CIS Quiz 1
Time to market
- (engineering lead time) the time between generating an idea for a product and completing a prototype that can be mass-manufactured Competitive advantage requires efficient and fast product design and development strategy- products need to be "leading edge"
Engineering includes
Brainstorming, developing a concept, creating mock-ups, building prototypes, testing, and other activities that require investments of time, labor, and money. Key to maintaining competitive edge: minimizing lead time Competitors don't have enough time to introduce their own products 1st Information systems can reduce this time
Supply Chain Management (SCM)
consists of monitoring, controlling, and facilitating supply chains
Four stages of processing
input - entering data into the IS data processing - changing and manipulating the data in the IS output - getting information out of the IS storage - storing data and information Input First step in producing information is collecting and introducing data Data elements result from transactions Transactions are business events such as a sale, purchase, or payment Transactions can be recorded on paper and entered into a system through transaction processing systems (TPS) TPS can process the transaction, summarize, and route information to other systems Transactions are a processing system, not just a recording system Processing Computers' speed and accuracy allow organizations to process millions of pieces of data The computers greatest contribution to ISs is efficient data processing Output The information an IS produces and displays in the format most useful to an organization Examples: video display or monitor which displays output visually Storage One of the greatest benefits of using IT is the ability to store vast amounts of data and information Example: YouTube estimates the 72 hours of video are uploaded to the site every minute
3-D Geographic Software
Increasing number of applications are being developed to create 3-D models of geographic areas and whole cities.
Productivity
- Refer to efficiency of human resources. Improves when fewer workers are required to produce the same amount of output. With the same amount of workers, there will be a greater amount of output.
Ethical and Societal Issues
-Ethics are moral principles that govern a person's group or behavior. Societal issues are problems that influence a lot of individuals within a society. In the workforce, if you are using technology or IT you may be faced with many Ethical/Social Issues daily. -Technology and IT in today's world create many positive outcomes for workers such as making our work more productive, creating new economic opportunities, creating communities and establishing better/more interactive relationships with customers. -Some of the negatives that people may face when dealing with Technology and IT could be Consumer Privacy, Employee Privacy, Freedom of Speech, Online Annoyances, Phishing and Identity theft, and IT Professionalism.
IT Professionalism
-IT specialists help create information systems that help our physical and financial well-being. -IT specialists are considered professionals.
Employee Privacy
-Monitoring of information accessed by an employee is a hotly debated issue of technology in the work place. -Many employers keep track of employee's technological activity, such as keystrokes, emails, and websites visited. Some employers even track the whereabouts of their employees while they are on the job. -Sometimes the attentiveness of employers can create stress or violate privacy of the employee. -The issue to consider is: is it more important to enact the employer's right to monitor their employees or should the employee's privacy and mental health be put first?
Multimedia in Business
-Multimedia allows businesses to share vital information among staff members without ever having to convert it to a paper document. -Different workers can add various forms of information, whether it is numbers and calculations or video clips and audio recordings.
Multimedia in Education and Research
-Multimedia gives students a new, interactive way to learn. -Students can run multiple sources of information at a time (text, audio recording, etc...) to enhance their learning experience. -Researchers use multimedia to help compile and integrate their data. It helps them analyze more data in a quicker, more efficient way.
Multimedia in Training
-Multimedia is used to simulate real-world experiences in a training environment. -It allows trainees to practice handling potentially life-threatening experiences that they will see in the field, while taking away the actual threat.
Economic Order Quantity
Used for one specific raw material Gives the optimal quantity of said material to minimize overstocking/save cost without risking under stocking/missing production deadlines.
Data manipulation
A company introduced a new vehicle to the market. This was caused by management realizing that they needed to continuously improve products in order to keep their customers happy and loyal. The company sends out questionnaires that include 30 questions to understand what the customers did or did not like about the products so far. By seeing the complaints the company is able to focus on fixing the weaknesses of their product. The company can also use this data to figure out which product is being sold the most and what target market they should focus on.
Steps of the Transaction Processing Systems
A purchase is recorded by a company- this includes sales, cash withdrawals, deposits, transfers, and record purchases. Data elements are collected IS processes and stores data TPSs provide the information for future use
General Public License (GPL)
Anyone can use and make modified versions, but can't sell modified versions for profit
Groupware Applications
Are Programs that enable workers to collaborate in real time over the web.
