mis-information system in the enterprise

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    Information Systemin the Enterprise

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    MANAGING THEDIGITAL FIRM BUSINESS CHALLENGES

    Rapidly hanging customer tastes

    Fast-paced time-to-market

    MANAGEMENTDevelop Enterprise widebusiness processes.Monitor market changes & cost

    TECHNOLOGYInternetIntranetBarcode

    ORGANIZATIONDesignersFactoriesSuppliersWarehousesRetail Stores

    Business processes

    INFORMATIONSYSTEM

    Coordinate supply chain

    SOLUTIONSReduce

    time-to-marketIncrease profit

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    Information System

    CUSTOMERS

    Information SystemInformation System

    INPUTPROCESSING

    CLASSIFYARRANGE

    CALCULATE

    OUTPUT

    feedback

    ORGANIZATIONORGANIZATION

    ENVIRONM

    ENT

    SUPPLIERS

    COMPETITORSSTOCK

    HOLDERSREGULATORY

    AGENCIES

    ComputerBased

    InformationSystem(CBIS)

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    REPRESENTING IT INSTITUTION

    Management Of ChangeStrategic Alignment MaturityIT Business Communication

    Managing Emerging Technologies

    DEVELOPING INFORMATION SYSTEMSIT StrategyOrganizing IT

    Information System in The EnterpriseHuman Resources Consideration

    MANAGING IT PERFORMANCEIT Process

    Planning Related IT ProcessMeasuring Reporting & Controlling

    Assessing The Value of IT

    AlignmentMaturitybetween

    Business &IT Strategy

    decisions,

    about howto obtain& deploy

    ITresources

    &

    competencies

    Optimalresult ofinformati

    onsystem

    IT GOVERNANCE

    Globalization Impact

    State,R

    ole,&ITImp

    ortance

    develo

    pinga

    bilitya

    nd

    organi z

    ation

    succ

    es

    sful

    CO

    MPE

    TITIVE

    AD

    VA

    NTAG

    E

    Role&CIOsR

    esp

    on

    sibilities

    Information

    Systemsint h

    eEnterprise

    Informa

    tionSuperior i

    ty

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    Info

    rma

    tion

    Super

    io

    rit

    y

    optimal result

    ofinforma

    tionsystem

    decisions,about howto obtain& deploy

    IT

    resources&

    Competitive

    Advantage

    developing

    ability &

    organization

    StrategicAlignmentMaturity

    IT Strategy

    Organizin

    g IT

    HumanResource

    sConsidera

    tion

    IT Process

    State, Role & IT importance

    Role & CIOs Responsibilities

    IT Governance

    AlignmentMaturity

    Business & IT

    RepresentingIT Institution

    Managing ITPerformance

    DevelopingInformation System

    Managing

    Information

    System

    Managing

    Emerging

    Technology

    Management ofChange

    ITBusiness

    Communication

    Measurin

    g,Reporting&

    Controlling

    AssessingThe Value

    of IT

    ?

    Globalizations Impact

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    2002 SouthwesternCollege Publishing. All

    Hi tech firms are confronted with dynamic and unpredictable

    changes in markets, products, and technologies compete on their technological strength

    ability to exploit technology as a core competence

    to invest in future technology

    to incorporate better technology in its products or services

    to do in a shorter time, lower costs, amenity, higher quality,

    leading-edge products, services, and better performance,

    etc

    Cost Leadership Competing with Lower CostsProduct Differentiation Competing with ValueProduct Focus Competing by Restricting Ones Market

    3 Primary Strategiesto achieve Competitive Advantage (Michael Porter) :

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    Challenges

    Alignment Maturity between Business & IT strategyThe Role of CIO

    Decisions, to obtain & deploy IT Resources &Competencies

    IT Strategy & Organizing ITOptimal Result of Information System

    Quality of Information, Robustly Networked Force

    & Information Sharing

    Developing Ability & Organization SuccessfulHuman Resources Considerations

    Competitive Advantage

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    Management Information System

    Challenges

    Integration.

    However integrating systems for differentorganizational levels and functions to freelyexchange information can be technologically

    difficult and costly.

    Enlarging the scope of management thinking.

    Enterprise system and industrial networks

    require manager to take a much larger view oftheir own behavior, including other products,divisions, department and even outside businessfirms.

