HUANG Lihua,
FUDAN UNIVERSITY
Managing Information Systems,
Approach to New Organization
Prof,Lihua Huang
65646687,13701933520
Lhhuang@fudan.edu.cn; hlh_fudan@263.net.cn
Host Professor,Dr,John,F,Rockart
TA,(2) Lu Xianghua,
(1) Cai Bin
IMBA Program at Fudan University
Sponsored by MIT Sloan School of Management
HUANG Lihua,
FUDAN UNIVERSITY
Redesign the Courses Relating to IT
? Before
– IT and New Organization
– Management Information Systems and Applied
Software
? From Now
– Information Technology for Management
– Managing Information Systems,Approach to
New Organization
to provide future managers with a
broad introduction to the
technology concepts underlying
modern computing and
information systems,
HUANG Lihua,
FUDAN UNIVERSITY
Why Managers Need to
Participate in IS Decisions
? President Jiang Ze-Ming has notified that
informatization is the one of the most important
approach for China’s modernization.
? Managing information is a critical skill for success in
today’s business environment.
? IS strategy can itself affect and is affected by changes
in a firm’s business and organization strategy,
business model,organization systems.
? In order to effective,managers need a solid sense of
how IS are used and managed within the organization.
HUANG Lihua,
FUDAN UNIVERSITY
Course Purpose
? To provide MBA students with understanding
how the companies in 21st century can gain
the competitive advantage by use of IT/IS,with
a foundation of basic concepts relevant to
using and managing information systems
effectively,
? To focus on the key issues relating to
information systems use and management in
business,particularly issues in aligning IT/IS
with business strategy,the organization,and
business model,and transitioning to e-
Business or e-Enterprise,
HUANG Lihua,
FUDAN UNIVERSITY
Course Structure
PART FOCUS CONTENT
PART I Concept and Role of Information SystemsConceptlevel
PART II The Strategic Alignment of Information
Technology with Business
Strategic
Level
PART Ⅲ Managing IT-Enabled Organization ChangeTacticalLevel
PART Ⅳ Building Information Systems and
Information Systems Management
Implemental
Level
? to discuss the organizational and business
challenges and opportunities in an information
age.
?to try to formulate the basic concept and role
of information technology/ information
systems(IT/IS) from business perspective,
? to discuss the Strategic Alignment Model.
? to discuss perspectives of alignment with
specific implications for guiding management
practice.
?to discuss the efficient business model IT-
enabled through cases for varieties of
industries
To discuss the concept
and methodology of
BPR and information
systems planning.
HUANG Lihua,
FUDAN UNIVERSITY
Course Structure
PART FOCUS CONTENT
PART I Concept and Role of Information SystemsConceptlevel
PART II The Strategic Alignment of Information
Technology with Business
Strategic
Level
PART Ⅲ Managing IT-Enabled Organization ChangeTacticalLevel
PART Ⅳ Building Information Systems and
Information Systems Management
Implemental
Level
?To introduce all kinds of methods
of building information system,
?To discuss relative issues about
information systems management,
HUANG Lihua,
FUDAN UNIVERSITY
Course Structure
PART FOCUS CONTENT
PART I Concept and Role of Information SystemsConceptlevel
PART II The Strategic Alignment of Information
Technology with Business
Strategic
Level
PART Ⅲ Managing IT-Enabled Organization ChangeTacticalLevel
PART Ⅳ Building Information Systems and
Information Systems Management
Implemental
Level
HUANG Lihua,
FUDAN UNIVERSITY
Course Features
? Teaching Format
– Lecture,cases study,reading,group discussion and
term project
? Reference Textbook
– Keri E,Pearlson,Managing and Using Information Systems,A
Strategic Approach,John Wiley & Sons,Dec,2001,
– www.wiley.com/college/pearlson
? Cases and Reading Materials
– 11 cases,12 articles,among the most part are in English and the little
part are in Chinese.
– FTP website,ftp://10.51.187.101,Account,IMBA01,PW:200209
? Grading
– Class participation and contribution 20%
– A written case study report and presentation 20%
– Term project report and presentation 20%
– Final Exam 40%
HUANG Lihua,
FUDAN UNIVERSITY
PART I,Concept and Role
of Information Systems
? Session1,The Information Systems
Revolution,Transforming Business and
Management.
