Information System

in the Enterprise
 MANAGING THE
DIGITAL FIRM BUSINESS CHALLENGES
•Rapidly hanging customer tastes
•Fast-paced time-to-market
MANAGEMENT
Develop Enterprise wide
business processes.
Monitor market changes & cost

TECHNOLOGY INFORMATION SOLUTIONS

Internet SYSTEM Reduce
Intranet time-to-market
Barcode Coordinate supply chain Increase profit

ORGANIZATION
Designers
Factories
Suppliers
Warehouses
Retail Stores
Business processes
Information System
Computer
Based CUSTOMERS
SUPPLIERS
Information
System
(CBIS)ENVIRONMENT ORGANIZATION

Information System

PROCESSING
CLASSIFY
INPUT ARRANGE OUTPUT
CALCULATE

feedback

REGULATORY STOCK COMPETITORS

AGENCIES HOLDERS
 IT GOVERNANCE

developing ability and organization successful

REPRESENTING IT INSTITUTION Alignment
Information Systems in the Enterprise
Management Of Change Maturity
Strategic Alignment Maturity between
IT Business Communication
Managing Emerging Technologies Business &
Role & CIO’s Responsibilities

COMPETITIVE ADVANTAGE
State, Role, & IT Importance

IT Strategy

Information Superiority
decisions,
DEVELOPING INFORMATION SYSTEMS
about how
IT Strategy
Organizing IT
to obtain
Information System in The Enterprise & deploy
•Human Resources Consideration IT
resources
&
MANAGING IT PERFORMANCE competen
Optimal
•IT Process cies of
result
•Planning Related IT Process
•Measuring Reporting & Controlling informati
•Assessing The Value of IT on
system

Globalization Impact
 Globalization’s Impact
IT Governance
State, Role & IT importance
Role & CIO’s Responsibilities

?
Representing Developing Managing IT
Information System
IT Institution Performance
Manage IT Strategy IT Process Competi
ment of
Change Organizin Measurin tive
IT g,
Busines g IT
•Managin Reporting Advanta
s g & optima ge
Communica
tion Informati Assessing
Controllin
on The Value
g l result
Strategic
Alignment •System
Human of IT of
Maturity Resource informa
s decisions, tion
•Managi Considera
ng about how system
tion
Emergin to obtain

Informa

Superio
developi
g

tion
& deploy

rity
Technol ng
Alignment IT
ogy ability &
Maturity resources
Business & IT
organiz
& ation
 3 Primary Strategies
to achieve Competitive Advantage (Michael Porter) :
Cost Leadership Competing with Lower Costs
Product Differentiation Competing with Value
Product Focus Competing by Restricting One’s Market
• Hi tech firms are confronted with dynamic and unpredictable
changes in markets, products, and technologies
• compete on their technological strength
 ability to exploit technology as a core competence
 to invest in future technology
 to incorporate better technology in its products or services
 to do in a shorter time, lower costs, amenity, higher quality,
leading-edge products, services, and better performance,
etc
© 2002 Southwestern
College Publishing. All
 Challenges
Alignment Maturity between Business & IT strategy
 The Role of CIO
Decisions, to obtain & deploy IT Resources &
Competencies
 IT Strategy & Organizing IT
Optimal Result of Information System
 Quality of Information, Robustly Networked Force
& Information Sharing
Developing Ability & Organization Successful
 Human Resources Considerations
Competitive Advantage
 Management Information System
Challenges
• Integration.
However integrating systems for different
organizational levels and functions to freely
exchange information can be technologically
difficult and costly.

• Enlarging the scope of management thinking.