System
Array of components that work together to achieve a common goal, or multiple goals, by accepting input, processing it, and producing output in an organized manner. Ex. sound system, the government Systems do not always have a single goal. They are usually comprised of subsystems, or components of a larger system. subsystems have sub goals receives info from, and transfer output to, other systems and subsystems ex. different departments in a business Closed system stands alone, no connection to another system. Open system interfaces and interacts with other systems. Information system (IS) consists of all the components that work together to process data and produce information.
Four main functions of Information systems
Accounting Is and always has been one of the biggest parts of any successful business, and the rise of information systems has only made it more important. The systems streamlines the accounting process by automatically completing tasks that someone would have had to do themselves such as recording transactions, creating financial statements, and legal documents. Finance Facilitates a financial plan and a businesses transactions. Finance information systems are extremely important, because they organize budgets, cash flows, and analyze investments. This ensures the business is using every dollar wisely while achieving optimum performance. Marketing to the consumer They find out what people are most likely to purchase their product and then market the good or service to these people through many different mediums. These information systems analyze market trends at the click of a button and because of this they save company's huge amounts of money. The system then gives this collected information to either managers or sales reps which build upon it to make sales. Human resource Function is record keeping Since employees have benefits and evaluation, this IS helps keep it all organized and easily accessible. This IS also has employee information such as name, date of birth, and their picture. All of these IS's come together and make a company much more efficient. It takes away the need for repetitive unnecessary labor that can easily be done by a system and saves a large sum of money. They make a company successful in this day and. age
Strategic Initiative #6: Enhance Products or Services
As an alternative to differentiating products and services, an organization may enhance existing products or services - add to the product or service to increase its value to the consumer. Since the release of the Internet to commercial enterprises in the early 1990s, many companies have supplemented their products and services via websites that provide up-to-date information and other services, such as a brokerage company allowing for online stock transactions, that provided them a competitive advantage over other companies.
Competitive Advantage as a Moving Target
As competitive advantages are often short-lived, good luck keeping one for long. There is a constant imitation game, where one person creates something really cool that gives them an advantage, and then another group creates something similar but just a little better, which creates a new advantage and reduces the first one, and so on. Once everyone offers something, your company that did it first is no longer special, and the competitive edge is lost. Therefore companies have to be constantly moving and advancing to keep ahead of the game. This is the idea that the advantage is a moving target. Example) Amazon started as a book selling company. Now, through the power of IS and constant improvements, they provide reader's reviews, author's interviews, streaming audio and video, and selling and shipping almost anything conceivable online. Amazon is currently at the head of the game, but in order to not be lost in the sea of competitors, they must keep following that moving target forever.
Customers Relations Management Systems
CRM stands for customer relationshipmanagement Usually combined with telephone to provide customer service Helps manage an organization's relationshipwith its customers Maintains customer records to sophisticated systems that analyze and detect buying patterns and potentially when the organization is going to lose customers Convergence of variance technologies has provided innovative methods of online service with chat and call-back services Use online applications to track customers' transactions Useful because retaining loyal customers is less expensive than acquiring new ones Main goals of CRM systems: To increase quality of customer service Reduce amount of labor involved in serving customers Learn as much as possible about buying habits and service preferences of individual customers
Strategic Information Systems (SIS)
Can help an organization achieve a long-term competitive advantage can be created from scratch, developed by modifying an existing system, or "discovered" by realizing that a system already in place can be used to a strategic advantage. most SIS have the intentions of improving mundane operations using IT
Proprietary
Code is owned by someone who has the right to sell or license it to us Microsoft, SAP, Oracle and all other for-profit organizations that developed software own their software and license it
US bureau of Labor Statistics
Computer information systems Managers:15% projected increase in this area from 2014-2024, median salary for 2015: $131,600 Computer Systems Analysis: 21% projected increase in this area from 2014-2024, median salary $88,130
IT"s greatest contribution to engineering:
Computer-aided design (CAD) and rapid prototyping Rapid prototyping- creating one of a kind products to test design in 3 dimensions Allows model of product to be produced within hours Model shows physical look 1st an image created Then special machine creates 3d model Model is examined by engineers and marketing managers Model can also be shown to clients Computer-aided design (CAM)- prototypes transferred from CAD system to this system Processes data to instruct machines, such as robots, how to manufacture the parts and assemble the product Computers modify designs quickly and store them electronically Using collaborative software, engineers can develop drawings and plans together on the internet and see it while conducting remote conferences Money is saved by companies because much testing can now be done using the computer software
Economical
Cost of getting the information must be logical and cost effective.
