1. Introduction Dr. Azuraliza Abu Bakar http://www.ftsm.ukm.my/jabatan/ts/aab/indeks.htm

2. Business in Information Age Organizational Pressures Organizational Responses

3. Business Pressures and Organizational Responses

4. Business in Information Age Organizational Pressures 1.Global competition for trade and labor 2.Need for real time operation 3.Changing workforce 4.Customer orientation 5.Information overload 6.Social responsibility 7.Government regulation and deregulation 8.Ethical issues

5. Business in Information Age Organizational Responses 1.Strategic systems 2.Customer focus and service 3.Continuous improvement efforts 4.Business process reengineering 5.Business alliances 6.E-commerce

6. Business in Information Age Organizational Pressures Emergence of global economy, trade is less constrained by traditional barriers - borders, language, currency or politics Goods and services are produced profitably Advance telecommunications networks (such as internet) helped facilitate the global economy Labor cost differ widely from country to another Global competition for trade and labor

7. Business in Information Age Organizational Pressures Companies in information age have no more “information float” I.e. time between when a business event occurs and when information captured the event reaches the necessary decision makers High-performance telecommunications technologies can reduce the time Transactions can occur by electronic businesses. Need for real time operation

8. Business in Information Age Organizational Pressures Changing workforce is rapidly occur esp. in developed countries. IT help the integration of various employees into the traditional workforce Changing workforce

9. Business in Information Age Organizational Pressures Customer sophistication and expectations increase as they are more knowledgeable about the availability and quality of products and services Demanding more detailed info, features and warranties Companies should be able to deliver information quickly to satisfy their customers or risk losing them. Advance use of internet or e-commerce are required to compete with others Customer orientation

10. Business in Information Age Organizational Pressures Internet and other telecommunications networks increase the amount of information available to organizations and individuals Existence of so much useful knowledge The need for technologies to help management accessing only important and relevant information for decision making Information overload

11. Business in Information Age Organizational Pressures Organizational social responsibility. Failure to accept social responsibility can result in employee dissatisfaction and turnover Effect the corporate reputation with the public and government. Social responsibility

12. Business in Information Age Organizational Pressures Government regulation and deregulation

13. Business in Information Age Organizational Pressures Organizations must deal with ethical issues of their employees, customers and suppliers Ethics in business refer to standards and values for judging whether particular conducts in the workplace is right/wrong Ethical issues is very important for the organization reputation The use of IT may increase many new ethical issues to be handled Surveillance of e-mails and customers privacies Ethical issues

14. Business in Information Age Organizational Responses 1.Strategic systems 2.Customer focus and service 3.Continuous improvement efforts 4.Business process reengineering 5.Business alliances 6.E-commerce

15. Business in Information Age Organizational Responses Organizations seek to implement systems that will significantly impact the organization’s operations, success or survival Strategic systems provide organizations with strategic advantages in meeting organizational objectives, enabling to increase market shares, better deal with suppliers or prevent competitors from entering their markets As in information age competitors adopt the similar technologies, the need of constant innovation. Strategic systems

16. Business in Information Age Organizational Responses The increased power of customers and stiff competition in many industries and market force organizations to adopt customer-focused approach IT plays major role in supporting the traditional activities of customer service, such as providing troubleshooting or helpdesk. Customer focus and service

17. Business in Information Age Organizational Responses IT can enhance TQM by improving data monitoring, collection, analysis and reporting increase the speed of inspection, raise the quality of testing and reduce the cost of performing various quality control activities Help avert quality problems before arise Support decision making process by having systems that improve information access and evaluations. Continuous improvement efforts

18. Business in Information Age Organizational Responses BPR introduces a major innovation in an organization’s structure and the way it conducts its business. In the process, technological, human and organizational dimensions of a firm may all be changed. IT plays major role in BPR by providing automation; allows business to be conducted in different locations; provides flexibility in manufacturing; permits quicker delivery to customers; and supports rapid and paperless transactions among suppliers, manufactures and retailers Reduce business process time and increase productivity and competitiveness. Business process reengineering

