Mangement and Info.: Chapter 1

Information system strategies for dealing with competitve forces: Low-cost leadership, Product differntation, market niche, strengthing cusotmer and supplier intamcy.

- Align the IT with the business objectives: Make sure IT is serving you and not the other way around. Identify business goals and objectives, break goals into activites and processes, identify metrics for measuring progress, determine how IT can help achieve your goals, and measure actual performance. Each of the following four stradegies can greatly utilize IT: 1. Low-cost leadership: lowest operational cost and lowest prices. Ex. Walmart uses the bar code on each item to a central computer that transmits their needs to suppliers. This prodives them with an Efficent Customer Repsonse system (links cusotmer demands to distirbution and supply chains) 2. Product differentation: Provide new products and services or greatly change customer convience in using exsisitng produvts and services. Ex. New search engines for Google, new iphones, new Crayola products. Or Nike's Mass Customization (offering cuztomized products using same resources) 3. Focus on Market Niche: Find a specfic market focus and serve this narrow target better than competitors; IS's suport this by producing and analyzing data for fine tuned sales. Ex. Hilton hotel's OnQ system, Ping cuxotmized clubs, Amaozon one-click shopping, online music on Itunes, and online person-to-person payment (paypal) 4. Strengthen cusomter and supplier intamacy: Toyota and Ford's sharing of their produciton system with suppliers. Amazon keeping track of customer prefernce. This increases switching cost for cusomters and suppliers.

What is an information technology? Information system? Information? Data?

- All the hardware and software that a firm needs to use to achieve its business objectives. - A set of interrelated componets that collect (or retrieve), process, store, and distirbute information to support decision making and control in an organization. Can also help analyze problems, visualize complex subjects, and create new products. - Information is data that has been shaped into a form that is meaningful and useful to human beings. Data, in itself, is are streams of raw facts representing events occuring in organizations or the physical enviroment before they have been organized and arranged into a form that people can understand and use. Ex. Scanning the bar code on dish detergent describes the product, which can then be used in totals of all dish detergent, totals of that brand, etc.

HowIT enhances business processes

- Automation of manual processes - change the flow of information: - replace sequential processes with simultaneous activity - Transform how a business works - Drive new business models

Using Business Value Chain Systems will encourage you to consider benchmarking your business processes against your competitors or others in related industires and identifying best industry practices.

- Benchmarking involves comparing the efficiency and effiectivness of your business porcesses against strict stnadardss and then measuring perfomance against those standards. - Industry best practices are usally identified by consulting companines, research orgnizaitons, government agencies, and industry associatons, etc as the most sucessful solutions for consiting ahcieving a business objective.

Information systems literacy? Computer literacy? Management and Information systems?

- Broader understanding of how people, technology, and organizations relate to Information systems. Inlcudes technical and behairoal approch to understanding Inforamtion systems. - Focuses on the knowledge of within information technology - A feild that tries to acheive more wide-spread information systems literacy, as well as studying the develop,ment, use, and impact of infroamton systems by managers and employees.

Key technology trends that raise ethical issues

- Computer power doubles every 18 months: more orgaizations depend on computer systems and become vunerable to system failure - Data storage cost rapidly decline: allows individuals to keep large amounts of data on individuals - Data analysis advances: can analyze vast quantites of data gathered on individuals to make behavior profiles (digital dossiers of detalied informaiton on individuals from data combined from multiple sources). NORA has given the government and private sector identify obscure traits connectins by linking data on them from multiple sources (their social media prescnese, job applicaitns, etc); helps ideintfy criminal and terrorist activity - Networking advances: Cost of moving dat and making it acessible from anyhwere flls exponentially. Acess to data then becomes from difficult to control. - Mobile Device growth impact: cell phone monitoring without user consent becomes an issue

Internet challenges to privacy

- Cookies: small text files deposited on a hard rive when a user visits websites. Tracks a user's searches, allwoing companines to customize its content for the user's visits. - Web Beacons: Tiny graphics embedded in emails and webpages that monitor who is reading email messages or visitng site - Spyware: Secretly installed on user's computer. May transmit user's keystokes or display unwanted ads. - US allows businesses to gather transaction information and use it for marketing purposes - Opt out vs Opt in model: Permits gathering of personal information until user tells in otherwise vs business being prohibited to gather perosnal information unless user specifically approves it. - Online industry promotes self-regulation over privacy regulation. Complex/ambiguous privacy statements, opt-out models are selected over opt-in, and online "seals of privacy principles present issues.

Opertantional, middle, and senior management each use a specific type of informaiton system to help them make decisions: Systems of Business Intelligence: DSS

- Decision support systems: focus on problems that are unqiue and rapidly changing for which the procuedure for arriving at solutions might not be preapred in advance. Ex. Whats the impact on production if we double sale sin December? What happens to our return on investment if a factory schedule were dlayed 6 months? 1. Use information form TPS and MIS and bring in info from external sources, like prices of competiotrs. 2. Can answer questions like the following for the global shipping company: Given a customer delivery schedule and freight weight, which vessel should be assinged to maximize profits? What is the optimal loading pattern for shio bound for west coast to malysia?

Global business and systems strategies

- Domestic exporter: Characterized by heavy centraliztion of corporate actiites in home country - Multinaitional: Concnetrates financial management and control out of home and deceltralizes, production, sales, etc to other countries. - Franchiers: Have product creaed, designed, and financed in home country but rely heavily on foreign personnel for prudciton, marketing, and human resources. Ex. McDonalds - Transnational: No single natioanl headquaters, just many regional and prehaps a world headquaters

Tools and technology for collaboration and social business: instant messaging, Wikis, virtual worlds, Collaboration and social business platforms (Microsoft sharepoint, cloudcollabortion, virtul meeting systmes, IBM notes, )

- Email and instant messaging: can message qucikly and in rea-time - Wikis: website to share information by easy editing and conributions. Very useful tool for stoing and sharing corporate knowledge - Virtual worlds:some companineshave avatars that have online meetings -Collaboration and social business platforms: softwae rpoducts providing multifunction platforms for collaboration and social business among teams and employees in different locaitons. 1. Virtual meeting systems: Features telepresnce technology: like video and web conferncing tech (google hangouts, skype, etc) 2. Cloud collaboration services: Like Google's online tools are services: Google drive, docs, powerpoints, etc. 3. Microsoft sharepoint and idm notes: Sharepoint makes it possiible to share microsoft office documents and collaborate on projects; can provide companines with a single platform for storing documents. IBM notes: collaborative software system for sharing calenders, email, messaging, collective writing and editing, and online meetings.

