, data management, many internet based technologies. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 12

The Major Areas Of Information Systems Knowledge Needed By Business Professionals (continued) 3. Business applications. operations, management, competitive advantage of a business. 4. Development processes. plan, develop, and implement information systems to meet business opportunities. 5. Management challenges. the challenges of effectively and ethically managing information technology at end user, enterprise, and global levels of a business. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 13

The Fundamental Roles Of Information System In Business There are three fundamental reasons: 1. Support of its business processes and operations. 2. Support of decision making by its employees and managers. 3. Support of its strategies for competitive advantage. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 14

Trends In Information Systems: 1. Data processing: 1950 s – 1960 s - electronic data processing systems -- transaction processing, record keeping, and traditional accounting applications. 2. Management reporting: 1960 s – 1970 s - management information systems -- management reports of pre specified information to support decision making. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 15

Trends In Information Systems (continued): 3. Decision support: 1970 s – 1980 s - decision support systems 4. Strategic and User Support: 1980 s – 1990 s - end user computing systems - executive information systems - expert systems - strategic information systems Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 16

Trends In Information Systems (continued): 4. Electronic Business and Commerce: 1990 s – 2000 s - internet based e business and e commerce systems Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 17

The Role Of “E Business” In Business n Many business today are using internet technologies to Web enable business process and to create innovative e business application. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 18

The Role Of E Business In Business (continued) n E business: the use of internet technologies to work and empower business process, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 19

Business Today Company Boundary Supply chain management: procurement, distribution, and logistics Engineering and research Internet Manufacturing and production Accounting and finance Internet Customer relationship management: Marketing, Sales, Customer Service Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 20

Business Today (continued) Suppliers and other business partners Extranets Company Boundary Extranets Consumers and business customers Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 21

Business Today (continued) n Intranet: the internet and internet like networks inside the enterprise. n Extranet: the internet and internet like networks between an enterprise and its trading partners. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 22

Business Today (continued) n Electronic commerce: the buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 23

Types Of Information Systems Operations Support Systems Management Support Systems Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 24

Types Of Information Systems (continued) Operations Support Systems Specialized Processing Systems Transaction Processing Systems Process Control Systems Ir. Muhril Ardiansyah, M. Sc. , Ph. D. Enterprise Collaboration Systems 25

Types Of Information Systems (continued) Management Support Systems Management Information Systems Decision Support Systems Executive Information Systems Ir. Muhril Ardiansyah, M. Sc. , Ph. D. Specialized Processing Systems 26

Types Of Information Systems (continued) n Operations support systems: - Transaction processing systems -- process data resulting from business transactions, update operational databases, and produce business documents. Examples: Sales and inventory, processing and accounting systems. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 27

Types Of Information Systems (continued) n Operations support systems (continued): - Process control systems. -- minor and control industrial process. Examples: Petroleum refining, power generation, steel producing systems. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 28

Types Of Information Systems (continued) n Operations support systems (continued): - Enterprise collaboration systems. -- support team, workgroup, and enterprise communications and collaboration. Examples: email, chat, video conferencing groupware systems. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 29

Types Of Information Systems (continued) n Management support systems: - Management information systems -- provide information in the form of pre specified reports and displays to support business decision making. Examples: Sales analysis, production performance, cost trend reporting systems. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 30

Types Of Information Systems (continued) n Management support systems (continued): - Decision support systems -- provide interactive ad hoc support for the decision making processes of managers and other business professionals. Examples: product pricing, profitability forecasting, risk analysis. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 31

Managerial Challenges Of Information Technology The Business Enterprise: Strategies/Processes /Structure/Culture Information Technology Business/IT Challenges Business/IT Developments Ir. Muhril Ardiansyah, M. Sc. , Ph. D. Customer Value Business/IT Goals 32

Managerial Challenges Of Information Technology (continued) Business/IT Challenges • Speed and flexibility requirements of product development, manufacturing, and delivery cycles, Business/IT Developments * Use of the internet, intranets, extranets, and the WEB • Integration of e business and e commerce into the organization’s strategies, process, structure, and culture Business/IT Goals • Give customers what they want, when and how they want it, at the lowest cost • Coordination of manufacturing and business process with suppliers and customers Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 33

