BUS4 188 MIS Final

Switching Costs

"Consumers are reluctant to switch to a competitor if they have to learn a new system or transfer data." Baxter was able to centralize orders and lowered cost using a a distribution channel for customers to log into much like iTunes, as the customer got comfortable with the system they were reluctant to switch to competitors because they have invested in this system and the prices were later still similar to Baxter's, switching cost were too high to take advantage of discounts elsewhere. Classic Case: used the technology to provide better information and lock in customers. Baxter Healthcare: it is easy to misinterpret the various classic cases regarding strategic use of technology . For example, in many cases, the true strategy does not lie in the computer system; instead, the gains came from changing the way the business operates. For instance, the gains experienced by American Hospital Supply (Baxter Healthcare) came about because they improved the way their customers (hospitals) handled supplies and inventory . The computer system facilitated this change but was not necessarily responsible for it. In other words, rather than search for a killer strategic computer system, it is wiser to identify ways to improve the overall business, then ask how technology will support that change.

Feasibility Study

... is a QUICK EXAMINATION OF the PROBLEMS, GOALS, and EXPECTED COSTS OF the SYSTEM. The objective is to determine whether the problem can reasonably be solved with a computer system. ALSO, The primary goal of systems analysis is to identify problems and determine how they can be solved with a computer system. In formal SDLC methodologies, the first step in systems analysis is a feasibility study.

Teacher: video, object-oriented:

30 years. used to be one long program. in object oriented is split into self contained object. each object represents represents the way you think about problems, employees, car, etc, and communicating with each other. teacher: new is conceptual, hook up together.

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Advertisers purchase keywords adwords based on: auction process.

System analyst

Analysis of business processes. Logistic how to move stuff around. Creation of systems. not only analyse, but improve them. This class focus on software, but more. Example IBM: System Analysis, you have to know programming.

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Analytic systems examine data with statistical tools and operate relatively autonomously analyst specific data minming system

Conditions

Conditions: If - Then - Else A conditional statement consists of an IF statement, such as if (Total < 0), and a set of statements to execute only if the condition is true. Many programs also contain else statements that are executed only if the condition is false.

Data Dictionary

Contains all of the information to explain the terms used to define a system. Often includes REPORT DESCRIPTIONS, BUSINESS RULES and SECURITY CONSIDERATIONS. A data dictionary records details on all of the organization's objects. It is typically organized by type of OBJECT. It is easiest to maintain if it is stored in a computer database.

Cloud Computing Incl. question to teacher.

Goals of cloud computing: 1) reduce fixed costs and make similar technology available to even small firms. 2) The presence of open, low-cost services makes it difficult to use technology strategically. WHY? Because competitors can do/afford the same? 3) STRATEGY DEPENDS ON finding CREATIVE METHODS and ideas and USING TECHNOLOGY to implement them. 4) If your managers are better than others (skilled and experienced), the presence of low-cost technology can make it easier to test and explore new ideas.

Parallel execution

Groups of code are executed at the same time. Part of programming structure like: Loops: While - End

Business Plan

Idea-roadmap-external financing (in year 2k easy, ppt)-collect data along with descriptive section-market environment and strategy-financial analysis with sales and costs forecast- a time table of the company growth. These steps allows you to learn how much you need to raise for 3-4 years and when to break-even. A business plans helps you organize your ideas, provides a roadmap and schedule, and provides financial targets to use as benchmarks as you move forward. It is also critical for obtaining investment funding. The financial section is a primary component of the business plan. ppt: BUSINESS PLAN (BP) teacher: porters model based. (strategy, Forecast, Cash flow, investment budget, marketing, organization and time table) ----------------------------- Executive summary: See next slide. STRATEGY: is based on your research of the market. Includes PRODUCT and SERVICES, MARKET ANALYSIS and COMPETITION.. ---PRODUCTS with distribution: identify distribution channel (UPS, Retail stores...) Suppliers and backup suppliers and it is critical to identify your distribution network and how you will keep track of shipment and sales. -- COMPETITION: the size of the market and how it will change over time. --FINANCIAL SECTION: primary focus of the BP. FORECAST: The more challenging aspect of the financial section is the need to forecast sales by month for at least three years, and annual sales for five years. FC is the foundation of other financial data. Once you know the scale you can plan the size of your infrastructure. If FC is too difficult to estimate, it is better to start with the infrastructure first. CASH FLOW: When will money arrive? Will there be delays in payments? Many of your costs occur up front or on a monthly basis, so calculate these and estimate the firm's cash position for each month. You will need a source of funds to cover times when the cash flow is negative. You should do the same for profit, so that you have an estimate of when the firm will become profitable. INVESTMENT BUDGET: MARKETING: The marketing plan will begin with the anticipated sales level. Then it will identify the target customers with as much demographic detail as you can obtain. Income level is critical, should include pricing analysis. Minimum survey consumers, focus group, asking for preferred price. Consider discount for, say, B2B. Advertising plan needs to be created. ORGANIZATION AND TIME TABLE: provide a road-map and benchmarks so that you can evaluate your progress. Who will fill what roles? Draw an organizational chart of people with biography. Also, organizational structure change as the firm grows. TIME TABLE good for complex start-ups. Task management, what tasks depends on what task. Integrate time table with financial forecast, adjust investment finance accordingly.

Yield Management

If airline fills all seats, they make more money. They routinely overbooked flights to accomplish this.

Total Quality Management ??? missing info about this, ask teacher.

Monitoring production lines and analyzing data are important aspects of quality control. Improving quality leads to more repeat sales. Classic case: Digital Equipment Corp. Mr. Fred Bowers of Digital Equipment Corporation see's bench-marking as a company's attempt to model the human process of learning.

Encapsulation

Objects: encapsulation, hierarchy, inheritance, polymorphism. Object-oriented design focuses on individual objects and the data within the organization. Processes are secondary and they are usually embedded in the object. By encapsulating these definitions, the objects can be used to develop related systems with less effort. It is also easier to modify a system by making small changes to an object's behavior.

Parrallel Development

Parallel conversion entails running both systems simultaneously, which is safe but can become expensive and time consuming.

Commercial Off-the-shelf Software (COTS)

Purchased software for building applications. Relatively popular because it is faster than building from scratch.

Economies of Scale

Size. Part of Competitive Advantage and barriers to entry.

