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

IT IN ORGANISATION BMIT5103 Course Information Technology for Managers

TOPIC 01

“IT in Organisation”

• Learning outcomes:

1 Describe the characteristics of the digital economy and e-business;

2 Explain the pressures in the business environment, and the criticalresponse activities that organisations take to counter the pressures;

3 Discuss the developments and trends of IT;

4 Describe major categories of systems that support businesstransaction processing, and various groups of people and their tasks;

5 Describe how IT supports of Supply Chains and Enterprise Systems

• Strategic Use of IT in the Digital Economy

• IT Support Systems

• Managerial Issues

• Strategic Use of IT in the Digital Economy

• IT Support Systems

• Managerial Issues

• Overview of Emerging Digital Economy

• Business Pressures, Organisational Performances and IT Support

• Information Technology Developments and Trends

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 theInternet to many destinations worldwide

OVERVIEW OF EMERGING DIGITAL ECONOMY

• Business model:

- Method of doing business by which a company can generate revenue tosustain 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.

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 tocreate 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.

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 toincrease 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 tocompetitors;

BUSINESS PRESSURES, ORGANISATIONAL

PERFORMANCES & IT SUPPORT

• Organisation’s major responses (cont.):

- E-commerce: Process of buying, selling, transferring, or exchanging

products, services, and/or information via computer networks, includingthe Internet;

- E-business: Broader definition of e-commerce, not just the buying and

selling of goods and services, but also servicing customers,collaborating with business partners, conducting e-learning, andprocessing electronic transactions;

- Business alliances: Many companies have alliances and business

linkageswith other companies for effective collaboration to reduce risksand costs;

INFORMATION TECHNOLOGY DEVELOPMENTS & TRENDS

General

Cost decrease, performance increase;

enormous increases in computer

processing capacity and sharp decline in

cost

Storage capacity will increase dramatically

Multimedia use increase especially virtual

reality

Computers will be increasingly compact

and more portable

Push for open architecture, e.g open

source

Intelligent systems such as expert system

are embedded in other system

Networked computing

Storage network; many corporations are relying on outside server to manage their technology, which they can access via the web

Mobile and wireless computing will be a major component of IT

Optical computing will increase network capacity; these high capacity

telecommunication networks will convert signals to colours of light and transmit these over fiber optical filement

The used Internet will grow E-commerce changing businesses

• Strategic Use of IT in the Digital Economy

• IT Support Systems

• Managerial Issues

• Strategic Use of IT in the Digital Economy

• IT Support Systems

• Managerial Issues

• Information System and Information Technology

• Categories of Support System

• IT Supports of Supply Chains and Enterprise Systems

INFORMATION SYSTEM & INFORMATION TECHNOLOGY

• Hardware: Variety of physical devices such as processors, monitor,

keyboard, and mouse;

• Software: Set of programs that instruct the hardware to process data;

• Database: Place where data is stored;

• Network: Communication channel that permits sharing of resources;

• Procedures: Set of instructions or rules for the computer to follow in order to

produce a desired output;

• People: All individuals that are related to the system.

INFORMATION SYSTEM & INFORMATION TECHNOLOGY

• Systematic view of an information system:

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)

CATEGORIES OF SUPPORT SYSTEM

• Transaction Processing System (TPS):

- Operating support systems that record and process data resulting frombusiness transactions;

- Automate routine and repetitive tasks that are critical to the operation ofthe 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 basicways:

• Batch processing: Transaction data are accumulated over a period of time

and processed periodically;

• Real-time processing: Transaction data are processed immediately after

CATEGORIES OF SUPPORT SYSTEM

• Office Automation System (OAS):

- Set of office-related systems used to increase the productivity of officeworkers and enable workers to interact and work together moreefficiently

• Management Information System (MIS):

- Access, organise, summarise, and display information in supportingroutine decision making in the functional areas;

- Geared toward middle managers, MIS are characterized mainly by theirability to produce periodic reports such as a daily list of employees andthe hours they work, or a monthly report of expenses as compared to abudget

CATEGORIES OF SUPPORT SYSTEM

• Knowledge Management System (KMS):

- Knowledge-based information systems that support the creation,organisation and dissemation of business knowledge to employees andmanagers throughout a company;

- Enable individuals and organisations to enhance learning, improveperformance and, hopefully, produce long term sustainable competitiveadvantage;

- Facilitate the sharing and transferring of knowledge and enhanceslearning

• Decision Support System (DSS):

CATEGORIES OF SUPPORT SYSTEM

• Intelligence Support System (ISS):

- Apply artificial intelligence (AI) techniques to business informationsystems;

- Expert system (ES) provides the stored knowledge of experts tononexperts, so that the latter can solve difficult or time-consumingproblems 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 theirdecisions according to the information generated from the systems, ESmakes recommended decisions for the users based on the built-inexpertise and knowledge

CATEGORIES OF SUPPORT SYSTEM

• Executive Support System (ESS):

- Executive Information System (EIS);

- Combine many features of MIS and DSS, focus on meeting strategicinformation needs of top management and is widely used by managers,analyst and other knowledge workers with more features been added tothe system;

- Give top executives an easy way to get the critical information theywanted, 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

CATEGORIES OF SUPPORT SYSTEM

• Classification of information systems by support functions:

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:

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 RelationshipManagement, Office Automation, Intranet…

- Support an enterprise by providing high-quality, consistent IS services

throughout the organization

• Strategic Use of IT in the Digital Economy

• IT Support Systems

• Managerial Issues

• Strategic Use of IT in the Digital Economy

• IT Support Systems

• 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.

TOPIC 01

“IT in Organisation”

• Our world is moving to a digital economy and to survive or succeed in the everchanging environment, organisations must become adaptive and agile.Therefore, many businesses are transforming themselves to e-business to gainthe competitive edge;

• The extensive use of IT drives new business models that can reduce cost andincrease quality, customer service and speed;

• Market, technology and society are the forces that drive organisation to moveinto the new economy Therefore, organisation should respond to these forceswith 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 amajor agent of change;

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