? Session 2,Winning Competitive
Advantages with IT
HUANG Lihua,
FUDAN UNIVERSITY
Session1,
The Information Systems Revolution,
Transforming Business and
Management.
1,Managing in an Information Age:
Organizational and business
Challenges and Opportunities.
HUANG Lihua,
FUDAN UNIVERSITY
American Express Interactive
?To Become global business travel and
financial services provider
UPS,is transforming itself from a package
delivery firm to one that offer total solutions
to customers’ global commerce needs.
HUANG Lihua,
FUDAN UNIVERSITY
One focused vision made Dell the world's leading direct computer
systems company,with 36,500 employees in 34 countries around
the globe,Dell bold concept— direct customer contact— has made
Dell one of the most successful companies of the 1990s,
HUANG Lihua,
FUDAN UNIVERSITY
Cisco's vision is that the Internet will transform the way people work,
live,play,and learn,Today change is happening faster than ever
before,and Cisco helps companies turn that change into a competitive
advantage,by helping them become agile,Cisco is the worldwide
leader in networking for the Internet,
HUANG Lihua,
FUDAN UNIVERSITY
——Not only shorts time and space,but
also change the life …
Internet Impact on ……?
? Not only change in technology
? Shape business model
HUANG Lihua,
FUDAN UNIVERSITY
Tradition
Model
Publisher
Distributor
retailer
Consumer
New Model
publisher
Distributor
Consumer
Newer Model
publisher
Consumer
Next Model
HUANG Lihua,
FUDAN UNIVERSITY
Major Trends in the Internet Ages
Customer-Oriented Trends
? Speed of service:
– for the customer,time is money
? Self-service,
– empowered customers
? More product choices,
– more personalization
? Integrated solutions,not piecemeal products
HUANG Lihua,
FUDAN UNIVERSITY
Major Trends in the Internet Ages
Service and Process Trends
? Integrated sales and service:
– customization and integration
? Seamless Support:
– consistent and reliable customer service
? Flexible fulfillment and convenient service
delivery:
– streamline your supply chain.
? Increased process visibility
HUANG Lihua,
FUDAN UNIVERSITY
Major Trends in the Internet Ages
Organizational Trends
? Outsourcing Management:
– Flatten the organization
? Contract Manufacturing:
– Become brand intensive
? Virtual Distribution:
– Become customer-certric
HUANG Lihua,
FUDAN UNIVERSITY
Business Process
President,or CEO,or General
Managers
Marketing(Sales) Manufacturing
(Production,operation) Finance(Accounting)
Customer
demand
Income
HUANG Lihua,
FUDAN UNIVERSITY
Organization design challenge
HUANG Lihua,
FUDAN UNIVERSITY
The organization challenge
HUANG Lihua,
FUDAN UNIVERSITY
What
activities
we should
keep
inside?
HUANG Lihua,
FUDAN UNIVERSITY
The IT design challenge parallels
the organization design challenge
HUANG Lihua,
FUDAN UNIVERSITY
Virtual Organization
CORE
COMPANY
LOGISTICS
COMPANY
DESIGN
COMPANY
MANUFACTURING
COMPANY
FINANCE COMPANY
SALES & MARKETING
COMPANY
HUANG Lihua,
FUDAN UNIVERSITY
Why Good Company Go Bad
? When business condition change,the most
successful companies are often slowest to
adapt,
? The problem is not an inability to take
action but an inability to take appropriate
action,
? The most common is active inertia,
HUANG Lihua,
FUDAN UNIVERSITY
Why Good Company Go Bad
? To avoid being left behind,executives must
understanding the true source of corporate inertia.
– Strategic frames become blinders.
– Process harden into routines,
– Relationships become shackles.
– Value harden into dogmas.
? Success breeds active inertia,and active inertia
breeds failure,But is failure an inevitable
consequence of success? In business,at least,The
answer is no.
HUANG Lihua,
FUDAN UNIVERSITY
Change becomes constant.