Systems for linking the enterprise, four major types:

- Enterprise systems: Also called enterprise rsoeruce plnning systems (ERPS). Intergrates data from key business processes into single system. Speeds communicaiton of informaiton throughout the firm. Enables greater flexibility in responding to customer requests, greater accuracy in order fufillment. Enable managers to assemble overlal view of operations. - Supply

Building a Collaborative Culture and Business Processes

- Essence of a collaborative business culture: senior managers are still responsible for getting work done, but rely on teams of their employees to acheive and implement the results. Middle managers build the teams and monitors their perforamnce.

Once your ethical analysis is complete, what ethical principles or rule should you use to make your decison?

- Golden rule: Try to put yourself in someone else's shoes and be fair. - Kant's caterogrical imperative: If an action is not right for everyone to take, its not right for anyone. "if everyone did this, could the organization survive?" - Utilitarian: do the greater good; can rank values and understand the conswuces of various courses of action - Risk Aversion priciple: take the action that produces the least harm or potential cost - "No Free Lunch" Rule: al tangible or intabgible objects are owned by someone else unless there is a specific declaration otherwise. If someone else created something useful to you, you should assume they'll want compensation for it

Internet's Impact on Competitive Advantage

- Has intensified company rivalries. - Raises bargaining power of customers, who have acess to informaiton on lower prices. - Makes subsitutte of products and services more easily avalible - Typically reduces the bargining power of suppliers but has made their life easier by eliminating "middle men" they formall had to deal with and lowering entry cost - Increases threat of new entrants since it decreases entry barriers - Smart products and internet of all things: use of sensors in industiral and consumer productsshows how the interenet is changing competiton within industries and creating new products and services. Ex. Wearable health tracker, GPS on trackers, and ata trackers on windturbbines are all "smart products" that use sensors. These type of products typically inhibit new entrants because they emerse customers in their brand. Also reduces the bragiging power of supplierif software becomes moreimportant than the hardware.

Common requirement for all majors to learn about IS(5)

- How IT helps achieve 6 business objectives - Central role of databases - Business analytics and intelligence systems - WOrking with specalist and system designers - Ethical, social, legal, and envirometnal issues

Dimensions of Information Systems: Technology

- IT Infastecure: foundation the information systems are built on. - Computer hardware: physical equipment for input, processing, and output activites in an information system. - Computer software: preprogrammed instructions that control and coordinate the computer hardware componets. - Data Management Tech: both physical devices and software, links the various pieces of hardware, links pieces of hardware and transfers set of data to one physical locaiton to another. - Network: links two or more computers to share data or reosurces, such as a printer. The most widely used network is the internet (a global network of networks) - Intranets: Internal corporate networks based on internal technology. Private intranets exntended to authorized users outside the organization are called extrnets. Firms use these to coordinate activtes with other firms for making purchases, collaborating on design, and performing inter-organizational work. - World wide web: service intenet provides that uses universally accepted standards for storing, retrieving, formatiing, and displaying informaiton in a page format on internet.

How Information Systems are Changing Businesses

- In 2016, more than 142 million businesses had dot com adresses registred - 273 million adult americans are online; 183 million purchased online - Internet advertising continues to grow at around 15% per year - New laws require businesses to store more data for longer periods - Changes in business result in changes in job and career

New strategies for AT and T & Verizon

- Its becoming harder for At and T to compete in the mobile phone business with lower prices, but they are diversying, becoming a company that manages all sorts of digital things with cloud centers - Followin similar to the Facebook and Google model of gathering data and then depending on Ad revenue.

FTC (Federal trade commission) Fair Information Practices principles: Notice/awareness, Choice/consent, ACess/participation, security, enforcement

- Notice/awareness: websites must disclose information practices before collecting data - Choice/Consent: A choice regime must be in place to allow customers to choose how their information willbe used for secondary purposes other than their transactions, inclduing internal use and transfer to 3rd parites - Acess/participation: Consumers should be able to review and contest the accuract and completeness of data collected about them in a timely, inexpensive process - Security: Must take steps to ensrue that consumer information is accurate and secure - Enforcement: A mechanism must be in place to enforce FIP principles. Rather self-regulation, legislaiton for legal remedies, or federal statutes.

Organizational problems; tech problems;

- Outdated business processes - unsoportive culture and attitude - political infighting - turbulent business enviroment - complexity of task - inadquete resoruces - rapid tech cahnge.....and other stuff - lack of training - difficulties in evaulating perforamnce - legal and regualroty compliance - work enviroment/egronomics - poor or indecise management - lack of employee support and participation

Information Rights: Privacy and Freedom in the Information Age

- Privacy: the claim of individuals to be left alone, free from survillence, or interefence from other individuals, orgaization, or state. Claim to be in control of information about yourself. - In the US, its proctected by: 1. First amendment 2. 4th amendment 3. Additional federal statutes (ex. Privacy Act of 74) - Fair Information Practices:Sets of principles governing the collection and use of informaiton. Basis of most US and EU privacy laws. Drove changes in privacy legislation: COPPA(Children's Online Privcy Protection Act), Graham-Lech-Biley Act (protections of consumers of finanical services), HIPAA (Health Insruance Privacy Accountiability ACT: privacy protection for health records)

What is quality? Producer Perspective; Customer Perspective; Total Quality Management

- Producer perspective:Conforms to specifications and no variations - Cusotmer perspec.:physical quality, good service, psyhological quality - Total Quality Management: Quality control is an end in itself; all people and functions are repsonsible for quality - Six Sigma:Specific measurement of quality, representing 3.4 million defects per million opporunites

How Information Systems Improve Quality; Improve produciton prescison and tighten toleance

