Foundations of Information Systems Prof. Dr. Yang Dehua School of Economics and Management Tongji University.

Foundations of Information Systems

Prof. Dr. Yang DehuaSchool of Economics and Manag

ementTongji University

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 Technology Hardware Software Networks Data Processing

Information SystemAny organized combination of people, hardware, s

oftware, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.

Information Technologies and Systems Essential Issues of Using IT for Organiz

ations’ Success: People Information Technology Information

Information Technologies and Systems Business Success Factors:

Business Success

Information Technology

Information

People

Information Technologies and Systems

The Enterprise as A System

Raw Material

Manufacturing Process

Products

Control

Feedback Feedback

Control Control

Environment/Other Systems

System Boundary

Information Technologies and Systems The Enterprise as A System

Value added processes Costs and values Impact factors Environment

Information Technologies and Systems

Corporate/businessstrategy

Informationstrategy

Cultural and contextual issues

Processes

Inputs(costs)

Outputs(value)

Corporateenvironment

Information Technologies and Systems IS Components

Control of System Performanc

e

Processing Data into Infor

mation

Input of Data

Output of Data

Storage of Data

People Resources

Software Resources

Network Resources

Hardware Resources

Data Resources

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 Systems Information Systems Development

Data Management

Information Management

Knowledge Management

Data extraction Data filtering

Data warehousing Data mining

Transaction Processing

Decision support

Information Value Low High

Integration

High

Business Processes Porter Value Chain

Primary Processes Support Processes

Inter-Organizational Business Processes

Business Process Model Value Chains

Supplier Power

New Entrants

Firm Infrastructure(3.1%)

Human Resource Management(7.1%)

Technology Development(4.2%)

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%)

Support Processes

Primary Processes

Threats of Substitutes

Buyer Power

Business Process Support IS Support of Primary Business Proces

ses

Inbound Logistics

Production/ Operation

Outbound Logistics

Marketing & Sales

Cusomer Service

ERP ERPERP CRMSCM

Business Supply Chain Up-stream and Down-stream of Suppl

y Chain Supply Chain Flows

Material flows Financial flows Information flows Service flows

Inter-organizational Processes Inter-organizational Business Process

es

Supplier Corporation Customer

Inter-organizational Processes

Processes Processes

Enterprise Best Practices Norms or Best Practices of Industry Large and Comprehensive Informatio

n Systems Adopt Industrial Best Practices

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

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

Risk

Business Process Changes

Cross-Functional/ExternalScopeFunctional/Internal

Low

Transformational

Incremental

Process Improvement

Automation

Process Simplification

Process Reengineering

High

Benefits

Business Reengineering

Low High

Nature

Business Process Reengineering Principles

Organize around outcomes,not around tasks Have those who use the output of a process act

ually perform the process Treat geographically dispersed units as if they w

ere centralized Link parallel activities during the process,rather

than at the end of the process Capture information once at the source

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 Anthony Model

Strategic Planning

Tactics Management

Operations Management

Top Layer

Middle Layer

Low Layer

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 Management Types of Information Systems

T ransactionProcessing

Process Control EnterpriseCollaboration

OperationsSupportSystems

MIS DSS EIS

ManagementSupportSystems

Information Systems

Information Systems for Management Managerial Challenges

Business strategies

Business processes

Structure and culture

Inter-networked information

systems

Customer values

Business value

IT infrastructure

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

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 Advantages

5 Competitive Forces

Threats of Substitute Products and Services

Buyer Power: Bargaining of Channels and End

Users

Supplier Power: Bargaining Power of Supplie

rs

Threats of New Entrants

Rivalry among Existing Companie

s

Information Systems for Strategic Advantages The Business Strategies

Cost leadership Differentiation Innovation Growth Alliance Consolidation Barrier

The New Economy The Industrial Economy Is Based on:

Mass Production Mass Transportation Division of Labour Financial Capital

The New Economy The New Economy Is Based on:

Mass Customisation Data Communication and Computer Net

works Aggregation of Labour Intellectual Capital

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 Economy Virtualisation

Virtual companies Virtual processes/Outsourcing/Offshoring Virtual communities

Molecularization Market segmentation Personalization Object-oriented programming paradigm

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 Economy Convergence

Vertical/Horizontal integration Mobile phones/Pervasive computing and micro

payments Innovation

Make new products Re-engineer processes Online auctions

The New Economy Prosumption

Allow customers to join production processes Build to order Online banking

Immediacy Networked collaboration Synergy Online immediacy

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 langua

ge Security issues