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Management Information Systems 8/eChapter 1 Managing the Digital Firm

Bahan Kuliah Sistem Informasi Manajemen

Magister Universitas Gunadarma

Tugas :

- Membahas Paper

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Objective

What is the role of information systems in todays

competitive business environment?

What exactly is an information system? What domanagers need to know about information systems?

How are information systems transforming organizationsand management?

How has the Internet and Internet technologytransformed business?

What are the major management challenges to buildingand using information systems?

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Management Challenges

1.Design competitive and effective systems

2. Understand system requirements of global business

environment

3. Create information architecture that supportsorganizations goal

4. Determine business value of information systems

5. Design systems people can control, understand and usein a socially, ethically responsible manner

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WHY Information SYSTEMS ?

Four powerful worldwide changes that

have altered the business environment:

1. Emergence of the Global Economy2. Transformation of Industrial Economies

3. Transformation of the Business

Enterprise4. The Emerging Digital Firm

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WHY Information SYSTEMS ?

Emergence of the Global Economy

Management and control in a global

marketplace

Competition in world markets

Global work groups

Global delivery systems

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WHY Information SYSTEMS ?

Transformation of Industrial Economies

Time-based competition

Shorter product life

Turbulent environment

Limited employee knowledge base

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WHY Information SYSTEMS ?

Labor Force Composition 1900-2000

0%

10%

20%

30%

40%

50%

60%

70%

1900 1910 1920 1930 1940 1950

Labor Force Composition 1900-2000

1960 1970 1980 1997 2000

Year

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WHY Information SYSTEMS ?

Transformation of the Business Enterprise

Flattening

Decentralization Flexibility

Location independence

Low transaction and coordination costs

Empowerment

Collaborative work and teamwork

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WHY Information SYSTEMS ?

Emergence of the Digital Firm

Digitally-enabled relationships with customers,

suppliers, and employees

Core business processes accomplished via

digital networks

Digital management of key corporate assets

Rapid sensing and responding to environmental

changes

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WHY Information SYSTEMS ?

4 Major Systems Defining the Digital Firm

Supply chain management systems

Customer relationship managementsystems

Enterprise systems

Knowledge management systems

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WHY Information SYSTEMS ?

(1) A set of interrelated components that

collect

(or retrieve), process, store, and distribute

information to support decision making and

control in an organization

(Laudon & Laudon, 2002).

What Is an Information System?

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(2) A business application of

the computer. It is made up of

the database, application

programs, manual and

machine procedures and

encompasses the computer

systems that do the processing

(Tech Encyclopedia, 1999).

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Hierarchy of Information

Charts

Intelligence

Knowledge

Information

DataData & Information

3rd Generation (2003)

_____________________________________________________________________________________________________

2nd Generation (1996-2002)

_____________________________________________________________________________________________________

1st Generation

(1990s)

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WHY Information SYSTEMS ?

Informasi:

Sumber / data yang

diolah yang

mempunyai nilai

sangat penting

1-14

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WHY Information SYSTEMS ?

Data and Information

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WHY Information SYSTEMS ?

INPUT OUTPUTPROCESS

FEEDBACK

Activities in an Information System

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WHY Information SYSTEMS ?

Functions of an Information System

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WHY Information SYSTEMS ?

Rely on computer hardwareand software

Processing and

disseminating information

Computer-Based Information System (CBIS)

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WHY Information SYSTEMS ?

Information Processing Activities

Business Value

Management Activities

SupplyChainManagement

EnterpriseManagement

CustomerManagement

KnowledgeManagement

DataCollectionandStorage

TransformationIntoBusinessSystems

Dissemination

Planning Coordinating Controlling Modeling andDecision Making

FirmProfitability

andStrategic

Position

Business Processes

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WHY Information SYSTEMS ?

ORGANIZATIONS TECHNOLOGY

MANAGEMENT

INFORMATION

SYSTEMS

Information Systems

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WHY Information SYSTEMS ?