Enterprise system and industrial networks
require manager to take a much larger view of
their own behavior, including other products,
divisions, department and even outside business
firms.
 ICT DEVELOPMENT STRATEGY
Business Strategy
IS/IT
•Business Direction Where is the
Impact
•Objective & Direction business going
&
•Change and Why
Potential
Support Direction for
Business Business
IS Strategy
•Business Based What is require
•Demand Oriented
•Application Focused
Infrastructure & Needs &
Services Priorities
IT Strategy
•Activity Decision How it can be
•Supply Oriented delivered
•Technically Focused
APPROACH METHOD
TOP-DOWN
APPROACH
TARGET & OBJECTIVE
ANALYS
T
METHODOLO
GY REVISION
INTERNAL-EXTERNAL
ICT APPROACH
DEVELOPING SYSTEM
GRAND DESIGN CREATI
ON
SURVE
Y
EVALUAT
ION
BOTTOM-UP
APPROACH
EXISTING SYSTEM
ICT GRAND DESIGN STEPS

VISION, MISSION, STRATEGY,

RESPONSIBILITY & PRIORITY

Existing Expected
Condition Condition Planning
(Where are we, (Where are we (How to reach?)
now?) going to?)

Budget
2 STEP
nd
4 STEP
th
Planning
1st STEP
•Level Strategy
•Assessment Implementation
Determining & Planning
Planning

3rd STEP
•Gap Analysis
ICT strategic planning

KONSEP INTEGRASI SYSTEM

Manuf Human Sales
Logisti Financ &
acturi Resour
c e Marke
ng ces ting
Applica Applica
Applica Applica Applica
tion tion tion
tion tion

Enterprise Service Bus

(ESB/SOA)
Routing Transformation Security
Connectivity

Accou Other
nting
Applic Applica
ation tion
 Major Types of Systems in Organizations
KIND OF GROUPS
INFORMATIO SERVED
N SYSTEM
Strategic Senior
Level Manager
s

Manageme Middle
nt Level Manager
s

Knowledg
Knowledg e and
e Level Data
Workers

Operation Operation
al Level al
Managers

FUNCTIONA Sales & Manuf FinanceAccountin Human

L AREA Marketin acturi g Resource
g ng s
RENCANA & STRATEGI TIK

HIRARKI SISTEM INFORMASI

STRATEGIC

TACTIC

TECHNICAL
OPERATION
RENCANA & STRATEGI TIK

KONSEP ALIRAN DATA & INFORMASI

Transaction
Processes
MIS DSS

External Data
EIS
Information Warehouse
 TYPES OF SIX MAJOR TYPES OF SYSTEMS
SYSTEM Strategic Level Systems
5 years 5 years 5 years
Executive Support Profit personnel
Sales trend
Operating budget Planning Planning
Systems (ESS)
forecasting plan forecasting
Management Level Systems
Management Capital Relocation
Information Sales Inventory Annual Investment
Systems (MIS)ManagementControlbudgetingAnalysis Analysis
Decision Support Pricing Contract Cost
Production Cost Profitability
Sales Region
Systems (DSS) AnalysisScheduling
Analysis Analysis Analysis
Knowledge Level Systems
Knowledge Works Engineering Graphic Managerial
Systems (KWS) Workstations Workstations Workstations
Office Automation Word Document Electronic
Systems Processing Imaging Calendar
Operational Level Systems
Securities PayrollCompensation
Machine Control
Order Plant
Transaction Tracking Scheduling
Trading Accounts Training &
Processing Materiel Payable development
Order Movement Cash
Systems (TPS)Processing Control Management Account Employee
Receivable
record keeping
Sales & Manufac- FinanceAccounting Human
Marketing turing Resources
 Characteristics of Information Processing Systems
TYPES OF Information Processing Information Users
SYSTEM Input Outputs
Executive Support
Aggregate data; Graphics; Projections;
Systems (ESS) Simulations; responsesSenior Managers
External, internal
Interactive to queries
Summary Routine reports,
Managementtransaction
InformationHigh volume data,
simple Summary and
models, Middle managers
data,
Systems (MIS)Simple models Exception
Low level analysis reports

Low-volume data or
massive databases Specials reports;
Interactive;
Decision Support
Optimized for data Decision
Simulations; analysis;
Professionals;
Systems (DSS)
Analysis, analytic Responses toStaff managers
Models and data analysis queries
Analysis tools

Knowledge Works Design Modeling; Models; Professionals;

specifications;
Systems (KWS) simulations graphics Technical staff
Knowledge base
Document Document;
Office Document; Management; Schedules; Clerical
Systems schedules Scheduling; mail workers
communication
Transaction Transaction;
sorting; listing; Operations
Detailed reports;
Processing eventsMerging; updating
Lists; Personnel;
summaries
Systems (TPS) supervisors
Transaction Processing Systems (TPS)
• The basic business systems that serve the operational level
of the organization.
• A transaction processing system is a computerized system
that performs and records the daily routine transactions
necessary to conduct business.

