1

apter

-> Information System Investment

grew from 21 to 33 in 18 years.

Information Technology provide to respond for changing demand, inventorie levels and

operational efficiency. -> competitiveness and efficiency.

Five changes are

of paramount importance

1) It Innovations Innovations provide

-
a chance for growth.

2) New Business Model - Some business models may remain old fashion
due to the technology.

3)E-commerce Expansion Itis -

for
not just products but also
about service.

4)
Management Changes -
Managers can
give important desicions because
they can reach all dates in a second whereever they wants.

5) Changes in Firms and

Organizations -
It changes the companies culture
and hierarchy design.

Digital Firm

significant business relations >

Customer, Supplier, Employess
Core business >Entire organization linking multiple
process or
org.
 Six strategic business objectives for Inf. System;

3
1 -

Operational Excellence (Lean Operation)

2.New Products, Services and Business Models

3- Customer

4- Improved
and Supplier Intimacy
Decision Making
-
5 -

Competitive Advantages
6- Survival

Information System
* is a setof interrelated components that collects
store and
process, distribute information to
support decision making
and control in an
organization.

Input >Processing >

Output
Inf. data/internal Converts to datas into a
cp. Meaningfull forms of
meaningfull form
datas and infos.

Data ->

Information ->

knowledge ->
Intelligence
 way
-two
inf

Inf. System is affectmanagementdesicions.It play a

powerfull rake on

management.

Intrants Internal comparate networks

-

Extracts Accepted users outside the organizations.

-
(Supplier)

↑ 4

Totally affects Business Value

Hardware and Software - Business Value + Environment

(The Technologist) (Gals)
-
-

Management Information System

-
 Chapter 2 /Global E-business and Callab.

Not Just
change the tool, but also change the culture.

Information System: Firms should organize their work activities and

getsome infos.
These infos are used for efficiency and enhance the overall performance.

Internal and external infers monitoring

->
Transaction Processing System -> Provide info on different
departments about
situation.
"What happened to Mr. Smith's payment."-> Routine questions

Manayers needTPS to monitor the states of internal operations and

the firm's relation with the external environment.
"Payment tracking"
(Inpet) (output) (input) (output)
Data -> TPS -> Data -> MIS-> Managers

Business Intelligence!Data and software for improving decision

making. It provide organize and analyze to informations.

is

Decision supportsystem focus

-

on
problems that are unige and
rapidly changing. It means managers may not be fully predefined the solutions.
(For middle managers)

Executive support system is same with "Dss". But also itpresents

This is include more
graphs and dates for "managers". general
informations.
↓
Yonefici iain gerekli
bilgiler.
 Applications
-use
It helps to be more flexible and productive by coordinating their
business process more closely.
crisrch.
ferl
triggered by
*

4 Major Enterprise Application: En tio

1- Enterprise System Applica is
2- Supply Chain Management System
3-CRM System ->
make
E
make order
stock
4 -

Knowledge Management System

Enterprise System! Also known as ERP. Integrate process from all

departments and informed these departments aboutsituation.

Supply Chain Management System: Help to

manage
relations with suppliers
It is an
interorganizational system.
Knowledge Management System! It
manage to is and knowledge
apply itto company. Therefore, companies can make long-term strategies.

E-business.Businesses which refers to use technology and internet

to execute the major business process in the enterprise.

E-Commerce. This is the part of e-business that deals with the

buying and selling of goods and services over the internet.
TPS (Transation Processing System) Track the flow of daily
=
routine transections.

MIS= Produce reports to middle managers from TPS informations.

DSS Supportmanagementdecisions
=
which can be change rapidly.
Executive Support System Easy
-
understandable internal and external datas and images

provide..

CRM= For improve customer happines and satisfaction.

Collaboration and social business:Enhance innovation, productivity, quality

and customer service.

er-3 Behavioral Structure of

Organizatio
 Middle
*

managers build teams ->

Coordinate and monitor their
work

Tools and Technologies for Callab. and Social Business

E-mail Messaging
and Instant
·

Wilis (Wikipedia)
·

Virtual Work -> like online workplace

The
=>

Time/Space Callab. and Social

Tool

Check the situation

=>
and select
appropriate
model.

Programmers -
Educated
for software instruction.

System analyst Analyze =

to system for which one is more suitable
for company.

Inf. System Mancyer -

They manage all these operation.
 Inputs Organization Output
-> ->

Production Process

Disruptive Technologies:Tach, and business innovation radically

change. These innovations called "disruptive"

These four components must

be change when implementing
new system.

People
Organizational Structure

Job Task

Inf. Tech.
Four Basic Competitive Strategies

Low-CostLeadership -
Use inf. system to achieve lowestoperational cost and

lowestprice.

Productdifferentiation =

Focus on Market Niche =

ImportantStrategies
Supplier Intimacy
We
and

e
Porter's Computative Strategies
 End 4.0

These 4 have
components
effects on
competitive
market.
E

ter
-
- 7

Thisintegration helps to collars

and reach to datas easily.

Like on PC's, mobile phones and

other server user machines enable
to look company datas.

This system capture and

manage detailedinf
than bar coding system.

Also
works
it
Chapter 9 -

Enterprise Application

Collects data from departments

All departments can see new

and old infos immediately.

