IS404 Business Information Systems Olayele Adelakun (Ph.D) Assistant Professor CTI Office: Room 735 CTI 7th Floor Phone: Fax: Web:

Agenda  Expectation?  Course Overview  Areas of Interest  Lecture Notes

Expectations? 1. Reasons to study Business IS 2. What would you like to get out of this course.

Agenda Expectations?  Course Overview  Areas of Interest  Lecture Notes

Course Overview Objective Topics Course Materials Assignments

Objectives  After completing this course students and managers should have a better: understanding of the variety of information management issues facing managers, groups and individuals in organizations. understanding of the variety of ways in which IS and IT can be used to support and facilitate various organizational objectives or undermine them. understanding of the various technologies that could be used to simplify organizations' business processes

Topics  Information Technology in Digital Economy  Information Technology Concepts and management  Strategic Information Systems for Competitive Advantage  E-Commerce  Supply Chain Management and ERP systems  Organization Applications  Knowledge Management and DSS  Case studies

Course Materials  Information Technology for Management, 3rd Edition, by Turban, McLean, and Wetherbe. Published by John Wiley and Sons,  Case studies – will be distributed in class  Other supporting documents

Course Materials  Other supporting documents – Useful Publications  BUSINESS  Businessweek  Crain’s  Wall Street Journal  World Business Review wbrtv.com  USEFUL SITE with Subscription Newsletters IT World Infoworld  TECHNOLOGY Communications of the ACM (CACM) MIT Technology Review i-street e-commerce times Enterprise Systems Journal

Grading Class Participation10% Individual Assignments30% Group Project30% Midterm30% Total100%

Group Assignment  3-5 Students per group  Each group will study one of the following type of systems and how an organization is using it: Enterprise Resources Planning Systems (ERP) E-commerce or M-commerce systems Customer Relationship management systems (CRM) Supply chain management systems Knowledge management systems Strategic Systems See details at ect/IS404-Spring-2003-Group-project.doc ect/IS404-Spring-2003-Group-project.doc

Question

Agenda Expectations? Course Overview  Areas of Interest  Lecture Notes

Areas of Interest  What will be of high interest to you?  What would you like to be added to meet your learning goals

Agenda Expectations? Course Overview Areas of Interest  Lecture Notes

Lecture Note Information Technology in the Digital Age

EC & Networked Computing  Electronic commerce (EC) is the use of Web-based systems to support buying, selling, and customer service.  Click-and-mortar companies add some EC activities to their regular business.  Networked computing connects several computers and other electronic devices via telecommunication networks.  Information technology (IT) refers to the collection of computer systems used by an organization.

IT in Business Organizations  Why Improve productivity Reduce cost Improve decision making Enhance customer relationships Developing new strategic applications  Wreden 1997

The Digital Economy  The digital economy refers to an economy that is based on digital technologies, including digital communication networks, computers, and software.  The digital economy is also sometimes called the Internet economy, the New economy, or the Web economy.

Old vs. New Economy: Photography Old Economy You buy film at the store, insert it into your camera & take pictures. Once you complete the film, sometimes weeks or months after you began the roll, you take it to the store for processing. Go back to the store and pay for enlargements and duplications. Send photos to family and friends. New Economy Use a digital camera that can also take videos. No film is needed, and no processing required. You can see the results immediately & enlarge & print photos quickly. If your digital camera is connected to a wireless device (such as a palmtop computer or a cell phone) take pictures and see them within a few seconds.

Business Model  A business model is a method of doing business by which a company can generate revenue to sustain itself. For further reading see odels.html. odels.html

Digital Economy Business Models  Name-Your-Own-Price. Pioneered by Priceline.com, this model allows customers to state a price they are willing to pay for a product or service.  Dynamic Brokering. In the digital age customers can specify requirements for a service or a product. These specifications are broadcast over the Internet (“Webcasted”) to service providers in an automatic invitation to submit bids. 

