MANAGING THE DIGITAL FIRM (1) ~ pertemuan1 ~ Oleh: Ir. Abdul Hayat, MTI 2/28/20081Abdul Hayat, SIM, Semester Genap 2007/2008

What is the role of information systems in today’s competitive business environment? What exactly is an information system? What do managers need to know about information systems? How are information systems transforming organizations and management? How has the Internet and Internet technology transformed business? What are the major management challenges to building and using information systems? OBJECTIVES 2/28/20082Abdul Hayat, SIM, Semester Genap 2007/2008

1. Design competitive and effective systems 2. Understand system requirements of global business environment 3. Create information architecture that supports organization’s goal 4. Determine business value of information systems 5. Design systems people can control, understand and use in a socially, ethically responsible manner MANAGEMENT CHALLENGES 2/28/20083Abdul Hayat, SIM, Semester Genap 2007/2008

WHY INFORMATION SYSTEMS? FOUR POWERFUL WORLDWIDE CHANGES – Emergence of the Global Economy – Transformation of Industrial Economies – Transformation of the Business Enterprise – The Emerging Digital Firm MOST ORGANIZATIONS NEED I/S TO SURVIVE AND PROSPER – Information systems can help companies extend their reach to faraway location, offer new products and services, reshape jobs and work flows, and perhaps profoundly change the way they conduct business 2/28/2008Abdul Hayat, SIM, Semester Genap 2007/20084

Management and control in a global marketplace Competition in world markets Global work groups Global delivery systems 2/28/20085Abdul Hayat, SIM, Semester Genap 2007/2008 EMERGENCE OF THE GLOBAL ECONOMY

Knowledge- and information-based economies New products and services Knowledge: a central productive and strategic asset Time-based competition Shorter product life Turbulent environment Limited employee knowledge base 2/28/20086Abdul Hayat, SIM, Semester Genap 2007/2008 TRANSFORMATION OF INDUSTRIAL ECONOMIES

0% 10% 20% 30% 40% 50% 60% 70% Labor Force Composition Year 2/28/20087Abdul Hayat, SIM, Semester Genap 2007/2008 IMPACT ON LABOR FORCE

Flattening Decentralization Flexibility Location independence Low transaction and coordination costs Empowerment Collaborative work and teamwork 2/28/20088Abdul Hayat, SIM, Semester Genap 2007/2008 TRANSFORMATION OF THE BUSINESS ENTERPRISE

Digitally-enabled relationships with customers, suppliers, and employees Core business processes accomplished via digital networks – BP refer to the unique manner in which work is organized, coordinated, and focused to produce a valuable product or service – BP Examples: Develop new product, generate and fulfill an order, hire employee, etc Digital management of key corporate assets – Intellectual property – Core competencies – Financial assets – Human assets Rapid sensing and responding to environmental changes 2/28/20089Abdul Hayat, SIM, Semester Genap 2007/2008 EMERGENCE OF THE DIGITAL FIRM

Supply chain management systems – Seek to automate the relationship between suppliers and the firm to optimize the planning, sourcing, manufacturing, and delivery product/services Customer relationship management systems – Attempt to develop a coherent, integrated view of all the relationships a firm maintains with its customers Enterprise systems – Create an integrated enterprise-wide information system to coordinate key internal process of the firm, integrating data from manufacturing and distribution, sales, finance, and human resources Knowledge management systems – Seek to create, capture, store, and disseminate firm expertise and knowledge 2/28/200810Abdul Hayat, SIM, Semester Genap 2007/2008 FOUR MAJOR SYSTEMS DEFINING THE DIGITAL FIRM

A set of interrelated components that collect (or retrieve), process, store, and disseminate (or distribute) information to support decision making, coordination, control, analysis, and visualization in an organization 2/28/200811Abdul Hayat, SIM, Semester Genap 2007/2008 WHAT IS AN INFORMATION SYSTEM?

Data: Streams of raw facts representing events such as business transactions Information: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisions 2/28/200812Abdul Hayat, SIM, Semester Genap 2007/2008 DATA AND INFORMATION

2/28/200813Abdul Hayat, SIM, Semester Genap 2007/2008 ENVIRONMENT OF AN INFORMATION SYSTEM

2/28/2008Abdul Hayat, SIM, Semester Genap 2007/ ACTIVITIES IN AN INFORMATION SYSTEM INPUT – Captures or collects raw data from within the organization or from its external environment PROCESSING – Converts this raw input into a more meaningful form OUTPUT – Transfers the processed information to the people who will use it or to the activities for which it will be used FEEDBACK – Which is output that is returned to appropriate members of the organization to help them evaluate or correct the input stage

MANAGING THE DIGITAL FIRM To be continued…. 2/28/2008Abdul Hayat, SIM, Semester Genap 2007/200815