Compensation and Benefits Management:
Information systems help HR officers manage compensation, such as salaries, commissions, bonuses, and hourly pay. The system can also automatically generate paychecks and direct deposits among many other things Specialized IS's which emulate human expertise into the system are used to determine things such as the optimal retirement plan for individuals Some companies allow their employees to access the benefits database and make changes to their preferences. This is called using intranets
Current Operating Systems:
Current operating systems is simply the OS that a system is running. This can be either on a computer, laptop, cell phone, behind every responsive machine there is an OS. Current operating systems are constantly updating, hence why apple always sends a message asking if you want to update to the most current OS. With current Operating systems the term stability is crucial. Stability refers the reliability of an OS. No one wants an OS that's glitches, freezes, and has an array of issues. Hence why stability is a main focus with current operating systems. As software companies improve their OS they will create updates. This ensures that customers will be satisfied and up to date with the latest OS in the company. There are many different operating systems shown in the figure below.
Strategic initiative #1- Reduce costs
Customers want to pay as little as possible the best way to lower prices is to reduce the costs of producing the product Automation (using robots in the assembly line) increases productivity and helps reduce manufacturing costs. Strategies like this were used in the FedEx case that we read. FedEx automated their customer service operations to help save money and it actually was quite successful. Many sites today have a page of frequently asked questions so customers can look there before they call the customer service line. companies that are the first to adopt advanced systems that reduce labor enjoy competitive advantage until their rivals do likewise
Ford on the Web: A failure story
Early failure in technology adoption can sometimes lead to success through a change in industry practices and operations. Nasser, CEO of Ford, regarded himself as an agent of change and his goal was to push the company into the web. Ford first launched Wingcast telematics, a device that would be put in the company's vehicles, allowing drivers and passengers to access the web. From this, the company created an alliance with Qualcomm, Inc., a telecommunications company, and Yahoo. Ford also created a joint venture with General Motors Corp. and DiamlerChrysler to establish Covisint, a website that served as an electronic market for parts suppliers who could bid online for requests for proposals posted by the automakers. The Automakers wanted the suppliers to fiercely compete in an open bidding process and cut their prices in order for the auto companies to enjoy the cost cuts. Ultimately, Ford wanted to push vehicle sales to the web representing a business-to-consumer idea. This would not only provide a great service but it would also save the dealer fees. The company called this website FordDirect.com and here, consumers were able to take a virtual test drive, see images of a vehicle in all its colors, order a vehicle, pay for it online, and then have it driven to their door. Now, popular manufacturers like Honda and Toyota, have used this functionality of building a vehicle on their websites. Hitting the wall Despite the fact that Ford's idea of integrating the Internet with the Auto industry is being used in todays world, the idea at the time was just too bold and cutting edge for consumers to see the importance of. After finding that consumers were not enthusiastic at all about having web access in their vehicles, Ford eliminated the Wingcast project. While the joint venture website with DaimlerChrysler and General Motors Corp. did survive for a little, it was later sold to Compuware (a computer software company). When assessing the failure of this project, much blame is placed on the ideas being too innovative, however it is more so due to the fact that the company fif not carefully consider state laws and its relationship with dealerships. Some of the things that the company overlooked were; some state laws do not permit cutting an agent out of sale state franchising laws did not allow ford to bypass its dealers ford could not collaborate with its dealers to overcome the legal hurdles The retreat Circumstances made Ford abandon its plan to sell directly to consumers. FordDirect.com (the joint venture website) was morphes into a site that allows consumers to build and price their own cars, compare vehicles, and search inventory. Money-wise, Ford lost 1 billion with this failed experiment. Now that FordDirect has been altered, it is now very profitable now that dealers collaborate with the program
Effectiveness vs. Efficiency
Effectiveness - Degree to which a goal is achieved Efficiency - Determined by relationship between resources expanded and benefits gained in achieving a goal
Evaluation
Evaluation software is useful because: it consistently keeps track of everything and everyone avoids bias- bosses can't play favorites controls for everything- won't miss something can see and prove where an employee is doing good and needs improvement can compare employees
Strategic Initiative number 5
Differentiate products or services, is when a company uses product differentiation. this is when a company persuade consumers that their product or services is better than another's. company's mainly do this using advertising and customer satisfaction. For example, brand name success is when a prestigious brand name will sell better then another. this does not necessarily mean that that brand is better than another, it just means consumers are purchasing it simply for the name. Another way consumers differentiate is by creating a product that has a better quality or more features available than another. The text uses the example of skype, they were not the first to offer a product of its kind but their quality was much better and they later added many more features that similar products did not have.
