INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY

RESUME KELOMPOK

Disusun Oleh,
1. M. TOLHA RAMADHANI NIM 041811333003
2. M. WILDAN SULTHON AL FIKRI NIM 041811333006
3. SUHAM CAHYONO NIM 041811333013
4. KUTRIANA RIZA ARNIATY NIM 041811333017
5. KELVIN HERVANGGA NIM 041811333076

Kelas O

DEPARTEMEN AKUNTANSI
FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS AIRLANGGA
Tahun Ajaran 2020/2021
 Management Information Systems
Chapter 1 Information Systems in Global Business Today

 How information systems are transforming business

1. Increase in wireless technology use, Web sites

2. Shifts in media and advertising
3. New federal security and accounting laws

 Globalization opportunities
1. Internet has drastically reduced costs of operating on global scale
2. Presents both challenges and opportunities

The Role of Information Systems in Business Today

Information Technology Capital Investment

Information technology investment, defined as hardware, software, and

communications equipment, grew from 32% to 51% between 1980 and 2008.

Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis,

National Income and Product Accounts, 2008.

 THE EMERGING DIGITAL FIRM

 A digital firm is one in which nearly all of the organization’s significant business
relationships with customers, suppliers, and employees are digitally enabled, and
key corporate assets are managed through digital means.

Digital means that the information can be coded in such a way to allow it to be
transmitted over computer networks, like the Internet, and stored on a computer
medium, like a CD or a computer hard drive.

When a firm goes digital, it’s not about just adding a computer system to the mix.
Throwing a computer system at outdated business processes is exactly the wrong
thing to do. A truly digital firm has several characteristics that distinguish it from
most of the firms claiming to be digitized:

 Significant business relationships with customers, suppliers, and employees are

digitally enabled and mediated.
 Core business processes are accomplished through digital networks and span the
entire organization or link multiple organizations.
 Key corporate assets — intellectual property, core competencies, and financial and
human assets — are managed through digital means.
 Internal and external environments are quickly recognized and dealt with.

And the number one reason digital firms experience greater opportunities for
success and profits is because they view information technology as the “core of the
business and the primary management tool.”

The opening case about Toyota describes some of these features. Other companies
such as Dell Computers use the Internet to allow customers to customize their
computers, and to communicate with suppliers. Most organizations have some
aspects of “being digital,” whether it is communicating with employees, customers,
or suppliers.

The Window on Organizations section describes Accenture, a consulting company

that operates in 48 countries, with no traditional headquarters. Employees and
managers use information technologies to work and communicate.

 STRATEGIC BUSINESS OBJECTIVES OF INFORMATION SYSTEMS

Specifically, business firms invest heavily in information to achieve six

strategic business objectives:
  Operational excellence
 New products, services, and business models
 Customer and supplier intimacy
 Improved decision making
 Competitive advantage
 Survival

 PERSPECTIVES ON INFORMATION SYSTEMS

WHAT IS AN INFORMATION SYSTEM?

This section defines many of the terms used in the textbook.

Information technology (IT) is described as the hardware (including computers,

printers, handheld devices, etc.) and software (operating systems, productivity software
such as Word, and other programs).

Students should also be introduced to the term ICT, information and communications
technology.

A distinction is made between data (raw facts) and information (data that have been
shaped into a meaningful form), although in many cases the terms are used
interchangeably. In some recent literature, it has been proposed that the distinction is
pedantic, and the distinction can be ignored. As an instructor, you can decide whether the
distinction is critical in your class.

One area of discussion where it is useful to have the distinction is when you discuss the
activities in an information system: input, processing, output, and feedback.

Figure 1-5 shows that data are captured during the input function, and are processed
before information is output to the people who will use it to make decisions.

Feedback completes the information processing loop. This is output that is used to
evaluate and correct, if needed, the input activity.

You might want to use an example to illustrate the activities. One example is a student
registration system, where the input data are the student number, course number, time
slot. The data are processed to determine if there is seat availability in the course, and the
output would include a class list (for the professor) and an email confirmation (to the
student). Feedback might include a message that the student is not registered, or has
outstanding fees, and cannot be processed.

This example can also be used to discuss the elements of a computer based information
system, such as the hardware components (scanners, processors, printers, and display
monitors), the software components (the programs that compare the registration request
with the availability; the programs that check for valid registration).

