1. Foundations of Information Systems Prof. Dr. Yang Dehua School of Economics and Management Tongji University

2. Outlines Foundations of Information Systems Information Technologies and Systems Business Processes Business Process Reengineering Business Continuity Management Information Systems for Management Information Systems for Strategic Advantages New Economy

3. Information Technologies and Systems Information Technology Hardware Software Networks Data Processing Information System Any organized combination of people, hardware, software, communications networks, and data resources that stores, retrieves, transforms, and disseminates information in an organization.

4. Information Technologies and Systems Essential Issues of Using IT for Organizations ’ Success: People Information Technology Information

5. Information Technologies and Systems Business Success Factors: Business Success Information Technology Information People

6. Information Technologies and Systems The Enterprise as A System Raw Material Manufacturing Process Products Control Feedback Control Environment/Other Systems System Boundary

7. Information Technologies and Systems The Enterprise as A System Value added processes Costs and values Impact factors Environment

8. Information Technologies and Systems Corporate/ business strategy Information strategy Cultural and contextual issues Processes Inputs (costs) Outputs (value) Corporate environment

9. Information Technologies and Systems IS Components Control of System Performance Processing Data into Information Input of Data Output of Data Storage of Data People Resources Software Resources Network Resources Hardware Resources Data Resources

10. Information Technologies and Systems Information System Activities Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance

11. Information Technologies and Systems Information Systems Development Data Management Information Management Knowledge Management Data extraction Data filtering Data warehousing Data mining Transaction Processing Decision support Information ValueLowHigh Integration High

12. Business Processes Porter Value Chain Primary Processes Support Processes Inter-Organizational Business Processes

13. Business Process Model Value Chains Supplier Power New Entrants Firm Infrastructure(3.1%) Human Resource Management(7.1%) Technology Development(4.2%) Procurement of Resources(27%) Inbound Logistics (5.2%) Productions and Services (40.3%) Outbound Logistics (6.6%) Marketing and Sales (4.3%) Customer Service (2.2%) Support Processes Primary Processes Threats of Substitutes Buyer Power

14. Business Process Support IS Support of Primary Business Processes Inbound Logistics Production/ Operation Outbound Logistics Marketing & Sales Cusomer Service ERP CRM SCM

15. Business Supply Chain Up-stream and Down-stream of Supply Chain Supply Chain Flows Material flows Financial flows Information flows Service flows

16. Inter-organizational Processes Inter-organizational Business Processes Supplier Corporation Customer Inter-organizational Processes Processes

17. Enterprise Best Practices Norms or Best Practices of Industry Large and Comprehensive Information Systems Adopt Industrial Best Practices Business Process Reengineering(BPR) is Usually Needed When ERP, for Example, Is Implemented

18. Business Processes Reengineering The Fundamental Rethinking and Radical Redesign of Business Processes to Achieve Dramatic Improvements in Critical, Contemporary Measures of Performance, Such as Cost, Quality, Services and Speed.

19. Business Process Reengineering Risk Business Process Changes Cross-Functional/ExternalScopeFunctional/Internal Low Transformational Incremental Process Improvement Automation Process Simplification Process Reengineering High Benefits Business Reengineering LowHigh Nature

20. Business Process Reengineering Principles Organize around outcomes,not around tasks Have those who use the output of a process actually perform the process Treat geographically dispersed units as if they were centralized Link parallel activities during the process,rather than at the end of the process Capture information once at the source

21. Business Process Reengineering Procedures Develop business vision and process objectives Identify processes to be engineered Understand and measure existing processes Identify IT levers Design and build a prototype of the process BPR Examples IBM Customer Credit Company HP Procurement Kodak Camera Production

22. Information Systems for Management Anthony Model Strategic Planning Tactics Management Operations Management Top Layer Middle Layer Low Layer

23. Information Systems for Management Major Roles of IS Support of strategies for competitive advantage Support of business decision making Support of business processes and operations

24. Information Systems for Management Types of Information Systems

25. Information Systems for Management Managerial Challenges Business strategies Business processes Structure and culture Inter- networked information systems Customer values Business value IT infrastructure

26. Information Systems for Management Managerial Challenges Success and failure with IT Developing IS solutions Challenges of ethics and IT Challenges of IT Careers The IS functions integration

27. Information Systems for Strategic Advantages Five Competitive Model Bargaining power of customers Bargaining power of suppliers Rivalry of competitors Threat of new entrants Threat of substitutes

28. Information Systems for Strategic Advantages 5 Competitive Forces Threats of Substitute Products and Services Buyer Power: Bargaining of Channels and End Users Supplier Power: Bargaining Power of Suppliers Threats of New Entrants Rivalry among Existing Companies

29. Information Systems for Strategic Advantages The Business Strategies Cost leadership Differentiation Innovation Growth Alliance Consolidation Barrier

30. The New Economy The Industrial Economy Is Based on: Mass Production Mass Transportation Division of Labour Financial Capital

31. The New Economy The New Economy Is Based on: Mass Customisation Data Communication and Computer Networks Aggregation of Labour Intellectual Capital

32. The New Economy Features of the New Economy Knowledge Microsoft ’ s market value versus book value Intellectual property and capital Business intelligence Digitisation >50% of Intel ’ s business is online Online businesses

33. The New Economy Virtualisation Virtual companies Virtual processes/Outsourcing/Offshoring Virtual communities Molecularization Market segmentation Personalization Object-oriented programming paradigm

34. The New Economy Integration/Internetworking CRM, ERP and SCM to link demand chain Interorganizational processes integration Disintermediation Direct marketing E-tailing/Purchasing Digital products

35. The New Economy Convergence Vertical/Horizontal integration Mobile phones/Pervasive computing and micropayments Innovation Make new products Re-engineer processes Online auctions

36. The New Economy Prosumption Allow customers to join production processes Build to order Online banking Immediacy Networked collaboration Synergy Online immediacy

37. The New Economy Globalisation Real-time collaboration on software development 24 hour shopping Pervasive presence Discordance Privacy and civil liberty issues Social exclusion Hegemony of Western brands and English language Security issues