Management Information Systems: An Overview

Personal Notes Remember, it’s about big scale-business Though you may feel familiar with IS, you may never familiar of its potential in business activities. IS is simply NOT an apps,soc-med, or even a software Understand the concept, don’t just memorize. You are not designed to understand its detail, but to understand its design and system.

SYSTEMS, DATA, AND INFORMATION A system is: A set of interrelated components That interact To achieve a goal

SYSTEMS, DATA, AND INFORMATION Most systems are composed of smaller subsystems . . . . . . and vice versa!

SYSTEMS, DATA, AND INFORMATION Every organization has goals. The subsystems should be designed to maximize achievement of the organization’s goals. Even to the detriment of the subsystem itself. EXAMPLE: The production department (a subsystem) of a company might have to forego its goal of staying within its budget in order to meet the organization’s goal of delivering product on time.

Data and Information Figure 1-3 Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory. Figure 1-3

SYSTEMS, DATA, AND INFORMATION The systems concept encourages integration (i.e., minimizing the duplication of recording, storing, reporting, and processing). Data are facts that are collected, recorded, stored, and processed by an information system. Organizations collect data about: Events that occur Resources that are affected by those events Agents who participate in the events

SYSTEMS, DATA, AND INFORMATION Information is different from data. Information is data that have been organized and processed to provide meaning to a user. Usually, more information and better information translates into better decisions.

SYSTEMS, DATA, AND INFORMATION However, when you get more information than you can effectively assimilate, you suffer from information overload. Example: Final exams week! When you’ve reached the overload point, the quality of decisions declines while the costs of producing the information increases.

SYSTEMS, DATA, AND INFORMATION Benefits of information - Cost of producing information Value of information Benefits of information may include: Reduction of uncertainty Improved decisions Improved ability to plan and schedule activities

SYSTEMS, DATA, AND INFORMATION Benefits of information - Cost of producing information Value of information Costs may include time and resources spent: Collecting data Processing data Storing data Distributing information to users

SYSTEMS, DATA, AND INFORMATION Benefits of information - Cost of producing information Value of information Costs and benefits of information are often difficult to quantify, but you need to try when you’re making decisions about whether to provide information.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance It reduces uncertainty by helping you predict what will happen or confirm what already has happened.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance Reliability It’s dependable, i.e., free from error or bias and faithfully portrays events and activities.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance Reliability Completeness It doesn’t leave out anything that’s important.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance Reliability Completeness Timeliness You get it in time to make your decision.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance Reliability Completeness Timeliness Understandability It’s presented in a manner you can comprehend and use.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance Reliability Completeness Timeliness Understandability Verifiability A consensus notion—the nature of the information is such that different people would tend to produce the same result.

SYSTEMS, DATA, AND INFORMATION Characteristics that make information useful: Relevance Reliability Completeness Timeliness Understandability Verifiability Accessibility You can get to it when you need it and in a format you can use.

SYSTEMS, DATA, AND INFORMATION Information is provided to both: External users Internal users

SYSTEMS, DATA, AND INFORMATION External users primarily use information that is either: MANDATORY INFORMATION—required by a governmental entity, such as Form 10-K required by the SEC; or ESSENTIAL INFORMATION—required to conduct business with external parties, such as purchase orders.

SYSTEMS, DATA, AND INFORMATION Internal users primarily use discretionary information. The primary focus in producing this information is ensuring that benefits exceed costs, i.e., the information has positive value.

Information Systems Are More Than Computers Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment. Figure 1-5

Business Processes and Information Systems The Order Fulfillment Process Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions. Figure 2-1

Types of Business Information Systems Systems from a functional perspective Sales and marketing systems Manufacturing and production systems Finance and accounting systems Human resources systems Systems from a constituency perspective Transaction processing systems Management information systems and decision-support systems Executive support systems Relationship of systems to one another

TRIVIA! What is the name of the first computer?

