IT CH2 PDF

IT CH2 1. Systems and Their Components 1. Systems Theory Provides tools for analyzing and improving business processes. Fundamental for understanding the managerial applications of BIS. 2. What is a System? Definition: A collection of interrelated components working to...

IT CH2 1. Systems and Their Components 1. Systems Theory Provides tools for analyzing and improving business processes. Fundamental for understanding the managerial applications of BIS. 2. What is a System? Definition: A collection of interrelated components working towards a collective goal. Function: Transforms inputs into outputs via a process. 3. System Components Input: Raw materials such as data, knowledge, machinery, or premises. Process: Converts inputs into outputs. Output: Finished product (e.g., information, products, or services). Feedback Mechanism: Evaluates system performance for improvements/adjustments. Control Mechanism: Adjusts inputs and processes to ensure objectives are met. 4. Characteristics of Systems Objectives: Systems aim to achieve specific goals(usually expressed in 1 sentence). Complexity: Systems can consist of smaller subsystemsthat support the suprasystem. Environment: Systems operate within a context that includes other systems and external agencies, the scope of operations is defined by the boundary = which is the interface between a system & environment ,(within it=system itself/outside=system environment), interface = the interaction between subsystems by exchanging information. it should be clearly defined. inside boundary of system of an organization: marketing , finance , HR outside: customers, sales channels, distributors, suppliers, competitors, partners, government, legislation, economy Organizational System Boundaries Competitors economy Suppliers government Distributors partners Sales Customers Channels 5. Degree of interaction Open Systems: high degree of interaction with environment. it represents the majority Closed Systems: no/limited interaction with environment. 6. Subsystems and Coupling Coupling: Defines how dependent subsystems are on each other. Close-Coupling: High dependency on one another. Loose-Coupling: Minimal dependency for flexibility and adaptability. subsystems should all be loosely coupled. Decoupling: Less than minimal dependency therefore more flexibility and adaptability and able to deal with unexpected situations also tend to have more autonomy=‫لالقتسا‬ 7. Hierarchical Nature Systems contain subsystems, which may have further subsystems. Changes in one part affect other parts due to interdependence. These control systems can be classified into: Open-loop: no control action to modify the inputs once the process has begun. makes them inadequate as they have no mechanism for ensuring that the goals are met Closed-loop: has 2 types of control action, Feedback Control responds after changes have taken place = reactive contriol, Feedforward Control predicts likely changes = proactive open-loop system closed-loop feedback closed-loop feedforward keep in mind that feedback has 2 types +ve & -ve Negative Feedback: Reverse any discrepancy between desired and actual output Posiyive Feedback: responds to variance between desired and actual output by increasing it 2. Business Information Systems (BIS) 1. Definition: Interrelated components converting data into information to support decision-making and organizational activities. 2. Resources Supporting BIS People: Users and developers. Hardware: Machines and media they use (paper,CD,etc.). Software: Programs and procedures. Communications: Networks for data exchange + soft&hardware that supports them. Data: Databases and files. Components of Business Information Systems Data People Users and Databases and developers files that store involved in the information system Communications Hardware Machines and Networks and media used for supporting tools data storage and for data exchange processing Software Programs and procedures that operate the system 3. Advantages of BIS Speed: Processes tasks quickly. Accuracy: Reduces errors. Reliability: Operates 24/7. Programmability: Customizable for specific needs. Handles Repetition: Suitable for repetitive tasks. 4. Disadvantages of BIS Limited judgment and experience. Struggles with improvisation, innovation, and intuition. Cannot process qualitative information effectively. Business Information Systems Pros Cons Limited Speed Judgment Struggles with Accuracy Improvisation Lacks Reliability Innovation Programmability Poor Intuition Handles Ineffective with Repetition Qualitative Info 5. Applications of BIS Data and transaction processing. = handeling / dealing with large amounts of data Process control systems for production. 6. Categories of BIS Operational Systems: Daily activities like process control and communications (internal & external). Management Systems: Decision-making and feedback on activities. 3. E-Business Systems 1. Definition: Encompasses activities using the internet for commerce such as e-commerce. e-commerce using technology to conduct business 2. Types of E-Commerce B2B: Business-to-business. B2C: Business-to-consumer/E-Tailing. B2G: Business-to-government/public sector. C2C: Consumer-to-consumer. M-Commerce: or Mobile commerce is using technology to conduct business transactions. 3. Benefits Reduced costs, improved efficiency, and access to a global market. 4. Enterprise Systems 1. Definition: Supports business processes across functional boundaries using internet technology. 2. Elements of Enterprise Systems ERP (Enterprise Resource Planning): Internal production, distribution, and finances. CRM (Customer Relationship Management): Marketing and sales processes. SCM (Supply Chain Management): Flow of materials and information. SRM (Supplier Relationship Management): Sourcing and warehousing. 5. BIS and Strategic Advantage 1. Competitive Strategies Cost Leadership: Low costs for broader customer base. Product Differentiation: Unique offerings for niche markets. Innovation: New approaches to activities. Focus: Specialization in products, services, or customer groups by using internet. 2. Value Chain Analysis Primary Activities: Production, sales, marketing inbound & outbound logistics. Secondary Activities: HR, finance, and IT support. 3. Virtual Value Chain (VVC) mainly on the marketspace which is the virtul counterpart of mraketplace Phases: Visibility: Examines physical processes. Mirroring Capability: Replaces physical with virtual processes. New Customer Relationships: Creates value through innovative delivery methods. 4. Addressing Competitive Forces (Porter’s Model) Threat of New Entrants: Raise barriers to entry. Supplier Power: Lock-in suppliers. Customer Power: Lock-in customers. Substitute Threat: Differentiate products. Rivalry: Innovate and improve efficiency. Porter’s Model shows also the computer based models to achieve competitive advantages