Overview of Information Technology Concepts Instructor: Prof. Ilyoo B. Hong Contents  Business environment and IT  Data Vs. information  Roles of IT in business corporations  What is MIS? Business environment & IT Innovations Obscelence EC Info. overload Global Competitive Changing workforce Powerful consumers Social responsib. Gov’t regulations Deregulations Ethics Organizations Information Technology Technological Market Society Data Vs. Information  Data – raw as collected – eg) ages or heights of students in class  Information – extracted from data – readily useful for decision-making or problem- solving – eg) mean or median of students’ ages or heights Roles of IT in business firms  Improvement of operational efficiency – automates routine operations  Improvement of responsiveness – reduces ‘time to market’ by shortening the product development cycle – reduces manufacturing costs  Support of supply chain – improves inventory management – provides information of strategic value What is MIS?  the computer and communications technology that supports business operations and management of a firm  an integrated, computer-based, interactive system that provides information to support operations and decision-making  can collect, process, store, analyze, and disseminate information for a specific purpose Strategic Planning Tactical Control Operational Control Top Management Middle Management Low-level Mgmt Sales/ Mkt. Mfg. Financial Mgmt. Acct. Personnel Mgmt. Business Functions & Management Levels  TPS (Transaction Processing Systems): process transaction data  IRS (Information Reporting Systems): provide information for mgmt.  DSS (Decision Supporting Systems): supports mgmt decision making  ES (Expert Systems): solve problems by mimicking experts  EIS (Executive Information Systems): provide info for executives  OAS (Office Automation Systems): support knowledge workers  SIS (Strategic Information Systems): create a competitive edge  GDSS (Group Decision Support Systems): support electronic meetings How IS Have Evolved Unit 2. Strategic Use of IT Instructor: Prof. Ilyoo B. Hong No. 1 정보기술의 전략적 활용  Contents ● Business Environment and Competitive Strategy - Competitive forces model as an industry analysis framework - Generic strategies - Value chain analysis model ● What is a Strategic Information System(SIS)? - The SIS concept - Using IT to create a competitive edge ● SIS and Generic Strategies - Implementing the cost leadership strategy - Implementing the differentiation strategy - Implementing the focus strategy ● SIS and Value Chain Analysis (VCA) [...]... competition, the slimmer the profit potential a firm expects 정보기술의 전략적 활용 No 3  Traditional Vs Strategic Information Systems ● Traditional Information Systems - - ● Focuses on improving operational efficiency e.g., transaction processing systems Strategic Information systems - Uses information systems as a competitive weapon, beyond the efficiency focus - Centers on creating a competitive edge by weakening... airline reservation system - Uses leased lines between UA and travel agencies - A travel agent can use a terminal to access seat reservation and flight information - UA manipulated the way travel agents access information such that information on their flights will be more visible than information on their competitors - Value for customer: convenient access to reservation and flight information - Value... than divided, specialized, or fragmented Work integration makes it possible to respond to external changes more rapidly Centralize resource management - ● Centralized resource management can increase efficient utilization of resources and reduce the costs of resource management Focus on concurrent processing of tasks - - Strengthen the ties among sequential functions, and process functions concurrently... opportunities to use IT via VCA Corp Infra (groupware, email, OA system) Support activitie s HRD (performance DB; distance learning) Technology Development (CAD) Procurement (JIT, EDI) Primary activities Inb Log (JIT, EDI, email) Oper (CAD/ CAM, CIM) Outb Log (EDI) Profit Service Marketing and sales (wireless DB tracking) (DSS) Use of an information technology to support a certain value activity can... Bottom-up Top-down Typical Scope Narrow, within functions Broad, cross-functional Risk Moderate High Primary Enabler Statistical control Information technology Type of Change Cultural Cultural/structural [Source: Davenport, Thomas H Process Innovation: Reengineering Work through Information Technology, Boston, MA: Harvard Business School, 1993] No 1  What is Reengineering? ● Often referred to as BPR(Business... United Air’s APOLLO Competitors’ 경쟁사 ARS 예약시스템 flight, reservation, seat layout info APOLLO Tr agent Tr agent Tr agent Tr agent Tr agent Tr agent APOLLO’s role  Limiting information access by competitors  Controlling  Analyzing information access by travel agents routes/fares of competitors 정보기술의 전략적 활용 Impacts on firms/industry  Creating a competitive edge for SIS innovator  Causing some competitors... reengineer Choose the right target process Consuming excessive amount of time in analyzing the existing process Promptly understand the old process according to the time plan Absence of strong management leadership Management should lead the changes of process and organization Process redesign in a small scale Pursue innovative process redesign in a large scale Trying to implement a new process immediately... the organizational system including organizational structure and jobs Unrealistic implementation of process change Implement the new process promptly, instantaneously, and repetitively No 8 Internet & Digital Economy         What is Internet? What is Electronic Commerce? A Framework for EC Benefits of EC Categories of EC Applications Internet Shopping Malls Electronic Payment Systems Agent Technology... http://www.wp.com/CYBERPAGE/ 5.Electronic Information Services 1) Subscription-Based http://www.espnnet.com/; http://www.mids.com/ 2) Non Subscription-Based http://www.disneychannel.com/ 3) Local/Regional Broadcast Stations (TV/Radio) http://www.kzps.com/kzps; http://www.kxas.com/ Electronic Commerce  EC is defined as the buying and selling of products, services, and information via computer networks, including... create a competitive advantage ● Creating switching costs - - ● Weakens the bargaining power of buyers e.g., branchless virtual bank in France (Bank customers get locked in) Shift in balance of power via information monitoring - Weakens the bargaining power of suppliers - e.g., the dept store that uses a computer network to monitor prices and stock levels and make purchase decisions ● Building entry barriers . Strategic Information Systems ● Traditional Information Systems - Focuses on improving operational efficiency - e.g., transaction processing systems ● Strategic Information systems - Uses information. experts  EIS (Executive Information Systems): provide info for executives  OAS (Office Automation Systems): support knowledge workers  SIS (Strategic Information Systems): create a competitive. transaction data  IRS (Information Reporting Systems): provide information for mgmt.  DSS (Decision Supporting Systems): supports mgmt decision making  ES (Expert Systems): solve problems