What is Strategy?

Budiraharjo: Information Technology - Module 2

 What is strategy?

“Operational Effectiveness” means performing similar activities

better than rivals do.

“Strategic Positioning” means performing different activities

from rivals or performing similar activities in different ways.

Organizations have competitive advantage when they provide

more value to their customers or when they provide the same
value to customers at a lower price.

Budiraharjo: Information Technology - Module 2

 What is strategy?

“The essence of strategy is choosing to perform activities

differently than rivals do.”

(Porter, M.E., 1996)

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Operational-Level Systems
Information systems that monitor the elementary activities and transactions
of the organization .

Knowledge-Level Systems
Information systems that support knowledge and data workers in an
organization.

Management-Level Systems
Information systems that support the monitoring, controlling, decision
making, and administrative activities of middle managers.

Strategic-Level Systems
Information systems that support the long-range planning activities of
senior management .

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

The major types of IS

• Strategic-Level: Executive Support Systems (ESS)

• Management-Level: Management Information Systems (MIS)

• Management-Level: Decision Support Systems (DSS)

• Knowledge-Level: Knowledge Work Systems (KWS)

• Knowledge-Level: Office Automation Systems (OAS)

• Operational-Level: Transaction Processing Systems (TPS)

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Transactions Processing Systems (TPS)

Computerized systems that perform and record the daily routine

transactions necessary to conduct the business; they serve the
organization’s operational level.

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Office Automation Systems (OAS)

Computer systems, such as word processing, electronic mail

systems, and scheduling systems, that are designed to increase
the productivity of data workers in the office .

Example:
• Presentation graphics
• Reports delivery through email
• Etc.

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Knowledge Work Systems (KWS)

Information systems that aid knowledge workers in the creation

and integration of new knowledge in the organization.

Example:
Engineering Workstation
• Inputs: Design specifications
• Processing: Modeling
• Outputs: Designs, graphics
• Users: Technical staff

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Management Information Systems (MIS)

Information systems at the management level of organization

that serve the functions of planning, controlling, and decision
making by providing routine summary and exception reports.

Example:
• Annual budgeting

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Decision Support Systems (DSS)

Information systems at the management level of an organization

that combine data and sophisticated analytical models to
support non-routine decision making.

Example:
• Contract cost analyses

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

Executive Support Systems (ESS)

Information system at the organization’s strategic level designed

to address unstructured decision making through advanced
graphics and communications.

Example:
• 5-Year operating plan

Budiraharjo: Information Technology - Module 2

 Types of Information Systems

The interrelationships
diagram among
systems

Budiraharjo: Information Technology - Module 2

 Business Process and IS

Budiraharjo: Information Technology - Module 2

 Business Process and IS

Business process is:

• Manner in which work is organized, coordinated, and

focused to produce a valuable product or service

• Concrete work flows of material, information, and

knowledge—sets of activities

• Unique ways to coordinate work, information, and

knowledge

• Ways in which management chooses to coordinate work

Budiraharjo: Information Technology - Module 2

 Business Process and IS

Examples of business process

• Manufacturing and production: Assembling product,

checking quality, producing bills of materials

• Sales and marketing: Identifying customers, creating

customer awareness, selling

Budiraharjo: Information Technology - Module 2

 Business Process and IS

“Information systems help

organizations achieve great efficiencies
by automating parts of processes.”

Budiraharjo: Information Technology - Module 2

 Business Process Modeling & Mapping

Budiraharjo: Information Technology - Module 2

 Business Process Modeling & Mapping

What is business process modeling?

Business process modeling is a means of representing the
steps, participants and decision logic in business processes.

What is process mapping?

Process mapping is a technique of diagrammatical modeling.
The diagram represents a series of processes and how they are
related. Process mapping provides a representation of who
does what and in what order.

Budiraharjo: Information Technology - Module 2

 Business Process Modeling & Mapping

Process mapping helps to clarify the steps involved in a

particular process. It is used for:

• Understanding the current processes

• Clarifying responsibilities
• Identifying process inefficiencies
• Designing new procedures
• Training

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools

Flowchart Diagram

A flowchart is a type of diagram that represents an algorithm

or process, showing the steps as boxes of various kinds, and
their order by connecting them with arrows.

Flowcharts are used in analyzing, designing, documenting or

managing a process or program in various fields.

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of flowchart diagram 1

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of flowchart diagram 2

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of flowchart diagram 3

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools

Swim Lane Diagram

A swim lane (or swimlane) is a visual element used in process

flow diagrams, or flowcharts, that visually distinguishes
responsibilities for sub-processes of a business process. Swim
lanes may be arranged either horizontally or vertically.

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of horizontal swim lane diagram

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of vertical swim lane diagram

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of hybrid swim lane diagram

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools

SIPOC Diagram

SIPOC (sometimes COPIS) is a tool that summarizes the inputs

and outputs of one or more processes in table form. A SIPOC
Diagram is a visual representation of a high-level process map.

The acronym SIPOC stands for Suppliers, Inputs, Process,

Outputs, and Customers which form the columns of the table.

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of SIPOC diagram 1

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of SIPOC diagram 2

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of SIPOC diagram 3

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools

Activity Diagram

Activity diagrams are graphical representations of workflows

of stepwise activities and actions with support for choice,
iteration and concurrency.

In the Unified Modeling Language (UML), activity diagrams are

intended to model both computational and organizational
processes (i.e. workflows). Activity diagrams show the overall
flow of control.

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools
Example of activity diagram 1

Budiraharjo: Information Technology - Module 2

 Process Mapping Tools

Example of activity diagram 2

Budiraharjo: Information Technology - Module 2

 Class Assignment

Budiraharjo: Information Technology - Module 2

 Class Assignment

With your study-group, make a process business mapping of

an organization that will be used as your case-study
for this semester using one of the process mapping tools
that have been discussed earlier.

Two or three groups will present their mapping

in front of the class.

Budiraharjo: Information Technology - Module 2

 Thank you… 

Budiraharjo: Information Technology - Module 2