1. HUANG Lihua, Fudan University Session 5: Summary of IS Concept and Application Framework PART I Introduction to the Concept of Information Systems in Business

2. HUANG Lihua, Fudan University Feb., - July., 2006 Organization Level in Business

3. HUANG Lihua, Fudan University Feb., - July., 2006 Discussion Value Chain For Mr. Wang’s Pottery Company

4. HUANG Lihua, Fudan University Feb., - July., 2006 Value Chain in Business Customer service Marketing & Sales Outbound Logistics Customer Inbound Logistics Operations Procurement of Resource Technology Development Human Resource Management Administrative Coordination and Support Service Support Activities Primary Activities

5. HUANG Lihua, Fudan University Feb., - July., 2006 Discussion IS Application For Mr. Wang’s Pottery Company IS

6. HUANG Lihua, Fudan University Feb., - July., 2006 How Technology Support Value Activities----Some Examples Value ActivityUse of Technology Inbound logisticsJust-in-Time Inventory OperationsProcess Control Systems Flexible Manufacturing Outbound logisticsOn-lines to the order-entry and processing systems Marketing and SalesLaptops for direct Sales After-sale serviceElectronic dispatch of technical support, CRM

7. HUANG Lihua, Fudan University Feb., - July., 2006 How Technology Support Value Activities----some examples Support ActivityUse of Technology Administrative Coordination and Support Service Electronic mail, workflow, BBS Human resourceOnline access to personnel files with a skill database Technology DevelopmentComputer-aided design (CAD) and manufacturing Procurement of ResourceOnline access to suppliers’ Inventory files, online auction

8. HUANG Lihua, Fudan University Feb., - July., 2006 Supply Chain Management American Hospital Supply: (Automated System for Analytical Purchasing, or ASAP,) storeroom To the ward Most Hospitals keep a large inventory of suppliers that are replenished regularly by suppliers, but require a large amount of space and staff. 1. Prevailing delivery practice Baxter Hospital(customer)

9. HUANG Lihua, Fudan University Feb., - July., 2006 2. Just-in-time supply method storeroom To the ward If a hospital implements a just-in-time plan in coordination with a distributer, it can give up some of its inventory space in return for more frequent delivers. To the ward 3.Stockless supply method A stockless supply plan shifts all inventory responsibilities to the distributor. Deliveries are made daily, sometimes directly to departments that need supplies.

10. HUANG Lihua, Fudan University Feb., - July., 2006 Firm Value Chain

11. HUANG Lihua, Fudan University Feb., - July., 2006 Business-Level Strategy

12. HUANG Lihua, Fudan University Feb., - July., 2006 Business Level Strategy and the Value Chain Model Value Web: –Customer-driven network of independent firms –Uses information technology to coordinate value chains for collectively producing a product or service

13. HUANG Lihua, Fudan University Feb., - July., 2006 Virtual Company based value web

14. HUANG Lihua, Fudan University Feb., - July., 2006 Discussion for Mr. Wang Company What were the important management steps which allow the company to achieve this application?

15. HUANG Lihua, Fudan University Feb., - July., 2006 Important Management Issues in IS Application Information Systems Planning –Business Driven: Strategy, Business model –Top Management Commitment Information Systems Development and Implementation Process –Build information systems architecture and resources IT-enabled organizational change –Business process improvement & reengineering –Organizational change management IS investment and payback, IT Department org. and management, IS maintenance, IS security, ….. ……

16. HUANG Lihua, Fudan University Feb., - July., 2006 Wrap Up Concepts –Business Value Chain –Potential IS application in value chain –Management and business issues related to IS development and application

17. HUANG Lihua, Fudan University Feb., - July., 2006 Summary for Concept of Information Systems (1) Understanding Information Systems from systems perspective Understanding Information Systems from business perspective Understanding Information Systems from organization level and business function perspective

18. HUANG Lihua, Fudan University Feb., - July., 2006 Summary for Concept of Information Systems (2) Types of Information Systems in business Org. Level Operational Level: TPS Management Level: MIS, DSS Strategic Level: ESS, EIS Business Appls ERP SCM CRM EB/EC IS role Non-strategic Information System Strategic Information System Content focus Data processing system Information processing system Knowledge Mgt. system

19. HUANG Lihua, Fudan University Feb., - July., 2006 Assignment for Session 5 Individual Assignment for Case study: Dell Computer and Litton. (P66) –Questions 1-3 on P66. –Write and submit onto VCAMPUS Individual Preparation for session 6 –Reading Materials Textbook: chapter 3 –P99. Review Quiz Write down in your book, not submit Group Assignment: –Please design the hardware architecture for Mr. Wang’s Pottery Company, including computer (server and client device), peripherals, storage device, so on –Prepare for the CASE QUESTIONS on P.71.