Keep focus on-
! How to obtain competitive advantage? How to
enhance core competence?
! How to response quickly to customer demand and
provide best service to customer with lower cost,
and to gain value of self?
How to Change? IT/IS is the enabler
HUANG Lihua,
FUDAN UNIVERSITY
Facts
? ――Michael Hammer,Reengineering the
Corporation,1991,
– The usual methods for booting performance—process
rationalization and automation—haven’t yielded the
dramatic improvements companies need,In particularly,
heavy investments in information technology have
delivered disappointing results—largely because
companies tends to use technology to mechanize old
ways of doing business,They leave the existing
processes intact and use computer simply to speed them
up,
HUANG Lihua,
FUDAN UNIVERSITY
Wrap-up
? Managing in an Information Age,
Organizational and business
Challenges and Opportunities
? Facing the challenges,IT/IS is the
enablers for new business strategy,new
business model,new organization
systems
HUANG Lihua,
FUDAN UNIVERSITY
The Concept of Information
Systems in Business
? Data,information and knowledge
? Information systems from systems
perspective
? Information systems from business
perspective
HUANG Lihua,
FUDAN UNIVERSITY
DATA & INFORMATION &
KWONLEDGE
? DATA,
– Streams of raw facts representing events such as
business transactions,simple observations of the state
of the world
? Easily structured
? Easily captured on machines
? Often quantified
? Easily transferred
? INFORMATION,
– Data endowed with relevance and purpose,or,Clusters
of facts meaningful & useful to human beings in
processes such as making decisions,
? Requires unit of analysis
? Need consensus on the meaning
? Human mediation necessary
HUANG Lihua,
FUDAN UNIVERSITY
DATA & INFORMATION &
KNOWLEDGE
? KNOWLEDGE
– Information from the human mind (includes
reflection,synthesis,context )
? Hard to structure
? Difficult to capture on machining
? Hard to transfer
HUANG Lihua,
FUDAN UNIVERSITY
SYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
A system is a group of interrelated components working together
toward a common goal by accepting inputs and producing outputs
in an organized transformation process.
HUANG Lihua,
FUDAN UNIVERSITY
Example,a manufacturing system
INPUT
of raw materials
OUTPUT of
finished products
Manufacturing
PROCESS
Control by
Management
Control
signals
Control
signals
Feedback
signals
Feedback
signals
System Boundary
Environment
Operational Process
Management Process
HUANG Lihua,
FUDAN UNIVERSITY
AN INFORMATION SYSTEM
INPUT OUTPUTPROCESS
FEEDBACK
INFORMATION SYSTEM
ENVIRONMENT
Customers Suppliers
Regulatory Stockholders Competitors
Agencies,
Partners,
Alliance
ORGANIZATION
HUANG Lihua,
FUDAN UNIVERSITY
COMPUTER-BASED
INFORMATION SYSTEMS
? Formal information systems
? Fixed definition of data,procedures
? Collecting,storing,processing,
disseminating,using data
? To support decision making,coordination,
control,analysis,and visualization in an
organization
*
What is Information Systems?
Systems Structure Perspective
Control
Input Process
Memory
Output
Data
People
Software
network
computer
Function Structure
Corporate
Information system
HR
IS、、、
Executive
Informationsystem
DSS
MIS
Transaction
Information
System
Marketing
And Sales
Production Finance
& Accounting
other
What is Information System?
Marketing
IS
Financial
IS
1) Old Business Process
reception
Credit
Department
Bus,Prac,
Dept.
Price Dept.
Clerical Off.
When an IBM field salesman called in with a request for
financing,he or she reached one of fourteen people sitting
around a conference room table.
The person talking the call logged the request for a deal on a
piece of paper
A specialist entered the information into a computer system and checked the
potential borrower’s creditworthiness.The specialist wrote the result of the credit
check on the piece of paper and dispatched it to business practice department.
A person modified the standard loan covenant in response to customer
request,and attachment the special term to the request form.
A pricer keyed the data into a personal computer spreadsheet to determined
the appropriate interest rate to charge the customer,and wrote the rate on a
piece of paper and delivered to a clerical group.
An administrator turned all this information into a quote letter and
delivered to the field sales representative by Federal Express.