Order
↓
CreditCheck
↓
Production

for
Inf. System
Example:
An order placed ->
system check
Business Value of Enterprise System the client credit

Schedule the limit.

shipment
Helping for better decision.
the
the best
reserved
identify necessary items
Respond rapidly requests. I
->
to customer route for inventory

Business Value of Enterprise System

Increase operational effeciency
·

Upstream ->

Vretime Dinik. Provide brief info to supportdecision making

·

Rapid response to customer requests (CRM)

Downstream -> Satisa Donik ·
Include analytical tools to evaluate overall organizational
performance and improve decision-making

it
causes Bull-Whip
effect
->

n
StartPoint

-
Start
Point
 Customer Relationship Management
Good CRM systemsprovide an answer for these questions.

·
What
is the value of a
particular customer to the firm over his or her
life time?
who loyal customers?
·

are our most

profitable customers?
What they want to
·

buy?
-

E
CRM System Support:
1- Saks Force Automation (SFA)

2-Customer Service

te
3 -

Martacting
⑤

Pam
-T
Partner Relationshipgement,
a sire

Sales force automation helps to focus on most profitable customers, so sales

team
gives more effortthose.

~Value
of CRM

Increased customer
·

satisfaction
·
Reduce marketing cost
·
More effective marketing
-10

E. Commerce remove some

parts.
 Kawermarketentry, it
as

Ubiquity -
Available everywhere Global Reach- Billions of consumer can reach.

-
Richness Lots of
Universal Standarts With one setof Standart -

message types can use for marketing.

all systems can comunicate with each other.

Information Density:Reduce in forcost

and increase

Interactivity:Companies have an importantquality.

interactions with their users.

Social Tech. Work with

-

an
harmony with costumer.

Customization Companies work

=
based
on individual.

Price Transparency -
Consumers can find
easily outthe variety of prices in a market.

Cost I
The ability
-

of consumers to discover the actual cost.

Price Discrimination -
Selling the same good to differentgroups with different
price.
 **

Using for"JIT"
S

It
use between companies.
Chapter 11

Knowledge Acquisition Storage

->
->
Knowledge Dissemination Application
->

-Systems

Develop your system like

IF-Else condition.
Does otomation systems for cars work effectively in Turkey?

-Vision
Systems

Does itwork like a human?

Software do all task faster

So, firms are face with
not

big problems. Also, system

make an strategy for
possible problems.
12
-

Types of Decision

1- Unstructured:This is novel, important

and nonroutine. There is no procedure.
2 Structured:Repetitive and routine. Also, it has definite procedure.
-

->

They need to
collect
infos from
market and it can
be
change day by day.

Intelligence consists of discovering, identifying, and

understanding the problems occurring in the organization—
why a problem exists, where, and what effects it is having on
the firm.

Design involves identifying and exploring various solutions

to the problem.

Choice consists of choosing among solution alternatives.

Implementation involves making the chosen alternative

work and continuing to monitor how well the solution is
working.
 3 Control
stayes
and feedback

High Velocity Automated

-
Decision Making

Intelligence, design, choice and implementation parts are captured by the software's algorithm.
Softwares are make decisions faster than managers.

to
↳Nation
Storage
Data responds
-> reports
produce questions.
managers
Decision Supportfor Senior Management

Balanced Scorecard Method:Framework for operationalizing a firm's strategic plan

by focusing on measurable outcomes from 4 dimension:Financial, Business Process, Customer
and learning and growth.
↳ Each dimension
using is which are the
is measured measures

proposed by senior management for understanding how well the firm is performing.
 Chapter -
13

-Faster
-> Rethinking the nature of the business

and the
nature
of the organization.
More radical
form of business change.
2
Slow-moving

1. Identify processes for change: One of the most important strategic decisions
that a firm can make is not deciding how to use computers to improve business
processes but understanding what business processes need improvement. When
systems are used to strengthen the wrong business model or business processes,
the business can become more efficient at doing what it should not do. Managers
need to determine what business processes are the most important and how
improving these processes will help business performance.
2. Analyze existing processes: Existing business processes should be modeled and
documented, noting inputs, outputs, resources, and the sequence of activities. The
process design team identifies redundant steps, paper-intensive tasks, bottlenecks,
and other inefficiencies.
3. Design the new process: Once the existing process is mapped and measured in
terms of time and cost, the process design team will try to improve the process by
designing a new one. A new streamlined “to-be” process will be documented and
modeled for comparison with the old process.
4. Implement the new process: Once the new process has been thoroughly
modeled and analyzed, it must be translated into a new set of procedures and work
rules. New information systems or enhancements to existing systems may have to
be implemented to support the redesigned process. The new process and supporting
systems are rolled out into the business organization. As the business starts using
this process, problems are uncovered and addressed. Employees working with the
process may recom- mend improvements.
5. Continuous measurement: Once a process has been implemented and optimized,
it needs to be continually measured. Why? Processes may deteriorate over time as
employees fall back on old methods, or they may lose their effectiveness if the
business experiences other changes.
 tegies
↓
1 Parallel
-

Strategies:Both systems run until everyone is assured thatnew functions

are correct.
2 DirectCutover
-

Strategy! Directly entire the new system. It is very risky.

3-PilotStudy Strategy! Apply new system to a only limited area. Test the system
in restricted area than apply to all.
4-Phased Approch Strategy!
Chapter -
14

ProjectManagement Objectives

Major Variables
5

1- Time!Tries to determine the time requirement.

2.Cost! Develop a budget for project.
3 Quality. Determine
-
how well the end result.
4 Risk:Evaluate to potential problems.
-

-mer -
15
Centralized systems are those in which systems development and operation occur totally at the
domestic home base.
Duplicated systems are those in which development occurs at the home base but operations
are handed over to autonomous units in foreign locations.
Decentralized systems are those in which each foreign unit designs its own unique solutions and
systems.
Networked systems are those in which systems development and operations occur in an
integrated and coordinated fashion across all units.