Topic 01 IT in organisation

Rất Hay đó nha VietJet Aviation Joint Stock Company is an international lowcost airline from Vietnam.It is a Low Cost Carrier (LCC) It was the first privately owned newage airline to beestablished in Vietnam, being granted its initial approval to operate by the VietnameseMinister of Finance in November 2007. Despite its rapid growth and wide appeal, Vietjet Air still encountered a lot of problems.The first problem is safety. Some accidents do happen. There has always been greatcooperation among all the industry’s stakeholders in efforts to make flying ever safer. Wewill honor the memories of those involved by redoubling our efforts on safety. Thesecond one is the passenger experience. Most of the flights are delayed but not cancelledor occurring serious problems so customers do not receive any pension except for theannouncement of the new takeoff time. The final one is the environment. Any business isexpected to be sustainable. But it is particularly challenging for airlines that burn fuel topropel their aircraft. Nonetheless, the industry (not just airlines but the whole valuechain) has committed to some very ambitious goals. There are some alternative solutions to solve these problems. Firstly, we are calling ongovernments to look even more broadly and develop an international protocol to managethe design, manufacture and deployment of weapons with antiaircraft capability. Wehave the safety tool to predict and reduce the risks by governments, airports and airnavigation service providers have data. Secondly, Vietjet Air can find a framework onwhich to share the crucial data among all those involved in the passenger’s travel. Asmarter approach to security that is informed by what we know about the traveler. Finally,Vietjet Air is working on worldwide so that airlines can land in a continuous descent andis asking governments for a global mandatory carbon offset scheme. Finally, these are some recommendations that our group gives to Airbnb. Firstly, weshould lower the total amount of delayed flights in the short period of time, and also limitthe times one flight has been delayed to be not continuously. Besides, we can activelyoffer compensation for customers when problems occur and build customer database interm of regular consumers and frequent consumers in order to providing prioritycustomer care. Image of page 3

Topic 01 IT IN ORGANISATION BMIT5103 Course Information Technology for Managers Dr Huy Nguyen BMIT5103 John von Neumann Institute - Vietnam National University Ho Chi Minh City Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 01 “IT in Organisation” • Learning outcomes: Describe the characteristics of the digital economy and e-business; Explain the pressures in the business environment, and the critical response activities that organisations take to counter the pressures; Discuss the developments and trends of IT; Describe major categories of systems that support business transaction processing, and various groups of people and their tasks; Describe how IT supports of Supply Chains and Enterprise Systems Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 01 “IT in Organisation” • Introduction: - How business processes and activities have been fundamentally altered with the advent of the digital economy; - How IT has changed the ways that businesses compete from traditional to digital environment; - How IT becomes a major facilitator in organisations and changes how, why and where businesses do, people work and live; - Why organisations are moving to the digital economy and how the strategic uses of IT are in this new economy; - How IT supports people and organisational activities; - Main types of IT support systems and how these systems have developed to include strategic responses to changes in the environment and strategic innovation systems; - Managerial issues on IT in organisation Information Technology for Managers BMIT5103 AGENDA • Strategic Use of IT in the Digital Economy • IT Support Systems • Managerial Issues Information Technology for Managers BMIT5103 AGENDA • Strategic Use of IT in the Digital Economy • IT Support Systems • Managerial Issues Information Technology for Managers BMIT5103 STRATEGIC VIEW OF IT IN THE DIGITAL ECONOMY • Overview of Emerging Digital Economy • Business Pressures, Organisational Performances and IT Support • Information Technology Developments and Trends Information Technology for Managers BMIT5103 STRATEGIC VIEW OF IT IN THE DIGITAL ECONOMY OVERVIEW OF EMERGING DIGITAL ECONOMY • Digital economy means the organisation is involved in: - Electronic Business (E-Business): Use of electronic technologies to transact business; - Collaboration: Interacting, communicating, collaborating and searching for information of people and organisations; - Information Exchange: Storing, processing and transmission of data and information that can be processed and transmitted through the Internet to many destinations worldwide Information Technology for Managers BMIT5103 STRATEGIC VIEW OF IT IN THE DIGITAL ECONOMY OVERVIEW OF EMERGING DIGITAL ECONOMY • Business model: - Method of doing business by which a company can generate revenue to sustain