INFORMATION SYSTEMS
WHAT IS A BUSINESS?
WHA T IS THE PURPOSE OF A BUSINESS?
• Production of products and services
• Division of labour, dealing with complexity
• Collaboration of individuals to achieve greater goal
• Governance and control
• Efficient allocation of resources
• Effectiveness- value/quality
• Efficiency- cost
• Make a profit
• Manufacturing
o Original Equipment Manufacturers
• Brand holders- Toyota, Apple, Lenovo, Siemens
o Suppliers/license producers: parts, components
o Raw materials: steel, coal, rubber
• Service
o Professional services
• Architects, financial planning, accounting, solicitors, etc
• Travel, leisure, hospitality
• Technology: IT services, engineering
• Education: TAFE, Universities, etc.
HOW IS A BUSINESS OR GANISED ?
• Functional organisation
o Vertical and horizontal distribution of tasks
• Horizontal
▪ Dividing an organisation into different departments
• Functional specialisation
• Vertical
▪ Dividing an organisation into different hierarchical levels
• Chain of command
• Process organisation
o Organise materials/value flow through the organisation
o Fulfil orders, get things done (operations)
PROCESS SLA LOM THROU GH THE FUNC TIONA L AR EAS
WHERE DOES A BUSINESS O PERA TE?
1
,WHAT IS AN INFORMATI ON SYSTEM?
• Components
1. Computer Hardware
2. Software
3. Data
4. Procedures
5. People
HOW DOES IT DIFFER FROM IS?
• IT includes raw tech
o Hardware
o Software
o Data components
• IT alone wont help an organisation achieve goals until it's embedded in an IS
• IS = IT + People + Procedures
WHAT IS BIS, MIS, IT , IS ANYWAY?
• MIS
o Management information systems
• BIS
o Business information systems
• MIS = BIS
o Refers to academic discipline that looks at development
• Elements BIS
o Business goals and objectives
o Information Systems
o Information
o Business Processes
o Development and use
o Chance, innovation and transformation
DEVELOPMEN T & USE OF INFORMATION SYSTEM
• Business professional needs to
o Take active role to meet needs
o Understand IS and operation
o Understand impact of IS
o Read/speak language of IS
o Consider users' needs
o Learn how IT systems developed
HOW DO SUCCESSFU L BU SIN ESS PROFESSIONALS USE IS
• Email, websites and instant messaging don't provide competitive advantage
• Companies need IS that support business
• Developing right IS requires input from those with knowledge of the business
• Think creatively about problems, challenges and opportunities
• Create innovative applications using new tech
• Find ways to gain competitive advantage
WHA T A BUSINESS IS A ND HOW IT IS AFFEC TE D BY BIS?
• Purpose
o Profit
• Organisation
o Functional
• Horizontal
• Vertical
o Process
• Organisation materials/value flow
• Where
o Supply chain
• INFS
o Solve business problems with technology
2
,BUSINESS PROCESSES
HOW DID THIS STUFF GET HERE?
• Various parts of a business must work together as an integrated system
o Flows of info and documents
• Purchase orders
o Flows of materials and products
• Within and across businesses
o Flows of money
• Payments
• Business processes need to be specified, executed and managed
• Often cross-functional
WHAT IS A BUSINESS PROCESS?
• Structured network of activities supported by resources, facilities and information that interact to achieve some business
function
• Turn input into higher value output
• Sometimes referred to as business systems
BUSINESS PROCESS IN INDUSTRY
• Graphics on screen
o Multiple suppliers, G-Creative, Atomic Fiction, etc
• Sequence of events
o What, where and when
• Consistent
o Works inside the story and inside culture of 13 films and multiple series
CHARACTERISTICS OF W ELL-DESIGNED BUSIN ESS PROCESSES
• Complete
o Include all activities necessary to achieve the business goal
• Minimal
o Don’t include unnecessary activities- cost efficiency
• Well-structured
o Activities organised in logical sequence
• Embedded
o Logically connect with other BPs in organisation
• Outcomes of well-designed BP
o Increased effectiveness for customer
o Increased efficiency reducing cost for business
LEVELS OF A BSTRAC TIO N
• BPs exist on many different levels of a business
• Highest level- core value creation depicted as one high-level BP
o Source - produce - sell - ship - provide service
• BP can be broken-down to smaller sub processes until describing granular activities on work level
o Receive document - specify quantity - update document - send document to manager for approval - etc
WHAT ARE THE COMPONE NTS OF A BUSINESS PR OCESS?
