Emergence of the global economy: The success of firm today and in the future depends on their ability to operate globally Today information system provides the communication and analytic power that firm needs for conducting trade and managing business on a global scale. Globalization and IT also brings new threats to domestic business firm. Because of global communication and management system customers now can shoo in a worldwide mar!et place obtaining price and "uality information reliably #$ hrs a day. To obtain competitive participants in international mar!et firms need powerful information and communication systems. #. Transformation of industrial economies: The %& 'apan Germany and other ma(or industrial powers are being transformed from industrial economies t !nowledge and information based service economies whereas manufacturing has been moving to low)wage countries. *nowledge and information wor! new accounts for large percentage of people in developed countries. *nowledge and information are becoming the foundation for mainly new services and products !nowledge and information intense products such as computer games re"uire a great deal of !nowledge to produce. In a !nowledge and information based economy information technology and systems ta!e on great importance !nowledge based products and services of great economic value such as credit cards overnight pac!age delivery and worldwide reservation systems are based on new information technology. Information systems are needed to optimize the flow of information and !nowledge within the organization and to help management ma+imize the firm,s !nowledge resource. Because employees productivity depends on the "uality of the system,s serving them management,s decisions about IT are critically important to the firm,s prosperity and survival. -. Transformation of business enterprise: The traditional business firm was and still is a hierarchical centralized structured structured arrangement of specialist that typically relies on a fi+ed set of standard operating procedures to deliver a master)produced product .or services/.the new style of the business firm is a flattened.less hierarchical/ decentralized fle+ible arrangement of generalist who rely on nearly instant information to deliver mass)customized products and services uni"uely suited to specific mar!ets or customers The traditional management globe relies and still relies on formal plants or rigid division of the labor and formal rules. The new manager relies on informal commitments and networ!s to establish goals rather than formal planning a fle+ible arrangement of teams and individuals wor!ing in tas! forces and a customer orientation to achieve coordination among employees. The new manager appeals to the !nowledge learning and decision ma!ing of individual employees to ensure proper operation of the firm. Information technology ma!es this type of management possible.

$. The emerging digital firm: Intensive use of information technology in business firms since mid)1001 coupled with e"ually significant organization re)designed has created the conditions for a new phenomenon I industrial society called the fully digital firm. The digital firm can be defined along several dimensions. 2 digital firm is one where all of the organization,s significant business relationships with customers suppliers and employees are digitally enabled and mediated core business processes are accomplished through digital networ!s spanning entire organization or lin!ing multiple organizations. Business processes refer to the uni"ue manner in which wor! is organized coordinated and focused to produce a valuable product or services. 3eveloping a new product generating and fulfilling an order or hiring an employee are e+amples of business processes and the way organizations accomplish their business processes can be a source of competitive strength. In a digital firm any piece of information re"uired to support !ey business decisions is available at anytime and anywhere in the firm. 3igital firms sense and respond to their environment for more rapidly than traditional firms. 3igital firms offer e+traordinary opportunities for more global organization and management. 4or manager,s of digital firms information technology is not simply a useful handmaiden an enabler but rather it is the core of the business and primary management tool. There are four ma(or system that help define the digital firm: 1. &upply chain management system #. 5ustomer relationship management system -. Enterprise system $. *nowledge management systems

These four systems represent the areas where cooperation are digitally integrating their information flows and ma!ing ma(or information system investment. 2 few firms such as 5isco systems or 3ell computer cooperation are close to becoming fully digitl firms using the internet to drive every aspect of their business.

1. &upply chain management system: Information system that automate the relationship between a firm and its supplies in order to optimize the planning sourcing manufacturing and delivery of products and services. #. 5ustomer relationship management system: Information systems for creating a coherent integrated view of all the relationships a firm maintains with its customers.

1 4ig: 4unctions of an information system 2n information system contents information about an organization and its surrounding environment.-. Three basic activities 7 input processing and output produce the information organization needs feedbac! is output returned to appropriate people or activities in the organization to evaluate and refine the input environment factors such as customers suppliers competitors stoc! holders and regulatory agencies interact with the organization and its function. $. &uppliers Environment :rganization Information system Inputs 9rocessing 5lassify 2rrange calculate 4eedbac! 8egulatory agencies 5ompetitors :utput 5ustomers &toc!holder 1.6. *nowledge management system: &ystems that support the creation capture storage of !nowledge in the firm and use by the firm e+pertise. . Enterprise system: Integrated enterprise) wide information systems that coordinate !ey internal processes of the firm integrating data from manufacturing and distribution finance sales and human resources.

decision ma!ing Business value 1.prenhall.# 4ig: The business information value chain 4rom business perspective information systems are part of a value adding activities for ac"uiring transformation and distributing information that managers can use to improve decision ma!ing enhance organizational performance and ultimately increase firm profitability and strategic position.com?laudon .6. Integrating te+t with technology: =ew opportunities for learning >www. 9rocessing activities 9lanning coordinating controlling <anagement activities modeling . Business system 3ata collect ion and storag e &upply customer enterprise chain mgmt mgmt mgmt !nowledge mgmt 3i ss e mi na tio n 4irm profitability and strategic position Info.Information system Business 9rocess Transfor matin Info.