*****Change Agent

Steve Jobs, making a change in organization. He saw Apple needs to change and built Next computers. Can also be an economic event.

teacher: Primary methodology Choices

System Development life cycle - SDLC big projects that took a lot of time. It has changed. Facebook. HP still use this. prototype.

sample code structure: slide 13 by teacher.

THiIS IS A LOOP. similar to algebra. Total= total + sales.value. this will be looped, write it once.

Java

Teacher: a hardware kind of software. Write once, run anywhere. its a GENERAL PURPOSE language. Designed to run on servers and clients. Java runs on an intermediate level which handles data and interfaces differently . It is easier to write code in these languages (such as Java and C#), BUT PERFORMANCE can be an ISSUE for some types of problems.

Data Flow Diagram (DFD)

Teacher: how to collect information and draw diagram. See slide 48/ch 12. A diagramming technique used to ANALYSE and DESIGN SYSTEMS. It shows how a system is divided into SUBSYSTEMS and HIGHLIGHTS the FLOW OF DATA between the processes and subsystems. It displays PROCESSES, EXTERNAL ENTITIES, FILES, DATA FLOWS, and CONTROL FLOWS. A graphing tool, shows relationships between components.

Turn Key Systems

Teacher: turn your car on. Don't need any knowledge. Small businesses and startups. Past: fixed cost oaid for. Kow how to use. hardware failure.... Future: (look at ppt) slide 10-11.? Book: Turnkey systems include all the hardware and software necessary for the particular application. Common in restaurants, easy to turn the key and run the system. from ppt: Vendors create standard systems for common types of business. --Dentist, physician, Veterinarian, attorney, accountant, restaurant, Hotel, theater, and many more. --Includes hardware and software, training and updates.

Mass Customization

The ability to modify the production line often enough to produce more variations of the main product. The goal is to cover virtually all of the niche markets. Mass customization requires an IT system that links the sales system directly to the production line and through to supply . Heavy use of robotics from one computer . Also, expert systems for maintenance and diagnostics, but also schedule routines to prevent issues before they break down, common among Japanese firms. practice preventive maintenance. IT systems are also heavily used to monitor quality and suggest improvements.

Just In Time Inventory

The system can work only if the suppliers and factories are linked electronically—often there is only a one- or two-hour delay between ordering and delivery. Computer networks such as IndustryNet help firms connect with potential suppliers and identify equipment, parts, and prices.

if switching cost is high

competitive advantage. airlines offer of mileage gain.

slide 28 implementation options

direct cutover: high risk, low cost. parallel: not liking concerned system being down: two systems running at the same time. VISA firm. Financial, military systems. pilot: multiple locations, like McDonalds, Ford. old software. Install it in one location, and if successful, then next location, etc.. phased. Modular stuff,, like objects. one modular at the time. if one system goes down, not the whole system. One component at a time.

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if you a product with many options how to combine... market basket analysis.

Phased Implementation

phased. Modular stuff,, like objects. one modular at the time. if one system goes down, not the whole system. One component at a time.With multiple stores or business units, pilot introductions of phased implementations are common. Several intermediate possibilities are called phased implementation. For example, if you design a system for a chain of retail stores, you could pilot-test the first implementation in one store. By working with one store at a time, there are likely to be fewer problems. But if problems do arise, you will have more staff members around to overcome the obstacles. When the system is working well in one store, you can move to the next location. Similarly, even if there is only one store, you might be able to split the implementation into sections based on the area of business. You might install a set of computer cash registers first. When they work correctly, you can connect them to a central computer and produce daily reports. Next, you can move on to annual summaries and payroll. Eventually the entire system will be installed.

48 Many vendors store the product description...:

software agents: are object-oriented programs designed for networks that are written to perform specific tasks in response to user requests. The concept of object orientation is important be-cause it means that agents know how to exchange object attributes, and they have the ability to activate object functions in other agents. The tasks could be simple, such as finding all files on a network that refer to a specific topic. One key feature of agents is that they are designed to communicate with each other . As long as your agent knows the abilities or functions of another agent, they can exchange messages and commands.

value chain

stuff going in, like parts, bicycle, sell. showed arrow chart slide 12. ****** Expanding (merge) forward or backward in the supply chain to improve profit. Example: Ford buying Hertz car rental. Top part secondary value chain, support system like HR, building maintenance, none production. Lower part = PRIMARY VALUE CHAIN, from raw to distribution: Inbound Logistics - Operations - Outbound Logistics - Marketing and Sales - Services.

Break-even Analysis

teacher no Break-even analysis. If it is too hard to forecast sales, you can choose an infrastructure size and estimate fixed costs. Then estimate variable costs and revenue PER UNIT SOLD. *****Compute total cost and total revenue for VARYING LEVELS OF SALES****. Look for the break-even point. That is the minimum level of sales you must be able to reach to be profitable If the sales number is too high, it is unlikely that your venture will be profitable. Conversely , if it is substantially lower than for other firms, you are probably overestimating the price you can charge, or you are missing some costs. If the lines never cross—you have a major problem: the firm will never be profitable based on your estimates.

Porter's five forces model

what are elements of this. we don't include government in this model. Rivalry: smartphones industry (samsung, Apple) social networking Twitter/facebook... Substitute products (if TV) similar but not the same thing: Cable operator don't typically have competition. It is from Satelite. HBO/Netflex New entance: new compoetitors. Bargaining powers: many/few buyers.

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when a consumer purchase digital product online, the pruchase is recorded on: Digital Rights Management

The US Airline Industry 5 Forces - video

who makes money: airplane makers.

Fault Tolerance

A SYSTEM NEEDS TO BE RELIABLE. It should be available when needed and should produce accurate output. Error detection can be provided in the system to recognize and avoid common problems. EXAMPLE: some computers exist today that AUTOMATICALLY SWITCH to BACKUP COMPONENTS when one section fails, thereby exhibiting fault tolerance.

44 OLAP tools depicted as:

A multidimensional cube.

Cost Leadership

A product differentiation. Cost Leadership 1) Skills & Resources a) Continued capital investment. b) Process engineering. c) Continuous quality improvement. d) Tight supervision of costs. e) Products designed for low cost. f) Low cost distribution. 2) Organization Requirements a) Tight cost controls. b) Frequent control reports. c) Highly structured org. d) Incentives based on qualitative measures. 3) Risks a) Competitors imitate. b) Technology changes. c) Lose production or distribution advantage.

