1. Foundation Of Information Systems In Business
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

2. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Learning Objectives:
Understand the concept of a system and how it relates to information systems.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

3. What Is An Information System?
An Information System can be any organized combination Of:
- people,
- hardware,
- software,
- communications networks,
- policies.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

4. What Is An Information System? (continued)
People rely on modern information systems to communicate using a variable:
- physical devices (hardware).
- information processing instruction and
procedures (software).
- communications channels (network).
- stored data (data resources).
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

5. Examples Of Information Systems:
Smoke signals for communication
Card catalog in a library
The cash register
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

6. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Real World Case: Heidelberg: Using IT To Build Smart Products And Services
Consider Heidelberger Druckmaschinen AG of Germany, the number one maker of high end end printing presses for printers and print media producers throughout the world. For all of its long history, the company has offered repair services to its customers.
Several years ago, Heidelberg developed the ability to monitor its equipment remotely using built in sensors, networking microprocessors, and other information technologies.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

7. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued)
Heidelberg soon found that it could provide
maintenance much more cost effectively with the smart
products.
Now with its machines communicating continuously
over the internet, relaying information about their status
between the print shops and Heidelberg’s regional and
global technical support specialists, the company has
the access and insight to optimize printing performance
in customer’s shops and minimize maintenance and
repair costs for Heidelberg as well as its customers.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

8. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued)
With such smart services, Heidelberg now offers total
supports of its products, which for example, can extend
even to the removal and resale of its machines.
Thus the self monitoring and networking capabilities
built into its products provide a strategy opportunity for
Heidelberg to use information technology to become a
partner in the successful operations of its customers,
while reducing its costs and creating new sources of
revenue from smart services.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

9. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued)
Questions:
Why should manufacturing companies build smart products and provide smart services?
What business benefits can be gained?
Provide several examples beyond discussed in this case
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

10. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Real World Case: Heidelberg: Using IT To Build Smart Products And Services (continued)
Questions (continued)
What information technologies are used by the companies in this case to build smart products and provide smart services?
What are some limitations of a smart products and smart services strategies?
Use the internet to investigate how Heidelberg, is proceeding in its use of smart products and services.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

11. Computer Based Information System & Information Technologies:
1. Computer hardware technologies.
2. Computer software technologies.
3. Telecommunications network technologies.
4. Data resource management technologies.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

12. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
The Major Areas Of Information Systems Knowledge Needed By Business Professionals
1. Foundation concepts.
concept about the components and roles of information systems.
2. Information technologies.
hardware, software, networks, data management, many internet based technologies.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

13. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
The Major Areas Of Information Systems Knowledge Needed By Business Professionals (continued)
3. Business applications.
operations, management, competitive advantage of a business.
4. Development processes.
plan, develop, and implement information systems to meet business opportunities.
5. Management challenges.
the challenges of effectively and ethically managing information technology at end user, enterprise, and global levels of a business.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

14. The Fundamental Roles Of Information System In Business
There are three fundamental reasons:
1. Support of its business processes and operations.
2. Support of decision making by its employees and managers.
3. Support of its strategies for competitive advantage.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

15. Trends In Information Systems:
1. Data processing: 1950s – 1960s
- electronic data processing systems
-- transaction processing, record keeping,
and traditional accounting applications.
2. Management reporting: 1960s – 1970s
- management information systems
-- management reports of pre specified
information to support decision making.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

16. Trends In Information Systems (continued):
3. Decision support: 1970s – 1980s
- decision support systems
4. Strategic and User Support: 1980s – 1990s
- end user computing systems
- executive information systems
- expert systems
- strategic information systems
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

17. Trends In Information Systems (continued):
4. Electronic Business and Commerce: 1990s – 2000s
- internet based e business and e
commerce systems
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

18. The Role Of “E Business” In Business
Many business today are using internet technologies to Web enable business process and to create innovative e business application.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

19. The Role Of E Business In Business (continued)
the use of internet technologies to work and empower business process, electronic commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

20. Business Today Company Boundary
Supply chain management: procurement, distribution, and logistics
Internet
Engineering and research
Manufacturing and production
Accounting and finance
Internet
Customer relationship management: Marketing, Sales, Customer Service
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

21. Business Today (continued)
Suppliers and other business partners
Extranets
Company
Boundary
Extranets
Consumers and business customers
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

22. Business Today (continued)
Intranet:
the internet and internet like networks inside the enterprise.
Extranet:
the internet and internet like networks between an enterprise and its trading partners.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

23. Business Today (continued)
Electronic commerce:
the buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

24. Types Of Information Systems
Operations Support Systems
Management Support Systems
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

25. Types Of Information Systems (continued)
Operations Support Systems
Specialized Processing Systems
Transaction Processing Systems
Process Control Systems
Enterprise Collaboration Systems
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

26. Types Of Information Systems (continued)
Management Support Systems
Management Information Systems
Decision Support Systems
Executive Information Systems
Specialized Processing Systems
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

27. Types Of Information Systems (continued)
Operations support systems:
- Transaction processing systems
-- process data resulting from business
transactions, update operational
databases, and produce business
documents.
Examples: Sales and inventory,
processing and accounting
systems.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

28. Types Of Information Systems (continued)
Operations support systems (continued):
- Process control systems.
-- minor and control industrial process.
Examples: Petroleum refining, power
generation, steel producing
systems.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