@ 5ontemporary approach to information system Technical approach 5omputer science 8esearch :perations <anagement &cience sociology <I& 9sychology Technical 2pproach: Economics Behavioral approach ..4ig: Information systems are more than computers %sing information systems effectively re"uires an understanding of the organization management and information technology shaping the systems. 2ll information systems can be described as organizational and management solutions to challenges posed by the environment that will help create value for the firm. 1.6.&.:rganisation Technology I. <anagement 1.

Economist study information system with an interest in what impact systems have on control and cost structures with the firm and within mar!ets. Behavioral approach: It is concerned with behavioral issues that arise in the development and long term maintenance of information system. :perations research focuses on mathematical techni"ues for optimizing selected parameters of organization such as transportation inventory control and transaction cost. 9sychologist study information system with an interest in how human decision ma!ers perceive ad use formal information. The globalization challenge -. Behavioral approach does not ignore technology indeed information systems technology is often the stimulus for a behavioral problem or issues. 5omputer science is concerned with establishing theories of computability methods of computation and methods of efficient data storage and access. Issues such as strategic business integration design implementation utilization and management cannot be e+plored usefully with the models used n technical approach. 4ocus of behavioral approach is generally not on technical solutions instead it concentrates on attitudes management and organizational policy and behavioral. The information architecture and infrastructure challenge $. &ociologist study information systems with an eye towards how groups and organizations shape the development of the system and also how system affects individuals groups and organizations. The information system investment challenge 6. The challenges of I&: 1. The strategic business challenge #. <anagement science emphasis the development of models for decision ma!ing and management practices.It emphasis mathematically based models to study information system as well as the physical technology and formal capabilities of these system. :ther behavioral contribute important concepts and methods such as sociology psychology economics. The responsibility and control challenge . The disciplines that contribute to technical approach are computer science management science and operation.

1. The responsibility and control challenge: )how can organizations ensure that their information systems are used in an ethically and socially and responsible mannerB 4IG: page 1. )despite heavy information technology investment organizations are not realizing significant business value from system nor are they becoming digitally enables. &ystem investment challenge: )how can organization determine the business value of information systemB 6. $. The strategic business challenge: ) 8ealization the digital firm: Aow can business use information technology to become competitive effective and digitally enabledB )creating a digital firm and obtaining benefits is a long and difficult (ourney for most organization.*ey challenges: . The globalization challenge: )how can firms understand the business and system re"uirements of global economic environmentB -. The information architecture infrastructure challenge: )how can organization develop an information architecture and information technology infrastructure that can support their goals when business conditions and technologies are changing so rapidly. The info. #.

. Types of I& 1.s relations with e+ternal environment.# integrating functions and business process: introduction to enterprise applications #.e..1 ma(or types of systems in organizations: T9& <I& 3&& E&& #. T9& . E+amples are sales order entry hotel reservation system payroll employee record !eeping etc.1. 4IG: types of information systems.6.1 8elationship of systems to one another #.1.Transaction processing system/:) T9& are the basic business systems that serve the operational level of the organization.# &ystems from functional perspectives #.6.6 :verview of enterprise applications #. re"uired by the other system which in turn produce information for each other systems.T9& are also measure producers of information for the other type of system. T9& are ma(or producers of information .1 :verview of enterprise systems #.5hapter # <anagement Information system #.1.i. <anagers need T9& to monitor the status of internal operations and firm. 4IG: interrelationship among systems The various types of systems in the organization have interdependencies. These different types of systems are only loosely coupled in most organizations..&ales and mar!eting manufacturing and production system finance and accounting system human resource system #.# :verview of supply chain management systems 4IG: types of information systems :rganizations can be divided into strategic management !nowledge and operational levels and into 6 ma(or functional areas) sales and mar!eting manufacturing finance accounting and human resource information system serve each of these levels ad functions.$systems for enterprise)wide process integration #.businesses process and I& #. 2 T9& is a computerized system that performs and records the daily routine transactions necessary to conduct business.

