5. Lecture: the system approach to information of business

004 5 Лекция English Системный подход к информатизации бизнеса.doc

004 5 3 1 Systems Approach to Management Defined

004 5 3 2 Systems Approach to Management

004 5 3 3 A Systems Approach to Business Part 3

5.1. Process of transition

The process of transition from an industrial society to information society has received the name informatisation with the help of saturation of political, economic and social activity by modern information technologies.

The informatisation in a control system of the enterprise assumes:

1. Creation of legal, economic, technological, social conditions, that necessary for the decision of administrative problems the information was accessible in the shortest terms, in any point, any potential user;

2. Creation hardware and software, telecommunication systems ensuring formation of information resources and access to them, including a storage, processing, transformation of the information and knowledge;

3.Maintenance of prime development of structures of manufacture both reproduction of the information and knowledge;

4. Development both realization of organizational-methodological bases and programs of consecutive, purposeful and effective introduction of information technologies in a control system of organization.

5.2. Concept of information system

In computer science concept "system" is widely distributed and has set of semantic meanings.

More often concept "system" is used with reference to a set of means and computer programs:

1. The hardware of the computer can named as the system ,

2. The set of the programs for the decision of concrete applied tasks can named as system ,

Under the system it is understood the object, which is simultaneously considered both as a single unit, and as set of diverse elements incorporated in interests of achievement of object in views.

3. There are systems of procedures for conducting the documentation and management of accounts.

004 5 3 4 System

The systems differ both on structure, and on overall objectives.

The addition to concept "system" of a word "information" reflects the purpose of its creation and functioning. The information systems provide processes under the collection, storage, processing, search, distribution of the information, necessary during acceptance of the decisions of tasks in any area. The information systems help to analyze problems, to carry out strategic planning and to create new products.

1. System1.1. Company1.2. Computer computing system

1.3. Telecommunication system1.4. Information system

2. Elements of system2.1. Structure, personnel, finance, room , equipment, materials2.2. Computers, architecture, configuration, electronic and electromechanical elements, software, communication lines, ports2.3. Computers, modems, cables, network software, personnel2.4. Computers, computer networks, information and software, personnel

In the table 5.1 the examples of systems consisting of different elements and directed on realization of the different purposes are given

Table 5.1

3. System designated purpose3.1. Manufacture of the goods and services3.2. Input, processing, storage and conclusion of the data3.3. Transfer of the information3.4. Tax, processing, analysis, transfer, storage, safety of the information

1. System1.1. Company1.2. Computer computing system

1.3. Telecommunication system1.4. Information system

Table 5.1

5.3. The computers are technical base and tool for information systems

It is necessary to understand a difference between computers and information systems.

The computers equipped with specialized software, are technical base and tool for information systems.

The information system is no possible, without definition of its mission, tasks, architecture, infrastructure, configuration, means of telecommunications and personnel cooperating with computers. In this connection we shall repeat resulted above definition.

Information system is the interconnected set of the concepts, methods, technologies, technical and software used for the collection, processing, storage and distribution of the information to the consumer in interests of achievement of an object in view. The modern understanding of information system assumes use of the computer as the basic mean of processing of the information.

The information system is defined by the following properties:

1. Anyone information system can be subjected the analysis, can be constructed and be controlled on the basis of common principles of construction of complex systems;

2. At construction of information system it is necessary to use the system approach;

3. The information system is dynamical and developing system;

4. The information system it is necessary to undestand as system of processing of the information consisting from computer and telecommunication devices and realized on the basis of modern technologies;

5. Target production of the information system is the information, on the basis of which the decisions are accepted or the automatic performance of routine operations is made;

6. The participation of the man depends on complexity of system, types and data sets, degree of formalization of soluble tasks.

In large organizations, alongside with the personal computer, structure of technical base of information system can include the universal computers (Mainframe). Besides the technical embodiment of information system in itself nothing will mean, if the role of the man (end user) is not taken into account, for which the information is intended, and without which its reception and representation is impossible.