Open Source Development

A method of creating software where the source code is released to the public and anyone can contribute to the project by writing sections of the code. Usually one person takes the lead to control the integration changes and planning for new releases. The Linux operating system initiated by Linus Torvalds is a common example. Open sourcedevelopment is an interesting new method of developing complex software. With this approach, developers from virtually any company or location work on portions of the code. Usually , one person coordinates the efforts and identifies major changes and structure. The individual programmers write, debug, or test sections of code. If a programmer finds a better way to implement a function, the newer version is incorporated into the code. Hundreds or even thousands of programmers can contribute to the development of a project.So far , this methodology has been used only to develop "free" software that is available for everyone' s use. Many of the techniques were pioneered by Richard Stallman who developed emacs, a programmer ' s text editor . He later founded the GNU project (www.gnu.org) that uses the same methods to create and distribute Open source development is interesting in terms of both the sophisticated software that has been created and the development methodology. Using Internet communications, and only a small team to coordinate and review the work, thousands of individuals have been able to work together to create complex software that rivals commercial products costing millions of dollars to create. In theory, similar techniques could be used to improve development within business. On the other hand, the technique requires the cooperation of hundreds of developers, often some of the best programmers in the world. It might be possible to hire these programmers on a freelance basis. A few companies offer Web sites that enable you to auction contracts for various portions of a programming job. But it is not entirely clear that this approach is cheaper than just hiring the best programmers. Another ISSUE with open source development also affects your decision about whether to use open source products such as Linux. How is the software going to be MAINTAINED and UPDATED? Creating the initial software is only the first step. Bugs have to be fixed and new features added on a regular basis. As long as there is a core group of people willing to continue working on the project, these issues can be handled. Or if you have a staff with the skills to modify the software, you can make any changes you want—because you have the source code. But what happens 20 years later? Or even in the short run, can open source projects devote the time and money to usability testing and radical improvements as hardware changes? A commercial company has a financial incentive and the cash flow to keep products moving forward. Open source development has only the personal motivations of the prime organizer and the world developer community. Sometimes these motivations are enough to ensure the longevity of a product; sometimes they are not.

CAD/CAM Computer Aided Design/Manufacturing ******

Experts system based, high level of automation.

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Customer relationship management: customers have mu;ltiple contat with company and workers need to share information

First Mover Advantage

Leaders pay a higher cost (technology cost goes down), but will be recognized as innovators and gain reputation/trust. In a model of rivalry, the firm that takes the initial action. Sometimes the first mover gets a benefit by setting the strategy and the market. But the costs are often higher because the technology is newer . Game theory: Games such as chess recognize that the first mover has a slight benefit.

Loop

Loops: While - End Conditions: If - Then - Else The loop causes the processor to retrieve each row from the query and execute the accumulation statement until the end of file is reached. The program code itself is also stored in memory while it is being executed. Loops and conditions are common elements of any program.

Cloud computing

Lower barriers to entry. Office cost $12K. Now, 10% of that cost because of cloud computing. Bring down fixed costs.

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Making cubes into data: online analytical processing (OLAP)

45 two or more items occur/bought together.

Market basket analysis.

41 Which software is important for distributed services:

XML.

**************** Copyright

A legal ownership right granted to the creators of intellectual property . All works are automatically copyrighted. Registering with the copyright office is not required but grants additional protection to the owner . Actually, a copyright exists as soon as you create the material. You do not need to file the registration form. However, there are some legal and monetary advantages to registering the copyright. In a digital age, copyright law is the most challenging to apply and to enforce. The first question is identifying ownership. Who owns a particular item? If you write a book on your own time with your own resources, then generally you own the rights. If you write a computer program for your employer as part of your job, the employer owns the copyright. Interestingly , if you are an outside contractor and create a program for a company , it is more likely that you own the copyright, unless you agree to transfer the rights. There is an interesting exception to copyright law: mere collections of data can-not be copyrighted. Consider the example of Feist Publications v. Rural Tele-phone Service [499 U.S. 340 (1991)]. Feist wanted to publish a telephone direc-tory , but Rural would not provide the data. So Feist copied much of the data from Rural' s printed directory . The U.S. Supreme Court eventually ruled that Feist' s ac-tion was not a copyright infringement because the directory contained only data, which is not sufficiently original to obtain a copyright. Now consider the case of ProCD, Inc. v. Zeidenberg [86 F3d 1447 (7th Cir . 1996)]. ProCD collected and published a CD-based list of phone numbers and addresses, which they generally obtained from printed phone directories. Zeidenber g purchased a copy of the CDs and transferred them to his W eb site. He then charged people to access the site. ProCD sued for violating the copyright laws. Based on the Feist case, Zeidenber g was found innocent of copyright infringement. However , he was guilty of violat-ing the shrink-wrap license agreement that came with the CDs. Note that the data collection ar gument probably applies to most data collected by federal and state agencies. Read once and discard! Copyright protection gives you the ability to stop others from profiting from your work. There are a few minor exceptions—such as parody, excerpting short quotations, and educational "fair use," which allows educational institutions very limited provisions to make a limited number of copies for teaching purposes. A more interesting, unanticipated exception involves money. Consider the 1994 case of U.S. v. LaMacchia, who was a student running a bulletin board system on university computers. He routinely placed commercial software on the site and allowed people to download (steal) the software for their own use. The catch is that he did not charge access to the system and made no money from the process. Without this profit motive, the court ruled that LaMacchia could not be convicted on charges of criminal violation of the copyright laws. Of course, the commercial software vendors could sue him on civil grounds, but unless he was an unusually wealthy student, there would be little gain. On the other hand, the university could throw him out for violating university policy. Congress has modified the copyright provisions to cover this situation, so now anyone who violates copyright laws can be criminally charged, fined, and potentially jailed.Copying becomes a more serious problem every day. As more works are cre-ated and distributed in digital form, it becomes more difficult to protect them. Even though you might have a legal right to prevent copying, it becomes increas-ingly difficult to prevent the distribution of your work, particularly if individual ethics are weak. For example, say that you write a story and sell it through your Web site. Once the first few people have read the story, they could copy it and e-mail it to their friends. What are you going to do? Arrest and sue your customers who first read the story? On the other hand, if a publisher took your story, printed it, and sold it, you clearly have the legal authority and monetary incentive to seek compensation. Consider a similar example. You build a Web site and create some interesting graphics and sound effects. Over time, other people routinely down-load your objects and use them on their own sites. Have they violated copyright laws? Can you stop them? Can you even find them? Would it be economically worthwhile to pursue them?It is unlikely that individual motivations and ethics will improve. That is, de-spite the laws, many people will still copy anything they can (software, art, text, photos, video clips, and so on). Whatever technology might be applied, it is un-likely to be economically feasible to pursue them. Y et without incentive, why should you create and distribute new works? One possible outcome is that lar ge, expensive content will disappear . Why should you write and distribute an entire book in one piece, when most people would steal it instead of paying $20 a copy? Instead, you could sell the book a section at a time, for a few cents per section. By releasing the sections over time, people would have to pay to receive the most re-cent (and organized) sections. Y es, some people might wait and have a friend pay for the section and e-mail it, but it is a question of economics. If the price is low enough, more people will opt to get the data earlier and directly from the source.The federal white paper ("Intellectual Property and the National Information Infrastructure") contains an extended discussion of copyright issues and possible federal solutions. It is available online from the Information Infrastructure T ask Force (IITF) W eb site. Y ou should also read Pamela Samuelson' s criticism of the white paper proposal, which points out that the discussion strongly favors copy-right holders as opposed to the public, particularly since the primary author (Bruce Lehman) was a lobbyist for the copyright industry .

