Changing business environment
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The document discusses how the changing business environment is driving organizational changes and the role of information systems. Key business drivers include globalization, competition, time-based competition, and technological innovation. Organizations are responding through business process reengineering, continuous improvement efforts, empowering employees, and becoming more customer-focused. The role of information systems is widening from basic data processing to management control, decision support, and treating information as a strategic resource. Contemporary approaches to information systems consider both technical and behavioral elements.
Changing business environment
- 1. Introduction to IS Changing Business Environment Data, Information, Knowledge Definitions
- 2. The Changing Business Environment Business Drivers(Pressures) Globalisation and Strong Competition Management and control in a global marketplace, Competition in world markets, Global work groups, Global delivery systems Transformation of Industrial Economies 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 Transformation of the Enterprise Flattening, Decentralization, Flexibility, Location independence, Low transaction and coordination costs, Empowerment, Collaborative work and teamwork
- 3. The Changing Business Environment Business Drivers(Pressures) Changing nature of workforce Powerful customers Technological Pressures Technological innovation and obsolescence Information overload Social responsibility (Equal opportunity, environmental control, health, safety, ….) Government regulation Government deregulation Shrinking budgets and subsidies Ethical issues
- 4. Organizational Responses Strategic systems Continuous improvement efforts Improved productivity Just-in-time (JIT)operation Total quality management Improved decision making Information & knowledge Innovation Change management, customer service
- 5. Organizational Responses Business process reengineering Reducing cycle time and time to market Empowerment of employees Customer focused approach Restructuring and team based structure ERP Business Alliances Electronic Business, Commerce
- 6. The Emerging Digital Firm 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. Business Processes: The unique ways in which organizations coordinate and organize work activities, information, and knowledge to produce a product or service.
- 7. Data vs. Information vs. Knowledge
- 8. Characteristics of Valuable Information Accurate information is error free. Complete information contains all of the important facts. Relevant information is important to the decision maker. Timely information is available when needed. Verifiable information can be checked to make sure it is correct. Accessible information can be obtained by the users who need it. Secure information is safe from unauthorized users.
- 9. …thus... Usefulness of information depends on quality and accessibility BUT…. Usefulness also depends on purpose and context Information comes in different forms - not all of which can be quantified: hard vs. soft data Ownership is difficult to maintain More is not always better
- 10. Definitions 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. 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. 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.
- 11. What is an Information System? An information system is the set of interrelated components that collect, process, store and distribute information used by/support one or more business process. Input : The collection of raw data. Processing : The manipulation of data into information. Output : Distributing valuable information. Includes both technology and people Information technology is the hardware, telecommunications and software that make information systems possible.
- 12. Functions of Information Systems
- 13. Figure 1.2 Data & Information
- 14. Definitions Input The capture or collection of raw data from within the organization or from its external environment for processing in an information system, Processing The conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans. Output The distribution of processed information to the people who will use it or to the activities for which it will be used.
- 15. Definitions Feedback Output that is returned to the appropriate members of the organization to help them evaluate or correct input. Computer-based information systems (CBIS) Information systems that rely on computer hardware and software for processing and disseminating information. Formal system System resting on accepted and fixed definitions of data and procedures, operating with predefined rules.
- 16. Examples of Information Systems
- 17. Definitions: Organization Standard operating procedures (SOPs) Formal rules for accomplishing tasks that have been developed to cope with expected situations. Knowledge workers People such as engineers or architects who design products or services and create knowledge for the organization. Data workers People such as secretaries or bookkeepers who process the organization's paperwork. Production or service workers People who actually produce the products or services of the organization.
- 18. Definitions: Management Senior managers People occupying the topmost hierarchy in an organization who are responsible for making long-range decisions. Middle managers People in the middle of the organizational hierarchy who are responsible for carrying out the plans and goals of senior management. Operational Managers People who monitor day to day activities of the organization.
- 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. Wrong Right 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. Brief History of IS 1950's : Electronic Data Processing/ Automatic Data Processing 1960's : Management Information Systems (i.e. Report generating systems) 1970's : Decision Support Systems (DSS), Office Automation Systems 1980's : Information as strategic tool, End-User Computing, Managerial control 1990's : Integration: Core activities + Information as a product
- 22. The New Role of Information Systems in Organizations Widening scope of information systems Data processing -> management control -> decision support-> information as a resource Network revolution Networked enterprise Flattening organizations Separating work from location Reorganizing workflow Increasing flexibility of organization Mass customization: Products can be easily customized with no added cost for small production runs. Changing management process – ERP Inter-organizational systems: Information system that automate work flow of information across organizational boundaries Electronic commerce
- 23. Challenges The Strategic Business Challenge The Globalisation Challenge The Information Architecture Challenge The Information Systems Investment Challenge Control Challenge