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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
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
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.
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
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
STRATEGIC
TACTIC
TECHNICAL
OPERATION
RENCANA & STRATEGI TIK
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
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.
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
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
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