History of development of information systems and the purposes of their use at different stages represent in the table 5.2.

The first information systems have appeared in 1950 years. These years they were intended for processing the accounts and account of the salary, and were realized by electromechanical accounting machines. The information systems resulted in some reduction of expenses and time for preparation of the paper documents.

1960 years are marked by change of the relation to the information systems . The information received with their help, began to be applied to the periodic reporting on many parameters. For this purpose, the organizations needed the computer equipment of wide purpose, which is capable to serve set of functions, and not just to process the accounts and to consider the salary, as was earlier.

004 5 3 5 Information systems

In 1970 and 1980 years. information systems begin widely to be used as a means of the administrative control supporting and accelerating process of acceptance of the decisions.

The table 5.2. Change of the approach for use of information systems

1. Period of time

1.1. 1950-1960.

1.2. 1960-1970.

1.3. 1970-1980.

1.4. 1980. - present time

2. Concept of use of the information2.1. Paper flow of the settlement documents2.2. Basic help in preparation of the reports2.3. Administrative control of manufacture and realization2.4. Management of strategy of development of the enterprise

3. Kind of information systems3.1. Information systems of processing of the settlement documents by electromechanical accounting machines3.2. Administrative IS for the industrial information3.3. System of support of acceptance of the decisions3.4. System for a maximum control link

1. Period of time1.1. 1950-1960.

1.2. 1960-1970.

1.3. 1970-1980.

1.4. 1980. - present time

4. Purpose of use4.1. Increase of speed of processing of the documents. Simplification of procedure of processing of the accounts and account of the salary4.2. Acceleration of process of preparation of the reporting4.3. Development of the most rational decision4.4. Support of management of opportunities of business

004 5 3 7 Computer and Information Systems Managers

1. Period of time1.1. 1950-1960.

1.2. 1960-1970.

1.3. 1970-1980.

1.4. 1980. - present time

004 5 3 8 What is Information Systems Management ISM ?

004 5 3 9 Program Description | Faculty | Course Descriptions

To middle 1990 yeas. The concept of the information systems use again changes. The information systems become a strategic source of the information and are applied at all levels of organization of any structure. The information systems of this period, giving the necessary information in time , help the organizations to achieve success in the activity, to create the new goods and services, to find the new markets of selling, to provide to themselves the worthy partners, to organize output for the low price and much another.

5.4. Information strategy as the key factor of success

In the known book Csaver Gilbert "Management" , it is given an exact estimation of a role of information technologies in modern business. Many companies offer the market new kinds of production, but this offer is not able to ensure steady competitive advantage.

004 5 3 10 What is Management Information Systems?

004 5 3 11 Ксавьер Гилберт

They have only the production. Other components of competitive success are absent.

The systems of selling do not correspond to the sold goods or necessary level of services. The market is unsufficiently segmented, and the marketing appears not directed. The systems of automation of manufacture were created for the previous generation of production, and the conditions of a competition and selling have changed.

When the competition will force the company to decrease of the charges or to increase of the profit, these absent elements maybe, at last, will appear, and then the functional services will begin to work in coordination.

The changes go step by step: at first accounts department, then engineering maintenance, in the end - planning and marketing.

04 5 3 12 системы информационного обеспечения

Really, effective innovation is not reduced only to new production. The set of competitive qualities is necessary:

1. Design of a product, 2. Organization of manufacture, 3. Direction of marketing, 4. Trade channels and 5. Granting services.

004 5 3 13 8 Qualities of a Successful Competitive

004 5 3 14 qualities of good information

In result the new quality is more attractive to the consumers, the more attractive ratio between perceived value and real price will be showed . To receive growing competitive advantage, the changes should be carried out quickly enough.

The strategy directed on the increase to value of the made production and the decrease price, usually exclude each other.

The speed of changes allows to achieve optimization of the main making formula of a competition, there is the growth of perceived value without increase of the price or the reduction of the price without decrease of value.