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    IS StrategyBusiness BasedDemand Oriented

    Application Focused

    DEVELOPMENT STRATEGY

    Where is the

    business goingand Why

    What is require

    How it can bedelivered

    IS/IT

    Impact&Potential

    Business Strategy

    Business Direction

    Objective & DirectionChange

    IT Strategy

    Activity DecisionSupply Oriented

    Technically Focused

    Direction forBusiness

    Needs &Priorities

    Infrastructure &Services

    SupportBusiness

    ICT

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    APPROACH METHODAPPROACH METHOD

    ANALYS

    T

    METHODOLO

    GY

    EVALUAT

    ION

    SURVE

    Y

    REVISION

    CREATI

    ON

    BOTTOM-UPBOTTOM-UP

    APPROACHAPPROACH

    EXISTING SYSTEM

    ICTICT

    GRAND DESIGNGRAND DESIGN

    TOP-DOWNTOP-DOWN

    APPROACHAPPROACHTARGET & OBJECTIVE

    INTERNAL-EXTERNALINTERNAL-EXTERNAL

    APPROACHAPPROACH

    DEVELOPING SYSTEM

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    1st STEP

    Assessment

    1st STEP

    Assessment

    2nd STEPLevel

    Determining

    2nd STEPLevel

    Determining

    3rd STEPGap Analysis

    3rd STEPGap Analysis

    4th STEP

    Strategy

    & Planning

    4th STEP

    Strategy

    & Planning ImplementationPlanningImplementationPlanning

    Budget

    Planning

    ICT GRAND DESIGN STEPS

    VISION, MISSION, STRATEGY,

    RESPONSIBILITY & PRIORITY

    Existing

    Condition

    (Where are we,now?)

    Expected

    Condition

    (Where are wegoing to?)

    Planning

    (How to reach?)

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    KONSEP INTEGRASI SYSTEM

    Other

    Applica

    tion

    ManufacturingApplica

    tion

    Logisti

    c

    Applica

    tion

    Financ

    e

    Applica

    tion

    AccountingApplication

    Enterprise Service Bus(ESB/SOA)

    Routing Transformation SecurityConnectivity

    HumanResour

    ces

    Applica

    tion

    Sales&MarketingApplication

    ICT strategic planning

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    Major Types of Systems in Organizations

    Sales &Marketin

    g

    Manufacturi

    ng

    FinanceAccounting

    HumanResource

    s

    FUNCTIONAL AREA

    KIND OFINFORMATION SYSTEM

    Operational Level

    Knowledge Level

    Management Level

    StrategicLevel

    GROUPS

    SERVED

    Operational

    Managers

    Knowledge andData

    Workers

    MiddleManager

    s

    SeniorManager

    s

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    STRATEGIC

    TACTIC

    TECHNICALOPERATION

    HIRARKI SISTEM INFORMASI

    RENCANA & STRATEGI TIK

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    KONSEP ALIRAN DATA & INFORMASI

    Transaction

    ProcessesMIS DSS

    ExternalInformation

    DataWarehouse

    EIS

    RENCANA & STRATEGI TIK

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    SIX MAJOR TYPES OF SYSTEMSTYPES OFSYSTEM

    Executive SupportSystems (ESS)

    ManagementInformation

    Systems (MIS)

    Decision SupportSystems (DSS)

    Knowledge WorksSystems (KWS)

    Office AutomationSystems

    TransactionProcessing

    Systems (TPS)

    Strategic Level Systems5 years

    Sales trendforecasting

    5 yearsOperating

    plan

    5 yearsbudget

    forecasting

    ProfitPlanning

    personnelPlanning

    Management Level Systems

    SalesManagement

    InventoryControl

    Annualbudgeting

    CapitalInvestment

    Analysis

    RelocationAnalysis

    Sales RegionAnalysis

    ProductionScheduling

    CostAnalysis

    PricingProfitability

    Analysis

    Contract CostAnalysis

    Knowledge Level Systems

    EngineeringWorkstations

    GraphicWorkstations

    ManagerialWorkstations

    WordProcessing

    DocumentImaging

    ElectronicCalendar

    OrderTracking

    OrderProcessing

    Machine ControlPlant Scheduling

    MaterielMovement

    Control

    SecuritiesTrading

    CashManagement

    Payroll

    AccountsPayable

    AccountReceivable

    Compensation

    Training &development

    Employeerecord keeping

    Operational Level Systems

    Sales &MarketingManufac-turing FinanceAccountingHumanResources

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    Characteristics of Information Processing Systems

    TYPES OFSYSTEM

    Executive SupportSystems (ESS)

    ManagementInformation

    Systems (MIS)

    Decision SupportSystems (DSS)

    Knowledge WorksSystems (KWS)

    OfficeSystems

    TransactionProcessing

    Systems (TPS)

    Aggregate data;External, internal

    Graphics;

    Simulations;Interactive

    Projections;

    responsesto queriesSenior Managers

    Summarytransaction data,High volume data,

    Simple models

    Routine reports,simple models,

    Low level analysis

    Summary andException reportsMiddle managers

    Low-volume data ormassive databasesOptimized for dataAnalysis, analyticModels and dataAnalysis tools

    Interactive;Simulations;analysis

    Specials reports;Decision analysis;

    Responses toqueries

    Professionals;Staff managers

    Transaction;events

    sorting; listing;Merging; updating

    Detailed reports;Lists; summaries

    OperationsPersonnel;supervisors

    InformationInput Processing

    InformationOutputs Users

    Designspecifications;

    Knowledge base

    Modeling;simulations

    Models;graphics

    Professionals;Technical staff

    Document;schedules

    DocumentManagement;Scheduling;

    communication

    Document;Schedules;

    mail

    Clericalworkers

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    Transaction Processing Systems (TPS) The basic business systems that serve the operational level

    of the organization. A transaction processing system is a computerized system

    that performs and records the daily routine transactionsnecessary to conduct business.