itself; - Four popular business models in the digital economy: • Tendering via Reverse Auctions: Reverse form of auctioning takes place where the lowest bid wins; • Affiliate Marketing: Website becomes a host site to other businesses; • Group Purchasing: Purchase orders of many buyers are aggregated in order to negotiate for discounts, small and medium size businesses or even individuals can participate in such models; • E-marketplaces and Exchanges: Involve trading between buyers and sellers in an electronic marketplace (e-marketplace) that is a virtual marketplace where transactions are conducted virtually Information Technology for Managers BMIT5103 STRATEGIC VIEW OF IT IN THE DIGITAL ECONOMY BUSINESS PRESSURES, ORGANISATIONAL PERFORMANCES & IT SUPPORT • Business pressures: - Significant and sometimes unpredictable changes in the social, technological, legal, economic, physical and political factors are likely to create business pressures on organisations; - Major business pressures: • Economic/market: Global economy and strong competition, the need for real time operations, the changing workforce and powerful customers; • Technology: Technological innovations, obsolescence and information overload; • Society: Social responsibility, compliance with government regulations and deregulations, ethical issues, terrorist attacks and homeland security Information Technology for Managers BMIT5103 STRATEGIC VIEW OF IT IN THE DIGITAL ECONOMY BUSINESS PRESSURES, ORGANISATIONAL PERFORMANCES & IT SUPPORT • Organisation’s major responses to reduce the impact of threats and increase the impact of opportunities: - Strategic management and systems: Enable organisations to increase market share and/or profits; - Continuous improvement: Increase their operational efficiency; - Restructuring business processes: Fundamentally and radically redesign its business processes to archive dramatic improvements; - Manufacturer to order: Produce products and services on demand; - Mass-customization: Customised orders are fulfilled using efficient procedures and processes; - Customer focus strategy: Provide superb customer service, anticipate their future needs, respond to their concerns, and prevent losing them to competitors; Information Technology for Managers 10 BMIT5103 IT SUPPORT SYSTEMS INFORMATION SYSTEM & INFORMATION TECHNOLOGY • Systematic view of an information system: Information Technology for Managers 17 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Transaction Processing System (TPS) • Office Automation System (OAS) • Management Information System (MIS) • Knowledge Management System (KMS) • Decision Support System (DSS) • Intelligent Support System (ISS) • Executive Support System (ESS) Information Technology for Managers 18 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Transaction Processing System (TPS): - Operating support systems that record and process data resulting from business transactions; - Automate routine and repetitive tasks that are critical to the operation of the organization, process thousands of transactions daily; - Transactions include sales, payments, inventory, hiring and firing, paying employees and many others, and will be processed in two basic ways: • Batch processing: Transaction data are accumulated over a period of time and processed periodically; • Real-time processing: Transaction data are processed immediately after the transaction occurs - Data or information from this operation could also be the input data for many applications involving support systems such as MIS and DSS Information Technology for Managers 19 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Office Automation System (OAS): - Set of office-related systems used to increase the productivity of office workers and enable workers to interact and work together more efficiently • Management Information System (MIS): - Access, organise, summarise, and display information in supporting routine decision making in the functional areas; - Geared toward middle managers, MIS are characterized mainly by their ability to produce periodic reports such as a daily list of employees and the hours they work, or a monthly report of expenses as compared to a budget Information Technology for Managers 20 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Knowledge Management System (KMS): - Knowledge-based information systems that support the creation, organisation and dissemation of business knowledge to employees and managers throughout a company; - Enable individuals and organisations to enhance learning, improve performance and, hopefully, produce long term sustainable competitive advantage; - Facilitate the sharing and transferring of knowledge and enhances learning • Decision Support System (DSS): - Computer-based system designed to assist a manager or decision maker in making decisions; - Incorporate both data and models to help a decision maker or tactical level management in solving a problem that is less structured; - Input data are often extracted from TPS or a data warehouse Information Technology for Managers 21 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Intelligence Support System (ISS): - Apply