This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent, charge, or profit from the educational materials contained here. Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

1. © 2017 Arianto Muditomo All Rights Reserved
Copyright Notice:
This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-
commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from
Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent,
charge, or profit from the educational materials contained here.
Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

2. arianto.muditomo@2017
Referrences:
1) Baltzan, Paige 2014. Business Driven Information Systems. 4th Edition. New York: McGraw-Hill.
2) Pearlson, Keri E. And Saunders Carol S. 2013. Managing and Using Information Systems: A Strategic Approach. 5th Ed.
Danvers: John Wiley & Sons.
3) Turban, Efraim, Volonino, Linda, and Wood, Gregory 2013. Information Technology for Management. 9th Edition.
Hoboken: John Wiley & Sons.
4) Turban, Efraim, Strauss, Judy, and Lai, Linda 2016. Social Commerce: Marketing and Technology Management. Hidelberg:
Springer.
5) Xu, Jun and Quaddus, Mohammed 2013. Managing Information Systems: Ten Essential Topics. Amsterdam: Atlantis Press.
6) Turban, Rainer: Introduction to Information Systems Enablig and Transforming Business 2nd Ed., John Wiley & Sons.2009
7) Kenneth C. Laudon and Jane P. Laudon, Management Information Systems, Managing The Digital Firm, Pearson: Prentice
Hall 2006
8) Business information systems : technology, development and management for the e-business / Paul Bocij, Andrew
Greasley and Simon Hickie. – Fifth edition., © Pearson Education Limited 2015
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• Session #1: Information System in Business
• Session #2: IT Strategic Planning
• Session #3: Business Information System
• Session #4: Business Intelligence & Decision Support
• Session #5: Ethics, Privacy and Security
• Session #6: e-Business and e-Commerce
• Session #7: Knowledge Management
• Session #8: Enterprise Information System

3. arianto.muditomo@2017
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§ Identify systems and their components;
§ Identify and describe the behavior of systems;
§ Identify types of BIS, distinguishing them by category and the organizational level at which
they are used;
§ Describe e-business, e-commerce and ERP and evaluate their relevance to the
organization;
§ Identify basic strategies and methods used to gain competitive advantage through the use
of BIS.

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§ What do you know about System?
§ What is a business information system?
§ What do you know about the type of e-business/e-commerce?

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WHAT IS SYSTEM?
§ A system can be defined as a collection of interrelated components that work together
towards a collective goal.
§ The function of a system is to receive inputs and transform these into outputs
4
Control
Feedback
PROCESSINPUT OUTPUT

6. arianto.muditomo@2017
5
All system share these characteristics:
System Objectives
The components of a system work towards a collective goal
Environment-Boundary-Interface
Systems do not operate in complete isolation
Subsystem-Supra System-Open System-Closed System
Systems can be complex and can be made up of other smaller
systems
Subsystems in an information system interact by exchanging
information
Coupling: closed-couple & decoupled
The linkage or coupling between subsystems varies
Interdependence
Systems are hierarchical

7. arianto.muditomo@2017
= A business information system is a group of interrelated components that work collectively to
carry out input, processing, output, storage and control actions in order to convert data into
information products that can be used to support forecasting, planning, control, coordination,
decision making and operational activities in an organization.
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BIS
Resources
people
H/W
softwareComm.
data
Activities 1: What information systems might be found in your company’s? For each system identified, list the
people, hardware, communications, software and data resources involved.

8. arianto.muditomo@2017
BUSINESS
= an information system that makes use of information technology in order to
create management (and/or business) information.
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The speed, accuracy and
reliability of computer-
based information
systems mean that they
are able to handle
repetitive tasks involving
large volumes of data.
Advantages
Speed
Accuracy
Reliability
Programmability
Repetitive Task
Disadvantages
Judgement/Experience
Improvisation/
Flexibility
Innovation
Intuition
Qualitative Information

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Figure 2.7 Usage and
applications of
computer-based
information systems by
organizational level
(shading denotes usage
of BIS)
Source: [8] p. 45
Data processing
Handling the large
volumes of data that
arise from an
organization's daily
activities is described
as data processing.
Transaction processing
Processing the sales and
purchase transactions
that an organization
carries out in the course
of its normal activities.
Process control
systems
Systems which manage
manufacturing and other
production processes.