Information systems literacy: Broad-basedunderstanding of information systems thatincludes behavioral knowledge aboutorganizations and individuals using informationsystems and technical knowledge aboutcomputers.

Computer literacy: Knowledge aboutinformation technology, focusing onunderstanding how computer-basedtechnologies work

A Business Perspective on Information Systems

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WHY Information SYSTEMS ?

Sales and marketing

Manufacturing

Finance

Accounting

Human resources

Major Business Functions

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WHY Information SYSTEMS ?

Key Elements:

People: Managers, knowledge workers,

data workers, production or serviceworkers

Structure: Organization chart , groups ofspecialists, products, geography

Organizations

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WHY Information SYSTEMS ?

Operating procedures: Standard operatingprocedures (SOP, rules for action)

Politics: Power to persuade, get things done

Culture: Customs of behavior

Organizations

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WHY Information SYSTEMS ?

Levels:

Senior managers: make long-range strategic decisions aboutproducts and services

Middle managers: Carry outthe programs and plans of seniormanagement

Operational managers:monitor the firms daily activities

Management

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WHY Information SYSTEMS ?

Tools managers use to cope with change

Hardware: Physical equipment

Software: Detailed preprogrammed

instructions

Storage: Physical media for

storing data and the software

Computer Technology

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Communications Technology:transfersdata from one physical location to another

Networks:link computers to share data orresources

Computer Technology

WHY INFORMATION SYSTEMS?

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CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

TechnicalApproaches

BehavioralApproaches

ManagementScience

OperationsResearch

Sociology

Economics

ComputerScience

Psychology

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Optimize systems performance:

Technology and organization

Organizations mutually adjust to one anotheruntil fit is satisfactory

Socio-Technical Systems

CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

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Socio-technical Systems

CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

SOURCE: Liker, et al, 1987

Figure 1-7

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TOWARD THE DIGITAL FIRM

The Interdependence Between Organizations and Information Systems

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1950s: Technical changes

1960s-70s: Managerial controls

1980s-90s: Institutional core activities

Today: Digital information webs extending

beyond the enterprise

TOWARD THE DIGITAL FIRM

The Widening Scope of Information Systems

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TOWARD THE DIGITAL FIRM

The Widening Scope of Information Systems

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International network of networks

Universal technology platform: Any computer

can communicate with any other computer

World Wide Web and Web sites

TOWARD THE DIGITAL FIRM

The Internet

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Communicate and collaborate

Access information

Participate in discussions

Supply information

Find entertainment

Exchange business transactions

TOWARD THE DIGITAL FIRM

What You Can Do on the Internet?

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Flattening organizations

Separating work from location

Reorganizing work-flows

Increasing flexibility

Redefining organizational boundaries

TOWARD THE DIGITAL FIRM

New Options for Organizational Design

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TOWARD THE DIGITAL FIRM

Flattening Organizations & Information Systems

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Redesigned Work Flow For Insurance Underwriting

TOWARD THE DIGITAL FIRM

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Electronic commerce

Electronic business

Digital market: Information systems links,

buyers and sellers to exchange information,

products, services, payments

TOWARD THE DIGITAL FIRM

The Digital Firm

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TOWARD THE DIGITAL FIRM

CustomersOn-line marketingOn-line salesBuilt-to-order productsCustomer serviceSales force automation

SuppliersProcurementSupply chain management

Business partnersJoint designOutsourcing

Remote offices and work groupsCommunicate plans and policiesGroup collaborationElectronic communicationScheduling

FactoriesJust-in-time productionContinuous inventory

replenishment

Production planning

ELECTRONIC BUSINESS

Electronic Commerce

THE EMERGING DIGITAL FIRM

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Electronic Business: Executing all thefirms business processes with Internettechnology

Intranet: Business builds private, securenetwork based on Internet technology

Extranet: Extension of intranet to authorizedexternal users

Electronic Business

TOWARD THE DIGITAL FIRM

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Information Architecture and Information Technology Infrastructure

TOWARD THE DIGITAL FIRM