Chapter 01

Information Systems: People,

Technology, Processes, and Structure
By: Heri Kurniawan

CSIM601280 - Prinsip Prinsip Sistem Informasi

Program Sarjana Sistem Informasi

Tim Pengajar: Heri, Mita, Nabila, Widia

Rev: 02-Feb-2023
Principle 01
Information Systems: People,
Technology, Processes, and
Structure
Principles Learning Objectives
Managers have an essential • Identify two key management responsibilities in
role to play in the successful implementing successful information systems.
implementation and use of • State three reasons why organizations employ the
information systems—that Leavitt’s Diamond model to introduce new systems
role changes depending on into the workplace.
which type of information
system is being • Describe four fundamental information system
types based on their sphere of influence.
implemented.
• Discuss the traditional and contemporary view of
the role that information systems play in an
organization’s value chains.
Why Learn About Information Systems (IS)?
• We live in an information economy, and information systems are
embedded in and control many of the products we use on a daily
basis
• Some IS benefits for organizations
• To stay competitive
• To make instant communication with employees and customers
• Increase project collaboration effectiveness and efficiency
• To track inventory, order supplies and distribute goods faster
• Information systems will continue to change businesses and the way
we live.
What is an Information System
• An information system – a set of interrelated components that work
together to collect, process, store, and disseminate information
• This information supports
• fundamental business operations
• data reporting and visualization
• data analysis
• decision making
• communications
• coordination within an organization.
• IS includes some form of feedback mechanism to monitor and control
its operation
Information Systems—A Means to Achieve
Competitive Advantage
• IS enables an organization to generate more sales or achieve superior
profit margins compared to its rivals
• The advantage can be gained in one of three ways:
1. by providing the same value as competitors but at a lower price (cost
leadership),
2. by charging higher prices for providing products that are perceived by the
customer as being better (differentiation), or
3. by understanding and servicing a target market better than anyone else
(focus).
• Managers have a key responsibility to identify and use information
systems to gain a competitive advantage
a few examples of using
information systems
Managers’ Role in Implementing Successful
Information Systems
• An organization’s information system operates within a context of
people, technology infrastructure, structure, and processes
• Organizations use Leavitt’s Diamond model to introduce new systems
into the workplace in a manner that
• lowers stress
• encourages teamwork
• increases the probability of a successful implementation
• Managers have a key responsibility to ensure that the people,
processes, and human structure components are fully addressed
Leavitt’s Diamond
People
• Make the difference between success and failure in all organizations
• The most important element of information systems
• Involved in information systems in many ways
• Envisioning dan deliver benefits
• Design
• Build
• Support
• Maintain
• use
• Employees must be well trained and understand the need for the
information system
Technology Infrastructure
• Includes all of its hardware, software, databases, networks, facilities
and services provided by third parties

• An organization uses these resources to develop, test, deliver, control,

or support the information technology applications and services
• to meet the needs of its customers, suppliers, key business partners,
regulatory agencies, and employees.