• Activities
o Transform resources and info of one type into another type
• Decisions
o Question that can be answered 'Yes' or 'No'
• Roles
o Look after sets of procedures
• Resources
o People, facilities or computer programs that are assigned to
roles
• Repositories
o Collection of business records (databases)
• Data/info flow
o Movement of a data item from one activity to another activity or to repository/database
3
, BUSINESS INFRASTRUC TURE
• Repetitive use of IS gets standardised over time and becomes part of the infrastructure
• BP & IS are both part of the infrastructure and hence 2 sides of the same coin
• Infrastructure drives efficiency
HOW DO IS SUPPORT BP ?
1. IS supports activities in a BP
o Several activities may use 1 IS
o Activity may have its own IT system
o Activity may use several IT systems
2. New business processes may require design of new IT system
3. New IS facilitate new activities and lead to changes in existing BP
o From 'As is' process to 'To Be' process
4. Some processes are automated while others are manual
IS TO SUPPOR T COUNTER SA LES
IS TO SUPPOR T PAYMEN T
IS TO SUPPOR T PURCHA SIN G
BENEFITS OF IT USE IN BPS
• More accurate info
o BPs draw on databases- ensure accurate info across many activities and BPs
• More automated
o Some activities were manual before automated
o E.g. automated customer credit check through specialized Computer System
• More streamlined - faster
o E.g. Enterprise applications can facilitate quick hand-over of activities between workplaces
• More efficient - less cost
o All of the above together can lead to significantly reduced cost
4
WHAT IS A BUSINESS?
WHA T IS THE PURPOSE OF A BUSINESS?
• Production of products and services
• Division of labour, dealing with complexity
• Collaboration of individuals to achieve greater goal
• Governance and control
• Efficient allocation of resources
• Effectiveness- value/quality
• Efficiency- cost
• Make a profit
• Manufacturing
o Original Equipment Manufacturers
• Brand holders- Toyota, Apple, Lenovo, Siemens
o Suppliers/license producers: parts, components
o Raw materials: steel, coal, rubber
• Service
o Professional services
• Architects, financial planning, accounting, solicitors, etc
• Travel, leisure, hospitality
• Technology: IT services, engineering
• Education: TAFE, Universities, etc.
HOW IS A BUSINESS OR GANISED ?
• Functional organisation
o Vertical and horizontal distribution of tasks
• Horizontal
▪ Dividing an organisation into different departments
• Functional specialisation
• Vertical
▪ Dividing an organisation into different hierarchical levels
• Chain of command
• Process organisation
o Organise materials/value flow through the organisation
o Fulfil orders, get things done (operations)
PROCESS SLA LOM THROU GH THE FUNC TIONA L AR EAS
WHERE DOES A BUSINESS O PERA TE?
1
,WHAT IS AN INFORMATI ON SYSTEM?
• Components
1. Computer Hardware
2. Software
3. Data
4. Procedures
5. People
HOW DOES IT DIFFER FROM IS?
• IT includes raw tech
o Hardware
o Software
o Data components
• IT alone wont help an organisation achieve goals until it's embedded in an IS
• IS = IT + People + Procedures
WHAT IS BIS, MIS, IT , IS ANYWAY?