- Reduce cycle time and simplify production: Reducs total time from beginning of a process to its end - Benchmarking - Use cusotmer demands to imporve quality and service - Improve design quality and prescision: CAD systems automtates the creation and revisoin of designs using computers and grpahics software - Improve produciton prescision and tighten tolerance: More presicse in the since that it decreases vartiaon from one part to another

Real-world ethical dilemmas

- Sets of interest pitted against each other: Ex. Monitoring employees (right of company to maximize producitivty of workers vs workers desire to use internet for short, personal task)

On test (scenaio type questions): examples of documents and sources of data. Identify if transction, MIS, DSS, ESS

- Transaction processing systems: keep track of basic activites and trasnactions of organization. Serves opertaional managers. Used to answer routine questions and track transactions.Major procuders of information for other systems. Very strucutred decision making. The following are for For Middle Management: help build - MIS: provides summary of transaction data without looking at each individual data entry. Still has ability to drill down and look at individual units. Provides middle managers with reports on firm's performance to help monitor and predict future perofmrance; used for some strucutred deciiosn making and other unstructred decision making. Sumairizes and reports on basic operations using data from TPS. Provides weekly, monthly, and annual results, but may be able to drill down to daily data. - Decision Support systems: Supports nonroutine decision making (ex. What is impact on production if December sales doubled?). Oftern uses external info and well as info from TPS and MIS. Model driven DSS(voyage estimaing systems). Data driven DSS (intrawest's marketing analysis systms) - Executive support systems: Serves senior managers. Adresses strategic issues and long-term trends (What products should we make in five years?), adresses nonroutine questions, p

Opertantional, middle, and senior management each use a specific type of informaiton system to help them make decisions: Transaction Processing Systems

- Transaction processing systems: operational managers need systems that keep trackof the elementary activites and transctions of the firm, such as sales, credit transcaitons, payrool, cash depostis, and flow of materials in the factory; TPS provide this kind of informaiotn. This is a computerized system that preforms and records the daily routine transactions necessary to conduct business. Their pricinicpl purpose is to answer routine questions and track the flow of transactions. Ex. A TPS for payroll processing: keeps track of money paid to employees OR employee time sheet: keeps track of employee hours (employees dog the data, its processed and put in a form useful to opertaionl managers). 1. Needed to monitor the status of internal operations and the firm's relations with the external envrioment. 2. Without a TPS, many firms would fall shortly (Ex. What would UPS do without its package tracking system)

European Directive on Data Protection

- Use of data requires consent of customer - EU member nations cannot transfer member data to other nations with weaker privacy measures - New EU General Data Protection Regulation (GDPR):applies across all EU countires and to any companies operating in the EU; strenthens right to be forgotten (ex. allowing indivdiauls to remove their data from platforms like FAcebook); Privacy sheild repalces safe harbor network(privacy measures that apply across all nations rather than each nation regulating privacy within its own borders)

E-business

- Use of digital tech and the internet to execute the major business processes in the enterprise. - E-business includes E-commerce: the part that deals with buying and selling goods and services on the internet, as well as supporting activites like internet adviseritisng, internet marketing, cusotmer support, internet security, and online payment. - E-Government: use of tech and the internet to execute the work of the government

Basic business functions: strategic choice, production divison, marketing, accounting and finance, and human resoeuces

- What product or service to produce; determines your customer base, employment needs, marketing needs, and production methods. after thos, these stetps: 1. Develop production divison: Arrangment of people, machines, and business proceeses that will produce the product. 2. Sales and marketing group: for attracting cusomters, selling the product, and keeping track of after-sales issues (like warranties and maintence) 3. Finance and accounting group: keeps track of financial transactions. 4. Human Resoruces: Group to recruit, hire, and train employees. - In small firms, all the funcitons are necessary, but you might not have enough people to divide them up among different departments.

Business?

- formal organization who's aim is to produce products or services for a profit. - Business's purchase inputs and resources from the larger envrioment (suppliers, who are other businesses). - EMployees transform inputs by adding value to them in the production process. - Inputs are then delivered to cusotmers. Information systems found in government and nonprofit are very similar.

Opertantional, middle, and senior management each use a specific type of informaiton system to help them make decisions: Systems of Business Intelligence

-Business intelligence: term for data and software tools to organize, analyze, and provide acess to data to help managers and other enteprise users make informed deciosns. - Business Intelligence Systems for Middle Management help with monitoring, controlling, decision-making, and adminsitrative activies. - Manamement and Info systems is not only the study of information systems in business and managment; it also dsribes a specific catergory of info systme serving middle management who use it to moniro, control and predict future performance. These MIS summarize and report on the basic information supplied from TPS.; tody many of these reports are delivered online. These systems typically provide answers to routine questions that have been specified in advance and have a predefined procudeure for ansering them (ex. MIS reports list total pounds of lettuce used this quater OR compares total annual sales for specific products to planned targets). Most use simple routines, such as summaries and comparisons, and they are not flexible and have little analtical capibility.

Global Systems Configuration: Centralized, Duplicated, Decentralized, and Networked

1. Centralized: Systems development and operation occur totally at the domestic home base 2. Duplicated: Development occurs at home base, but operations are handed over to autononmous units in foreign locations. 3. Decentalied systems: Each foregin unit designs its own units and systems 4. Networked: Systems devleopment and operation occur in an intergrated fashion across all units

Why are collaboration and teamwork becoming more important? 6 Reasons: Changing nature of work, Growth of professional work, Changing orgaizaiton of work, changing scope of the firm, emphasis on innovation, Cahnging culture of work and business

1. Chaning nature of work: More interaction is required when producing a product. Parts of products are increasingly made simulaneaosuly isntead of one at a time 2. Growth of professional work: Profesional work has icnreased in the economy, and it requires educated indivdiausl who are experts in differnet areas 3. Changing orgaization of the firm: Toay, work is more likely to be orgnaized with teams getting it done in their own unique way instead of top dow, specific orders from supervisors/managers 4. Chaning scope of the firm: firms operate on a global scale, which rquires more collaboraiton 5. Emphasis on innovation: innovaiton is a group process 6. Changing culture of work and business: diverse teams are more efficent than single workers