Typically they are oriented almost e+clusively to internal not environmental or e+ternal events.<I& usually serve manager. &ales and mar!eting system #. 3&& have more analytical power than other systems.s current performance and historical records. 3ecision support system:) It is the information system at the organizations management level that combines data and sophisticated analytical models or data analysis tools to support semi)structured and unstructured decision ma!ing. It summarizes and report on the company. E&& . *nowledge wor!s system aid !nowledge wor!ers whereas office systems primarily aid data wor!ers. 4inance and accounting system .s interested in wee!ly monthly and yearly results not day to day activities.s office or to a board room. <I& serve the management level of organization as stated above with online access to the organization. > according to functions or behavior I& can be divided into following types:) 1. 3ata wor!ers typically have less formal advanced educational degrees and tend to process rather that create information. <I&:) It is the information system at the management level of an organization that serve the functions of planning controlling and decision ma!ing by providing routine summary and e+ception reports.E+ecutive support system/:) It is the information system at the organizations strategic level designed to address unstructured decision ma!ing through advanced graphic and communication. -. They filter compress and trac! critical data emphasizing the reduction of time and effort re"uired to obtain information useful to e+ecutives.<I& depends on T9& for their data. there (obs consists primarily of creating new information and !nowledge. *nowledge wor!ers are people who hold formal university degrees who are often members of recognized profession such as engineers doctors lawyers scientists etc. 6.#.s basic operations. E&& are designed to incorporate data about e+ternal events such as new ta+ laws and competitors. 6. 3&& use internal information from T9& and <I& they often bring information from e+ternal sources such as current stoc! prices or product prices of competitors.*nowledge wor! system/ and office systems: *C& and office systems serve the information needs at the !nowledge level of organization. They consist primarily of secretaries boo!)!eepers filing cler!s or managers hose (ob are principally to use and manipulate information. It is an interactive system in which user can change assumptions as! new "uestions and include data. <anufacturing and production system -. *C& . E&& employs the most advanced graphic software and can deliver graphs and data from many sources immediately to a senior e+ecutive.

<anufacturing and production system: The manufacturing and production functions responsible for actually producing the firm. <ar!eting is concerned with identifying the customers for the firms products or services determining what they need or want planning and developing products and services to meet their needs and advertising and promoting these products and services. 3etermine prices for products and services. E+ample &ystem :rder processing <ar!et analysis 3escription Enter process and trac! orders. Auman resource management system 1. <anufacturing and production system deal with the planning development and maintenance of production facilitiesD the establishment of production goals the ac"uisition storage and the availability of production materialsD and scheduling of e"uipment facilities materials and labor re"uire to fashion finished products. &ales and mar!eting:) The sales and mar!eting function is responsible for selling the organizations product or service.s goods and services.$. Identify customers and mar!et using data on demographics mar!ets customer behavior and trends. . &ales are concerned with contacting customers selling the products and services ta!ing orders and following up on sales. <anufacturing and production information system support these activities. &ales and mar!eting information system support these activities. 9repare 6)year sales forcast :rganizational level :perational level *nowledge level 9ricing analysis <anagement &ales trend forecasting strategic #.

<anagement 4acilities location strategic -. The accounting function is responsible for maintaining and managing the firm.s portfolio of investment.s financial assets and fund flows. In order to determine where the firm is getting the best returns on its investment the finance function must obtain a considerable amount of information from sources e+ternal to the firm. 4inance and accounting information system !eep trac! of the firm. 4inance and accounting share related problems such as how to !eep trac! of firm.523/ *nowledge 9roduction planning 3ecide when and how many products should be produced 3ecide where to locate new production facilities. strategic . financial assets such as cash stoc!s bonds and other investments in order to ma+imize the return on these financial assets. 4inance and accounting system:) The finance function is responsible for managing the firms. 3esign new products using the computer :rganizational level :perational 5omputer) aided design.s financial assets and fund flows. 9repare short term budgets *nowledge Budgeting <anagement 9rofit planning 9lan long term profit. &ystem 2ccounts receivable 3escription Trac! money owed the firm :rganizational :perational 9ortfolio analysis 3esign the firm.&ystem <achine control 3escription 5ontrol the actions of machine and e"uipment. The finance function is also in charge of managing the capitalization of the firm .finding new financial asset in stoc!s bonds or other form of debts/.s financial records)receipts depreciation payroll to account for the flow of funds in a firm.

page ##/ In most organizations separate systems built over a long period of time support discrete processes and discrete business functions. 9lan the long term labor force needs of the organization. &ystem Training and development 3escription Trac! employee training s!ills and performance appraisals. <onitor the range and distribution of employee wages salary and benefits. Auman resources information systems support activities such as identifying potential employees maintaining complete records on e+isting employees and creating programs to develop employee.9age no: #-/ . Auman resource management:) The human resource function is responsible for attracting developing and maintaining the firm. Integrating function and business process:) 4unctional area <anufacturing and production &ales and mar!eting Business process 2ssembling the product chec!ing for "uality bills of materials.s (ob performance enrolling employees in benefits plan. 3esign career paths for employees. Airing employee. :rganizational level :perational 5areer pathing *nowledge 5ompensation analysis <anagement Auman resource planning &trategic 4IG: traditional view system .6. 4inance and accounting Auman resource 4IG: the order fulfillment process . 9aying creditors creating financial statements managing cash accounts. Identifying customers ma!ing customer aware of the product selling the product.s talent and s!ills.s evaluating employee.s wor!force.