Information
Facts or conclusions that have meaning within a context
Information in Context
For information to be useful it must be relevant, complete, accurate, current, and economical
(DSS)- Decision Support Systems
Help support decision making within a business Answers "What If" questions Allows companies to view future consequences of actions before making decisions can be used when determining whether to order more product/ how much to order
Ethical Society - Size Matters
Historical Background: Microsoft was originally a small company in the 1970s. Bill Gates found and bought an operating system which could determine what applications a computer can run. After buying the operating system, Microsoft entered a contract with IBM which then later allowed for continued business expansion to other parties. This increased business led to Microsoft's increased market share in the browser market. Another tactic Microsoft used was by bundling its browser with Windows, which caused many users to use Internet Explorer without trying other browsers. Becasue of this, the U.S. Department of Justice and many others considered these tactics unfair. In 2009 Microsoft had a settlement with the European Union for monopolizing Internet searches, which had $400 billion in sale and dominates the Internet browsing. According to the settlement, Microsoft allowed their rival browsers, including Safari, Chrome, and Firefox. This action may benefit consumers who can choose their Internet browser and encourages web innovation from entrepreneurs. The U.S government also forced Microsoft to assist competitors and cooperate with a three-person committee that ensured Microsoft didn't engage in any predatory practices. This also led to Microsoft's decrease share of the browser. The controversial argue it anyone could compete in any market, is it fair to punish the monopoly just because their unique products and mustering market power of any magnitude. Microsoft argues that they kept their price affordable and invested a lot of money in developing techonologies that benefits the society. However, their competitors claims that Microsoft stifle true competition, which is also hard to measure. The consumers also have different opinion about allowing Microsoft monopolize the Internet industry---- some think it's convenience for users to use applications that produced from the same company because they're more compatible with each other, but others suggest that Microsoft should break into tow departments that separate the developing of operation system and the applications. There are also some people just fear the huge power that an individual person could have like Bill Gates and Steve Jobs. Their visionary leadership does not only influence the product development and innovation within their businesses, but also impact our economy and society.
Information Systems in Organizations
IS consists of data, hardware, software, telecommunications, people and procedures. Data- input that the system takes to produce information Hardware- a computer and its peripheral equipment, input, output, storage devices, data communication equipment Software- sets of instructions that tell the computer how to take data in, process it, display info, store data Telecommunications- hardware and software that facilitate fast transmission and reception of data People- IS professionals who analyze organizational info needs, design and construct info systems, write comp programs, etc. Procedures- rules for achieving optimal and secure operations in data processing Cloud computing Software as a service
Creating and Maintaining Strategic Information Systems
IT offers many opportunities to accomplish a competitive edge to companies over other competitors that are using older software. Insurance companies were the first to adopt IT.
Chief security officer
In charge of the security of the organizations information, reports to the CIO
SCM systems
Instrumental in reducing manufacturing costs, including the cost of managing resources and controlling inventory. In retail there is not manufacturing phase, so the term supply chain refers to the purchasing of finished goods and delivery to customers. In the service industry the term manufacturing is meaningless due to the fact that there is no raw materials being purchased or processed. Much of the data required for manufacturing processes flow directly from CAD systems to CAM systems as well as inventory control system and other systems that support planning and execution of manufacturing.