    PayrollSystems

    ManagementReports

    PayrollMaster

    File

    OnlineQueriesEarnings

    Employee Data

    (Various Department)

    To general ledger wages and salaries

    Government Documents

    Employee Checks

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    Knowledge Work Systems (KWS)

    Serve the information needs at the knowledge level ofthe organization.

    Aid knowledge workers in the creation and integrationof new knowledge in the organization, whereas officesystems primarily aid data workers.

    Office Automation Systems (OAS)

    Computer systems, such as word processing, e-mail

    system and scheduling systems, that are designed toincrease the productivity of data workers in the office.

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    Management Information Systems (MIS) Serve the management functions of planning, controlling

    and decision making by providing routine summary and

    exception reports. In some cases, with on line access to the organizationscurrent performance and historical records.

    Order

    ProcessingSystemOrderFile

    ProductionMaster File

    AccountingFile

    MaterialsResourcePlanningSystem

    GeneralLedgerSystem

    SalesData

    UnitProductCost Data

    ProductChangeData

    ExpenseData

    MIS FILES

    MIS

    MANAGERS

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    Decision Support Systems (DSS)

    Information systems at the organizations managementlevel that combine data and sophisticated analyticalmodels or data analysis tools to support semi structuredand unstructured decision making.

    Serve the management level of the organization.

    Help managers make decisions that are unique, rapidlychanging and not easily specified in advance.

    Although use internal information from TPS and MIS,they often bring in information from external sources,

    such as current stock prices or product prices ofcompetitors.

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    Executive Support Systems (ESS) Information systems at the organizations strategic level

    designed to address unstructured decision making through

    advanced graphics and communications. They address non routine decisions requiring judgment,

    evaluation and insight, because there is no agreed-onprocedure for arriving at a solution.

    Internal Data

    TPS/MIS dataFinancial dataOffice SystemsModeling/Analysis

    External Data

    Internet newfeeds

    Standard &Poors

    ESS

    workstation

    MenusGraphicsCommunications

    Local Processing

    ESS

    workstation

    MenusGraphics

    Communications

    Local Processing

    ESSworkstation

    MenusGraphicsCommunicationsLocal Processing

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    Interrelationshipsamong Systems

    ESS

    MIS DSS

    KWS& OAS TPS

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    ENTERPRISE SYSTEMS

    Sales

    Accounting

    Manufacturingand

    Production

    Generate

    Order

    Submit

    Order

    Check

    Credit

    Approve

    Credit

    Generate

    Invoice

    Check

    Credit

    Ship

    Product

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    Traditional view of systemsManufac-

    turingAccount-

    ingFinance

    Marketing& Sales

    HumanResources

    Manufac-turing

    Systems

    Account-ing

    Systems

    FinanceSystems

    Marketing& SalesSystems

    HumanResourcesSystems

    BusinessSystems BusinessSystems BusinessSystems BusinessSystems BusinessSystems

    Organiza

    tional

    Boundarie

    s

    Organiza

    tional

    Boundaries

    Vendors

    Vendors

    Vendors

    Customers

    Customers

    Customers

    Manufac-turing

    Account-ing

    FinanceMarketing& Sales

    HumanResources

    Business Systems

    Business Systems

    Business SystemsEnterprise-wide business processes

    Organiza

    tion

    alB

    oundaries

    Customers

    Organization

    alB

    oundarie

    s

    Vendors

    Enterprise System

    In most organization, separate systems built over a long period of time support discrete business processes

    and discrete business functions. The organizations systems rarely included vendors and customers

    Can integrate the key business processes of an entire firm into a

    single software system that allows information to flow seamlesslythroughout the organization. These systems focus primarily on

    l th t i hit t

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    plan, the enterprise architectureto :

    Getting the right information & assessing

    information quality to create Information Superiority

    Build Robustly Network Force for Information

    Sharing to realize sharing information awareness Create Innovation, New Method & New Processes

    Realize Shared Situational Awareness

    Perform Cooperation & Coordination(Collaboration)

    Realize Self Synchronization to create Mission

    Effectiveness