IBM
Salesman
IBM
Salesman
CASE1,IBM Credit Corporation
Customer Complain,the entire process was
too long,customer cannot know the status of the deal。
2) Improvement,
(1) Install a control desk,花费的时间
更长 ;
(2) 处理加急申请的办法, 打乱了原来
的排队和办事员的常规工作,其代价
是其他的申请需要七天以上 。
IBM Salesman
dealer
IBM Salesman
IS
如果问题比较复杂,则请咨
询专家来帮助来处理
3) The business process based on
application of information systems
4)应用效果
签发一项贷款所需的时间从平均 7天减少到 4
个小时,时间减少了 90%。处理的交易的数量
增加了 100倍,进而大大提高了 IBM总公司的
销售业绩。
CASE1,IBM Credit Corporation
案例 2,FORD公司采购流程的变革
1)原来的流程
采购部 由采购部发订单给供应商,同时将订单的副本交给
财务会计部;
供应商 等供应商把货物运到公司,同时供应商也
开出发票,送交财务会计部;
验收单位 验收单位(仓库)便会将有关验收的情形,详细登录在表
格上,接着将表格转交财务会计部;
财务
会计部
于是财务会计部便有了三种有关货物的文件:订单、
验收单和发票。如果三者一致,则付款,否则,就
调查,写出报告,送交有关部门。
案例 2,FORD公司采购流程的变革
2)应用信息技术以后的流程
采购部 验收单位
IS
( 1)当采购部发订
单给供应商的同时,
把采购信息输入到
数据库中;
( 1) ( 2) ( 2)当供应商将货物
运抵仓库后,验收员便
查数据库中有无相一致
的订单,若有,则验收
入库,并把入库信息输
入到数据库,计算机在
接到货物验收的信息后
便会在适当的时间内自
动签发支票给供应商。
另一方面,若货物不符
合订单上的要求,验收
员便会拒绝收货,并将
它们退货给供应商。
案例 2,FORD公司采购流程的变革
3) 应用信息技术以后的效果
在新的采购过程中,由于有了共享的数据库系统,财务
会计部的工作已很少了。这样,通过整个采购过程的重
组,使财务会计部的人由 400多人下降到 125人,而且工
作效率大大提高。
案例 3,某设备技术有限公司顾客服务流程
顾客
工作人员
维修负责人
维修工程师
维修工程师
工作人员
当设备出现故障时,顾客通过电话、传真或信件通知该公司的服务中心。
中心工作人员登记顾客的反馈信息,交负责人处理。
负责人查阅顾客的档案,分析能否解决问题,并指定责任人 —维修工程师。
故障分析,维修准备,奔赴顾客现场。
故障诊断,排除故障。如有问题,则通过传真、电话向公司总部(深圳)
技术人员咨询。
维修完成,拜访客户主管。
维修工程师向有关管理人员汇报维修情况。工作人员登记处理结果。
HUANG Lihua,
FUDAN UNIVERSITY
Customer Service Process Based on Internet
Information Systems
Customer
Service center
Maintenance
Engineer
Technology Support
Information
Systems
(Call Center)
BBS Database
Cases
database
Diagnosis
Expert Sys.
1
2 3
4
Internet
案例 3,某设备技术有限公司顾客服务流程
利用信息系统,将员工个人经验转化成企
业经验,群件( Groupware)消除距离上
的障碍,共享知识和经验,提高服务水平。
Summary
? Understanding of Information Systems,
An Information System is an organizational and
management solution,based on information
technology,to a challenge posed by the
environment.
? Management Change:
– Business Process Change,
– Procedure change,
– Power redesign,……
? Organization change:
– Job,employee qualification,performance
evaluation policy,……
? Business value change。
Information Systems,From
Business Perspective
ORGANIZA-
TIONS
TECHNOLOGY
MANAGEMENT
INFORMATION
SYSTEMS
An Information
System is an
organizational and
management
solution,based on
information
technology,to a
challenge posed by
the environment.
HUANG Lihua,
FUDAN UNIVERSITY
Information Systems Hierarchy,
From Business Perspective
Information Systems
Management
People Technology Process