BUSINESS INFORMATION

SYSTEM DESIGN
Week-1
“Introduction to Information System : Global Business”

Atikah Aghdhi Pratiwi, S.T, M.T

PSMI Laboratory  2019
Industrial Engineering Department - ITS
E-mail: atikah.aghdhi@gmail.com
Phone : 0822-3001-1430
Assessment & Rules
• Assessment:
Mid-Exam (EBTS) 25%
Quiz 15%
Class Assignment 20%
Class Project
 Presentation
40%
 Project Portofolio
 Information System Prototyping

• Class Rules:
1. Class will be held every Thursday, at 07.30-10.00 a.m.
2. Students are expected to come no more than 15 minutes after the class begin.
3. Students must have and bring at least 1 book or subject material, and should read it
before attending the class.
4. Having good attitude
5. Please silent/turn off your mobile phone or other electronic devices during the class.
6. Students may use notebook as instructed by the lecturer/assistants.
7. Any fraud in evaluation will be processed according to the academic rules.
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Course Outline
WEEK* Date TOPIC References
1 07/02 Introduction to Information Systems : Global Business (1) chap 1

2 14/02 (1) chap 3

Information Systems, Organizations, and Strategy

3 21/02 e-Business and e-Commerce (1) chap 10, (2) chap 6

4 28/02 Transactional Processing System (TPS) (2) chap 8

5 28/02 (2) chap 8

Enterprise Resources Planning (ERP)

6 14/03 (4)
Data Flow Diagram / UML
(3) chap 1-4
7 21/03 Database Modelling #1

8 Mid-Exam (EBTS)

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Course Outline
WEEK * Date TOPIC References
9 04/04 Database Modelling #2 (3) chap 1-4

10 11/04 Designing Effective Display and Reporting

11 18/04 Project Presentation (1) and (2)
(2) chap 7,8
12 25/04 Information Technology Infrastructure

13 02/05 (1) chap 11

Data and Knowledge Management
(2)) chap 4
14 09/05 Case Study : Business Intelligence
15 16/05 Case Study : Big Data
16 Presentation of Class Project

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References
• Laudon, K. And Laudon, J.P. (2009). Essential of Management Information System, 12
edition, Prentice Hall.
• Rainer, R.K, Cegielski, C.G. (2011) Introduction to Information Systems : Supporting
and Transforming Business, 3rd edition, John Willey and Sons.
• Powel, G.(2006). Beginning Database Design, Wiley Publishing, Inc.
• Cronoles,M.J., Schardt, J.A., UML 2 for Dummies, Wiley Publishing Inc.
• McLeod, R. Jr and Schell, G. (200&) Management Information System, Prentice Hall.
• Kendall, K. E., & Kendall, J.E. Systems Analysis and Design, Prentice Hall, 2010.
• Valacich, J. S., George, J. F., & Hoffer, J. A. Essentials of Systems Analysis & Design,
Prentice Hall, 2009.

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DO YOU USE THESE APPS?

They DISRUPT conventional business model and change

the way people fulfill their needs
LETS WATCH THIS VIDEO!
 The Informed User – You!
Homo Conexus
You are the most connected generation in history.
You practice continuous computing.
You are surrounded by a personal, movable
information network.

© Voon Nam Fook/iStockphoto

What is Management Information Systems ?

The planning for and the development, management and use of

information technology tools…
to help people perform all the tasks related to information processing
and management.

• Incorporating Ecommerce into the business

• Managing system integration
• Internet, Intranet, Extranet
• Education
• Managing Outsourcing
What’s New in Management Information Systems ?

LOTS!

Continual Management
Impact on
change in use of
Business
technology technology

Three interrelated changes in technology area

The growth in “cloud
computing” where more
Emerging mobile digital The growth of online
and more business
platform software as a service
software runs over the
internet
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• They represent new emerging computing
platforms, based on an array of new
hardware and software technologies.
• More and more business computing is
moving from PCs and desktop machines
to these mobile devices. Managers are
increasingly using these devices to
coordinate work, communicate with
employees, and provide information for
decision making. We call these
developments the “emerging mobile
digital platform.”
What is an Information Technology ?

Any computer based tool that people use to work with

information and to information processing needs of an
organization.
What is an Information Systems ?
An information system is a set of interrelated components that
collect, manipulate, store data and disseminate information and
provide a feedback mechanism to monitor performance.