Adwords

Book: Nothing on CH 11. teacher no ppt: adwords can help you estimate the total potential number of customers. It's a keyword planner, what people key, you can plan accordingly. Professor used three links: trends/search/zeitgeist. ZEITGEIST is the defining spirit or mood of a particular period of history as shown by the ideas and beliefs of the time.

Change Agent

Change agent can be person or event (economic) that convinces organization to change its policies. Continuous change where everyone is encouraged to contribute new ideas making many small changes over time.

People Express

Flew out of New Jersey. Cheap stuff, didn't last.

Sequential Execution

Statements are executed in order . Part of programming structure.

Pseudocode

Teacher: write down specification that programmer can use. A loosely structured method to describe the logic of a program or outline a system. It uses basic programming techniques but ignores issues of syntax and relies on verbal descriptions. Programmers often write pseudocode or out-lines that you need to be able to read to ensure the program will work correctly. Instead of following the syntax of a particular language, it uses pseudocode to illustrate the logic. Its simplicity makes it a good starting point.

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email difficult to keep track of versions.

32 Email is asynchronous. Phone conversation is synchronous.

email:

Privacy

(1) The concept that people should be able to go about their lives without constant surveillance, that personal information about people should not be shared without their permission. (2) Collecting personal data only when you have a legitimate use for it, allowing customers to correct and remove personal data. Protecting confidential data so that it is not released to anyone. Giving customers the option so that you do not sell or lease their personal data.

Entity Relationship diagram

.internet: ERD represents the entity model and will show what a system or a database will look like but not explain how to implement it. Wikipedia on Model, not diagram. ERD is a data model for describing the data or information aspects of a business domain or its process requirements, in an abstract way that lends itself to ultimately being implemented in a database such as a relational database. The main components of ER models are entities (things) and the relationships that can exist among them. An entity is a thing that exists either physically or logically. An entity may be a physical object such as a house or a car (they exist physically), an event such as a house sale or a car service, or a concept such as a customer transaction or order (they exist logically—as a concept). Diagrams represent entities as boxes, otherwise it is too much of clutter.

Digital Rights Management (DRM)

A combination of encryption and Internet validation for protecting vendor copyrights to prevent unauthorized copying of digital content (software, music, books, movies, and so on).

Service Level Agreement (SLA)

A formal written agreement between a user group and a service provider that specifies guaranteed levels of service and compensation for failure to meet those levels. SLA's are commonly used in outsourcing deals to ensure the contracted party is providing adequate levels of service, particularly with network providers.

Syntax

A set of rules that govern how words are combined to form phrases and sentences. Pseudocode, however, is intended for human reading rather than machine reading. The set of command words, symbols, and punctuation used by a computer programming language. When writing programs, you must type the exact words and symbols so the computer understands what you want it to do. See also programming logic (Instead of following the syntax of a particular language, it uses pseudocode to illustrate the logic.). Computer languages also possess a syntax that dictates exactly how you have to type in the commands, including spelling (case-sensi-tive), commas, dots, and other annotations. Development tools (such as Microsoft V isual Studio and the open source Eclipse) make it easier to enter code correctly by prompting with syntax options and verifying the items as you type them.

Simple Object Access Protocol (SOAP)

A standard, easy-to-implement method of exchanging information and messages among different computers on the Internet. A protocol that works with XML to support Web-based services. It is a standard being pushed by several vendors to define how objects can be used across the Internet. It relies heavily on the extensible markup language (XML) to transfer data between diverse computers. As a general manager, you do not need to know the details of how these two technologies work, but you should re-member their purpose. Ultimately , you will want to select applications that fully support these standards so that you can build and use systems that work transparently across the Internet. The purpose of SOAP is to enable firms to build application services that can be used by other organizations across the Internet. For instance, as shown in Figure 12.31, a bank (e.g., www.oanda.com) might of fer a currency conversion application. Y our company' s accounting application could call the bank' s program whenever it needed to convert money to a different currency. Applications that use the SOAP and XML protocols can interact with other services across the Internet. However , a big question that remains to be resolved is how firms will price their services. Firms that create service objects will ultimate-ly be able to bill clients a usage fee or a monthly char ge with unlimited access. But a standardized billing mechanism has not been implemented yet. SOAP enables firms to offer application object services that other firms can use across the Internet. In this example, your application can call the bank's currency converter object to get the correct exchange rates.

Nondisclosure Agreement

A written agreement where the signer agrees to keep certain information confidential and not tell anyone. Commonly used by startup companies to keep basic technology , general operating practices, and marketing plans secret.

Outsourcing

Book: Outsourcing has primarily been used to decrease operating costs or to get the initial money from the sale of the machines. IKEA - Knight trucks. Business Dictionary: Outsourcing refers to obtaining certain services or products from a third party company, essentially sourcing something like accounting services or manufacturing of a certain input to another company. While many think outsourcing refers to using a service provider in another (usually cheaper) country that is not necessarily the case. Outsourcing can be done to a company that is located ANYWARE, the location isn't important.