Five basic entities a business must deal with

1. Customers 2. suppliers 3. employees 4. Invoices/payments 5. Prudcts and services Must be managed and monitored

Test question: business environment

1. Global environment: technology and science, economy, politics, and international change 2. Imediate enviroment: Things that immediately impact the organization; cusomters, supplirs, competitors, regulations, stockholders

5 Steps for Ethical Analysis (what to do when confronted with a situation that seems to raise an ethical issue)

1. Identify and desricbe facts clearly: Find out what happend, who potneitally did it, where, and potentially why 2. Define the conflict or dilema and identify the hgiher-order values involved: both parites will claim to base their action on some higher value (freedom. privacy, etc). 3. Identify the stakeholders: Every ethical, social, and political issue has stakeholders. Who is invested in the outcome of the situation? 4. Identify the options that you can reasonbly take: 5. Identify the potnetial consequences of your options

Steps in Business Process Management: Identify processes for change, Analyze processes, Design new processes; Implement new process; Continuous Measruement

1. Identify processes for change: Understand what processes need improvement 2. Analyze exsisitng processes: Inouts, outpts, rsources and seuqnce of activites for exsiting processes should be documented. 3. Design New Processes: Design a new process in an attempt to improve the old one 4. Implement: 5. COntinuous measruement

Problem solving steps

1. Identify: agree that it exsist, define it, identify causes, and think what can be done with company's resources. 2. Solution design: oftern many solution possibilites; try to consider as many as possible 3. Solution evaultion and chocie: cost, fesaibilty, and time 4. Implmentation: build or purchase solution, train smplyees, change management, measrue outcomes, and get feedback. Problem solving is continuous.... not a single event!

The Five Moral Dimensions of the Information Age (Major social, polical, and ethical issues that IS raise):

1. Information Rights and Obligations: What information rights do individuals and organizations possess with respect to themsleves? What can they protect? 2. Property rights and obligations: How will traditonal property rights be protected in the digital age? 3. Accountability and control: Who can and will be held accountable and liable for the harm done to individual and collective information and property rights? 4. System Quality: What standards of data and system quality should we demand to protect individual rights and the safety of society? 5. Quality of life: What values should be preserved in an information and knowledge based society? What insituations should be protect from violation? Which cultural values and practices does the new IT support?

Four activites in an information system produce the information that organizations need to make decisions, control operations, analyze problems and create new products and services

1. Input: captures or collects raw data from within the organization or from its external enviroment 2. Processing: converts raw data into a meaningful form 3. Output: transfers the processed information to the people who will use it. 4. Feedback: Does the info meet specifictions? Its importance is to make sure you get it right the next time and make imporvements if not. Ex. Kroger's system for monitoring freezer temperatures. Input is gathered through sensors for data like item's ID no., storage locaiton, temperatrue, time of day, etc. Computers then stored this data and processed it to find out how much above or below the ideal temperature each food was; if not stored ideally, its flagged and the system uses this data to create information (data in a meaningful form) like list of inadquetely stored items, their location, etc. It was then sent to the appropraite people.

Checklist for managers in evaluating and selecting collaboration software tools

1. Locate your firm in the Time/space matrix: Same time, same place (face-to-face interactions so decison rooms, wall displays, etc), Same place, diffent time(continuous task: team rooms, large public displays, shift work groupware, projectmanagement), Different plac same time (remote transactions:video conferencing, instant messaging, shared screens, etc),different place and different time (communicaiton and coordination(email, bullitein boards, blogs. group calenders, etC) 2. Within each cell of time matrix where firm is challenged, what kinds of solutions are avaliable? Make a list 3. Analyze each of the products in terms of their cost and benefits to your firm. 4. Identify risks to secuirty and vunerability invovled with each product 5. Seek the input of potential users to idnetify and implementation and training issues 6. Make your slection of posisble tools and invite possible vendors to make presentations.

6 Business Drivers of Information Systems (why are businesses investing so heavily in information systems?)

1. Operational Excellence: can help them increase effenticency and thus profitability. Ex. Walmart's digital Retail link system that helps their communication with suppliers 2. New products, services, and business models: 3. Customer and suppliers intamacy: lets them better know the needs of customers and suppliers, and thus make better deals with them. Ex. Mandarin's use of IT 4. Improved Decision making: usally, managers dont have the right info at the right time, having to result to forecast, best guesses, and luck. With tech like Verison's dashboard (lets them see realtime info on line outages, compleiants, etc) that makes use of real-time data, they can see realtime info on cusotmer complaints, perormance in each area served, outages, etc. 5. Competitve Advatage: When they do all of the above, chances are they are outselling their competitors at a pace they cannot keep up with. Advantages: charging less for superior product, better performance, and better response to customers. Walamrt, apple, and UPS are extremely good in this area. 6. Survival: Idustry-level chances making investing in information systems a necessity (ex. ATMS now a requirement of reatil banking industry). Also a necessity because many federal and state statutes require companines to keep records.

One theory on how a business can achieve competitive advantage: Porter's competitve Forces

5 Environmental factors shape the fate of the firm 1. Traditional competitors: 2. New market entries: possible advantages they have are not locke dinot old plants and equipment, often hire younger workers that may be less expensive and more innovtive, not held-down by worn out brand names, and are more hungry/motivated 3. Substitute products and services 4. Cusotmers: ability to attract and retain customers is important 5. Suppliers: If the firm cannot raise prices as fast as suppliers, they're in trouble.

Chapter 2: Managing a business and hierachries

A business is made of many funcitons, each of which follow their own business processes, but they need to cooperate to make the business suceed. This is accomplished through management hierarches 1. Senior management: makes long-term strategic decisons and manages the firm's financial performance. Needs information to inform them of the firm's overall performance (sales revenue, sales by product and region, and overall profitability) 2. Middle management: carries out the programs and plans for senior management. Needs info about results of diffent departments/functional areas(ex. sales contacts by sales/marketing, prduction statisitcs, employement revenue or cost from human rsoruces, and sales by month or day via sales/marketing) 3. Operational management: oversee day-to-day activites. Need info like number of parts in inventory each day, number of hours logged by each employee on a ceratain day, - Scientest and knowledge workers: design products and services and create new knowledge for the firm. Need info from scientifc databses. - Produciton or service workers: actually produce the product and deliver the service. Need infomraiton form production machienes. Service workers need acess to custoemr records. - Data workers: secretaries and clerks; assist with administative work at all lveles

A large corporation is...