The speed is important for both making formulas of a competition - for the profit and price. Than faster reaction to the requirements of the market, the above profit. Thus more flexible and cheaper organization of process is necessary.

The new winners introduce the innovative approaches very operatively. The new winners constantly watch the market and quickly react to the new information. The development and introduction of new production is conducted by outstripping rates. Information technologies and organization of management, manufactures and selling mutually supplement each other and are adjusted, so that with the greatest speed to give the customers an expected product or service with required quality.

Examples of how this approach works, it is enough. It is widely known study by the well-known agency McKinsey, which showed that when the product hits the market six months behind schedule, the company loses 36% profit, which possible for the period of the life of this product.

If, on the other hand, the product hit the market on time, but the cost of the development and implementation were 50% higher inherent in the estimates, the total profit decreased by only 3.5%.The companies Toyota, Nissan and Honda spend for creation of new model on the average 24 months.

The companies Ford, Chrysler and General Motors, creation of new model takes 36 to 48 months. At the same time, Japanese companies spend to develop the model from 1 to 1.5 billion dollars, and the U.S. - from 3.2 to 4 billion dollars.

Most companies, that take reengineer of the core business processes with the latest information technology, found, that new technologies do not provide the promised benefits, if there is no new, agreed with the planning and production strategies.

The opportunities of the information technologies frequently are exaggerated, but the information technologies are not guilty. Technology be unable to rescue traditional strategy of adaptation to changes, supposing to a long turn of improvements.

The successful strategy conduct to fast changes. The fast strategy do information technologies effective, and the technologies, in turn, do real fast following to these changes.

If we proceed from the capabilities of modern information technology and blindly seek, wherever in the company of their use, we will almost certainly get a worthless corporate strategy.

The information maintenance only helps to realize opportunities created by the competition formula .

The technologies are widely accessible, but the creative formulas of a competition, focused on speed of reaction and updating of manufacture, are rare enough.

The new weapon of a competition is updating and speed of reaction on occurring changes. To work quickly, the initiative and responsibile chief is necessary, the working groups including the experts of different trades, having common information base and they are necessary able to work with it.

The information control systems of manufacture are very useful. For the information control systems a competition is main - not information technology, and formula of a competition, it is the key factors of success.

If among accepting the decisions there will be no man capable to set the really important questions, and if the traditional criteria will be used, at acceptance of these decisions there can be problems.

5.5. External and internal information environment of the enterprise

The development of informatization of business showed that IT and business are mutually influence each other.

On the one hand, the information technologies and information systems, constructed on their basis, should be completely integrated in activity of the enterprise. On the other hand, the business should constantly feel support from the IT party and not only open for itself new opportunities, but also develop them to take the maximal benefit from new technologies. Thus, IT are gradually displaced in the centre paradigm of operation of business.

The interaction between technology and business is a difficult and complex problem. It is influenced by many factors, including business structure, organizational and functional structure of the enterprise, business rules, policies, corporate culture, knowledge and experience of managers, internal processes, external environment.

Managers should always take these factors into consideration in order to successfully implement and use new IT or manage existing systems.

Computing and telecommunications facilities have reached a high level of development, and the amount of processed information have become so large, that the information has become a commodity and the most important strategic resource.

5.6. The organizations create IS to increase efficiency and competitiveness of the business

Organizations create IS, to improve the efficiency and competitiveness of their business. This is important, but not the only reason for the creation of expensive systems. There are many other reasons, other than purely economic ones, which lead manager of the company, corporation, holding to the need to invest in computerization of business.

The division of the IT systems, on external and internal subsystems is necessary for effective indemnification of "pressure" of the external and internal factors. To survive in modern conditions, the company should constantly adapt to a varied environment.

The firm can not , by definition, remain stable - The firm should have time to vary, that:

1. To satisfy to the constantly varied requirements of the consumers,

2. Do not yield to rivals in a competitive environment,

3. To improve internal processes, to expand a range of the goods and services,

4To set to staff realistic goals, providing the sufficient creative freedom in the framework of tactical problems, for the implementation ,

5. To develop, first of all those business - processes, which are focused on the performance of expectations of the client.