Programmers and analysts
Involved in the analysis of business needs and Information systems, broad range of skills required
Jet Blue: A Success Story
Jet Blue was one of the only airlines consistently making a profit from 2001 to present day. 2001 profit of $38.5 million on $320.4 million in revenue Continued profit in 2002, 2003, 2004 2003 revenue $998.4 million 2004 revenue $1.27 billion Present day 2011 income $86 million 2012 income $128 million One of the most strategic moves that Jet Blue made in order to cut these profits were the use of "open skies" the software used as a revenue management controller. Buying tickets directly online avoids the cost of paying the cost of commission through a travel agent. Also, because all of the tickets are electronic, there is less expense in paper handling. The cost of handeling a ticket ordered online is 50 cents opposed to the $4.50 it costs to physically demand a ticket. "For jetBlue, information technology is at least as important as fuel" Maintenance information system to log all airplane parts and time cycles for each, makes replacement and finding parts efficiently Flight planning application to maximize yield - number of seats occupied each flight In house application developed by IT professionals to track operational data and track performance Aviation training management system database to track training record Jet Blue was the first airline to establish paperless cockpits. Although having flight manuals in every cockpit is mandatory, Jet Blue was the first airline to establish electronic flight manuals. They can be accessed through laptops and tablets. In addition to this, they can manually be updated at anytime along the way to change any information necessary. They also subscribe to a web-based portal called "Share Point," that lets them change their information at anytime and access these manuals. In doing this, Jet Blue cuts 15-20 minutes off preflight preparation on every flight. As a result of this, they save about 4,800 hours per year and planes take off and land on time. When jetBlue entered the market, they offered services such as leather seating and real time television on economy class while other airlines did not. Over time, other airlines followed and implemented such luxuries to their fleet. IT technologies allow them to stay ahead of the game for departures and arrivals as well as handling luggage due to the live updating of their IT systems which sets them apart. Something that was unique about Jet Blue is the fact that they're a late mover- joining the market late. This is an advantage because the market is already mapped out and they just adapted the technology and modified it to help make them successful.
Business Intelligence Systems
Purpose is to glean from the raw data relationships and trends that might help organizations compete better Consists of sophisticated statistical models, sometimes general and sometimes tailored for an industry or an organization.
Strategic Initiative #2: Raise Barriers to Market Entrants
Less competition is better for a company Gain competitive advantage: making it impossible or hard for others to produce the same product or service Lowering competition causes barriers to entrants to rise: obtains legal protection of intellectual property (ex. Amazon's one-click)
Bill of Materials
List of all raw materials and subcomponent demands
Transaction Processing Systems
Main function: to record data and transactions within a company from raw materials to finished goods.
File Management and data management tools enable the creation and manipulation of local shared databases.
Microsoft access is a popular database management system and is considered easy to learn. They create simple databases and include features that professional developers can use to create more complex databases. Graphics programs make it easy to create intricate images and manipulate digital photographs. They are used to create graphics to be placed on web pages. Some examples of these tools are, Adobe's illustrator and Photoshop, Corel paint shop pro, and Xara designer Pro. Desktop Publishing tools, such as Microsoft Publisher, Adobe InDesign, and Serif PagePlus, enable both expert and novice to easily create professional looking pamphlets, newsletters, cards, calendars, and many other items for publication on paper or as web pages. Professional tools such as Quark have significantly increased the productivity of the publishing industry. Project Management Tools, such as Microsoft Project, basecamp, or free software alternatives such as Open Workbench and OpenProj, help managers of any type of project. Some examples include building construction, product development, and software development. Software developers often create suites of productivity tools. Examples include Word, Excel, PowerPoint, and Outlook. A Microsoft word document can link various objects with additional information, spreadsheets, and charts, embedded within the text to present a report more effectively.
Just-In-Time Manufacturing
Minimizes costs of warehousing raw materials, parts, and sub assemblies by having suppliers ship parts directly to assembly lines Ideally everything would be linked into several subsystems making up one giant system (think tree trunk, tree branches, tree leaves. The main system is the tree trunk, the subsystems are all branches, and those branches have jobs/parts/etc that act as leaves). The internet has made this significantly easier.
Master Production Schedule
Most important input Specifies how production capacity is to be used to meet customer demands and maintain inventories
Software is usually licensed
Most of the software that organizations and individuals obtain is not purchased; it is licensed Licensed software provides clients with a software license and gives clients limited permission to use the software, either indefinitely or for a set time When the use is time-limited, the client pays annual license fees Factors when purchasing large software packages are complex. These include:
Relevant
Must pertain to the problem at hand Should be presented so someone is able to understand it in a specific context
Systems analysts
Normally responsible for developing cost analysis, design considerations, implementation timeliness, and feasible studies of computer system
Complete
Only having some information can be worse than not having any at all
Strategic Initiative #8: Lock in Suppliers or Buyers
Organizations can achieve competitive advantage if they are able to lock in suppliers of their operation or buyers. The most common leverage of bargaining is the purchase volume. Large successful companies such as Walmart have major bargaining power to make suppliers lower prices. It is important they use information systems that are compatible with its own automated processes. Suppliers use information to tell them when to ship their products to the giant retailer. It is important to lock in buyers in a free market. This can easily be done as customers fear of high switching costs. Enterprise applications are a great example of this because it costs millions of dollars and operates so many different aspects of the company. Once a company buys the enterprise application it is locked in. Another way to lock in clients is to create a standard. For example Microsoft gave away internet explorer for free. They felt if they created a standard and got more users for internet explorer then people would be more likely to purchase Microsoft software that enhanced the browsers capabilities. The easiest way to lock in buyers is to create a physical or software limitation. This can be done by adding add on plugs that take a specific size or form to work.