-. The upstream portion of supply chain includes the organizations suppliers and their suppliers and the processes for managing relationship with them. The supply chain is a networ! of an organizations and business processes for procuring materials transforming raw materials into intermediate and fnished products and distributing the finished products to customers.page no: #-/ Enterprise system can integrate the !ey business processes of an entire firm into a single software system that allows information to flow easily throughout the organization. Enterprise systems also !nown as enterprise resource planning . The enterprise systems collects data from various !ey business processes and stores the data in a single comprehensive data repository where they can be used by other parts of business. Benefits of enterprise systemB 5hallenges of enterprise systemB 4IG: a supply chain . Enterprise system provide a technology platforms here organization can integrate and coordinate their ma(or internal business processes. <ost of these systems are built around different functionsD business units and business processes that do not tal! to each other. They address the problem of organizational inefficiencies created by isolated island of information business processes and technology.Generating and fulfilling an order is a multistep process involving activities performed by the sales manufacturing and production and accounting function. <anagers emerge with more precise and timely information for coordinating the daily operations of the business and firm)wide view of business processes and information flows.E89/ systems solve the above mentioned problem by providing a single information system for an organization) wide coordination of !ey business processes. The supply chai includes reverse logistics in which retured items flow in the reverse direction form the buyers bac! to the sellers. 4IG: enterprise system . <anagers might have a hard time assembling the data they need for a comprehensive overall picture of the organizations operations. The downstream portion consists o the organization and processes for distributing and delivering products to their final customers. The products are shipped to distribution centers and from there to retailers and customers. 2 large organization typically has many different !inds of information systems that support different !inds of information systems that support different functions organizational levels and business processes. :rganizations and information systems . These systems focus primarily on the internal processes but may include transactions with customers and vendors.9age #6/ The above figure illustrates the ma(or entities in the supply chain and the flow of information upstream and downstream to coordinate the activities involved in buying ma!ing and moving a product suppliers transform raw materials into intermediate products or components and then manufacturers turn them into finished products.

1 Chat is an organizationB -. 2n organization is more stable than informal groups in terms of longevity and routineness. 4IG: the behavioral view of organization . In this behavioral view of firm people who wor! in organizations develop ways of wor!ingD they gain attachments to e+isting relationshipD and they ma!e arrangements and subordinates and superior about how wor! will be done how much wor! will be done and under what condition. The firm is seen as infinitely moveable with capital and labor substituting for each other "uite easily.the firm/ transforms these inputs into products and services in a production function.. Information system must be aligned with the organization to provide information that important groups within the organization need. 2t the same time the organization must be aware of and be open to the influences of information systems in order to benefit from new technologies. But the more realistic behavioral definition of an organization suggest that building new information systems or rebuilding old ones involves more than a technical rearrangement of machines or wor!ers) thata some information system that change the organizational balance of rights privilege obligations responsibilities and feeling that have been established over a long period of time. This technical definition focuses on three elements of an organization. :rganizations are also socio structures because they are a collection of social elements.-.page #@/ Information systems and organizations influence one another. Chat is an organizationB 4IG: technical microeconomic definition of organization . The interaction between IT and organizations is very comple+ and is influence by a great many mediating factors including organizations structure standard operating procedure politics culture surrounding environment and management decisions.page #E/ 2n organization is a stable formal social structure that ta!es resources from the environment and processes them to produce outputs. Aow do these definitions of organization relate to information system technologyB 2ns: a technical view of organizations encourages us to focus on the way inputs are combined into outputs when technology changes are introduced into the company. 5ommon features of organizations .uni"ue features of organization 4IG: relationship between an organization and IT .9age #F/ 2 more realistic behavioral definition of an organization is that it is a collection of rights privilege obligations and responsibilities that are delicately balanced over a period of time through conflict and conflict resolution. :rganizations are formal legal entities with internal rules and procedures that must abide by laws. 5apital and labor are primary production factors provided by the environment. The products and services are consumed by the environment in return for supply inputs. The organization .# common features of organizations -.