It is not enough simply to formulate and communicate guidelines for multi-chain management hierarchy of the company.

The company and its information services should be organized so, that the control system helped to trace changes in the external world and to form respective alterations in strategy and policy of the company. Thus, one of the main IS tasks of the enterprise is the maintenance of information interaction between an external environment and internal environment .

5.7. Sources of formation of information resources of the enterprise

In the company there is an external and internal information depending on a source of its occurrence..

Any company, that receives the resources including information, processes them into products of their activities. At the same time the company generates a specific internal environment, which is formed by a set of structural units, personnel, technical equipment and technological processes, economic and social relations.

5.8. Information of internal environment

The information of the internal environment reflects a financial and economic condition of the enterprise and results of its activity. The processing of this information is carried out by means of the standard formalized procedures.The internal information, as a rule, is exact and adequately reflects a condition of the enterprise.

004 5 3 15 four essential qualities of information systems

004 5 3 16 Maximizing information systems to gain a competitive advantage

Examples of the internal information are: the plans, orders, orders, reports, industrial data, movement of the finance and other resources, preparation of the personnel, sphere of application of products of activity, methods and trade channels, engineering of sales, orders, delivery.

The sources of inside information are: directors and the company's administration, planning and finance departments, accounting, IT-departments and computer centers, departments, chief engineer and chief mechanic, production units, legal, operational and maintenance services, departments, logistics, purchasing and sales and so on.

5.9. External environment

External environment is economic, political and social subjects working outside the enterprise, communication and relation with them. External environment is, accordingly, economic, political, social, technical, technological, scientific and other relations with the partners, consumers, competitors, state bodies and public organizations.

Examples of the external information are :

1. Market and its instability, 2. Requirement and expectation of the consumers, 3. "Intrigues" of the competitors, 4. Tendency in business environment and condition of the global markets, 5. Supply and demand, 6. Change in the legislation.

5.10. Sources of the external information

Sources of external information and its form of delivery is extremely diverse. Let's specify most important of sources of the external information.

General information about the state of the economy: information and analytical reports, special publications, newspapers, Internet-site. For example, the server "RBC" (www.rbc.ru) provides the following information:

1.Operativnye economic news;2.Operativnuyu information from SELT / FOREX;3. Exchange indices (Dow Jones, AK & M, NIKKEY);4.Data on currency, stock, promissory notes, credit markets;5.Analitic information on the industry branches and banking resources.

5.11. Specialized economic information

On information server CenterBank (www.crb.ru) it is possible to find all freely distributed information on the financial market - interbank credit market, rate of attraction rouble and currency депозитов, market of the bonds of Bank of Russia, market of state valuable papers, exchange for any past date, changes of currencies, cross-rates and etc.There is the official information from the state bodies and the management bodies - laws, decrees, decisions, normative documents, message of customs and tax bodies.

There is the information for the prices for the goods: magazines and bulletins, catalogues, sites in Internet. There is, in the Russian part of a world wide Web, the basic data on computer, audio -, video engineering, digital devices, book and musical novelties.

5.12. Thematic information

The basic source is Russian and foreign information search Internet-systems: Google, Yahoo , AltaVista, Rambler, Yandex and many others. The systems carry out search of the documents on key words in view of morphology of languages. The search is carried out on thematic серверам and declared sections.

Set of the external and internal information serving systems and technologies, the IT-experts and personnel of IT-divisions make a information-technological resource (Information Technology Resource - ITR) modern enterprise.

5.13. Various levels of management

In the modern companies there are various levels of management, the concrete kinds of information support are necessary for each of which.

In this connection use of information technologies concerns to most inconsistent problems of inside company .

The management of the enterprises, even understanding, that such problems is, frequently refuses to solve these problems, as does not feel competent enough. The decisions, at the best, are assigned to the chiefs of information services or specialized external organizations, which are not always interested in the fast decisions of the information problems of the customer.