Offshoring

Book: Using firms in other countries to handle MIS (and other tasks). business dictionary: Relocation certain aspects of a business to ANOTHER COUNTRY. The services and products are all still provided in the same country, but they are now in another country. For example, when a car manufacturer in the U.S. opens a factory in Thailand to make certain parts they are offshoring, as everything is still happening within the same company

E-Commerce Failures

Book: Internet advertising revenue was a failure in dot-com crash and early phase of e-commerce businesses. --ADS IGNORED: First internet was seen as educational, ads could be ignored thus click-through ads dropped. --SHADY REVENUE RECORDING: Advertisement exchange was recorded as revenue, shady. A and B recorded revenue although no money was actually exchanged. CONTENT PROVIDERS CHARGED: as revenue declined, websites started to charge for access to information. Visitor to webpage dropped further. Charge of content on their sites in 1999 was only 6%, 2000 almost doubled to 11%. They charged either by agreements or micro-payments. GOOGLE: invites anyone to use their ad-system. Changed Internet. Now ads are legitimate. Many firms live only on Internet, yet, Twitter is still not profitable. ppt: --Dot-com 100's failed 01, 02. --Most relied on Internet revenue, outsource production and shipping. --relied on ads, usually from other dot-com firms. --Believed in being first would lead to success. --They thought sales wasn't necessary, ad and stock revenue was enough until the world changed. --Most were wrong. --Social networking around mid 2K, Facebook profitable in 2009. Twitter still not, depend on investors. --Newspaper same challenge today, paid subscription leads to reader decline and ad revenue declines. --Crash because cross-ads was not real money, dependent and weak firms went down. --THREE REASONS 1) Internet-based (social network, online services, newspapers with subscriptions. 2) Revenue Sources? Few fees on users, dependence on advertisings, large users (which is costly). 3) Investor hype.

Computer Aided Design (CAD) Question for teacher: I can't find any info about CAD

CAD/CAM, testing, networks, workgroup support. Support for engineering and design takes the form of CAD/CAM systems that make it easy to create, modify, store, and share new designs. If these systems are coupled to integrated design databases, engineers can more easily reuse prior results. Tying into production databases enables the engineers to model and test various aspects of their designs. Engineers can also be supported with expert systems that help them analyze production aspects of their designs. As General Motors engineers design new cars, software helps them improve the layout to simplify production and to use existing components. Engineers are also being supported by workgroup technologies that make it easy to share designs and receive input from teams of workers throughout the company . Google search: Part of the Multimedia and graphics glossary: CAD (computer-aided design) software is used by architects, engineers, drafters, artists, and others to create precision drawings or technical illustrations. CAD software can be used to create two-dimensional (2-D) drawings or three-dimensional (3-D) models. Engineering and design.

Distribution Channels

Control over distribution prevents others from entering the industry. Case: iTunes or Napster. Part of Competitive Advantage and Product differentiation: Prevent others from entering the industry. Example: iTunes

Direct cutover

Conversion options when implementing a new system. OLD - New (no overlapping/parallel) The old system is simply dropped and the new one started. If at all possible, it is best to avoid this technique, because it is the most dangerous to data. If anything goes wrong with the new system, you run the risk of losing valuable information because the old system is not available. The various methods are displayed in Figure 12.14. pg 795. In most cases, direct cutover should be avoided because of the disruptions and potential for lost data. It is less expensive compare to parallel, which as to run two or more systems at the same time.

Benefits of Centralization

Coordinate activities and efficiency that can be gained from large-scale operations. HARDWARE: Share data. Control purchases. Control usage. Less duplication. Efficient use of resources. SOFTWARE: Compatibility. Bulk buying discounts. Easier training. Ease of maintenance. DATA: Easy backup . Easier to share. Less duplication. Security control and monitoring. PERSONNEL: Similar worker backgrounds. Easier training. Straight for ward career path. Specialized staff. Easier to see and control costs.

Inheritance

Creation or derivation of objects from other object classes, using same implementation to maintain same behavior. Mechanism for code re-use. Each derived class inherits the attributes and methods of the prior class. For example, a savings account object can be derived from an account object. The savings account object will automatically have the same attributes and methods. Attributes and methods specific to the savings account can be added. ALSO: in an object hierarchy, illustrated in Figure 12.9 (pg 787), that shows how the classes are derived from each other . The bank example has several types of accounts with each of these categories containing further subdivisions. Figure 12.9 also shows detail in the classes by including some of the proper ties and member functions. The accounts have elements in common that are an INHERITANCE from the base class (account), such as the balance attributes. Each level adds additional detail. Each account class also contains member functions to perform operations, such as paying interest. Because the interest computations can be different for each of the accounts, the method is stored with the original definition of each account. A question to ask: how does object inheritance simplify programming? When you can see the history of a project and compare them with other projects and how they may relate or not, you can adjust the code accordingly.

slide 18 teacher object-oriented programming

Encapsulation: put code in there, drop into a box. Object Hierarchies: parent object, top object. Summary is drawing information from other sub accounts. data are variables. organizational chart. Inheritance: parent/children. parent is Inherited by the children. Move objects around.

Process Innovation

Evaluating the entire firm to improve individual processes, and to search for integrated solutions that will reduce costs, improve quality or boost sales to gain a competitive advantage. See also reengineering. REENGINEERING A complete reorganization of a company. Beginning from scratch, you identify goals along with the most efficient means of attaining those goals, and create new processes that change the company to meet the new goals. The term reengineering and its current usage were made popular in 1990 by management consultants James Champy and Michael Hammer .

Polymorphism

In an object design, different objects can have methods that have the same name but operate slightly differently. For example, a checking account object and a savings account object could each have a method called pay interest. The checking account might pay interest monthly , whereas the savings account pays it quarterly .

project

Industry research on slide 15. competitive area: number of...: concentration ratios sales by firm etc... part four question, search, see video take notes. "tools for entrepreneur..." 1)Look at competitors, formilze by putting the findings in a grid to get a better overlook of your findings. 2)observe people: watching and learning, ease people in, ask to show not just tell. Say, tell me more about that, not do you like it? Look for pauses and emotions. Watch non-verbals. Answer questions with questions? Use prompts, like a smiley, to note there reactions. 3)search the internet: 4)low-cost survey 5)Post-launch feedback.

Innovation

Is not enough, you have to impress management. Innovation can be risky and often carry high capital costs. Although it may be exciting to spend millions of dollars on technology, it can destroy the firm if you do not have enough resources to support research and operations. Innovation can lead to improvement of communication, decrease costs, reduce design times, monitor customers and rivals, and improve customer service.