Manufacturing Resource Planning
Plans the entire manufacturing process by combining Material Requirements Planning with other manufacturing-related activities Can quickly modify schedules to accommodate orders, track production in real time, and fix quality slippage
Generating Information
Process: The manipulation of data to produce information. This could end up producing more data, as data vs information is relative depending on the context of the situation. EX: You have a list of the ages of every person who attends a particular class. If you want to know the ages of everyone in that list, then that list is considered information. However, if you wanted to know the average grade each person in the class had, then the list of ages becomes data, and must be processed in order to generate the information you are searching for.
Supply chain consists of three major phases:
Procuring raw materials Processing the materials into intermediate and finished goods Delivering the goods to customers Manufacturing- processing raw materials into goods
Application Specific Software
Programs that are designed to perform specific jobs
Data
Raw material in the production of information Analyzed to bring a greater understanding of the situation (This greater understanding becomes information) Data is not as meaningful as information
Reengineering and Organizational Change:
Reengineering- changes to an SIS in which one set of operations is removed and another is built from the ground up Some changes include new machinery and removing management layers. Done in order to be much more efficient Reengineering process is impossible to see how each change helped the organizations position Most in early 2000's failed Enterprise systems started to work because it forced employees and managers to change their way of work
Chief information officer and Chief technology officer
Reflects the importance that the company places on ISs as a strategic resource, often the Vice President of the company
Mobile applications developer
Require technical expertise relating to the various software development tool for mobile devices and programming languages such as Java
Network Administrator
Responsible for acquiring, implementing, managing, maintaining, and trouble shooting local area networks throughout the organization and their interfaces with the wide area networks such as the Internet
Webmaster
Responsible for creating and maintaining the organization's website as well as its intranet and extranet
System administrator
Responsible for managing an organization's computer operating system, ensure the operating systems are working together
Database Administrator
Responsible for the databases and data warehouses of an organization
Current
The most recent information is necessary in order to make the best decisions Ex. Stocks
Brainstorming
The process of a group of colleagues meeting and working collaboratively to generate creative solutions and new ideas
Customer Relationship Management (CRM)
Serving customers better and faster, as well as learning more about their experiences and preferences
Proprietary Software
Software that is developed and sold for profit the developer does not make the source code public they just retain the rights to the software Open source software= is when programmers freely contribute to the development of a growing number of computer programs for not for profit. the developers of this software can obtain the source code free of charge on the web Advantages of open source software: has fewer bugs because thousands of independent programmers review the code offers more innovative features by incorporating ideas from a diverse group of experts Examples are Mozilla FireFox, Drupal, MySQL, PERL, and OpenOffice.org Link: best known open source OS includes free versions and versions that charge for support and additional features disadvantage: limited number of applications that run on it Licensed software: provides limited permission to the use of software software is usually licensed
Website Design Tools
Software used to create and edit websites/webpages. These types of software have been greatly helpful in expediting the website design and editing process. Basic tools are pre-coded, so they can simply be selected and implemented without the programmer have to write a whole line of code.
Supply Chain Management Systems:
Supply Chain refers to the list of activities included in the production and selling of a service or product. Information systems that provide a service for these supply chain activities are called supply chain management systems. This is because the information that they provide support the planning and shipping of resources. These resources consist of personnel, vehicles, and raw materials. In the production of goods or services, various SCM systems provide support to the overall process of production and selling. These components include HR information systems and cost accounting systems. SCM systems allow us to access information previously recorded in the organization. An SCM is an enterprise application. This is because the systems that support each step of the business process are connected with one another to form one large one. Anyone with access to the system can be informed about every part of the order. The dashboard from NetSoft provides and shows the various sales, inventory and quota metrics to monitor organizational performance. They do this by basing it off the data processed by various transaction processing systems.
(ES) - Expert Systems
Supports intensive decision making Can preserve the knowledge of retiring experts Allows companies to create a database to refer to inn the future This minimizes payroll costs as the companies dont need to keep knowledgable employees on salary
Strategic Initiative #3: Establish High Switching Costs .