19. Business in Information Age Organizational Responses Alliances with other firms or competitors can be beneficial Several types of alliances: sharing resources, establishing permanent supplier-company relationships, creating joint research efforts More permanent type, links manufacturers, suppliers and finance corporation (keiretsu) IT supports the electronic data interchange Supply chain management, enterprise resource planning(ERP) Business alliances

20. Business in Information Age Organizational Responses Business in EC is the newest, perhaps most promising EC is multifaceted concept involcing the exchange of products, services, information, or money with the support of computers and networks. Applications of EC - e-transfer of funds between buyers and suppliers, to Internet based marketing, to intranet and extranet-based information networks. E-commerce

21. Why you need to know about IT? Interesting Facilitates work in organizations Offers career opportunities IT is used by all departments

22. What is an IS Information Systems –Collects, processes, stores, analyzes and disseminates information for a specific purpose Data –Raw facts or elementary descriptions of things, events, activities and transactions that are captured, recorded, stored and classified, but not organized to convey any specific meaning, e.g. students GPA, bank balances etc. Information –Collection of facts(data) organized in some manner, meaningful to the recipient. E.g. students names with GPA, customer names with bank balances Knowledge –Information that been organized and processes to convey understanding, experiences, accumulated learning, or expertise. –Information is processes to extract critical implications and to reflect past experience and expertise.

23. What is an Information System? A system that collects, processes, stores, analyzes, and disseminates information. Collect Inputs Process And Transform Produce Outputs Store Data Instructions Calculations Reports

24. Components of Information Systems (CBIS) Hardware Database Software People NetworkProcedures

25. Capabilities of Information Systems Transaction such as sales of goods, paycheck issued, bank deposit, etc. Transaction processing systems: IS that capture, record, store and update data E.g. Point Of Sales (POS) Computerized cash registers and bar code readers Fast and accurate transaction

26. Capabilities of Information Systems IS must provide both enormous storage for corporate data Fast access Large capacities, Fast access storage

27. Capabilities of Information Systems Networks enables organizational employees and computers to communicate instantly Allow data, voice, images, documents and videos to be transmitted Provide nearly instant access to information for decision makers; reduce information float Fast communications Machine-machine Human-human

28. Capabilities of Information Systems IS can be designed to reduce the enormous amount of information available (information load) E.g. executive information systems(EIS) provide structured information that is tailored tailored to each executive according to his critical success factors Software that prioritize information for managers to criteria that being preset Reduce Information overload

29. Capabilities of Information Systems IS span boundaries inside organizations or between organization along the entire supply chain Facilitates decision making across functional areas, business process reengineering and communications Along the supply chain it facilitates shorter cycle times for product delivery, reduce inventory and increase customer satisfaction Span boundaries

30. Capabilities of Information Systems DSS help decision makers in organization at all levels E.g. EIS support executive decision making It makes information available for all level of employees that they have authority and responsibility to make more and larger decisions Support for Decision making

31. Capabilities of Information Systems IS are viewed as a profit center and expected to give organization advantage over its competitors Competitive weapon

32. Key Technical Trends to Monitor Constantly improving cost-performance ratio Increasing storage and memory User friendly interfaces Client/server architecture Network computers Enterprisewide computers Intranets and extranets Data warehousing Data mining Object-oriented environment Electronic document management Multimedia Intelligent systems Portable computing Internet expansion Electronic commerce Integrated home computing

33. General IT trends Constantly improving cost-performance ratio Storage and memory Graphical and other user friendly interfaces Client/server architecture Network computers Enterprise computing Intranets and extranets Data warehousing Data mining O-O environment Electronic document management Multimedia and virtual reality Intelligent systems and agents Portable computing Electronic commerce(EC) Integrated home computing

34. Discussion Questions Why is the study of information systems important to you, regardless your major “One person’s data is another person’s information” Explain this statement with an example What does it mean we live in an Information Age What are the capabilities of information systems that businesses must have to compete (and survive) in the Information Age Discuss the general technological trends for IT