• MIS
o Management information systems
• BIS
o Business information systems
• MIS = BIS
o Refers to academic discipline that looks at development
• Elements BIS
o Business goals and objectives
o Information Systems
o Information
o Business Processes
o Development and use
o Chance, innovation and transformation
DEVELOPMEN T & USE OF INFORMATION SYSTEM
• Business professional needs to
o Take active role to meet needs
o Understand IS and operation
o Understand impact of IS
o Read/speak language of IS
o Consider users' needs
o Learn how IT systems developed
HOW DO SUCCESSFU L BU SIN ESS PROFESSIONALS USE IS
• Email, websites and instant messaging don't provide competitive advantage
• Companies need IS that support business
• Developing right IS requires input from those with knowledge of the business
• Think creatively about problems, challenges and opportunities
• Create innovative applications using new tech
• Find ways to gain competitive advantage
WHA T A BUSINESS IS A ND HOW IT IS AFFEC TE D BY BIS?
• Purpose
o Profit
• Organisation
o Functional
• Horizontal
• Vertical
o Process
• Organisation materials/value flow
• Where
o Supply chain
• INFS
o Solve business problems with technology
2
,BUSINESS PROCESSES
HOW DID THIS STUFF GET HERE?
• Various parts of a business must work together as an integrated system
o Flows of info and documents
• Purchase orders
o Flows of materials and products
• Within and across businesses
o Flows of money
• Payments
• Business processes need to be specified, executed and managed
• Often cross-functional
WHAT IS A BUSINESS PROCESS?
• Structured network of activities supported by resources, facilities and information that interact to achieve some business
function
• Turn input into higher value output
• Sometimes referred to as business systems
BUSINESS PROCESS IN INDUSTRY
• Graphics on screen
o Multiple suppliers, G-Creative, Atomic Fiction, etc
• Sequence of events
o What, where and when
• Consistent
o Works inside the story and inside culture of 13 films and multiple series
CHARACTERISTICS OF W ELL-DESIGNED BUSIN ESS PROCESSES
• Complete
o Include all activities necessary to achieve the business goal
• Minimal
o Don’t include unnecessary activities- cost efficiency
• Well-structured
o Activities organised in logical sequence
• Embedded
o Logically connect with other BPs in organisation
• Outcomes of well-designed BP
o Increased effectiveness for customer
o Increased efficiency reducing cost for business
LEVELS OF A BSTRAC TIO N
• BPs exist on many different levels of a business
• Highest level- core value creation depicted as one high-level BP
o Source - produce - sell - ship - provide service
• BP can be broken-down to smaller sub processes until describing granular activities on work level
o Receive document - specify quantity - update document - send document to manager for approval - etc
WHAT ARE THE COMPONE NTS OF A BUSINESS PR OCESS?
• Activities
o Transform resources and info of one type into another type
• Decisions
o Question that can be answered 'Yes' or 'No'
• Roles
o Look after sets of procedures
• Resources
o People, facilities or computer programs that are assigned to
roles
• Repositories
o Collection of business records (databases)
• Data/info flow
o Movement of a data item from one activity to another activity or to repository/database
3
, BUSINESS INFRASTRUC TURE
• Repetitive use of IS gets standardised over time and becomes part of the infrastructure
• BP & IS are both part of the infrastructure and hence 2 sides of the same coin
• Infrastructure drives efficiency
HOW DO IS SUPPORT BP ?
1. IS supports activities in a BP
o Several activities may use 1 IS
o Activity may have its own IT system
o Activity may use several IT systems
2. New business processes may require design of new IT system
3. New IS facilitate new activities and lead to changes in existing BP
o From 'As is' process to 'To Be' process
4. Some processes are automated while others are manual
IS TO SUPPOR T COUNTER SA LES
IS TO SUPPOR T PAYMEN T
IS TO SUPPOR T PURCHA SIN G
BENEFITS OF IT USE IN BPS
• More accurate info
o BPs draw on databases- ensure accurate info across many activities and BPs
• More automated
o Some activities were manual before automated
o E.g. automated customer credit check through specialized Computer System
• More streamlined - faster
o E.g. Enterprise applications can facilitate quick hand-over of activities between workplaces
• More efficient - less cost
o All of the above together can lead to significantly reduced cost
4