Switching Costs: Expenses Incurred when customer stops buying from one company and starts buying from another. - Explicit: charge customer for switching - Implicit: Indirect costs over period of time, such as implementation of new product, staff retiring High switching costs lock in customers for long periods of time - Example: Customers who are in a contract with company's like Verizon or AT&T may be more inclined to wait out their current contract instead of paying the high switching cost to transition from one to the other. One strategy that companies use is having a low cost for a certain product but tagging on numerous high cost items. For example, you may buy a laser jet printer for a low cost, but you are required to buy multiple expensive ink cartridges to go along with it. Tangible Costs: Actual costs that go along with making a switch. - Example: If you switch from an Apple phone to a Samsung, the tangible cost is the money you are forced to pay for that new phone. Intangible Costs: Different type of cost that might not be actual money. - Example: If you switch from an Apple phone to a Samsung, the intangible cost will be the process you go through to learn how to use the new phone
Customer Relationship Management-
System helps serve customers better/ more efficiently (Customer Service) 24/7 phones online FAQ and Chat Software Service continues beyond the buying process in the form of customer service and additional marketing Invitation to market research. (Bottom of Dunkin Receipt) CRM is combine with Supply Chain Management to create and Enterprise Resource system System helps businesses save resources by using targeted marketing to people who are most likely to purchase their products. Targeted Marketing Using Spam/ pop-ups
Information and Managers
Systems thinking is thinking of an organization in terms of its sub organizations or subsystems helps keep managers focused on overall goals forces them to consider the entire system managers from other departments benefit because they are involved in the decision database- a large collection of electronic records encourages information exchange among systems information map- the description of data and information flow within an organization, shows a network of information subsystems information technology- refers to all technologies that collectively facilitate construction and maintenance of information systems enterprise software applicatons are systems that servie many parts of the organization by minimizing the need for human data entry and ensuring timely, useful information for the organization's supply chain ex. taking customer orders, receiving raw materials, manufacturing and shipping
Training software:
Tests an employee on their training rates how the employee is doing allows for trainee to go at his or her own pace- no pressure for them/can go back and look at previous mistakes gives time back to the company where they would normally use for training allows for more safety uses less resources-less waste reduces cost of training reduces hiring costs as you can train current employees more effectively rather than hiring more -stronger employees also allows for better customer service
Strategic Initiative #4: Create New Products or Services
The ability to create a new and unique product or service that many organizations and individuals need gives an organization a great competitive advantage. That advantage only lasts until other organizations in the same industry offer similar or identical products or services. Ex. Lotus 1-2-3 VS. Microsoft Excel First Mover: Organization that is the first to offer a new product or service. - First movers normally have a superior brand name, better technology, more experience, and critical mass. Critical Mass- body of clients that is large enough to attract other clients. Ex. Ebay gained a first mover advantage by marketing products to amass audience.
Consumer Privacy
The ability to inexpensively and quickly collect, maintain, manipulate, and transfer data and allows every individual and organization to collect millions of personal records. -When you visit a commercial website, the website downloads a "Cookie" which tracks what you do on their site. Companies use this "Cookie" to help specialize in making things people are interested in. - All the data that you use in credit cards, purchases, basically anything gets put into a database and is stored in a record. Many companies use this data for exploiting which can be dangerous. - Civil Rights advocates say that it is almost like "Big Brother" because you are constantly monitored and observed in society by businesses that you buy off of.
Employee record management:
This is the activity where employee records are managed for internal and external uses. They are also kept for payroll and tax purposes and, promotions, and reporting.
GIS) - Geographic Information Systems
Ties data to physical locations, helps depict information on demographics Helps companies view where their products/ services are most used Allows companies to capitalize on certain markets or regions of a population Ex: Google Earth, Mapquest, Car Navigation Systems
Cost
Time to implement Cost of interrupting operations Modification costs to customize software An alternative to software licensing is for organizations to develop their own software, either in-house or outsourced to technical professionals, but maintenance and support is costly
Proprietary software
Time-limited license requires annual fees Software licensing models: Permissive Model: anyone can us and sell modified version of the software
Creating an SIS
To create an SIS, top management has to be involved from initial consideration through development and implementation. SIS has to be part of the overall organization strategic plan.
Material Requirements Planning (Inventory Control)
Traditional: future inventory needs are based on past use, and inventory is placed once it is used up. Now: replenished based on future inventory need, calculated using demand forecasts.
Training
Training is very important in the work world. Multimedia training is beneficial because it allows for employees to train on virtual people and things so they get the practice they need. This lessens the risk of injury.