29. Types Of Information Systems (continued)
Operations support systems (continued):
- Enterprise collaboration systems.
-- support team, workgroup, and enterprise
communications and collaboration.
Examples: , chat, video
conferencing groupware
systems.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

30. Types Of Information Systems (continued)
Management support systems:
- Management information systems
-- provide information in the form of pre
specified reports and displays to support
business decision making.
Examples: Sales analysis,
production performance,
cost trend reporting systems.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

31. Types Of Information Systems (continued)
Management support systems (continued):
- Decision support systems
-- provide interactive ad hoc support for the
decision making processes of managers
and other business professionals.
Examples: product pricing,
profitability forecasting,
risk analysis.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

32. Managerial Challenges Of Information Technology
The Business Enterprise: Strategies/Processes/Structure/Culture
Information Technology
Customer Value Business Value
Business/IT Goals
Business/IT Developments
Business/IT Challenges
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

33. Managerial Challenges Of Information Technology (continued)
Business/IT Developments
Business/IT Challenges
Business/IT Goals
Speed and flexibility requirements of product development, manufacturing, and delivery cycles,
Integration of e business and e commerce into the organization’s strategies, process, structure, and culture
* Use of the internet, intranets, extranets, and the WEB
Give customers what they want, when and how they want it, at the lowest cost
Coordination of manufacturing and business process with suppliers and customers
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

34. Developing Information System (IS) Solutions
Investigate
Analyze
Design
Maintain
Implement
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

35. The IS (Information System) Functions:
A major functional area of business equally as important to business success, as the function of:
- accounting,
- finance,
- operations management,
- marketing,
- human resource management.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

36. The IS (Information System) Functions (continued):
An important contributor to:
- operational efficiency,
- employee productivity,
- customer service and satisfaction.
A major source of information and support needed to promote effective decision making by managers and business professionals.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

37. The IS (Information System) Functions (continued):
A vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global market place.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

38. Foundation Concepts: The Components Of Information Systems:
Technology:
the computer network are systems of information processing component that use a variety of: hardware,
software,
data management,
and telecommunication network technologies.
Applications:
the electronic business and commerce applications involve interconnected business information systems.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

39. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
Foundation Concepts: The Components Of Information Systems (continued):
Development:
that developing ways to use information technology in business includes designing the basic components of information system.
Management:
the managing information technology emphasizes the quality, strategic business value, security.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

40. Ir. Muhril Ardiansyah, M.Sc., Ph.D.
What Is A System?
Systems have three basic functions:
1. Input:
Involves capturing and assembling elements that enter the system to be processed.
Example: - raw materials,
- energy,
- data.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

41. What Is A System? (continued)
Systems have three basic functions (continued):
2. Processing:
involves transformation processes that convert input
into output.
Example: - manufacturing process,
3. Output:
involves transferring elements that have been
produced by a transformation process to their
ultimate destination.
Example: - finished products,
- human services
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

42. Stakeholders In The Business Environment
CONTROL
Management
FEEDBACK
Information System
Economic Resources: people, money, material, machines, land, facilities, energy, information
Business Process: market, develop, produce, and deliver, products and services, support customers, other processes
Goods and Services: products, services, payments, contributions, information, other effects
OUTPUT
INPUT
PROCESSING
Financial Institutions, Labor Unions, Stockholders, Customers, Competitors, The Community, Government Agencies, Suppliers
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

43. Components Of An Information System
PEOPLE RESOURCES (end users and IS specialists); SOFTWARE RESOURCES (programs and procedures); HARDWARE RESOURCES (machines and media); NETWORK RESOURCES (communications media and network support); DATA RESOURCES (data and knowledge bases);
SYSTEM ACTIVITIES
Control System Performance
Input Of Data Resources
Processing Data Into Information
Output Of Information Products
Storage Of Data Resources
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

44. Examples Of Information System Resources And Products
Information Systems Resources And Products
People Resources
Network Resources
Information Products
Hardware Resources
Software Resources
Data Resources
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

45. Information Systems Resources And Products
People resources:
- specialist (system analysts, software
developers, system operators).
- end users (anyone else who uses
information systems).
Hardware resources:
- machines (computers, video monitor, magnetic disk
drives, printers, optical scanners).
- media (floppy disks, magnetic tape, optical disks,
plastic cards, paper forms).
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

46. Information Systems Resources And Products (continued)
Software resources:
- programs (operating system program, spreadsheet
programs, word processing programs).
- procedures (data entry procedures, error correction
procedures).
Data resources:
- product description, customer records, employee
files, inventory databases.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

47. Information Systems Resources And Products (continued)
Network resources:
- communications media, communication
processors, network access and control
software.
Information products:
- management reports and business
documents using text and graphics displays,
audio responses, and paper forms.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

48. Business Examples INFORMATION SYSTEM ACTIVITIES
Input. (optical scanning of bar coded tags on
merchandise)
Processing. (calculating employee pay, taxes, and
other payroll deductions)
Output. (producing reports and displays about sales
performance)
Storage. (maintaining records on customers,
employees, and products)
Control. (generating audible signals to indicate proper
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

49. Recognizing Information Systems
As a business professional, You should be able
to recognize the fundamental components of
information systems You encounter.
You should be able to identify:
** The people, hardware, software, data, and network resources they use.
** The types of information products they produce.
** The way thy perform input, processing, output, storage, and control activities.
Ir. Muhril Ardiansyah, M.Sc., Ph.D.

50. Real World Case 4 Continental Airlines: This Call Is Being Monitored
Ir. Muhril Ardiansyah, M.Sc., Ph.D.