XML

It relies heavily on the extensible markup language (XML) to transfer data between diverse computers. simple object access protocol (SOAP) depends heavily on this standard.

Patent

Legal protection for products (and sometimes business processes). It grants the owner sole right to sell or create modifications of the product for 20 years. No one can create the same product unless approved by the patent owner . Patents require considerable documentation and a formal review to identify prior and related patents and to determine the legitimacy of the innovation. They usually require the help of a specialized law firm, take at least a year to obtain, and will probably cost about $30,000 in legal and processing fees.

Rapid Application Development (RAD)

Less emphasis on planning tasks and more emphasis on development. a software development process that allows usable systems (prototypes) to be built in as little as a few months, but often with some compromises. Focus on the pieces of functionality that have the highest business value Different from JAD, which is a process that brings together business area people (users) and IT (Information Technology) professionals and top management in a highly focused workshop. The goal of building a system much faster than with traditional SDLC methods. Using powerful tools (database management system, high-level languages, graphical toolkits, and objects), highly trained programmers can build systems in a matter of weeks or months. Using WORKGROUPS, communication networks, and CASE tools, small teams can SPEED UP DEVELOPMENT and design steps. Applies the value of teamwork to the developers. By providing advanced development tools, pre-built objects, and collaboration tools, some companies have found it is possible to reduce the overall development time. The key is to tar get steps that can overlap and be performed by multiple teams. By improving the collaboration tools, more steps can be com-pressed. Many e-commerce projects were developed with RAD techniques. Firms were concerned about being the first in the market and felt they needed to develop software rapidly . The goal of being first was later shown to be pointless, but the techniques of using small groups of programmers with advanced tools, collaboration, and intense programming sessions were relatively successful at quickly producing thousands of new applications.

Porter's Five Forces Model A.K.A. External Agents.

Michael Porter's model used to search for competitive advantage. The Five Forces are: RIVALS: existing competitors. CUSTOMERS: bargaining powers. SUPPLIERS: Bargaining power. Issues are price, quality, and delivery schedules. TQM can track quality issues, to get closer to end buyer and its supply chain, get feedback. POTENTIAL COMPETITORS: threats from new entrance. What is their price strategy? SUBSTITUTE PRODUCTS: are related economically by the degree to which consumers are willing to use one product instead of the other. Taxi vs Uber or train, or bank saving account vs Merrill Lynch counter inflation by invest your savings instead.

Benefits of Decentralization

Moving control to SMALLER UNITS produces a more FLEXIBLE system that can RESPOND FASTER to market changes, encourage individual differences, and INNOVATION. HARDWARE: LESS chance of total BREAKDOWN . Users get personalized machines. SOFTWARE: Different user preferences. Easier access. Customization. DATA: Only transmit data that needs to be shared. Keeps user control and politics. PERSONNEL: Faster response to users. More time with users. Better understanding and COMMUNICATION. Different career path.

Object Oriented Programming

One key difference between object orientation and other development methods is the way processes or functions are handled. With objects, all functions are embedded in the definition of the object—the object comes first. The object approach reverses the treatment of processes and data. With SDLC, illustrated by a data flow diagram, the emphasis is on processes, and data (attributes) is passed between processes.One goal of an object-oriented approach is to create a set of information system building blocks. These objects and procedures could be purchased from commercial software companies (such as a spreadsheet from Microsoft or a database system from Oracle). MIS programmers or consultants can create additional objects tailored for your specific company or department. Once the basic blocks are in place, end users or MIS analysts can select the individual pieces to create a complete system. Hence, as Figure 12.30 indicates, less time is needed for implementation, as long as the analysis and design are performed carefully . On the other hand, the up-front costs of designing and building these objects can be quite high. Furthermore, the tools and techniques tend to require substantial retraining of the existing MIS staff. Both of these types of costs have caused some companies to avoid object-oriented methods.

Outsourcing

Outsourcing goes a step further than contract programming. When you outsource project development, you transfer most responsibility to the outside firm. Typically, you negotiate a development price, provide detailed specifications, and the outsourcer hires workers and develops the system. A huge variety of outsourcing arrangements are available, including situations where the outsourcers run your entire MIS department or just your servers or networks, or handle PC maintenance. The primary advantage of outsourcing is that the EXTERNAL COMPANIES TAKES RESPONSIBILITY FOR managing the PROCESS and PRODUCING the application. You still have the responsibility to clearly define exactly how the application should work, but the outsourcer bears more of the risk—particularly with FIXED-FREE contracts. The one thing you want to avoid with contractors and outsourcers is uncontrolled hourly fees.

Database Administrator (DBA)

Responsible for maintaining the corporate databases, monitoring performance of the database management system, and solving day-to-day problems that arise with the databases.

Software as a Service (SaaS)

Selling software for usage or monthly fees instead of charging a fixed upfront price. Easiest to implement with cloud computing but it can also be done with in-house software. UPGRADES and MAINTENANCE are typically INCLUDED in the price and sometimes the maintenance work is handled by the developing company. Essentially , cloud computing offers software as a service (SaaS), where a few firms hire developers and create and host software and other firms simply lease the service. That means that only a few firms develop software. This trend has been evolving for several years—partly because new technologies make it feasible, but partly because most companies do not want to spend money and time trying to create custom software and pay large groups of programmers. The economics of software development also explain cloud computing because the high development costs are spread across many other companies. Still, not all companies are moving to publicly-run cloud computing. Issues of privacy and customization have held back some of the acceptance. Instead, smaller firms opt to buy software and install it on their central computers—and larger companies might run their own private clouds. The second issue of cloud computing consists of developing software that runs on the cloud. First, most of the software relies on Internet technologies and databases. Initial technologies (Web browsers) provided limited support for interaction and usability. But, the Internet technologies continue to evolve, which provides more capabilities but requires learning and testing new tools and new designs. For instance, HTML 5 was introduced by Web browsers in 2011, with advanced interaction features, but the standard and full support are not expected for at least three years. Consequently, developing software for cloud computing remains somewhat experimental. Any experimental technology is more difficult to predict, and it is harder to estimate development time and cost. Also, it is harder to develop software that is designed to be used by multiple companies. Additional security elements need to be designed and tested, and the system has to be built to be scaled up as more companies use the products. Scalability and expansion are key elements in designing any cloud-based system. Not just the hardware, but the software and the administration tools have to be designed so they can be managed without significant increases in the number of administrators. Effectively , most cloud-based software carries additional development costs because administration tools need to be built into the system.