Management Information Systems: IS, Organization, & Strategy

Information Systems, Organizations, and Strategy 3 Chapter Information Systems, Organizations, and Strategy

Masalah Bisnis Manajemen Organisasi Sistem Informasi Solusi Bisnis Teknologi

Organisasi dan SI Saling mempengaruhi Faktor-faktor yang berperan: Lingkungan Budaya Struktur Proses Bisnis Politik Keputusan manajemn

Organizations and Information Systems Apa sebenarnya organisasi itu? Struktur yang stabil dan formal, menggunakan SD dan memprosesnya untuk menghasilkan output tertentu Struktur sosial karena kumpulan dari elemen sosial Gambaran organisasi harus sederhana namun kuat

Organisasi Input Output Proses Produksi Perubahan organisasi tergantung dari input dari lingkungan yang jelas mempengaruhi bentuk organisasi. Dimana input tersebut akan jelas tergambar di output ke lingkungan, sehingga semua yang terhubung akan paham mengenai organisasi tersebut. Proses Produksi

Ciri-ciri Organisasi Terdapat rutinitas dan proses bisnis Terdapat politik Budaya organisasi Lingkungan organisasi Struktur organisasi Memiliki tujuan

Hubungan antara Organisasi dan IT Figure 3-1

Lingkungan: Budaya: SO: Proses Bisnis: Politik: Keputusan Manajemen: Sumber daya (internal) organisasi Pemerintah Pesaing Pelanggan Kalangan akademis Budaya: SO: Proses Bisnis: Politik: Keputusan Manajemen:

Budaya: kekuatan yang mengikat siapa yang terlibat dalam organisasi SO: cerminan dari organisasi Proses Bisnis: kegiatan dalam perusahaan yang menunjukkan cara mereka berinteraksi dengan customer Politik:Dalam organisasi ada persaingan, pesaingan melahirkan politik dalam organisasi Keputusan Manajemen: cara manajemen mengambil keputusan

Pengaruh SI terhadap Organisasi dan Perusahaan Dampak Ekonomi: membantu menurunkan biaya Dampak terhadap organisasi: membantu meratakan organisasi Membantu proses desentralisasi karena pengetahuan dan informasi lebih tersebar Dengan adanya internet, organisasi mampu mengoptimalkan kinerjanya

Pengaruh Sistem Informasi ke Struktur Organisasi Dengan adanya SI maka bentuk SO yang kompleks bisa lebih sederhana Information systems can reduce the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lower-level employees more decision-making authority.

Porter’s Competitive Forces Model Traditional competitors New market entrants Substitute products and services Customers Suppliers

Porter’s Competitive Forces Model In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also by four forces in the industry’s environment: new market entrants, substitute products, customers, and suppliers. Figure 3-10

Berdasar Five Forces Model, perusahaan mampu menentukan fokusnya Low-cost leadership Product differentiation Focus on market niche Strengthen customer and supplier intimacy Dengan menentukan fokus maka perusahaan mampu membangun keunggulan kompetitif

Setelah mengetahui keunggulan kompetitive maka perusahaan dapat memilih sistem yang memberi nilai tambah

The Value Web Dengan membuat value web (jaring nilai) maka anda membangun sinergi, meningkatkan kompetensi inti dan strategi yang lebih baik The value web is a networked system that can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand.

Value Chain Nilai tambah dengan adanya value chain: Meningkatkan pengambilan keputusan Meningkatkan kinerja organisasai Meningkatkan profit perusahaan

Kesimpulan Menggunakan SI untuk menyelesaikan masalah organisasi, membantu membangun keunggulan strategik. Penerapan SI mengubah organisasi sehingga menimbulkan masalah baru Bila mampu mengatasi maka memunculkan keunggulan kompetitif

TASK Tugas summary sebelumnya dibatalkan Buat summary komprehensif Romney ch. 1-3 Minimal 1 halaman per bab! Tulis tangan di kertas folio bergaris Beri nama dan NIM yang jelas.