Information:
Data: Data that have been shaped into a form
Raw unorganized facts that is meaningful and useful to human
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beings
 transactions that are recorded, classified
and stored but are not organized to convey
any specific meaning

Data

Information
meaning and value

accumulated learning and expertise as

Knowledge they apply to a current problem or
activity.
Function of Information Systems
An information system
contains information about
organization and its
surrounding environment

Three Basic Activities

Input Processing Output

Produce the information

organizations need

Feedback : output returned to appropriate people or activities in the

organization to evaluate and refine the input
Capabilities of Information Systems

Store huge amounts of information in small space

Allow quick, inexpensive access to vast amounts of information

worldwide

Interpret vast amounts of data quickly and efficiently

Increase effectiveness and efficiency of people working in groups in one

place or around the world
Capabilities of Information Systems

Perform high-speed, high-volume numerical computations

Automate semiautomatic business process and manual

tasks

Provide fast, accurate communication and collaboration

within and among organizations
What Does Globalization Have to do with
MIS?
Answer : EVERYTHING
Drastically reduced operation & transaction cost

Global Scale

Instant & virtual (some of them are free)

Reliable & fast to obtain price & quality information,

shop worldwide

Become Full Blown Production Cost reduction (find best supplier & efficient
International Communication to manage production facilities in other countries
System
Reduce fixed-cost investment when scale/replicate
business
The Emerging Digital Firm
Digital Firm
one in which nearly all of the organization’s significant business relationships
with customers, suppliers, and employees are digitally enabled and
mediated.
Core Business Process
accomplished through digital networks spanning the entire organization or
linking multiple organizations.

Managed through digital

means
Interdependence between Organizations and
Information Systems

There is a growing
interdependence between a
firm’s ability to use
information technology and
its ability to implement
corporate strategies and
achieve corporate goals

OPERATION EXCELLENCE

Operations Higher
efficiency Profitability
Information systems and technologies are a major enabling tool for
firms to create new products and services, as well as entirely new
business models.

Business Model
describes how a company produces, delivers, and sells a product or
service to create wealth.

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New Product, Services, and Business Models
IS&T are major enabling tool for firms to create new products and services.

Customer & Customer: To know better about customer, to serve them better, to increase retention rate
(repurchasing) & purchase value, to increase profitability
Supplier
Supplier: To engage better supplier in order to provide better vital input, lower cost and
Intimacy unefficiency

Improved Provide real-time data for managers to make right decision based on right information at a
right time (ex: over or underproduction of goods or services, misallocation of resources, poor
Decision response time)
Making
Competitive Help increase competitive advantage of a firm through their excellence(s): operational excellence,
new product, services, and business models, customer/supplier intimacy, and improved decision
Advantage making. Doing things better than competitors. Ex: charging less for superior products, response
customer and supplier in real time.

Survival All factors will end up to the firm’s survival. Give more value for customers to increase
profitability, and avoid from bankruptcy
Dimension of Information Systems

To fully understand information systems,

you must understand the broader
organization, management, and
information technology dimensions of
systems and their power to provide
solutions to challenges and problems in
the business environment.
The field of MIS tries to achieve this
broader information system literacy.
 Makes long-range strategic decisions about
Organization products or services, ensure financial
performance

Carries out the programs and plans of

senior management

Responsible for monitoring the daily

activities of the business
Management
Management’s Job

Make sense out of many

situations faced by Make decisions
organization

 Easier
Formulate action plans Set organization strategy INFORMATION  Faster
TECH.  Higher Accuracy
Allocate human &
financial resources
Develop new
product/services
 Higher efficiency
& effectivity
Re-organize/re-create
etc
the organization
Two Information Systems that support the
entire organization ERP Modules

• Enterprise Resource planning - connects all

functional areas together

• Transaction Processing - is a software

system, or software/hardware combination,
that supports transaction processing.
Captures data from every where and
everything

( more about these in later chapter)

Information Systems Among Organizations
Complementary Social, Managerial, and Organizational Assets Required to Optimize
Returns from Information Technology Investments
Social Effects

Opportunities for Provide people

people with with flexibility in
disabilities their work

Robots will take Enable

over mundane improvement in
chores healthcare
Ergonomic Products

Source: Media Bakery

Enabling People with Disabilities to Work with
Computers
Computer solutions available to :

• Visually-impaired users
• Hearing-impaired users
• Motor-impaired users

© Harry Huber/Age Fotostock America, Inc.

 LET’S DISCUSS!

Read Interactive Sessions: Technology

UPS COMPETES GLOBALLY WITH
INFORMATION TECHNOLOGY