A collection os businesses; its often financially organized as a collection of stategic business units, with thre the returns on the firm directly tied to the returns on the units. Ex. GE has Aerospace, manufactoring, medical imaging etc as business units. IS can improve the overall performance of the units by pormoting coummicaiton, synerigies, and core competineces. - Synergies:When output for some units can be used as input for other units or when two orgiztions pool markets and expertise, both of which lower cost and generate profits. IS systems tie together the operations of two disparate units so that they act as a whole. Ex. Aquring Countrywide Financial, enaabling them to aquire an abudence of new customers in new banking areas. IS would help in this process.

Value web

A firm's value chain is linked to the value chains of its suppliers, disbtrubots, and customers. - Informaiton systems can help ahceive strategic advantage at industry level by working with other firms to develop industry-wide standards for exchanging information or business transactions electronically. This increases efficentcy, making product subsitution less viable and raises industry cot to discoruage new entrants. Strategic advantaege derives from your ability to relate your value chain to the value chain of others in the business process. Ex. Amazon wants a system that makes it easy for suppliers to display goods and open stores on amazon, makes it easy for customers to serch for goods, etc. - A Value Web is a collection of indepdent firms that use IT to coordinate their value chaings to produce a service for a market collectively. Are flexible and easily adapt to changes in supply and demand

Chapter 2: What is a business?

A formal organization whose aim is to produce products or provdie services for a profit.

IS can improve the overall performance of the business units in an organization thorugh....Core compenitces

Activities for which a firm in a world class leader (ex. best minature parts designer, best dlivery service, etc). - Relies on knowlege gained over years of epxeirnce, as well as through knowlesge research - Any IS system that encoruages knowledge sharing across business units enhances competenices. Ex. Procotor and Gamble use intranet to help people work on similar problems and share ideas and expertise.

BPM Management (Business Process Management)

Along with tech, organizational changes must imporve a business. - Orgaizational changes ae often necessary: from minor change in work habits to redeignigng business processes p - Aims to continuously imporve processes - Uses variety of tools and processes to understand exsisitng processes and dsing and optimize new processes

Chapter 2: Decision-support systems

Another business intelligence system that provides info for middle managers. It focuses on problems that are unqiue and rapidly changing, which might not have a method of arriving at a solution prepared in advance. - Questions it tries to answer: What would be the impact on production if we doubled sales in January? What happens to ROI if our factory schedule is delayed 6 months? - Uses informaitin from MIS and TPS, as well as external info like stock prices from competiors - Example: Voyage estamting system of global shipping company. DPS claculates financial (ship time and cost) and technical voyage details(capacity, speed, port distnace). - Example(con): answers quesitons like, Which vessel should be used given current freight weights and distance? - OR Example: Large ski resort companines using customers data from call centers, lift tickets, and lodging reservations to help make marketing decsions.

Intranet vs Exranet

As opposed to enterprise applications (which often but the business's data into a single system), intranets and extranets can link business processes for increasting intergration of business processes and information. - Intranets: internal company websites that are acessible only by employees; a network like the internet, which is public, but its just restircted to the company. Ex. BOA maintians a human resources intranet for their employee. - Extranets: Company networks that can be authorized by outside indivduals like suppliers, often used to coordinate supplies.

How Information Technology Enhances Business Processes

Automates many business processes the were previosuly done maunally, ex. checking a client's credit or generting an invoice and shipping an order. - Also allows information to flow so quikly that many task done one at time can now be done simualtensoeusly. This has even allowed the creation of new business models; ex. downlaoding songs on itunes or ordering a

Chapter 2: Systems for business intelligence

Business intelligence: A contemporary term for data and softwae tools for organizing, analyzing, and providing acess to data to help managers make decisons. Business intelligence systems for middle management help with decision making.

Chapter 2: The business environment

Businesses depend on their environment to supply labor, capital, customers, technolgy, stable markets, legal systems, etc - Key enviromental actors: Tech and scince, politics, international politics, econcomy, customers, stockholders, suppliers, compettors, regulations. - Business enviroments are always changing, and when businesses don't respond adaquetely, they will fail. Ex. Kodak not responding to changes in digital tech put them out of business

Whats new in management information systems (Technology, Management, and organizations)

**Technology** - Cloud computing platform emerges: flexible collection of computers on the internet perform task traditonally performed on corporate computers (info stored at some distant facility). - Big data and the interenet of things: Businesses look for insights in huge voluems of data from web traffic, emails, social media, and interet connected macheines - Mobile digital platform emerges to compete with PC as a business system: smart phones and tablets challenge traditonal computers **Management** - Managers adopt online collaboration and social networking software to improve coordination, collaboration, and knowledge sharing. - Business intelligence applicatons accelerate: more powerful data analytics and interactive dashboards provide real-time perofrmance informaiton to managers to enhance decision making - Virtual meetings proliferate **Organizations** - Social business: business use social media to better interact with employees, customers, and suppliers - Telework gains momemntum in the workplace: With internet-connected devices, you're not as restricted as to work in the office - Co-creation of business value: sources of business value shift from products to solutions and expeirences and from internal sources to networks and suppliers and collaboration with customers. Supply chain and development become more global and collaborative; customer collaboration helps firms define new products and services.

Basic concepts to guide ethical decisions: Responsibility, Accountability, Liability, and due process

- Accepting cost, duties, and obligations for decisons - Accountiability: Mechanisms for identifying responsible parties - Permits individuals and firms to recover damages done to them - Law that are well-known and understood, with an ability to appeal to higher authorities.