• The technology infrastructure forms the foundation of every

computer-based information system
Processes (1/2)
• A process – a structured set of related activities that takes input,
adds value, and creates an output for the customer of that process
• Input – raw materials, data, chemical ingredients, documents, or data
• Output – finished product, information gleaned from processing the data, a
completed form, or a report.
• Customer/worker – receive output
• Salesperson – taking orders from customers
• A procedure defines the steps to follow to achieve a specific end
result
• such as how to enter a customer order, how to pay a supplier invoice, or how
to request a current inventory report
Processes (2/2)
• Using an information system involves setting up and following many
procedures, including those for the operation, maintenance, and
security of the computer.
• Example IS procedures:
• System access procedures
• Disaster recovery procedures
• Good procedures can help companies take advantage of new
opportunities and avoid lengthy business disruptions in the event of
natural disasters.
Structure
• An organization’s structure defines relationships among members of
the organization
• It defines the roles, responsibilities, and lines of authority that are
necessary to complete various activities
• Employees must understand and accept their roles and
responsibilities
• these roles and responsibilities often change with the introduction of a new
information system
Types of Information Systems
• Personal information system
• Workgroup information system
• Enterprise information system
• Interorganizational information system.
Personal Information System
• Personal information system – Includes information systems that
improve the productivity of individual users in performing stand-
alone tasks.
• Examples
• word-processing, presentation, time management, and spreadsheet software.
• Mobile e-commerce personal apps, such as Shopee, Tokopedia, Bukalapak,
etc
Workgroup Information System
• A workgroup information system – supports teamwork and enables
people to work together effectively
• whether team members are in the same location or dispersed around the
world.
• also known as collaboration systems
• Examples
• instant messaging software, electronic conferencing software, and
collaboration software.
Enterprise Information Systems
• An enterprise information system is used to meet organization-wide
business needs and typically shares data with other enterprise
applications used within the organization.
• Example
• Applications to support processes in logistics, manufacturing, human
resources, marketing and sales, order processing, accounting, inventory
control, customer relationship management, and other essential business
functions. Ie ERP
• Applications to meet industry standards ie PCI-DSS, HIPAA, etc
Interorganizational Information System
• An interorganizational IS enables the sharing of information across
organizational boundaries.
• Information sharing supports collaboration between two or more
organizations and provides benefits such as lower costs, reduced
manual effort, and decreased time to conduct business.
• To achieve these benefits, the information shared between organizations
must be accurate, complete, and current
• Example
• Electronic data interchange (EDI), Rest API based Applications, Walmart
Vendor-managed Inventory (VMI)
Value Chain
• The value chain – a series (or chain) of activities that an organization
performs to transform inputs into outputs in such a way that the
value of the input is increased.
• Supply chain – a key value chain whose primary processes include
inbound logistics, operations, outbound logistics, marketing and sales,
and service
• An organization’s supply chain encompasses the processes required
to get the right product or service into the right consumer’s hands in
the right quantity at the right time and at the right cost
Supply chain and primary and support processes
Organizations are constantly fine-tuning and
adjusting their supply chain
Amazon has transformed from a small, non-profitable online bookseller to the largest
Internet-based retailer in the world, as defined by total sales and market capitalization.
Amazon is continually evolving its approach to supply chain management to ensure that it
can deliver millions of items to customers at the right price and faster than any other
retailer. Amazon offers customers Amazon Prime, an annual membership that guarantees
free two-day shipping on hundreds of thousands of items. When other online retailers
moved to match Amazon Prime, Amazon began offering free two-day shipping. Its next
move was one-hour delivery with Amazon Prime Now. Amazon customers who live within
10 miles of an Amazon fulfillment center will soon be able to receive their eligible packages
(under 5 pounds) via drones inside of 30 minutes. Amazon even introduced Dash buttons,
little wireless communications devices that allow users to simply press a button to order a
household staple such as bottled water, coffee, detergent, and paper products.
Principle 02
Information Systems: People,
Technology, Processes, and
Structure
Principles Learning Objectives
The strategic planning • Identify four benefits of creating a
process for the IS strategic plan.
organization and the
• Identify four drivers that help set the
factors that influence it information system organizational
depend on how the strategy.
organization is perceived
by the rest of the • Identify three ways the IS organization can
organization. be perceived by the rest of the
organization, and how each can influence
the IS strategy.
Strategic Planning
• Strategic planning – a process that helps managers identify initiatives
and projects that will achieve organizational objectives.
• Must take into account that the organization and everything around it
is in a state of flux.
• Consumers’ likes and dislikes, changes in competitors, and suppliers leaving
and entering the marketplace.
• The costs and availability of raw materials and labor fluctuate, the
fundamental economic environment (interest rates, growth in gross domestic
product, inflation rates) changes; and the degree of industry and government
regulation varies.
Strategic Planning Benefits
• A framework and a clearly defined direction to guide decision making
at all levels and across all organizational units
• The most effective use of the organization’s resources by focusing
those resources on agreed-on key priorities
• The ability of the organization to be proactive and to take advantage
of opportunities and trends, rather than passively reacting to them
• Improved communication among management, employees, the board
of directors, shareholders, and other interested parties
Strategic Plan Themes
• An organization develops an overall strategic plan, which sets the
direction for all the other business units of the organization.
• Common themes in setting strategies include
• increase revenue
• attract and retain new customers
• increase customer loyalty
• reduce the time required to deliver new products to market
Information System Strategic Planning
• The strategic plan of an information system (IS) must identify those
technologies, vendors, competencies, people, systems, and projects
in which an organization will invest to support the corporate and
business unit strategies.
• This plan is strongly influenced by new technology innovations.
• These innovations include increasingly more powerful mobile devices
and advanced software that can analyze large amounts of structured
and unstructured data.
• Innovative thinkers inside and outside the organization also influence
the plan
Drivers that set IS
organizational strategy
and determine
information system
investments
• The strategic planning process for the IS organization is also strongly influenced by
how the IS organization is perceived by the rest of the organization.

