Chapter 1
The Modern Organization Functioning in a Global Environment
n Business Process: a collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers.
n One functional area
n Cross-functional
A management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.
ü Customer satisfaction
ü Cost reduction
ü Quality
ü Differentiation
1.2 Information Systems (IS):
Concepts and Definitions
Concepts and Definitions
IS process data into information
Get the right information to the right people at the right time in the right amount and in the right format
v Data: elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning.
Examples: 3.5 high
v Information: data that is organized and structured within a context, and provides meaning
Example: Sultan got 3.5 GPA
The temperature is very high today
Knowledge: information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity.
v Know-what
v Know-how
Information Technology Architecture: A high level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions
Information Technology Infrastructure: The physical facilities, IT components, IT services and IT personnel that support an entire organization.
Internet (Net) :
n Large network that connects smaller networks globally
n Launched in 1969
n National computer network
n US funded project called
n ARPANET [Advanced Research Project Agency Network]
Being connected to the Internet is often described as being online
World Wide Web – the Web , WWW:
n A multimedia Interface to resources available on the Internet
n Introduced in 1992 at CERN [Centre for European Nuclear Research] in Switzerland
n Enables us to connect, compute, communicate, collaborate, and compete everywhere and anytime
n Operates without regard to geography, time, distance, and language
Business Pressures
n Market Pressures
n Technology Pressures
n Societal Pressures
The Global Economy and Strong Competition
n Regional agreements
n NAFTA – European Union
n BRIC
n Cost of labor
n Outsourcing / offshoring
The Changing Nature of the Workforce
n More diversified
n Increasing number of women
n Persons with disabilities
n Teleworking
Powerful Customers
n More knowledgeable customer
n Higher expectations
n Compare prices
Compare 120+ leading car insurance providers in the UK
n Online shopping / e-auction
n Customer Intimacy / CRM
n Social Responsibility
n Green IT
n Digital Divide : the gap between those who have access to ICT and those who do not
n Government Regulation and Deregulation
n Compliance with new laws and policies
Organizational Responses
n Strategic Systems
n increase market share and/or profits
n better negotiate with suppliers
n prevent competitors from entering their markets.
n Customer Focus
n Retaining current customers and attracting new ones
Organizational Responses
n Make-to-Order and mass customization
n producing customized products and services
n Reebok
n Dell
n E-business and E-commerce
n Buying and selling products and services electronically.
n E-business is a broader concept than e-commerce.
n B2C , C2C, B2B
1.5 Why Are Information Systems Important to You?
n Information systems are used by all functional areas in an organization
Finance and Accounting:
n Forecast revenue and business activity
n Determine the best sources and use of funds
n Perform audits
Sales and Marketing
n Product analysis: developing new goods and services
n Site analysis : determine the best location for production and distribution facilities
n Promotion analysis: identify the best advertising channels
n Price analysis: setting product prices to get the highest revenues
Manufacturing
n Process customer orders
n Develop production schedules
n Control inventory levels
n Monitor product quality
Human Resources
n Recruiting process
n Analyze and screen job applicants
n Manage employees careers
n Manage compensation and benefit package
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