Opertantional, middle, and senior management each use a specific type of informaiton system to help them make decisions: Systems of Business Intelligence: ESS

Businesses intelligcen systems are also needed by senior management. Need to make deciosns with regards to strategic issues and long-term trend, both in the firm and in the external enviroment. Ex. What are employement levels in five years? What are long-term industry cost trends? -EXectuive Support Systems: Adress nonroutine decisons requiring judgement, evaluatiion, and insight becasue no agreed upon procdue for arrving at solution. Presents graphs and data from many soruces through an interface that is easy for senior managers to use; oftern delivered thorugh a portal (web interface to present intergrated personalized business content) 1. Designed to incorporate data about external events, like new tax laws, but also draw from internal data from DSS and MIS. They filter, compress, and track critical data, dispalying the data of greatest importnace to senior managers. 2. Increasingly, such systems include business inteligence for analyzing trends, forecasting, and drilling down to data at greater levels of detail. Ex. COO of an oil company uses a refining dash board to diaply real-time data related to plant equipment reliabililty, inventory management, inventory management. They can drill down to invidual opertror displays of performance. This is an exmple of a diginital dashboard (displays single screen graphs and charts of key performance indicators for managing a company.

Chapter 2: role of Information Systems in a Business

Businesses invest in information systems as a way to manage their internal funcitons and cope with the deamnds of their enviroment.

Business environment

Depend on environment to supply capital, labor, cusomters, new tech, services and products, legal systems, stable markets, and education - Business must moniotr enviroment for changes and share information with it (ex. sharing info with stockholders and customers; monirotring the economy) -

Managing a business and firm hierarchies

Different business processes make the business work, but the various processes need to coordinate and cooperate with each other; this is achieved by hiring managers whose's job is to ensure the different parts of the organizaton are effectively working together. They acheive this through a hieracrhy with authroity from the top down: 1. Senior management: makes long-run strategic decisons about products and services and ensures financial perforamnce of the firm. Needs info that can inform them of overall performance of the firm (overall profitoabiliy, gross sales, sales by region) 2. Middle Management: carries out the programs and plans of senior management (info about specfic funcitonal areas and departmetns of the firm: sales contact by sales force, sales by specfic factory or product line, employement levels and cost, and sales revenue for each month or day) 3. Operational management: moniotors daily activites of the business (transaction level information like number of parts in inventory each day or number of hours logged on a specific dy by each employee) - Production or service workers: actually produce the product or deliver teh service. (info: service workers need customer records to take orders and answer questions - Data workers: secertieares and clerks; assist with administration at all levels - Knowledge workers: engieners, architects, etc that design products + services and create new knwoeldge for the firm (info like extrnal or internal scientific databases)

Challenges to intellectual property rights

Digital media different from physical media: easier replication, easier transmission, easier alteration, compactness, and difficultires in establishing uniqueness - Digital Millenium Copyright Act (DMCA): provides some copyright protection. Implemented a world intellectual property treaty that makes it illegal to circumvent technology-based protections of copyrighted materials

Globalization challenges and opportunities

Globalization has greatly reduced the economic and cultural advantages of developed countires - Drastic reduction of cost of operating and transacting on global scale - competition for jobs, markets, resources, and ideas - dependence on imports and exports - requires new understanding of skills, markets, and opportunites

Chapter 2: Executive Support Systems

Help Senior management make decisions on strategic issues and long-term trends (both within the frim and external enviroment). Adresses non-routine questions with no agreed upon procedure for arrivng at a solution. - Examples of questions: What is employment in 5 years? What are the long-term industry costs trends? What products should we be making in 5 years? - It presents graphs and data from many sources through an interface that is easy for senior managers to use, such as a portal (uses a web interface to present intergrated personalized business content). - Info comes from the external enviroment (tax laws, competitor info), as well as internal info from MIS and DSS. Data is filtered so that only that of the greatest importance is shown to top tier managers. - The ability to drill down to data of greater detail has increased: Ex. COO of Valero Petroleum company uses a refining dashboard to display real-time data related to plant and equipment reliability, inventory managemnt, etc. With the displayed info, they can review the Valero performance of each refinery in the US and Canada, and they can even dril down to operational management level info. This is also an example of a digital dashboard (dispalys single screen graphs and charts of perofmance info for a company; looking at these grpahs can help executves make faster decisons)

Business Value chain model

Highlights specific activities in the business where competitve stradegies can best be applird and where informaiton systems are to have an impact. Views the firm as a series or chain of basic activites that add a margin of value to a firm's products or services. These activites are characterized as primary or support. - Primary activites: most directly rleated ro produciton and ditribution of products and services, which creates value for cusotmer. Ex. Inbound logisitcs(receving or materials for dsitribution or produciton; ex. automated warehousing system), outbound logisitcs(storing and distributing finshed products. , operations(transforms inputs into finshed products), sales and marketing, and service(maintince and repair of goods and services. - Support activies: Makes delivery of primary activites possible. Consist of organizational infastructure (administration and management), human resources[employee recurit, hiring, and trainig]technology (improving tehcnology and services and production process), and procurment (purchasing input) Ask yourslef to critically examine each actiivty and think how you can use IS to imporve operational efficentcy and customer-supplier intamacy.

The calm pond: A model for thinking about ethical, social, and political issues.

IT was a rock that was dropped into the pond, creating ripples of new situations not covered by the old rules. It takes years to develop etiqutte, expectations, and laws. Also requires that admittance that there are many gray areas.

Computer-related liability problems

If software fails, who is responsible? - If seen as part of a machine that injures or harms, then its likley the producer and operator's fault - If it viewed like a book, its difficult to hold author/publisher responsible. - If seen as a service, its similar to telephone systems not being liable for transmitted messages

Chapter 2: Management and Information Systems

In this context, its a business intelligence information system for middle managers. It provides middle manaement with performance reports and helps them make decisions. It reports on the company's basic operations using data supplied by transaction processing systems. - MIS typically provides answers to routine questions that have been specified in advance and have a predefined procedure for answering them. Ex. MIS report list total pounds of lettuce used this quater from TPS info from produciton or it might compare actual sales of a product with a target from TPS info from sales/marketing. A lot of summaries and comparisons; not much flexibility.