Questions that management needs to ask
What would be the most effective way to gain an advantage Would more accessible or timely information to our employees, customers, or suppliers help establish a significant advantage? If so how? Can an information system be developed that provides more accessible and timely information? Will the development effort be economically justified? What is the risk of not developing such a system? Are alternative means of achieving the same goals available, and if so, how do they compare with the advantages and disadvantages of a new SIS? Will Technology add value to the customer's experience? If so how? Each time a company leverages information technology strategies to add value to the customer experience, there is a creation additional revenue, retention of customers, and increasing organizational brand value. There are a good amount of SIS that are the unintended consequences of exploiting information technology to support activities that are not strategic.
Promotion ad recruitment:
When looking for the most qualified person HR management can search a data base of applicants and former employees, to find the most qualified person for the position. The intranet is a intraorganizational network where HR can post new job offerings that the current employees can see from there pc. Because of the amount of applications and resumes company receive, most companies require them to be emailed or submitted online. This also saves time when it comes to finding the most qualified candidate. Companies using the traditional recruitment system spent between $5000-$12000 per hire. With the new hire system, the cost is between $2500-$3500, the cost per hire had decreased significantly over the years with new processes like the ASAP software.
Office Productivity Tools:
Word Processors: Used mainly to type letters, articles, and other text documents, also automate other tasks such as creating tables of contents and indexes. ex: Microsoft Word Spreadsheets: These include a long list of complex mathematical, statistical, financial, and other functions that users can integrate into analysis models. ex: Microsoft Excel Presentation Tools: These enable professionals and salespeople to quickly develop presentations. ex: Microsoft Powerpoint
Accurate
Wrong information can lead to bad decisions
Mashup
a multi-purpose application that combines features from two individual applications. -Examples: Amazon, eBay, Flickr, Google, Yahoo! -a programmer can take an aspect from one site and combine it with another aspect from another source to create something new. -Khan Academy combines YouTube videos with traditional website aspects to create an interactive, social learning experience.
Hypermedia
is a feature that enables a user to access additional information by clicking on selected text or graphics. Hypermedia is the web's most essential ingredient. It is very common, used widely in various types of software, and it's essential to web-based documents as well as documents, charts, and presentations created using productivity tools. Hypermedia features are enabled by web page authoring tools. They are also part of other applications, such as word processors and presentation tools. Programs that handle many different types of data are called multimedia software. Multimedia is a powerful means of communicating because it does not limit the method of communication. Multimedia is tightly associated with hypermedia, because it often uses embedded links.
CAM
participate in physical activities such as cutting and welding. Other systems help plan and monitor manufacturing. Information Technology helps in the following manufacturing activities: Scheduling plant activities while optimizing the combined use of all resources- machine, personnel, tooling, and raw and interim materials Planning material requirements based on current and forecasted demand Reallocating materials rapidly from one order to another to satisfy due dates Letting users manage inventories in real time, taking into consideration demand and responsiveness of all work centers Grouping work orders by characteristic of items ordered, such as color and width of produce Considering the qualifications of each resource to accomplish its task. Example- people and raw materials can be moved from one assembly line to another to respond to machine breakdown or customer emergency, and design changes can be implemented quickly to respond to changes.
General-purpose Application Software
programs that serve varied purposes - ex: spreadsheets and word processors
Database management systems (DBMS)
special program to build and manipulate data pools Based off data, target the select market with specific advertisement Location based services can efficiently and accurately gather consumer information accurately gather consumer info like where and when they buy GPS on mobile phones using the mobile apps and social media can offer a new marketing strategy "leading" prospective customers with promotions
Packaged Software
what general purpose application software comes in when you acquire it. For example, a CD or a file downloaded comes ready to install.
Strategic Initiative #7- Establish Alliances
~It is beneficial for companies to create ALLIANCES with other companies in order to combine services to make them more attractive and less expensive. The two major benefits for companies are cheaper service and the fact that one stop shopping and using the same technology is more convenient. ~A well known web alliance is known as an AFFILIATE PROGRAM. An affiliate program is when a company provides commercial links on their personal website. A prime example of this is Amazon. Amazon sells thousands of products that are not produced by Amazon themselves. These alliances have helped make Amazon a leading online retailer while also helping all of the companies who sell on Amazon become more successful. What is unique about an affiliate program is that most companies would never participate in this type of relationship offline. Walmart would never ask Sears to sell their items in their store whereas Amazon prefers to sell other companies' products online.