1.

Introduction/Terms revisited
.Dr D G Jha

 Due

to:

Continual change in technology Management use of technology Impact on business success

Major

new themes in business use of information system:

Technology Management Organisations

 Sometimes

a technology and resulting business innovation come along to radically change the business landscape and environment. These innovations are commonly referred to as disruptive In some cases disruptive technologies are substitute products that perform as well or better than anything currently produced. Car for horse-driven carriages, word processor for typewriters, SMS and emails for telegrams.
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Digital firm
A digital firm is one in which nearly all of the organization's significant business relationship with customers, suppliers and employees are digitally enabled and mediated.

Business Processes
Set of logically related tasks and behavior that organisations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.

In

digital firm core business processes are accomplished through digital networks spanning the entire organisation or linking multiple organisations and also, key corporate assets (intellectual property, core competencies and financial & human assets) are managed through digital means.
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 Business

firms six strategic business objectives (to be achieved through investments in information system) are
1. 2. 3. 4. 5.

6.

Operational excellence New product, services and business models Customer and supplier intimacy Improved decision making Competitive advantage and Survival.

 Business

firms six strategic business objectives (to be achieved through investments in information system) are
1. 2. 3. 4. 5.

6.

Operational excellence New product, services and business models Customer and supplier intimacy Improved decision making Competitive advantage and Survival.

Operational Excellence Achieving higher level of efficiency and productivity in business operations, especially when coupled with changes in business practices and management behavior. Business Model A business model describes manner in which an enterprise produces, delivers and sells a product or service to create wealth.
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 Competitive

Advantage

Achieving one or more of the six business objectives such that tasks are performed better than the competitors, charge less to the customers for superior products and respond to customers and suppliers in real time (Wal-Mart, Big Bazaar and DTDC)

 Information

Technology (IT) IT comprises of all the hardware and software that an enterprise need to achieve its business objectives. Transaction Any business activity which when gets recorded preferably in a fixed format Data Streams of raw facts representing transactions (events occurring in an organisation)
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Information Processed data that is meaningful to the recipient and helps in making current and progressive decisions System Set of inter-related units that work in a synchronized manner in order to produce the desired result/s Information System Set of inter-related units such as strategy, people (structure, hierarchy), processes, culture and technology (hardware, software, data stores, handheld mobile devices.) used for generating and disseminating information across the organisation.

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 Management

Information System MIS aims at achieving broader information system literacy and also deals with both behavioral and technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm. Business functions Specialized tasks such as sales and marketing, accounting and finance, manufacturing and production and human resource performed by business organisation.
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Organisation An organisation is a stable, formal social structure that takes resources from the environment and processes them to generate output
A structure that is composed of different levels and specialists and reveals clear-cut division of labor, authority and responsibility.

Culture Fundamental set of assumptions, values and ways of doing things that has been accepted by most of the members in an organisation.
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Formal Organisation Structure Processes

Hierarchy Division of labor Rules, procedures Business processes Culture

Rights/obligations Privileges/responsibilities Values Norms People

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 The

business information value chain From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming and distributing information that managers can use to improve decision making, enhance organisational performance and increase firms profitability.

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 Complimentary

Assets Assets required to derive value from a primary investment. Information Technology investments alone cannot and will not make organisations and managers more effective unless they are accompanied by supportive values, structures and behavior patterns in the organisation and other complimentary assets (organisational, managerial and social assets)
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Organisational Assets

Supportive organisational structure that values efficiency and effectiveness Appropriate business model Efficient business processes Decentralized authority Distributed decision-making rights Strong IS development team Strong senior manager support for technology investment and change Incentives for management innovations Teamwork and collaborative work environments Training programs to enhance management decision skills Management culture that values flexibility and knowledge-based decision making The internet and telecommunication infrastructure IT enriched educational programs raising labor force computer literacy Standards (both government and private sector) Laws and regulations creating fair, stable market environment Technology and service firms in adjacent markets to assist implementation
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Managerial Assets

Social Assets

 Functional
FUNCTIONAL AREA

business processes
BUSINESS PROCESS Assembling the product Checking for quality Producing bills of material Identifying customer Making customer aware of products Selling the product

Manufacturing and production

Sales and marketing

Finance and accounting

Paying creditors Creating financial statements Managing

Hiring employees Evaluating employees job performance Enrolling employees in benefits plans
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Human Resource

 Systems
Level Top management

for different management groups

Task Information System Makes long range decisions about ESS/DSS products and services and also ensures financial performance of a firm

Middle Management

Carries out programs and plans of DSS/MIS top management

Knowledge Workers Designs new product and services KMS (engineers, and create new knowledge for scientists, enterprise architects) Data Workers and Assists with scheduling and TPS Production or service communication at all levels of a workers firm. Also, produce the product and
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