artificial intelligence (AI) techniques to business information systems; - Expert system (ES) provides the stored knowledge of experts to nonexperts, so that the latter can solve difficult or time-consuming problems in the absence of the expert; - Difference from TPS, which centre on data, and from MIS and DSS, which concentrated on processing information and users make their decisions according to the information generated from the systems, ES makes recommended decisions for the users based on the built-in expertise and knowledge Information Technology for Managers 22 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Executive Support System (ESS): - Executive Information System (EIS); - Combine many features of MIS and DSS, focus on meeting strategic information needs of top management and is widely used by managers, analyst and other knowledge workers with more features been added to the system; - Give top executives an easy way to get the critical information they wanted, when they wanted it, and tailored to the formats they preferred; - Ability to drill down, which allows executives to retrieve quickly displays of related information at lower levels of detail Information Technology for Managers 23 BMIT5103 IT SUPPORT SYSTEMS CATEGORIES OF SUPPORT SYSTEM • Classification of information systems by support functions: Information Technology for Managers 24 BMIT5103 IT SUPPORT SYSTEMS IT SUPPORTS OF SUPPLY CHAINS & ENTERPRISE SYSTEMS • Supply chain: - Flow of materials, information, funds, and services from raw material suppliers through factories and warehouses to the end customers; - Main parts: • Upstream supply chain: Organisations first-tier suppliers and their suppliers; • Internal supply chain: All the processes used by an organisation in transforming the inputs of the suppliers to outputs; • Downstream supply chain: All the processes involved in delivering the products to final customers - Support from IT: • Upstream supply chain: Improving the procurement activities; • Internal supply chain: Building effective internal data exchange and communication; • Downstream supply chain: Supporting Customer Relationship Management (CRM), and order taking and shipments to customers Information Technology for Managers 25 BMIT5103 IT SUPPORT SYSTEMS IT SUPPORTS OF SUPPLY CHAINS & ENTERPRISE SYSTEMS • Enterprise systems: - Information systems encompass the entire enterprise, implemented on a company wide network; e.g.: Transaction Processing Systems, Enterprise Resource Planning Systems, Customer Relationship Management, Office Automation, Intranet… - Support an enterprise by providing high-quality, consistent IS services throughout the organization Information Technology for Managers 26 BMIT5103 AGENDA • Strategic Use of IT in the Digital Economy • IT Support Systems • Managerial Issues Information Technology for Managers 27 BMIT5103 AGENDA • Strategic Use of IT in the Digital Economy • IT Support Systems • Managerial Issues Information Technology for Managers 28 BMIT5103 MANAGERIAL ISSUES • Recognising opportunities for using IT and the new ways to compete and conduct business, locally and globally; • Who will build, operate, and maintain the information systems? How important is IT to organisations? • Ethics and social issues in implementing IT; e.g creating competitive advantage, companies may compromise the privacy of users or customers Information Technology for Managers 29 BMIT5103 SUMMARY TOPIC 01 “IT in Organisation” • Our world is moving to a digital economy and to survive or succeed in the ever changing environment, organisations must become adaptive and agile Therefore, many businesses are transforming themselves to e-business to gain the competitive edge; • The extensive use of IT drives new business models that can reduce cost and increase quality, customer service and speed; • Market, technology and society are the forces that drive organisation to move into the new economy Therefore, organisation should respond to these forces with critical response activities supported by information technology; • The main IT support systems are TPS, MIS, KMS, OAS, DSS, ISS and ESS These systems support the managerial activities and also decision making; • Technological developments in IT and many new innovations are making IT a major agent of change; • IT can improve supply chain operations, integrating departmental systems with ERP, and introducing a variety of CRM activities Information Technology for Managers 30 BMIT5103 THANK YOU FOR YOUR ATTENTION ! NEXT TOPIC: IT INFRASTRUCTURE Information Technology for Managers 31 ...BMIT5103 STUDY GUIDE TOPIC 01 IT in Organisation • Learning outcomes: Describe the characteristics of the digital economy and e-business; Explain the pressures in the business environment,... chain: All the processes involved in delivering the products to final customers - Support from IT: • Upstream supply chain: Improving the procurement activities; • Internal supply chain: Building... Managers BMIT5103 STRATEGIC VIEW OF IT IN THE DIGITAL ECONOMY OVERVIEW OF EMERGING DIGITAL ECONOMY • Business model: - Method of doing business by which a company can generate revenue to sustain itself;