:rganizations arrange special hierarchy of authority in which everyone is accountable to someone and authority is limited to specific actions. motor company .standard operating procedure . The organization is devoted to the principle of efficiency: ma+imizing output using limited inputs.// that are interpreted and applied to specific cases. 3ivisionalized bureaucracy)Hcombination of multiple machine bureaucracies.g. E.)clear division of labor )hierarchy )e+plicit rules and procedures )impartial (udgments )technical "ualifications for positions )ma+imum organization efficiency 2ccording to <an Ceber all modern bureaucracies have a clear cut division of labor and specialization.61 8s. In addition to Ceber.s common features all organizations develop &:9 organizational politicis and organizational culture %ni"ue features of organizations :rganizational Type Environment Goals 9ower 5onstituencies 4unction Geadership Tas!s Technology Business processes :rganizational type 1. Entrepreneurial type)H small start up business. :rganizations try to hire and promote employees on the basis of technical "ualifications and professionalism . #. These rules create a system of impartial and universal decision ma!ingD everyone is treated e"ually.not personal connection/. <achine bureaucracy)Hmiddle size manufacturing firms -. 2uthorities and actions are further limited by abstract rules and procedures .

&uch as amazon. The three ma(or electronic commerce catagories are as above: 1. -.com hamrobazar.com 2nother way of classifying electronic commerce transaction is in terms of participants physical connection to the web. The nature of leadership differs greatly from one to another organizations.universities religious groups /.g.com #. milepro. 4or e. There are many ways in which electronic commerce transactions can be classified. $. :n the basis of the nature of participants in the electronic commerce transaction. direct sale over the web: <anufacturers can sell their products and services directly to retail customers by passing intermediaries such as distributors or retail outlets.business/ others have normative goods . %ntil recently almost all e)commerce transactions too! place over wired networ!s. :rganization also serve different groups or have different constituencies some primarily benifiting their members others benifiting clients stoc! holders or the public. =ow cell phones and other wireless handled digital applications are internet enabled so that they can be used to send email or access websites.com do not have large e+penditures for rent sales staff and the other operations . E. &ome organizations may be more democratic than others. E.$. ebay.E. amazon. &ome organization perform primarily routine tas! that could be reduced to formal use that re"uire little (udgement. B#B : B#B involves retailing products and services among business. They differ in their ultimate goals and the types of power used to achieve them some organizations have utilitarian goals . customer centered retailing $. Eliminating intermediaries in the distribution channel can significant lower purchase transaction cost operators of virtual storefront.g. Business to consumer: B#c involves relting products and services to individual shappers or consumers.g. 5#5: 5#5 involves consumer selling directly to consumer. 2nother way organization differ is by tas! they perform and the technology they use.com is a website for selling cutting tools grinding wheels and metal wor!ing fluits to more than 111111 small machine business.com games and nobel.@. 2dhocracy)Hconsulting firms :rganizations have dfferent shapes or structure for many other reasons. The use of handled wireless devices for purchasing goods and services is called mobile commerce or m)comerce. 9rofessional bureaucracy)Hintellectual firms: schools college law firms 6.

5an be tied to internal corporate systems and core transactions database. 9ersonalization can also help firms form lasting relationship with customers by providing individualized content information and services. 2irlines can sell tic!ets directly to passengers through their own websites or through travel sites without paying commissions to travel agents. Internal corporate application based on the web page model can be made interactive using a variety of media te+t audio and video. 8educed information distribution cost .associated with a traditional retail store. By using web personalization technology to modify the web pages presented to each other mar!eters can achieve the benefit of using individual sales people at dramatically lower cost. 8icher more responsible information environment E.F. The removal of organizations or business process layers responsible for intermediary teps in a value chain is called disintermediation.11 how intranets support electronic businessB Intranets can help organizations create a richer more responsiveness information environment. interactive mar!eting and personalization: <ar!eters can use the interactive web pages to hold consumers attention or to capture detail information about their taste and interest for one to one mar!eting. 5ustomer self service: <any companies are using their websites and emails to answer customer "uestion to provide customer with helpful information. :rganizational benefits of intranet 1. $. 2utomated self service or other web based responses to customer "uestions cost a fraction of the price using a customer service representative on the telephone. &ome customer information may be obtained by as!ing visitors to register online and provide information about themselves but many companies are also collecting information by using the software tools that trac! the activities of website visitors. The process of shifting the intermediary function in a value chin to a new source is called reintermediation. $. 2 principle use of intranets has been to create online repositories of information that can be updated as often as re"uired. 5an create interactive applications with te+t audio and video $. -. The web provides a medium through which customers can interact with the company at the customers convenience and find information that previously re"uire a human customer) support e+pert. Easy to use universal web interface 6. 4IG: $.0. Gow start up cost @.now software products are even integrating the web customer call centers where customer service problems have been traditionally handled over the telephone. 5onnectivity: accessible from most computing platforms #.