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CATEGORIES OF BUSINESS INFORMATION SYSTEM
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OPERATIONS
Information Systems
= systems required for the day-
to-day activities of a business
such as process control,
transaction processing,
communications (internal and
external) and productivity.
MANAGEMENT
Information systems
= systems providing feedback
on organizational activities
and supporting managerial
decision making.
q Transaction processing systems
q Process control systems
q Office automation systems
q Decision support systems
q Information reporting systems
q Executive information systems

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= The process of using Web technology to help businesses streamline processes, improve
productivity and increase efficiencies. Enables companies to easily communicate with
partners, vendors and customers, connect back-end data systems and transact commerce
in a secure manner. (IBM CEO Lou Gerstner, 1997)
= The use of ICT, especially the Internet, to conduct business.
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Production
Processes
Customer-
Focused
Processes
Internal
Management
Processes
e-Business
Approach
Internet Economy
e-Business is part of a broader
Internet economy which
encompasses all of the activities
involved in using the Internet for
commerce, which are consist of
• Internet infrastructure layer
• Internet application infrastructure
layer
• Internet intermediaries layer
• Internet commerce layer
The benefits of e-business include
reduced costs, improved efficiency
and access to larger markets.

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= A common activity associated with e-business is electronic commerce (e-
commerce)
= using technology to conduct business transactions, such as buying and selling
goods and services.
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= aim to support the business processes of an organization across any functional
boundaries that exist within that organization.
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ERP
CRM
Human
Capital
SRMPLM
SCM
Finance
Mgt.
The main elements of an enterprise system are
1) enterprise resource planning (ERP) which is
concerned with internal production, distribution and
financial processes,
2) customer relationship management (CRM) which is
concerned with marketing and sales processes,
3) supply chain management (SCM) which is
concerned with the flow of materials, information
and customers through the supply chain and
4) supplier relationship management (SRM) which is
concerned with sourcing, purchasing and the
warehousing of goods and services.
5) Other elements may include product lifecycle
management (PLM), financial management and
human capital management.

14. arianto.muditomo@2017
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improving
operational
efficiency
raising
barriers to
entry
locking in
customers
and
suppliers
promoting
business
innovation
increasing
switching
costs
leverage
Organization

15. arianto.muditomo@2017
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16. arianto.muditomo@2017
§ What do you know about System?
A system can be defined as a collection of interrelated components that work together towards a
collective goal.The function of a system is to receive inputs and transform these into outputs.
§ What is a business information system?
A business information system is a group of interrelated components that work collectively to carry out
input, processing, output, storage and control actions in order to convert data into information products
that can be used to support forecasting, planning, control, coordination, decision making and operational
activities in an organization.
§ What do you know about the type of e-business/e-commerce?
1) Business-to-business (B2B).Transactions take place between companies. Approximately 80 per cent
of all e-commerce is of this type.
2) Business-to-consumer (B2C). Companies sell products directly to consumers. B2C can involve
activities such as product research (where consumers gather information and compare prices) and
electronic delivery (where information products are delivered to consumers via e-mail or other
means).
3) Business-to-government (B2G).Transactions take place between companies and public- sector
organizations.
4) Consumer-to-consumer (C2C).Transactions take place between private individuals. Perhaps the
best examples of C2C commerce are online auction sites and peer-to-peer systems.
5) Mobile commerce (m-commerce). M-commerce is a relatively new development and involves
selling goods or services via wireless technology, especially mobile phones and PDAs.
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17. © 2017 Arianto Muditomo All Rights Reserved