• An IS organization can be viewed as a cost center/service provider, as a business

partner/business peer, or as a game changer
Principle 03
Information Systems: People,
Technology, Processes, and
Structure
Principles Learning Objectives
The information • Identify six non-technical skills needed
system worker to be an effective information system
worker.
operates at the
intersection of business • Identify two benefits of obtaining a
and technology and certification in an IS subject area.
designs, builds, and
implements solutions
that allow
organizations to
effectively leverage
information systems.
Information Systems Workers Technical Skills
• Capability to analyze large amounts of structured and unstructured data
• Ability to design and build applications for mobile devices
• Traditional programming and application development skills
• Technical support expertise
• Project management skills
• Knowledge of networking and cloud computing
• Ability to audit systems and implement necessary security measures
• Web design and development skills
• Knowledge of data center operations
Information Systems Workers Non-Technical
Skills
• Enjoy working in a fast-paced, dynamic environment where the underlying
technology changes all the time
• Comfortable with meeting deadlines and solving unexpected challenges.
• Have good communication skills and translators between business needs
and technology-based solutions
• Have analytical and decision-making skills and able to translate ill-defined
business problems and opportunities into effective technology-based
solutions
• Can develop effective team and leadership skills and be adept at
implementing organizational change
• Be prepared to engage in lifelong learning in a rapidly changing field
Computer and information science degrees awarded
Typical Information System Roles
• Professionals with careers in information systems can work in an IS
department or outside a traditional IS department
• as Web developers, computer programmers, systems analysts, computer
operators, and in many other positions.
• In addition to technical skills, IS professionals need skills in written
and verbal communication, an understanding of organizations and
the way they operate, and the ability to work with people and in
groups.
IS Professional Roles
• Chief Information Officer
• Software Developer
• Information Systems Security Analyst
• Systems Analyst
• Programmer
• Web Developer
• Business Analyst
• Other IS Careers
Chief Information Officer (CIO)
• The role of the chief information officer (CIO) – to employ an IS
department’s equipment and personnel in a manner to best achieve
the goals of the organization
• CIOs must understand finance, accounting, and return on
investment and be able to make wise choices on which of many
projects to fund and staff.
• Helping companies to comply with laws and regulations
• A good CIO is typically a visionary who provides leadership and
direction to the IS department to help an organization achieve its
goals
Software Developer
• Software developer – the creative minds behind computer programs
• Some develop the applications and operating systems
• Activities
• Test, debug, maintain, upgrade software
• Collaborate with management, clients and others to build software based on
customer specifications
• Software developers usually have a bachelor’s degree in computer
science and strong computer programming skills.
Information Systems Security Analyst
• IS security analysts – responsible for planning, designing,
implementing, and maintaining the security and integrity of their
organizations’ systems and data
• Activities
• analyze the security measures of the organization
• identify and implement security changes to make improvements
• developing and delivering training on proper security measures
• creating action plans in the event of a security breach
• Most information security analyst positions require a bachelor’s
degree in a computer-related field
Systems Analyst
• Systems analysts – frequently consult with management and users to
define the scope of and requirements for new information systems
• Activities
• convey system requirements to software developers and network architects
for implementation
• bring business and information systems together by understanding the needs
and limitations of both
• assist in choosing and configuring hardware and software, matching
technology to users’ needs, monitoring and testing the system in operation,
and troubleshooting problems after implementation
• A bachelor’s degree in a computer or information science field is
common
Programmer
• Programmers – convert a program design developed by a systems
analyst or software developer into a working program written in one
of many computer languages
• Activities
• write, debug, and test the program
• usually work in offices, most commonly in the computer systems
design and related services industry
• Most computer programmers have a bachelor’s degree
• Most programmers specialize in more than one programming
language
Web Developer
• Web Developer – design and maintain Web sites, including site layout
and function, to meet the client’s requirements.
• Activities
• creating a user-friendly design
• ensuring easy navigation
• organizing content
• integrating graphics and audio
• monitoring Web site performance and capacity.
Business Analyst
• Business analysts –responsible for improving a company’s competitiveness
and performance across a broad spectrum of criteria.
• Activities
• Evaluating and solving business challenges
• collect, review, and analyze information that enables them to make sound
recommendations
• often specialize in a particular functional area, such as supply chain management,
marketing, finance, etc
• oversee teams or work independently to solve problems and address challenges
• Have a bachelor’s degree in business administration with a specialization in
management.
Other IS Careers
• IS personnel can work for large consulting firms, such as Accenture,
IBM, and Hewlett- Packard.
• Some consulting jobs entail frequent travel because consultants are
assigned to work on various projects at the client location.
• Such jobs require excellent project management and people skills in addition
to IS technical skills.
• Some people decide to start their own IS businesses rather than
continue to work for someone else
• Other people become IS entrepreneurs or freelancers
Shadow IT
• Shadow IT – a term used to describe the information systems and
solutions built and deployed by departments other than the
information systems department.
• For example, data scientists can be found in the marketing, sales, and supply
chain management departments of large organizations.
Continuous Education
• Certification – a process for testing skills and knowledge
• An endorsement by the certifying authority that an individual is
capable of performing particular tasks or jobs
• Certification frequently involves specific, vendor-provided, or vendor-
endorsed coursework.
• Getting certified from a software, database, or network company may
open the door to new career possibilities or result in an increase in
pay.
The End