5.14. The information resources require the qualified management

Let's note, that till now is not present standard methodology, both metrics for quantitative and qualitative estimations of efficiency of information resources, and also forecasting of needs in them. And nevertheless at a level of the enterprise it is possible and it is necessary to study information needs, to build an information contour, to form an information field, to measure (to develop the appropriate metrics), to plan and to operate information resources.

It assumes:

1. Estimation of information needs at each administrative level and within the framework of the each management function;

2. Decision of a problem of incompatibility of types of the data;

3. Creation of a control data system , bases and storehouses of the data;

4. Organization of search, processing, transformation, analysis of the data;

5. Access control and security;

6. Delivery of the information to the end user.

5.15. Interlacing and interacting flows

The data, information, the documents, circulating inside the enterprises and reflecting essence of activity of the enterprise, form interlacing and interacting flows.

It is possible to allocate the basic kinds:

1. Financial flows (Cash Flow), 2. Administrative flows (Control Flow), 3. Flows of works (Work Flow), 4. Flows of the documents (Document Flow), basing on flows of the data (Data Flow).

The most clearly defined, formalized and measurable cash flows, since for them there is a developed legal framework, business rules, regulatory documents, internal and external control.

At the same time, the financial flows form the most fragile part of the mechanism for the implementation of the company - the failure of this mechanism would immediately lead to the most deplorable consequences. As a result, cash flow management, protection and information support should be given utmost attention.

If the enterprise has the well planned organizational structure, then levels of management are divided , the functions of divisions are determined and are precisely outlined, that it enables effectively to organize administrative information flows and to automate document circulation.

Both financial, and the organizational flows have many common features at the various companies, and consequently at informatisation, frequently, it is enough to take advantage of means, accessible in the market.

It is more difficult to plan all and to generate flows of works, as these flows are realized in most complex for automation of a sphere of activity of the company - process-procedural area. Precisely as the flows of the data accompanying flows of works, consist of the various types data, demanding the constant agreement, coordination and converting.

Nevertheless, the automated control systems of manufacture (ASUP) and similar control systems of technological processes (ASUTP) already quarter of century successfully work at many industrial enterprises.

5.16. Change of information filling of flows

During activity of the enterprise there is a constant redistribution and change of information filling of flows. These changes cause of management.

The control system of the enterprise activity (Managerial Enterprise System), realized on the basis of information system, allows to trace changes,to react adequately on them ,to stabilize a situation, to keep qualitative definiteness of processes, to improve internal environment, to support dynamic balance with external environment with the purposes of achievement of those or other advantages.

The managing part of organization affect on controlled object or process . For that the managing system the management could really carry out, the managing system needs to compare an actual condition of controlled object to a ultimate goal of the managing influence. The interaction of a the management object occurs to controlled object as circulation of the information on some closed contour named as a local information contour.

The local contours, formed by the sum of managing signals and the information responses on the all process area, develop in the complex closed configuration of the managing flows and the data flows inside the enterprise.

The upper limit of this configuration, which separates the internal environment from the outside, forms the contour information of the enterprise. The total volume of business information form external and internal fields. Proper information field combines the information emerging within the enterprise.

To such information it is necessary to carry:

1. Orders and instructions of the bosses and managers of all parts (in paper and electronic kinds);

2. Current and perspective plans;

3. Database about on range of products, suppliers, stock status, finished products;

4. Primary documents of the administrative, accounting, trade and operative account;

5. Data of book keeping and other obligatory reporting for current and last periods;

6. Data of internal document circulation (paper and electronic);Results of the own analysis of financial-economic activity and results of external audit;

7.Other data (for example, the results of the questioning employees, information on professional development ).

It is important to note, that the quality of an own information field of the enterprise basically is determined by enterprise (first of all is determined its management.

For example, the management information systems orient on competition, in fact, not on information technology, and the the competition formula (Competition Formula) is the key success factors and their corresponding "information bundles" (narrow, highly directional flow of information from the hard-addressed recipients, in which is collected, processed, and accumulated information, is important for a key to success in a particular direction).