Chy do firm need to integrate their business processesB 6. Chat are the ma(or managerial and organizational challenges posed by electronic business and electronic commerceB . Chat are the ma(or types of systems in a businessB Chat role do they playB #. Chat are the benefits of using information system to support &5<B 2ssignment -: 1. Aow can internet technology facilitate management and coordination of internal business process and supply chain managementB 6. Chat do managers need to !now about organizations in order to build and use information systems successfullyB #. Chat impact do information systems have an organizationB -. Chat are the principal payment systems for electronic commerceB $. Chy is it difficult to build successful information sytems including system that promote competitive advantageB 2ssignment $: 1.2ssignment #: 1. Aow can business use information system for competitive advantageB 6. Chat are the benefits and challenges of using enterprise systemB @. Chy should managers pay attention to business processesB $. Aow do information systems support the activities of managers in organizationsB $. Aow do information system support the ma(or business functions: sales and mar!eting manufacturing and production finance and accounting and human resourcesB -. Chat is electronic commerceB Aow has electronic commerce changed consumer retailing and business to business transactionB -. Aow has internet technology changed value proposition and business modelsB #.

5hanges in firm.# lin!ing information systems to business plan 3eciding which new system to build should be essential component of the organizational planning process.redesigning the organization with information systems. system as planned organization change: 2n information system is a socio)technical entity an arrangement of both technical and social elements the introduction of a new information system involves more than new hardware and software.5hapter 6 6.members/ of the organization participate in the design process and are permitted to influence the systems ultimate shape. Builders must also consider how the nature of wor!group will change under the new system. 2/ 9urpose of the plan 1. :verview of plans content #.s current situation -. In socio technical philosophy one cannot install new technology without considering the people who must wor! with it when we design a new information system we are re)designing organization. 4irm. 6. :nce specific pro(ects have been selected within the overall conte+t of a strategic plan for the business and the system area an information system plan can be developed.s strategic plan $. The plan serves as a road map indicating the direction of the systems development the rationale the current situation the management strategy the implementation plan the budget etc Aow to develop an information system planB 2 good information systems plan should address the following topics. :rganizations need to develop an information system plan that supports their business plan. It also include changes in (obs s!ills management and organization. 2nalyst and designers are responsible for ensuring that !ey participants . 5urrent business organization and future organization . 6.1. :ne important thing to !now about building a new information system is that this process is one !ind of planned organizational change. &ystem builders must understand how a system will affect the organization as a whole focusing particularly on organizational conflict and changes in the locus of decision ma!ing.

current infrastructure capabilities ) hardware software ) database -. organizational realignment $. ac"uisition plans #. <anagement strategy B/ strategic business plan 1. management control @. ma(or goals of the business plan 5/ current systems. anticipated future demands 3/ new developments 1. 1. milestone and timing -. current situation #. changing environment $. current business organization -. ma(or system supporting functions and processes #. new system pro(ects ) pro(ect descriptions and business rationale #. ma(or training initiatives E. personal strategy 4/ implementation plan . new infrastructure capabilities re"uired ) hardware software ) database ) telecommunication and internet E/ management strategy 1. *ey business processes @. difficult meeting business re"uirement $. internal reorganization 6.6.

2n important premise of the strategic analysis approach is that there are a small number of ob(ectives that managers can easily identify and on which information systems can focus. If these goals are obtained the firm or organization. The central method used in the enterprise analysis approach is to ta!e a large sample of managers and as! them how they use information where they get information what their environments are li!e what their ob(ectives are how they ma!e decisions and what their data needs are. e+pensive to collect and difficult to analyze. Enterprise analysis can help to identify the !ey entities and attributes of organizations data.s success is assured 5&4s are shaped by the industry the firm the manager and the business environment.1.critical success factor/: 4ig. &trategic analysis . potential savings -.csf/ of managers. Two principle methodologies for establishing the essential re"uirements of the organization as a whole are enterprise analysis and strategic analysis. anticipated difficulties in implementation #.using csf to develop systems/ The strategic analysis or critical success factor approach argues that ana organization.e. ac"uisition cycle Establishing organizational re"uirements 4or an effective information system plan the organization must have a clear understanding of both its long and short term information re"uirements.business system planning/: Enterprise analysis argues that the firm information re"uirement can only be understood by loo!ing at the entire organization in terms of organizational units functions processes and data elements. <ost of the interviews are conducted with senior or middle managers but there is little effort to collect information from clerical wor!ers and supervisory managers. financing $.s information system re"uirement are determine by a small number of critical success factor. The wea!ness of enterprise analysis is that it produces an enormous amount of data i. re"uirements #. . 3ata elements are organized into logical application groups) groups of data elements that support related sets of organization process. #. 1. The result of this large survey of managers are aggregated into sub units functions processes and data matrices. progress plan G/ budget re"uirement 1. Enterprise analysis .