Programming Basics Teacher:

Sequential exequitions: executed in order. Parallel execution:Today computers have multiple cores. Models can by doubled, same code can be executed twice. Variables: containers to hold data. Algebra. y=5. Computations: CONDITIONS: if - then -else. Loops: While - end. Make programming more efficient. Instead of writing it many times. Recalculate that. somewhere to leave the loop. subroutines and functions: break code into manageable pieces. A chunk of code. Input/output: transferring data. object..... :

Thin Client

Simpler hardware than a full-blown personal computer, with minimal software. It is generally used to display applications running on the server and to accept input from the user. The thin client device is only responsible for displaying data and translating user input. The data and the application software reside on the central servers. Example: iPhone web browsing.

Replication

The intentional process of duplicating data in a database so that it can be transported and accessed in multiple locations. The DBMS has the ability to synchronize data changes between the master copy and any replicas. EXAMPLE: APPLE/AKAMAI servers.

Intellectual Property

Teacher: copyright = books, pictures. US has liberal laws compared to the rest of the world. you can use more on the web that is not yours. Patent: products. Trademarks: name or logo. DRM: digital stuff. Non-disclosure. SLIDE 29! SLIDE 51! Property that results from original creative thought As defined by copyright laws, the concept that property such as music, books, software, and movies can be protected. The laws clearly define the owners of the property and specify that the owners can establish any type of copy protections they desire.

Prototyping or Iterative Development

Teacher: Show the user a piece, once in a while. not a working piece, not complete functional. pros and cons slide 34. Or from internet: The major ADVANTAGE of prototyping is that users receive a working system much SOONER THAN they would with the SDLC method. Furthermore, the USERS HAVE MORE INPUT so they are more likely to get what they wanted. Finally , remember that a large portion of MIS time is spent making changes. A system designed with the prototyping method is much EASIER TO CHANGE because it was designed to be modified from the start. CON Excessive development time, User confusion, Increased development time, Too much focus on one part of the system, Expense of prototyping Prototyping has been proposed as a method to use for systems that are not overly complex and do not involve too many users or analysts. Just as automobile engineers design prototypes before attempting to build the final car, MIS programmers can build early versions of systems. These systems are then continually modified until the user is satisfied.The first step in designing a system via prototyping is to talk with the user. The analyst then uses a fourth-generation language and a DBMS to create approximately what the user wants. This first step generally requires only a couple of weeks. The business user then works with the prototype and suggests changes. The analyst makes the changes and this cycle repeats until the user is satisfied or decides that the system is not worth pursuing. The emphasis is on getting a working version of the system to the user as fast as possible, even if it does not have all the details. Figure 12.18 illustrates the cycle involved in prototyping.

System Development Life Cycle (SDLC)

Teacher: slide 22. LOOK AT IT! waterfall approach. goes down. Formal! Rigid, which can be a problem. Large companies and government like this. Ignore the bottom. will be explained in slide further ahead. Feasibility and planning: GOALS AND PLANS. what do we want. can it be done? cost for hardware? support it? 5 years from now? Systems Analysis: BUSINESS REQUIREMENTS: improving the content, hire staff. Systems Design: TECHNICAL DESIGN. show data flow diagram. System Implementation. writing the program, doesn't talk about it much. VIDEO, 30 seconds: explains the life cycle. (robot). More needed! Sometimes SDLC is known as the waterfall methodology because each step produces outputs that are used in the next step

Teacher: Runaway projects

Techn. measures 2-5 times over budget, 2-5 times behind. Missing technical objectives. Design problems: Dublication of efforts. incompatible. Success: user involvement, executive management support, clear requirements, proper planning, realistic expectations. Reasons for failure: lack of input........

Product Differentiation

Technology can add new features to a product or create entirely new products that entice consumers. Classic cases: Federal Express: (FEDEX) First major package delivery company to track individual packages at every location using bar codes. Reduce lost packages and increase customer service. Merrill Lynch: introduced a service enabling customers to store their money in a wide variety of financial instruments that paid significantly higher interest rates than did checking accounts, and still write checks on the account. The ability to make your products appear different from those of your rivals, thus attracting more customers. Information systems have been used to alter products and provide new services.

Trademark (no keyword)

Trademarks are used to create a unique name. Once you find and trademark a name (or logo), no one else can use that name without your permission. It is relatively easy to obtain a trademark, except that you must find a name that no one else has already chosen. You can begin your search at the U.S. Patent and Trade-mark Office: http:/www/uspto.gov. Copyrights and trademarks are relatively easy and inexpensive to obtain. You simply fill out a form, submit the material, pay a fee, and wait a few months for the agency to process the request.

Software Piracy

The act of copying software without paying the copyright owner. With few exceptions (e.g., backup), copying software is illegal. Companies and individuals who are caught have to pay thousands of dollars in penalties and risk going to jail. It is commonly accepted that piracy takes money away from the development of improved software.

Barrier to Entry

The additional costs of creating a sophisticated information system make it harder for firms to enter the industry. Classic case: People Express. Additional cost of creating an information system: 1) Economies of Scale (size) 2) Economies of Scope (breadth) 3) Product Differentiation (patents) 4) Capital requirements 5) Cost Advantages (independent of size, such as better management or suppliers, or centralized hub like People Express airline) 6) Distribution Channel Access (iTunes etc..) 7) Government Policy My notes: Innovation, differentiation, and switching cost creates competitive advantage, as long as the profit margins are high. Sustainability, to remain successful after heavy investment you have to make sure no one can easily copy your model. (Like ikea, with a supply chain focus and low prices, self-serve, logistic staff at retail level etc..) Technology can create barriers or switching costs (if you invest heavily then competitors may not compete because of expensive switching cost). The technology is definitely important, but ultimately it is the MANAGEMENT AND WORKERS (DETERMINES IF THEY HAVE A COMPETITIVE ADVANTAGE AND CREATED A BARRIER TO ENTRY) in the firm that must adopt the technology to alter the operations and gain the full benefits.

Total Cost of Ownership (TCO)

The cost of purchasing and running a client computer (personal computer). A highly subjective number , it typically includes the hardware cost, the software license fees, maintenance costs, and training costs.