Understanding all it is not necessary to understand the information technologies - enough understanding of a nature of competitive advantage, to which the company aspires. And, the managers of manufacture are obliged to understand it. If in this understanding there are failures, any electronic systems of data processing will not help. there is no strategic thinking of managers in use of information technologies, and not so technologies.

The introduction of information technology for optimal support of a well-thought-out strategy is a challenge. Additional complexity of the choice of design or application packages provide rapid changes in information technology and the dogmatism of the "experts", which is directly proportional to the uncertainty of the future of information technology. However, for example, IS management competition are three main sources of difficulties are different.

However, for example, for the IS competition management a three main sources of difficulties others.

First, it is quite difficult to compete with the formula, linking the information beams. Like a fish does not know anything about water, and the user information often does not realize is how much it costs the company the information it uses. First of all, you need a detailed formula of competition and thinking through support of its key success factors. To understand how and through which the company participates in the competition and how this can help information technology, we need a high level of understanding of the common management tasks.

Secondly, the information control strategy systems are capital investments, which can not be justified from the point of view of traditional criteria. It is necessary to invest in process of change, differently - to learn the employees of the company to compete differently, than the employees have got used.

For this purpose are necessary deep understanding and vision of prospects, so, the decisions should be accepted and be supported by a management of the company. Such investment of money represents the present strategic decision, and not because the speech goes about the large charges, that is why, that they express essence of the formula of a competition. The charges on purchase of the information equipment represent in this case only small part of general expenses.

Thirdly, at introduction of information control systems of a source of difficulties frequently is the conflict between two approaches to information technologies.

The first approach - a "blind" faith in the power of modern technology and computing devices,

Choosing the necessary system, it is not necessary too to rely on knowledge "of bits and bytes". Here it is not necessary very much to expect for qualification of a corporate service of processing of the electronic information, as the workers of a corporate service of processing of the electronic information are burdened by knowledge of former technologies and habits to the sample decisions.

Second - narrowly pragmatic, when to technologies the role "servent" is allocated and they are not used at all for realization of the formula of a competition.

Here are necessary a fresh sight and readiness to subject doubt that it is accepted to accept as an axiom, and these qualities seldom meet at the experts in traditional technologies.

A clear organizational structure of management, rational distribution of responsibilities among the staff, reliable and convenient account on the basis of modern automation systems, intelligent workflow scheme contribute to the improvement and development of the information field, which in turn leads to improved management decisions.

On the contrary , the neglect to problems of the collection, processing and analysis of the internal information bring with heavy problems at management of business - processes at the enterprise.

5.17. Organization of the information service

The organization of the information service essentially depends on the size of the enterprise. For the small enterprises it is possible to be limited to one or several experts specially allocated for work with the information. At the large and average enterprises with a high degree of differentiation of business or with large volume of document circulation it is need to create an own information department or division for the collection, storage and processing of the information, differentiation and control of the rights of access to the information, coordination of information flows and beams .

Blurring of authority and responsibility in the information work leads to the impossibility of the real control of the business information field. Thus it is necessary to understand distinction between computer and information divisions.

The illusion is rather dangerous that the experts in the software and support of telecommunication networks are the good information workers. For the collection and analysis of the information it is necessary absolutely other education , preparation, , than for programming and adjustment of engineering.

The separate information service is necessary, first of all, for precise definition of a circle of persons responsible for the collection and processing of the information, for maintenance of its completeness and reliability.

5.18. Control questions and tasks

What such information of management? What purposes and tasks of information?External and internal information environment of the enterprise.Give definition to concept " information resources " of the modern enterprise.Whether are the information resources an active of the company, and if are, how their share in cumulative cost of a final product or service is estimated?

Who is the consumer of information resources, at what levels of management and for what purposes the information resources in the company are used?Result examples of sources in external and internal environments of the company for formation of information resources.What include concepts managing and controlled of systems?

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