Technical Solutions for privacy protection issues

Include: - email encrption - anonmytimy tools - antispyware tools However, overall, these tools have FAILED to protect users from being tracked from one website to antoher. Might use browser option to help like "private browsing" and "do not track" options

Network-based strategies

Internet and networking tech have spawned strategies that take advantage of firm's abilities to create netowkrs or networks with each other. Includes: - Virtual company: Uses netowkrs to link people, assets, and ideas, which enable it to ally with other companines to create and dsitribute products and serices without traditonal orgaizational boundaries or physical locations. - Network economics: Marginal cost of adding another partiicpant are near 0, whereas marginal gain is much larger.Ex. Larger # of particpants in the internet, greater value to all firms -

Internet and Globalization

Internet reduces cost of operating globally. - Globalization benefits: scale economies and resource cost production; higher utilization rate, hgiher fixed cost, lower variable cost; speeding time to market

Chapter 2: How information technology enhances business processes

Many steps in businesses processes are now automated. - IT also makes it possible for many more people to acess and share information, replacing sequential steps with task that can be performed simultaneously, which reduces delays in decision making. - Also informs entire business models (ex. Itunes and Amaozon)

Business Processes

Once you identify the five basic functions and entities of your firm, you then need to decide how you want your employees to perform these functions. - Businesses proceses: logically realted task that describe how work is orgnized in a business (on test). A logically related set of activites that defines how specific business task are perfomed. Also refers to unique ways in which work, info, and knowledge are coordinated in an organization. - Many business processes are tied to a specific area. Ex. Sales and marketing is resposibsle for identfiyng cusomters. Others require coordination across departments and even with outside contractors (like UPS drivers). Ex. Fufilling an order for a cusomters goes through all five business funcitons. The latter are called, Cross-functional and interorgaizaitonal because the intersect with delivery firms and cusomters outside the boundaires of the organization. Another exmaple of an interrorgaizonal activity is contacting suppliers. - The effiecentcy of internal and interrorgainzaitonla businesses proceses can be an advantage over competitors or a great downfall.

Chapter 2: Business Processes

Once you identify your business functions, you need to describe how you want your employees to perform these funcitons. What task do you want them to perform, in what order, and on what schedule? - The actual steps and task that describe how work is organized in a business is called Business Prcesses. A business process is a logically related set of activites that defines how specific business task are performed. Also refers to the unqiue ways in which work, info, and knowledge are coordinated in an ordgainzation. - Every business can be seen as a collection of business processes, some of which are part of larger, encompassing processes, some are still tied to a specific functioanl area like identifying customers being a funciton of marketing. Those that require coordination across departments are called cross functional. Ex. A sales order first goes through accounting to estbalish customer's credit, then prodcution pulls it from inventory, and sales/marketing may have to deal with warrnty claims later. - Activties that require interactions with other firms, like delivery or supplier firms, are interorganizational. - How well its internal and interorganiztional business processes are desinged and coordinate can make or break a frim in terms of efficentcy.

The organizaorn cannot achieve goals, they often become challenges, which information systems can..

Present whole or partial solutions for

Ethics?

Principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behavior. - Recent cases of unethical behavior: Deerfeild Management, Teva Pharma, GM, Takanta Corp, - IS can be used to bury decisions from public scrutiny. - Raise new ethical quesitons because they create opportunites for intense social changes that threaten exsisting distirbutions of power, money, rights, and obligaiotns. Also produce the potential for new types of crime.

Dark Side of Big Data

Problem: Oppporutnites with new technology & Underdevloped legal environment. Solutions: - Develop big data stradegy - Develop privacy policies - Develop big data predictive models - Develop big data mining technology - Develop big data analytics tools and predictive modeling systems - Demonstrates that technological innovations can be a doible-edged sword - Organizations like Progressive and Deloitte Consulting LLP use predictive modeling to identify individual customers that fit risk or vunerability profiles.

Professional Codes of Conduct

Promoted by professional organizations like the Bar or Medical associaton - Promises of professions to regulate themselves in the genral interest of society.

Systems for linking the Enterprise

Putting together the information systems in a company to work together can be challenging; this can be confounded through corporate mergers. How can they get them to work together as one system? - Solution one, Enterprise Applicatoins: systems that span functional areas, focus on executing business processes across the firm, and include all levels of management. Help firm become more felxible and productive by coordinating their business processes more closely and intergrating groups of processes so they focus on efficent management of resources and cusotmer service. - Four major Enterprise applications: enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems. Each intergrates a related set of functions and business processes to enhance the performance of the organization as a whole.

Business Process Reengineering

Radical rethinking and resigning of business processes. ELiminates old processes and replaces them with new in a brief time period. Can produce dramatic changes in productivity. Can produce more organizaitonal resistence to change.

Dimensions of Information Systems: People

Require skilled people to build, maintain, and use them. - Employee attitudes affect their ability to work productivily - Role of managers (4): perceive business challenges, set organizational stradegy, allocate human and finanical resources, and being creative (devising new products and services)

Dimensions of Information Systems: Organizations

Role: Coordinate work through hierarchy and business processes (relay task and behaviors for accomplishing work; Ex. fufilling an order or hiring an employee; may be informal or formal; - Business culture: fundamental set of assumptions, values, and ways of doing things that have been accepted by most of its memebrs.

How information systems will affect business careers

Service sector jobs will be 95% of jobs created until 2022 - Accounting: rely on it to summarize transactions, create financial records, organize data, and perform financial analysis. 1. Skills: knolwedge of data bases and networks, online fiancial transaction and reporting systems, - Finance: Skills: use systems for financial reporting, direct investment activites, implementation of cash management stradegies, - Marketing: More technology-driven change in this field than any other. Skills: work with data bases for tracking and reporting on customer behvaior, product performance, feedback, and cusotmer development. - Operatons managment: productive managers, adminsistrative service managers, and operations analyst. Skills: hardware and software platforms for operations managments, use database and anlystics software for coordinaitng and optimzing resources required for produing goods and services - Management: Skills:

Role of information systems in a business

Since the 1950's, more and more business information and the flow of information among key business actors in the enviroment has gone form manual to digiital systems. - Businesses invest in IS to cope with and manage their internal production functions and cope with the demands of key actors in their enviroment. Specifclly, the invest in IS systems to acheive the 6 business objectives

What is critical thinking?