g. ) . Cor!flow management: The process of stream lining business procedures so that documents can be moved easily and efficiently is called wor!flow management. The strength of the csfs method is that it produces a smaller data set to analyze then enterprise analysis. &ome of these system pro(ects represents radical restructuring of their business processes whereas other in tail more incremental change. <any companies today are focusing on building new information system that will improve their business processes.The principle methods used in csf analysis is personal interviews) . %nli!e enterprise analysis the csf method focuses organizational attention how information should be handled. Then systems are built to develop and deliver information of these csf. This restructuring of their business processes is called business process re) engineering. The 5&4 method ta!es into account the changing environment with which organization and managers must deal. This method is especially suitable for top management and for the development of 3&& and E&&. E. Business process re)engineering and process management.$. ) ) The organization IT infrastructure should have capabilities to support business processes changes that span boundaries between functions business units or firms.s csf. if the ob(ective of process redesign is to reduce time and cost in developing a new product or filling an order the organization needs to measure the time and cost consumed by the unchanged process. The ma(ority of re)engineering pro(ects do not achieve brea! through gains in business performance. IT should be allowed to influence process design from the start. :nly top managers are interviewed and the "uestions focus on the small no of csfs rather than a broad en"uiry into information is used or needed. &teps in effective re)engineering: ) ) ) &enior management needs to develop a broad strategic vision that calls for redesigned business process 5ompanies should identify a few core business processes to be redesigned focusing on those with the greatest potential paybac! and strategic value <anagement must understand and measure the performance of e+isting processes as a base line. 4ollowing these steps it does not automatically guaranteed that re)engineering will always be successful.or $ with a number of top manager to identify their goals and the resulting csf. 6. These personal csf are aggregated to develop a picture of the firm.

Increase the precision of production 6. :rganizations are re"uired to ma!e business change that span organizational boundaries and stand to derive substantial benefits from re)engineering inefficient inter) organizational process. the system development process/ Each of the organizations development activities entails interaction with the organization. #.@. &i+ sigma: 2 specific measure of "uality representing -. &implifying the products or the production process #. 4ear of changes develops resistance confusion and even conscious effort to undermine the change effort. 'oint design of inter organizational process by two different business or companies is called I) engineering and it will be more challenging to implement successfully than re) engineering processes for a single company. TJ< . <anaging change is neither simple nor intuitive. Improve the "uality and precision of the design @. 8educe consumer demands as a guide to improve products and services $. 9rocess improvement ) ) 1. Today digital firm environment involves much closer coordination of a firm business process with those of customers suppliers and other business partners then in the past.$ defects per millions opportunitiesD used to designate a set of methodologies and techni"ues for improving "uality and reducing cost. :verview of system development system analysis design 4IG. The scope of re)engineering pro(ects had widened adding to their comple+ity.total "uality management/ 2 concept that ma!es "uality control a responsibility to be shared by all people in an organization. Benchmar!ing: setting strict standards for products services or activities and measuring organizational performance against those standards.6. &ystem development: . 6.) 2 re)engineered business process or a new information system inevitable affects (obs s!ill re"uirements wor! flows and reporting relationships. -. 8educe cycle time 6. Aow the I& support "uality improvementsB 1.

The activities that go into producing and information systems solution to an organizational problem or opportunity are called system development. In addition to these organizational aspects the analyst also briefly describes the e+isting hardware and software that serve the organization. &ystem development is a structured !ind of problem solving with distinct activities. #. &ystem design: It details how a system will meet the information re"uirements as determined by the system analysis. 1. 4easibility study: The system analysis would include a feasibility study to determine whether that solution was feasible or achievable from a financial technical and organizational stand point. But some of the activities may need to be repeated or some way be ta!ing place simultaneously depending on approach to system building i. The feasibility study would determine whether the porposed system was a good investment whether the technology needed for the system was available and could be handled by the firms information systems specialist and whether the organization could handle the changes introduced by the system. 5ompleting system development process -. 9rogramming: The process of translating the system specifications prepared durng the design stage into program code. =ote that each activities includes interaction with organization.e.data flow diagram/ E8 diagram decision table decision tree structured. Information re"uirement: 2 detailed statement of the information needs that a new system must satisfyD identifies who needs that information when that information is needed where and how the information is needed. It consists of defining the problem identifying its causes specifying the solution and identifying the information re"uirements that must be met by a system solution. being employed. The system analyst creates a road map of the e+isting organization and systems identifying the primary owners and users of data in organization. These activities consist of system analysis system design programming testing conversion and production and maintenance. &2:)H343 . =ormally the system analysis process will indentify several alternative solutions that the organization can pursue. These activities usually ta!e place in a se"uential order. Generally it is the role of a system analyst to perform these (obs. . &ystem analysis: The analysis of a problem that the organization will try to solve with an information system.