DIMENSIONS OF INFORMATION SYSTEMS

There is a distinct difference between possessing information systems literacy and

computer literacy. Many students may consider themselves to be computer literate; they
are familiar with the Internet, online gaming, storing music on their computers, and using
PowerPoint and Word. This is a good time to distinguish between IS and computers, and
describe the field of management information systems (MIS). The question can be asked
“What is MIS?” and students may give different answers.

Organizations
Each organization tends to have its own individual personality and yet share many things
in common with other organizations. Students can look at some of the organizations with
which they may be associated — softball team, student union/council, health club, or a
company for which they work. Each has its own structure that reveals its hierarchy.

In every organization you’ll find senior managers making long-range decisions, middle
managers carrying out the plans and goals set by senior managers, and operational
managers handling the day-to-day operations of the company. As we’ll see, information
systems output must be geared to each of these levels of management.

Just as every softball team needs good players at different positions, a business
organization requires different employees to help it succeed. Knowledge workers help
create new knowledge for the organization and data workers help process the paperwork
necessary to keep an organization functioning. Production and service workers allow the
company to create its products and services, and get them to the customer?

Students may have some difficulty in understanding knowledge work, and you can use
examples from organizations: engineers (plans for buildings/bridges), professors (creating
knowledge through research), and architects (house designs). You can discuss how IS can
support this type of work; this will also be discussed in more detail in later chapters.

The larger the organization, the more formal the management structure, including the need
for standard operating procedures (SOPs). SOPs can help streamline standard business
processes so that managers and employees can properly complete their tasks in a more
efficient manner. Many companies now integrate these business processes into their
information systems to ensure uniformity, consistency, and compliance. As we’ll see in
upcoming chapters, many companies are even incorporating the informal work processes
into their information systems in an effort to capture as much corporate knowledge as
possible.

Each organization also has a unique culture, or fundamental set of assumptions, values, and
ways of doing things, that has been accepted by most of its members. Many students would
agree that the professors probably know more than them, and that one reason they attend
university is to learn from them.

Management
Students will understand that managers are needed to make decisions and plan for the
future. Think about how IS at a university can support day-to-day planning (e.g., how many
classrooms are needed to handle student enrollments) and long term planning (e.g., how to
recruit more international students). Other examples can come from organizations where
students may have worked (e.g., fast food industry: how many burgers to produce, and
where to build a new location).

Technology
You should discuss the main aspects of technology including hardware and software, but
also include networks and telecommunications technology and database technology.

To describe the IT infrastructure of an organization, you can use an example such as the
UPS “Windows on Technology” which follows, or use an example such as the university
library. The library will have examples of databases (catalogue, online journals, statistical
databases), and use the Internet or other networks to connect students to these databases.
The university library will also have a Web page that provides an interface for the student to
access the library resources, and may also provide links to other offsite resources. This
example can also be used to illustrate the difference between intranets (e.g., information
only available to registered students) and extranets (e.g., information available to select
external partners, perhaps alumni or other university partners).
  CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS

The study of information systems deals with issues and insights contributed from
technical and behavioural disciplines. The disciplines that contribute to the technical
approach are computer science, management science, and operations research. The
disciplines contributing to the behavioural approach are psychology, sociology, and
economics.

TECHNICAL APPROACH

Some students may think that this course will follow a technical approach. You can clarify
that it is the disciplines of computer science, management science, and operations research
are those that contribute to the technical aspects of information systems, but that this course
is not singularly technical.

BEHAVIOURAL APPROACH

It is interesting to point out that there is much research in the information systems field that
looks at behavioural aspects of information systems. You can give examples of some of this
research, such as looking at how people’s brains process information, and how humans best
use graphical user interfaces (such as icons on a desktop).

APPROACH OF THIS TEXT: SOCIOTECHNICAL SYSTEMS

An organization can’t afford to view its information resources as belonging to either the
techies (technical approach) or the non-techies (behavioural approach). Responsibility for
information belongs to everyone in the organization. This is the sociotechnical approach
— a combination of the two approaches. Everyone has to work together to ensure that
information systems serve the entire organization.

To help you understand the importance of viewing management information systems using
the sociotechnical approach, look at what trade journals have said. David Haskin, writing in
the April 1999 issue of Windows Magazine, quotes Steve Roberts, vice president of
information technology for Mind Spring Enterprises, an Atlanta-based Internet service
provider: “The gap in understanding between technical and nontechnical people is the
biggest challenge I’ve seen.” Haskin goes on to say, “Because technology is the bedrock on
which successful businesses are built, the stakes in making this relationship work are high.
Failing to use the correct technology can put you at a competitive disadvantage, and glitches
in existing technologies can bring a business to a grinding halt.”