Changing business environment


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Changing business environment

  1. 1. Introduction to IS Changing Business Environment Data, Information, Knowledge Definitions
  2. 2. The Changing Business Environment Business Drivers(Pressures) <ul><li>Globalisation and Strong Competition </li></ul><ul><li>Management and control in a global marketplace, Competition in world markets, Global work groups, Global delivery systems </li></ul><ul><li>Transformation of Industrial Economies </li></ul><ul><li>Knowledge- and information-based economies, Productivity, New products and services, Knowledge: a central productive and strategic asset Time-based competition, Shorter product life Turbulent environment, Limited employee knowledge base </li></ul><ul><li>Transformation of the Enterprise </li></ul><ul><li>Flattening, Decentralization, Flexibility, Location independence, Low transaction and coordination costs, Empowerment, Collaborative work and teamwork </li></ul>
  3. 3. The Changing Business Environment Business Drivers(Pressures) <ul><li>Changing nature of workforce </li></ul><ul><li>Powerful customers </li></ul><ul><li>Technological Pressures </li></ul><ul><ul><li>Technological innovation and obsolescence </li></ul></ul><ul><ul><li>Information overload </li></ul></ul><ul><li>Social responsibility (Equal opportunity, environmental control, health, safety, ….) </li></ul><ul><ul><li>Government regulation </li></ul></ul><ul><ul><li>Government deregulation </li></ul></ul><ul><ul><li>Shrinking budgets and subsidies </li></ul></ul><ul><ul><li>Ethical issues </li></ul></ul>
  4. 4. Organizational Responses <ul><li>Strategic systems </li></ul><ul><li>Continuous improvement efforts </li></ul><ul><ul><li>Improved productivity </li></ul></ul><ul><ul><li>Just-in-time (JIT)operation </li></ul></ul><ul><ul><li>Total quality management </li></ul></ul><ul><ul><li>Improved decision making </li></ul></ul><ul><ul><li>Information & knowledge </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Change management, customer service </li></ul></ul>
  5. 5. Organizational Responses <ul><li>Business process reengineering </li></ul><ul><ul><li>Reducing cycle time and time to market </li></ul></ul><ul><ul><li>Empowerment of employees </li></ul></ul><ul><ul><li>Customer focused approach </li></ul></ul><ul><ul><li>Restructuring and team based structure </li></ul></ul><ul><ul><li>ERP </li></ul></ul><ul><li>Business Alliances </li></ul><ul><li>Electronic Business, Commerce </li></ul>
  6. 6. The Emerging Digital Firm <ul><li>Digital Firm: Organization where nearly all significant business processes and relationships with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through digital means. </li></ul><ul><li>Business Processes: The unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service. </li></ul>
  7. 7. Data vs. Information vs. Knowledge
  8. 8. Characteristics of Valuable Information <ul><li>Accurate information is error free. </li></ul><ul><li>Complete information contains all of the important facts. </li></ul><ul><li>Relevant information is important to the decision maker. </li></ul><ul><li>Timely information is available when needed. </li></ul><ul><li>Verifiable information can be checked to make sure it is correct. </li></ul><ul><li>Accessible information can be obtained by the users who need it. </li></ul><ul><li>Secure information is safe from unauthorized users. </li></ul>
  9. 9. …thus... <ul><li>Usefulness of information depends on quality and accessibility BUT…. </li></ul><ul><li>Usefulness also depends on purpose and context </li></ul><ul><li>Information comes in different forms - not all of which can be quantified: hard vs. soft data </li></ul><ul><li>Ownership is difficult to maintain </li></ul><ul><li>More is not always better </li></ul>
  10. 10. Definitions <ul><li>The business environment includes the firm itself and everything else that affects its success, such as competitors; suppliers; customers; regulatory agencies; and demographic, social, and economic conditions. </li></ul><ul><li>A firm (or government organization) consists of a large number of interdependent business processes that work together to generate products or services in a business environment. </li></ul><ul><li>A business process is a related group of steps or activities that use people, information, and other resources to create value for internal or external customers of a firm. </li></ul>