Developing Information System (IS) Solutions Investigate Analyze Design Maintain Implement Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 34

The IS (Information System) Functions: n A major functional area of business equally as important to business success, as the function of: - accounting, - finance, - operations management, - marketing, - human resource management. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 35

The IS (Information System) Functions (continued): n An important contributor to: - operational efficiency, - employee productivity, - customer service and satisfaction. n A major source of information and support needed to promote effective decision making by managers and business professionals. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 36

The IS (Information System) Functions (continued): n A vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global market place. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 37

Foundation Concepts: The Components Of Information Systems: n Technology: the computer network are systems of information processing component that use a variety of: hardware, software, data management, and telecommunication network technologies. n Applications: the electronic business and commerce applications involve interconnected business information systems. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 38

Foundation Concepts: The Components Of Information Systems (continued): n Development: that developing ways to use information technology in business includes designing the basic components of information system. n Management: the managing information technology emphasizes the quality, strategic business value, security. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 39

What Is A System? Systems have three basic functions: 1. Input: Involves capturing and assembling elements that enter the system to be processed. Example: - raw materials, - energy, - data. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 40

What Is A System? (continued) Systems have three basic functions (continued): 2. Processing: involves transformation processes that convert input into output. Example: - manufacturing process, 3. Output: involves transferring elements that have been produced by a transformation process to their ultimate destination. Example: - finished products, - human services Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 41

Stakeholders In The Business Environment CONTROL Management FEEDBACK Information System Economic Resources: people, money, material, machines, land, facilities, energy, information INPUT Business Process: market, develop, produce, and deliver, products and services, support customers, other processes Goods and Services: products, services, payments, contributions, information, other effects OUTPUT PROCESSING Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community, Government Agencies, Suppliers Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 42

Components Of An Information System PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES (communications media and network support); DATA RESOURCES (data and knowledge bases); SYSTEM ACTIVITIES Control System Performance Input Of Data Resources Processing Data Into Information Output Of Information Products Storage Of Data Resources Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 43

Examples Of Information System Resources And Products Information Systems Resources And Products People Resources Network Resources Hardware Resources Software Resources Data Resources Ir. Muhril Ardiansyah, M. Sc. , Ph. D. Information Products 44

Information Systems Resources And Products n People resources: - specialist (system analysts, software developers, system operators). - end users (anyone else who uses information systems). n Hardware resources: - machines (computers, video monitor, magnetic disk drives, printers, optical scanners). - media (floppy disks, magnetic tape, optical disks, plastic cards, paper forms). Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 45

Information Systems Resources And Products (continued) n Software resources: - programs (operating system program, spreadsheet programs, word processing programs). - procedures (data entry procedures, error correction procedures). n Data resources: - product description, customer records, employee files, inventory databases. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 46

Information Systems Resources And Products (continued) n Network resources: - communications media, communication processors, network access and control software. n Information products: - management reports and business documents using text and graphics displays, audio responses, and paper forms. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 47

Business Examples INFORMATION SYSTEM ACTIVITIES n Input. (optical scanning of bar coded tags on merchandise) n Processing. (calculating employee pay, taxes, and other payroll deductions) n Output. (producing reports and displays about sales performance) n Storage. (maintaining records on customers, employees, and products) n Control. (generating. Ir. Muhril audible signals to indicate proper 48 Ardiansyah, M. Sc. , Ph. D.

Recognizing Information Systems As a business professional, You should be able to recognize the fundamental components of information systems You encounter. You should be able to identify: ** The people, hardware, software, data, and network resources they use. ** The types of information products they produce. ** The way thy perform input, processing, output, storage, and control activities. Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 49

Real World Case 4 Continental Airlines: This Call Is Being Monitored Ir. Muhril Ardiansyah, M. Sc. , Ph. D. 50