Digital Economy Business Models (cont.)  Affiliate marketing is an arrangement in which marketing partners place a banner of a company, such as Amazon.com, on their Web site.  Group Purchasing. Anyone can pay less per unit when buying more units. Discounts are usually available for quantity purchases.   E-marketplaces and Exchanges. Since 1999, thousands of electronic marketplaces, of different varieties, have sprung up.

Major Business Pressures

Market Pressures  Global Economy & Strong Competition. Global competition is intensified as governments become involved through the use of subsidies, tax policies, import/export regulations & incentives. Rapid and inexpensive communication and transportation modes increase the magnitude of international trade even further.

Market Pressures (cont.)  Changing Nature of the Workforce. The workforce is becoming more diversified, with more females, single parents, minorities, and handicapped persons working in all types of positions.  Powerful Customers. Consumer sophistication & expectations increase as customers become more knowledgeable about the availability and quality of products and services.

Technology Pressures  Technological Innovation & Obsolescence. Some of today’s state-of-the-art products may be obsolete tomorrow. Thus, technology accelerates the competitive forces.  Information Overload. The amount of information available on the Internet more than doubles every year. The management of information is critical.

Societal Pressures (cont.)  Social Responsibility. Issues range from the environment to education.  Government Regulations. Regulation issues involve health, safety, environmental control, and equal opportunity.  Government Deregulation. Deregulation can be a blessing to one company but a curse to another company.  Ethical Issues. Business ethics relates to standards of right and wrong in business practices.

Organizational Framework

Organizations’ Major Responses  Strategic systems for competitive advantage  Continuous improvement efforts  Business process reengineering (BPR)  Business alliances  Electronic commerce

Organizations’ Major Responses  Strategic Systems provide organizations with strategies to increase their market share, better negotiate with suppliers, or stop competitors.  Continuous Improvement Efforts aim to improve a company’s productivity and quality. Examples include: Improved productivity  Managing enterprise data Just-in-time (JIT)  Innovation and creativity Total quality management  Change management Knowledge management  Customer service

Organizations’ Major Responses  Business Process Reengineering refers to the introduction of a major innovation in an organization’s structure & the way it conducts business.  The major areas in which IT supports BPR are the following; Reducing cycle time and time to market. Empowerment of employees and collaborative work. Customer-focused approach and CRM. Restructuring and team-based structure.

Organizations’ Major Responses  Business Alliances. Many companies realize that alliances with other companies, even competitors, can be very beneficial. Temporary joint venture = companies form a special company for a specific, limited-time mission.  Electronic Commerce. Doing business electronically is the newest and perhaps most promising strategy that many companies can pursue.

Computer-Based Information System A computer-based information system (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks.

Components of Information Systems Hardware is a set of devices such as processor, monitor, keyboard, and printer. Software is a set of programs that enable the hardware to process data. Database is a collection of related files, tables, relations, and so on, that stores data. Network is a connecting system that permits the sharing of resources between computers. Procedures are the set of instructions about how to combine the above components. People are those individuals who work with the system or use its output.

Information Systems

Information System Categories Which product was delivered last week? Purchasing, reserving airline ticket, ordering, etc. DSS Groupware GDSS EIS CAD & CAM Which customers do not Pay their bills on time?

Managerial Issues How can we recognize the opportunities for using IT and Web-based systems? How important is IT? In some cases, IT is the only approach that can help organizations. Who is going to build, operate, and maintain the information systems? How much IT? IT does not come free, but not having it may be much costlier.

Managerial Issues (cont.) Is the situation going to change? Yes, the pressures will be stronger as time passes & the IT role will be even more important. What about ethics and social issues? The implementation of IT involves many ethical and social issues. What about Globalization? Globalization opens many opportunities, ranging from selling products and services online, to conducting joint ventures or investing in them. How can an organization transform itself to the digital economy?

Agenda Expectations? Course Overview Areas of Interest Lecture Notes