Employee Data To general ledger wages and salaries

(Various Department)
Payroll Payroll Management
Master Systems Reports
File
Government Documents

Employee Checks

Online
Queries
Earnings
Knowledge Work Systems (KWS)
• Serve the information needs at the knowledge level of
the organization.
• Aid knowledge workers in the creation and integration
of new knowledge in the organization, whereas office
systems primarily aid data workers.

Office Automation Systems (OAS)

• Computer systems, such as word processing, e-mail
system and scheduling systems, that are designed to
increase the productivity of data workers in the office.
 Management Information Systems (MIS)
• Serve the management functions of planning, controlling
and decision making by providing routine summary and
exception reports.
• In some cases, with on line access to the organization’s
current performance and historical records.
MIS FILES
Order Sales
Order Processing
File Data
System

Unit
Product
Materials Cost Data
Production Resource MIS
Master File Planning
System Product
Change
Data MANA
GERS
General Expense
Accounting Ledger
File Data
System
Decision Support Systems (DSS)
• Information systems at the organization’s management
level that combine data and sophisticated analytical
models or data analysis tools to support semi structured
and unstructured decision making.
• Serve the management level of the organization.
• Help managers make decisions that are unique, rapidly
changing and not easily specified in advance.
• Although use internal information from TPS and MIS,
they often bring in information from external sources,
such as current stock prices or product prices of
competitors.
Executive Support Systems (ESS)
• Information systems at the organization’s strategic level
designed to address unstructured decision making through
advanced graphics and communications.
• They address non routine decisions requiring judgment,
evaluation and insight, because there is no agreed-on
procedure for arriving at a solution.
•Menus
ESS •Graphics
workstation •Communications
•Local Processing

ESS ESS
workstation Internal DataExternal Data
workstation
•TPS/MIS data •Internet new
•Financial datafeeds
•Office Systems•Standard &
•Menus •Modeling/ Poor’s •Menus
•Graphics Analysis •Graphics
•Communications •Communications
•Local Processing •Local Processing
Interrelationships
among Systems
ESS

MIS DSS

KWS
& OAS TPS
 ENTERPRISE SYSTEMS

Generate Submit
Sales
Order Order

Check Approve Generate

Accounting
Credit Credit Invoice

Manufacturing
and Check Ship
Production Credit Product
 Traditional view of systems

Organizational Boundaries

Organizational Boundaries
Manufac- Account- Finance Marketing Human
Vendors turing ing & Sales Resources Customers

Business Business Business Business Business Customers

Vendors Systems Systems Systems Systems Systems

Manufac- Account- Finance Marketing Human

Vendors turing ing & Sales Resources Customers
Systems Systems Systems Systems Systems

In most organization, separate systems built over a long period of time support discrete business processes
and discrete business functions. The organization’s systems rarely included vendors and customers

Enterprise System

Organizational Boundaries
Organizational Boundaries

Manufac- Account-
turing ing

Business Systems
Business Systems
Vendors Customers
Business Systems
Enterprise-wide business processes

Human Marketing
Finance
Resources & Sales

Can integrate the key business processes of an entire firm into a

single software system that allows information to flow seamlessly
throughout the organization. These systems focus primarily on
plan, “the enterprise architecture”
to :
• Getting the right information & assessing
information quality to create Information Superiority
• Build Robustly Network Force for Information
Sharing to realize sharing information awareness
• Create Innovation, New Method & New Processes
• Realize Shared Situational Awareness
• Perform Cooperation & Coordination
(Collaboration)
• Realize Self Synchronization to create Mission
Effectiveness