3irect cutover: 2 ris!y conversion approach where the new system completely replaces the old one on an appointed day. &ystem testing: Test the functioning of the information system as a whole in order to determine if descrete will function together as planned. Types : 1. 2cceptance testing: 9rovides the financial certification that the system is ready to be used in production setting. 9ilot study: 2 study to introduce a new system to a limited area of the organization until it is proven to be fully functional only then can the conversion to the new system across the entire organization ta!e place.$. It is also called as implementation. Testing: The e+haustive and through process that determines whether the system produced the desired result under !nown conditions. 9hased study or phased approach: Introduces the new system in stages either by functions or by organizational units. %nit testing: The process of testing each program separately in the system sometimes called program testing. 2lpha test and beta test encomprise acceptance test. . 6. 5onversioin: The process of changing from the old system to the new system. 9arallel strategy: 2 safe and conservative conversion approach where both the old system and its potential replacement are run together for a time until everyone is assured that the new one functions correctly. %nit testing in multiple unit results integrating test. -. #. $. Test plan: 9repared by the development team in con(unction with the userD it includes all of the preparation for a series of test to be performed on the system.

Gi!e other technologies such as steam engines electricity telephone and radio information technology can be used to achieve social progress but it can also be used to commit crimes and threaten social values. The development of information technology will produce benefits for many and costs for others.. Ethics refers to the principles of right and wrong that individuals use to ma!e choices or to guide their behavior..#. Information technology and information systems raise new ethical "uestions for both individuals and societies because they create opportunities for intense social change and threaten e+isting distributions of power money rights and obligations. @.# 2 model for thin!ing about ethical social and political issues @. 4rom ethical issues social issues are generated which in terms generates political issues. The relation is the result of ripple effect.1 five moral dimension of information system . @.#. @. production: The stage offer the new system is installed and the conversion is complete during this time the system is reviewed by users and technical specialist to determine how well it has met its original goals.1 five moral dimensions of the information age 4IG: the relationship between ethical social and political issues in an information society The introduction of new information technology has a ripple effect raising new ethical social and political issues that must be deal with on the individual social and political levels.1 understanding ethical and social issues related to systems.# 2 model for thin!ing about ethical social and political issues Ethical social and political issues are closely lin!ed.@. &o ethical and socially responsible course of action should be understood and identify for using information systems. These issues have five moral dimensionsD information right and obligation property right and obligations system "uality "uality of life and accountability and control.1 understanding ethical and social issues related to systems @. maintainence: 5hanges in hardware software documentation or procedure to production system to correct errors meet new re"uirements or improve processing efficiency. Its relation can be shown as above diagram. 5hapter @ Ethical and social issues in the digital firms @. E. The diagram shows these issues are the result of information technology and systems.

Information rights and obligations. Juality of life Chat values should be preserved in information and !nowledge based societyB Chat institutions should we protect from violationB Chat cultural values and practices are supported by the new information technologyB @. Chat information rights do individuals and organizations possess with respect to information about them selfB Chat they can protectB Chat obligations do individuals and organizations have concerning this informationB In other words the rights that individual and organizations have with respect to information that pertains to themselves.#. Aow will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership is difficult and ignoring such property rights is so easyB c. 9roperty rights. 2ccountability and control Cho can and will be held accountable and liable for the harm done to individual and collective information and property rightsB d.The ma(or ethical social and political issues raised by information system include the following moral dimensions a. b. *ey technology trends hat raise ethical issues Trend Impact . &ystem "uality Chat values and system "uality as well as standards of data should we demand to protect individual rights and the safety of society B e.#.

-. 5opying personnel data firm remote location is much easier =:82 . 5omputing power double every 1F months.non obvious relationship awareness/: Technology that can find obsecure hidden connection between people or other entities by analyzing information from many different sources to coorelate relationships. Identify the option that you can reasonably ta!e. :rganization can easily maintain detailed database on individuals 5ompanies can analyze vast "uantities of data gathered an individual to develop detailed profile of individual behavior $. 3efine the conflicts or dilemma and identify the higher order values involved.-. 8apidly declining the data storage cost. @. 3ata analysis advance <ore organization depends on computer system for critical operations. ethics in information and society: a. responsibility: accepting the potentials costs duties and obligation for the decision one wor!s. liability: the e+istence of laws that permit individual to recover this damage done to them by other actors system or organizations. Identify and describe clearly the facts #. -. $. #.1. accountability: the mechanism for accessing responsibility for decision mode and action ta!en c. . Identify the stoc!holder. b. 6. Ethical analysis: &teps: 1. Identify the potential conse"uences of your option. =etwor! advances and the internet.