Contextualisation

- IS
Z Hussain

Business Activity in the Information

Age
The three pillars of a business organisation:

People
Organisation

IS

Organisation

Technology

The success of a business is determined by how

well it manages and controls these three
fundamental resources.

Management Information Systems

CHAPTER 15: MANAGING GLOBAL SYSTEMS

Managing Global Systems

LOCAL,
REGIONAL, AND
GLOBAL SYSTEMS
Agency and other coordination costs
increase as the firm moves from local
option systems toward regional and
global systems. However, transaction
costs of participating in global
markets probably decrease as firms
develop global systems. A sensible
strategy is to reduce agency costs by
developing only a few core global
systems that are vital for global
operations, leaving other systems in
the hands of regional and local units.

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What are Information

Systems?

Data and information capture

Data and information storage

Data and information processing

Data and information retrieval
Information dissemination
Benefits of IS or ICT
Increased capacity and speed of data and global
information processing
Dissemination and global communication of data
and information
Effective access to local and remote data storage
facilities
Effective and efficient global information control

Desirable Characteristics of Information?

1 relevant to the users needs
2 accurate and factual
3 complete and unabridged
4 timely and delivered to the right person
5 reliable for decision making
6 useful to the end-users needs
7 consistent and comparable over time
8 understandable to the user
9 portable and easily transmittable

Introduction to General Systems Theory

The world is made up of systems!

The study of systems is known as systems science or
general systems theory
Systems concepts include:

boundary (systems environment)

inputs, outputs and process

state, hierarchy, goal directness and information

Figure 2.2 Systems feedback and control model

Management Information Systems

INFORMATION IN BUSINESS SYSTEMS TODAY

Perspectives on Information Systems

Data and Information

Figure 1.3

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a
specific store or sales territory.

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Management Information Systems

The Role of Information Systems in Business Today
The Interdependence Between Organizations and Information Technology

Figure 1.2

In contemporary systems there is a growing interdependence between a firms information systems and its
business capabilities. Changes in strategy, rules, and business processes increasingly require changes in
hardware, software, databases, and telecommunications. Often, what the organization would like to do depends
on what its systems will permit it to do.

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Management Information Systems

MANAGING GLOBAL SYSTEMS

The Growth of International Information Systems

INTERNATIONAL
INFORMATION
SYSTEMS
ARCHITECTURE
The major dimensions for developing an
international information systems
architecture are the global environment,
the corporate global strategies, the
structure of the organization, the
management and business processes, and
the technology platform.
FIGURE 15-2

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Management Information Systems

Enterprise Systems
HOW
ENTERPRISE
SYSTEMS WORK

Enterprise systems feature a set

of integrated software modules
and a central database that
enables data to be shared by
many different business
processes and functional areas
throughout the enterprise.

FIGURE 9-1

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Spectrum of Systems Characteristics

Figure 2.4 Information systems decision levels within a business

organization

Integrated Business Systems

Integration of purchases, sales and accounting

Management Information Systems

CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES

IT Infrastructure
CONNECTION BETWEEN THE FIRM, IT INFRASTRUCTURE, AND BUSINESS CAPABILITIES

FIGURE 5-1

The services a firm is capable of providing to its customers, suppliers, and employees are a direct function of its IT
infrastructure. Ideally, this infrastructure should support the firms business and information systems strategy. New information
technologies have a powerful impact on business and IT strategies, as well as the services that can be provided to customers.

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Management Information Systems

CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES

IT Infrastructure
THE IT
INFRASTRUCTU
RE ECOSYSTEM
There are seven major
components that must be
coordinated to provide the firm
with a coherent IT
infrastructure. Listed here are
major technologies and
suppliers for each component.

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Virtual product

The Dimensions of Electronic Commerce

Electronic
commerce areas

Digital
Product

Virtual process
Digital process
Physical process

Physical
Product
Traditional
commerce

The core of
electronic commerce

Physical
agent

Digital
agent

Virtual delivery agent

Electronic Commerce Applications

Stocks Jobs On-line banking
Procurement and purchasing Malls On-line marketing and advertising
Home shopping Auctions Travel On-line publishing

People:
Buyers, sellers,
intermediaries,
services, IS people,
and management

Public
policy,
legal, and
privacy
issues

Technical standards
for documents,
security, and
network protocols
payment

Organizations:
Partners,
competitors,
associations,
government services

Infrastructure
(1)
Common business
services infrastructure
(security smart
cards/authentication
electronic payment,
directories/catalogs)

(2)
Messaging and
information distribution
infrastructure
(EDI, e-mail, Hyper Text
Transfer Protocol)

(3)
(4)
Multimedia content
Network infrastructure
and network
(Telecom, cable TV
publishing infrastructure
wireless, Internet)
(HTML, JAVA, World
(VAN, WAN, LAN,
Wide Web, VRML)
Intranet, Extranet)

Management

A Framework for Electronic Commerce

(5)
Interfacing
infrastructure
(The databases,
customers, and
applications)

Figure 6.1 Spectrum of information systems methodologies

The SSADM life cycle

JAD meeting (or workshop) environment

Management Information Systems

AN HP LAPTOPS PATH TO MARKET

HP and other electronics companies assign distribution and

production of their products to a number of different
countries.
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