  11. 11. What is an Information System? <ul><li>An information system is the set of interrelated components that collect, process, store and distribute information used by/support one or more business process. </li></ul><ul><ul><li>Input : The collection of raw data. </li></ul></ul><ul><ul><li>Processing : The manipulation of data into information. </li></ul></ul><ul><ul><li>Output : Distributing valuable information. </li></ul></ul><ul><li>Includes both technology and people </li></ul><ul><li>Information technology is the hardware, telecommunications and software that make information systems possible. </li></ul>
  12. 12. Functions of Information Systems
  13. 13. Figure 1.2 Data & Information
  14. 14. Definitions <ul><li>Input The capture or collection of raw data from within the organization or from its external environment for processing in an information system, </li></ul><ul><li>Processing The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans. </li></ul><ul><li>Output The distribution of processed information to the people who will use it or to the activities for which it will be used. </li></ul>
  15. 15. Definitions <ul><li>Feedback Output that is returned to the appropriate members of the organization to help them evaluate or correct input. </li></ul><ul><li>Computer-based information systems (CBIS) Information systems that rely on computer hardware and software for processing and disseminating information. </li></ul><ul><li>Formal system System resting on accepted and fixed definitions of data and procedures, operating with predefined rules. </li></ul>
  16. 16. Examples of Information Systems
  17. 17. Definitions: Organization <ul><li>Standard operating procedures (SOPs) Formal rules for accomplishing tasks that have been developed to cope with expected situations. </li></ul><ul><li>Knowledge workers People such as engineers or architects who design products or services and create knowledge for the organization. </li></ul><ul><li>Data workers People such as secretaries or bookkeepers who process the organization's paperwork. </li></ul><ul><li>Production or service workers People who actually produce the products or services of the organization. </li></ul>
  18. 18. Definitions: Management <ul><li>Senior managers People occupying the topmost hierarchy in an organization who are responsible for making long-range decisions. </li></ul><ul><li>Middle managers People in the middle of the organizational hierarchy who are responsible for carrying out the plans and goals of senior management. </li></ul><ul><li>Operational Managers People who monitor day to day activities of the organization. </li></ul>
  19. 19. Contemporary Approaches to Information Systems Assumes that people behave rationally and focuses on creating systems with the best technical capabilities Main emphasis is on the political , organizational, and human elements that impact information systems. What seems rational and technically correct may not work due to behavioral elements in the organization.
  20. 20. <ul><li>Wrong Right </li></ul>Wrong Right Technical Behavioral Dealing with the right problems the right way ( Synthesis or socio-technical ) Dealing the wrong problems the right way ( purely technical ) Dealing with the right problems the wrong way ( purely behavioral ) Dealing with the wrong problems the wrong way ( no knowledge )
  21. 21. Brief History of IS <ul><li>1950's : Electronic Data Processing/ Automatic Data Processing </li></ul><ul><li>1960's : Management Information Systems (i.e. Report generating systems) </li></ul><ul><li>1970's : Decision Support Systems (DSS), Office Automation Systems </li></ul><ul><li>1980's : Information as strategic tool, End-User Computing, Managerial control </li></ul><ul><li>1990's : Integration: Core activities + Information as a product </li></ul>
  22. 22. The New Role of Information Systems in Organizations <ul><li>Widening scope of information systems </li></ul><ul><li>Data processing -> management control -> decision support-> information as a resource </li></ul><ul><li>Network revolution </li></ul><ul><li>Networked enterprise </li></ul><ul><ul><li>Flattening organizations </li></ul></ul><ul><ul><li>Separating work from location </li></ul></ul><ul><ul><li>Reorganizing workflow </li></ul></ul><ul><ul><li>Increasing flexibility of organization </li></ul></ul><ul><ul><li>Mass customization: Products can be easily customized with no added cost for small production runs. </li></ul></ul><ul><ul><li>Changing management process – ERP </li></ul></ul><ul><ul><li>Inter-organizational systems: Information system that automate work flow of information across organizational boundaries </li></ul></ul><ul><ul><li>Electronic commerce </li></ul></ul>
  23. 23. Challenges <ul><li>The Strategic Business Challenge </li></ul><ul><li>The Globalisation Challenge </li></ul><ul><li>The Information Architecture Challenge </li></ul><ul><li>The Information Systems Investment Challenge </li></ul><ul><li>Control Challenge </li></ul>