Sustained suspension of judgement and an awareness of multiple perspectives and alternatives; ability to collect and analyze data that might help undersand the nature of the problem ("data driven approach) - 4 elements: 1. Maintaing Doubt and suspending judgement 2. Being aware of differnet perspectives 3. Testing alternatives and letting expeince guide 4. Being aware or organiational and perosnal limitations

Intellectual properties

Tangible or intangible products of the mind created by individuals or corporations. - Protected in 4 main ways 1. Copyright: statutroy grant preventing work from being copied for the life of the author + 70 years 2. Patent: grants author an exclusive monoply on the ideas behind the innovation for 20 years. Meant to ensure tha indivdiauls and corporations recieve the rewards for their innovation 3. Trademarks: marks, symbols, and images used to distinguish products in the market place. Protect consumers by ensuring they recieve what they paid for and protect the investments firms have made to bring products to the market. 4. Trade secrets: Any intellectual work: formula device, pattern, or compilation of data used for a business purpose, provided its not based on information in th public domain. In general, they grnt a monoply on the ideas behind a product but it can be a very teneous monoply.

Disruptive Technologies

Technologies with disruptive impact on industries and businesses, rendering exsisitng products, services, and models obscure. Ex. PC, World Wide Web, Internet Music services - First movers vs fast followers:First movers of disruptive technologies may fail to see potential, allowing second movers (fast followers) to reap rewards

Basic business functions:

The decision of what to produce is called a "strategic choice" because it determines your bsuiness model, customers, suppliers, etc. Once you decide, you come up with your four business functions: 1. Production: the arrangement of people, machines, and business processes that produce your product. Checks for quality and produces bills of materials 2. Marketing/sales: attracts customers, sells the product, and keeps track of post-sales info like warranties and maintence. 3. Finance and accounitng group: keeps track of financial transactions and seek out soruces fo credit and finance 4. Human resources: to recruit, hire, and train employees. - For smaller firms, these funactions might not be totally seperate.

Information systems department

The formal unit respoihsble within an organization for IT sercives. Resposible for mainting the hardware, software, data storage, and networks of the IT infastrucutre. - Programmers: write the software instrucitons fr IS - Analyst: the middle men between the IS department and the rest of the organizaiton; their jib is to transform problems andrequirements of the organizatoin into something that can be sovled by IS - Information systems managers: leaders of teams of programmers and analyst, as well as other IT staff. - CIO: Cheif info officer. Manager who oversees the use of IT in the firm. - CSO: Cheif security offcier: In charge of IS security for the firm; eduactes and trains about secuity, as well as keeping managment informaed of security threats and backbrounds. - CPO: Cheif privacy officer. repsoibsle for amking sure copany complies with exsisting dat privacy laws. - CKO: Responsible for the firm's knowledge mangement program; helps desing systems to find new sources of knowledge and make better use of exsisting knowledge. - CDO: Cheif data officer: responsible for enterprise-wide governance and usage of information to maximize the value of the organizaiton's data; makes sure its getting the right data, interpreting it correctly, and using it correctly. - End users: Representatives of departments outside of IS deparmtent for whom applicaiotns are develped.

Social business

The use of social media to engage customers, employees, and suppliers. Goal is to deepend interaction between these groups, as well as expedite infomraiotn sharing, innovation, and decision making

Knowledge Management systems

This enables organizations to manage processes better for capturing and applying knowledge and expertise. - These systems collect all relevant knowledge and experince in the firm and make it avaible whenever and whereever needed.

Outsourcing

Two types: to firms overseas and firms in US. For things like production programming, systems maintence, and call centers. Benefits: - lower cost of inputs - increased need for managerial positions

Because there are different interest, specializes, and levels in an organization, there are different kinds of systems. No single system can provide all the inforamtion that the firm needs.

Typical business has systems supporting each of the 5 major business functions. Although, cross fucntional systems that intergrate teh activites of realted businesses processes are becoming increasingly necessary. - Typical firm also has different systems supporting the decsion-making needs of each main managemetn group.

Enterprise application two: Supply Chain Management Systems

Used to help manage relationships with their suppliers. Helps suppliers, purchasing firms, distirbutors, and logisitcs companines share inforamtion about orders, production, inventory levels, and delivery of products and services so that they can produce and deliver goods and services efficently. - Ultimate objective is to get the right number of their products from their source to their point of consumption in the shortest time and at the lowest cost. - An example of an interorganizaional system.

Customer Relationship Management systems

Used to help manage their relationships with their customers. - Provides info to coordinate all the business processes that deal with customers in sales, marketing, and service to optimize revenue to optimize revenue and customer satifaction. - Helps firms identify, attract, and retain the most profitable customer; provide better service to exsiting cusotmers; and deal with sales

Chapter 2: Transaction Processing Systems

We've established that operational managers need to keep up with day to day activites like employee log-ins, parts in inventroy each day, sales, etc. A Transaction Processing Sytem can keep up with this info; this is a computerized system that performs and records the daily routine transactions that are needed to do business. - Its principle purpose: answer routine questions and track the flow of transactions through the organization. (ex. how many parts in inventory? what happend to mr.williams payment?). To answer this info, they need current accurate informaiton. - At operational level, task, resources, and goals are predefined and highly structured. Ex. Decison to grant credit to customer has a predefined cretieria to go by when made by supervisoer. - TPS is also a major producer for other systems and business functions. Ex. TPS from the accounting funciton supplies data to the general ledger system, which produces balance sheets.

Collaboration; Teams

Working with others to achieve shared and explicit goals. Usally takes place in a business and foucses on task accomplishment. - Teams: a formal gorup with a specific mission assigned to them. Like other gorups that collaborate, the length of the team's exsistence depends upon the nature of the task.

Enterprise application one: Enterprise Systems

aKa enterprise resource planning systems. Its purpose is to integrate business systems in manufactoring and produciton, finance and accounting, sales and marketing, and human resources in a single software system. - Info that was previously fragmented in many systems is stored in a single comprehensive data repository where it can be used by many parts of the business. - When a customer places an order, the order data now flows automatically to other parts of the company that they affect.