High-bandwidth Digital Content Protection (HDCP)

The digital rights management technology created by the movie and television industries to make it more difficult for people to copy high-definition TV signals. T o play protected videos all of your equipment will need to support the HDCP standard.

The first section in BP is

The executive summary

Business Plan - Executive summary

The last section you write. However, it usually appears first in your business plan document. Non technical. The Mission Statement - This explains what your business is all about. It should be between several sentences and a paragraph. Company Information - Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s). Growth Highlights - Include examples of company growth, such as financial or market highlights (for example, "XYZ Firm increased profit margins and market share year-over-year since its foundation). Graphs and charts can be helpful in this section. Your Products/Services -- Briefly describe the products or services you provide. Financial Information - If you are seeking financing, include any information about your current bank and investors. Summarize future plans - Explain where you would like to take your business.

When defining a new business opportunities you need to estimate financial documents: begins with

The number of customers and sales levels

Systems Analysis

The primary goal of ... is to identify problems and determine how they can be solved with a computer system. It is more of a thinking process and involves the creative skills of the System Analyst In formal SDLC methodologies, the first step in systems analysis is a feasibility study. A feasibility study is a quick examination of the problems, goals, and expected costs of the system. The objective is to determine whether the problem can reasonably be solved with a computer system. In some cases, maybe there is a better (or cheaper) alternative, or perhaps the problem is simply a short-term annoyance and will gradually disappear . In other cases, the problem may turn out to be more complex than was thought and to involve users across the company . Also, some problems may not be solvable with today's technology. It might be better to wait for improved technology or lower prices. In any case, you need to determine the scope of the project to gain a better idea of the costs, benefits, and objectives. The feasibility study is typically written so that it can be easily understood by nonprogrammers. It is used to "sell" the project to upper management and as a starting point for the next step. Furthermore, it is used as a reference to keep the project on track, and to evaluate the progress of the MIS team. Projects are typically evaluated in THREE AREAS of FEASIBILITY: ECONOMICAL, OPERATIONAL, and TECHNICAL. Is the project cost effective or is there a cheaper solution? W ill the proposed system improve the operations of the firm, or will complicating factors prevent it from achieving its goals? Does the technology exist, and does the firm have the staff to make the technology work? When the proposal is determined to be feasible, the MIS team leaders are appointed, and a plan and schedule are created. The schedule contains a detailed listing of what parts of the project will be completed at each time. Of course, it is extremely difficult to estimate the true costs and completion dates. Nonetheless, the schedule is an important tool to evaluate the status of the project and the progress of the MIS teams. As shown in Figure 12.13, planning and scheduling provides the blueprint or structure for the rest of the project. It is a crucial step that provides control for the remaining project. Systems Analys: Once a project has been shown to be feasible and is approved, work can begin on a full-fledged analysis. The FIRST STEP is to determine HOW the EXISTING SYSTEM WORKS and WHERE the PROBLEM are LOCATED. The technique is to BREAK the SYSTEM into PIECES. Smaller pieces are easier to understand and to explain to others. Also, each piece can be assigned to a different MIS team. As long as they work from the same initial description and follow all of the standards, the resulting pieces should fit back together . Of course, it still takes time and effort to integrate all of the pieces. The KEY OBJECITVE in this stage is to UNDERSTAND the BUSINESS ORGANIZATION and determine the specific REQUIREMENTS FOR the new PROJECT. It is also useful to collect test cases. Modern development systems can be programmed to automatically run test cases as the code is being developed and changed. The test data (with the correct results) ensure that the system always produces accurate results. Diagrams are often created to illustrate the system. The diagrams are used to communicate among analysts and users, other analysts, and eventually the programmers. Data flow diagrams are a common method to display the relationships that were determined during systems analysis. The diagrams represent a way to divide the system into smaller pieces. Graphics tools provide a useful way to communicate with the user and to document the user requirements. However, they do not speed up the development process. Producing, changing, and storing documentation can be a significant problem. Yet these tools are necessary because they make it easier for the user to control the final result. One increasingly common solution is to keep all of the documentation on the computer. This method reduces the costs, makes it easier for everyone to share the documentation, and ensures that all users have up-to-date information for the system.At the end of the analysis phase, the MIS team will have a complete description of the business requirements. The problems and needs are documented with text, data flow diagrams, and other figures depending on the methodology followed.

Small tech business rely on

Turn-key systems

JavaScript, HTML5

Wiki: a high-level, dynamic, untyped, and interpreted programming language. Not related to Java, comes from C instead. Event-driven, react on users interaction with the website. Script language for Web page interactivity. Today , understanding programming logic and syntax is only the first step in learning to program. Most programming environments are EVENT-DRIVEN SYSTEMS where programmers create code function that are EXECUTED WHEN some EVENT IS TRIGGERED. You are familiar with these systems as a user , but you might not have realized what was happening. Most of the user interfaces today are based on graphical screens and forms, including Web pages. Each of these environments defines doz-ens or hundreds of events. Programmers can write code that attaches to an event and then action is taken when that event occurs. As a simple example, Figure 12.7 shows a partial Web form and lists the events that can be activated by the Submit button. A programmer can write Javascript code for any of those events that will

Extreme Programming and Agile Development

XP and agile development were pushed heavily in the development of new Web-based systems. In this highly-competitive environment, getting applications out the door and on the Web quickly was more important than loading on tons of features. Yet, everything had to work correctly . To IMPROVE QUALITY XP adopted a relatively new principle from computer science: building TEST CASES FIRST. The basic system is designed in terms of what each module should accomplish. These features are defined with a set of test cases. Programmers then write code and feed the test cases through to ensure the modules work correctly . Whenever the system is changed, the programmers rerun the test cases to ensure nothing else was broken. Tools were developed to store the test cases and the results, making it easy to develop new cases and modules quickly. One new aspect to XP is PAIRED PROGRAMMING, where TWO PROGRAMMERS WORK TOGETHER constantly . Generally, one is the lead programmer and the other is responsible for testing, but the jobs can overlap and be defined by the team. Making testing a key element of programming is an important part of XP . However, paired programming is seen by many as an inefficient use of resources. The second programmer is often a less experienced developer and can slow down an experienced developer . Besides, it can be more efficient to have one person test large sections of code at a time, instead of multiple people testing separate pieces. Set target release dates and build test cases so you know when modules work. Use paired programming or other fast techniques to build modules and test them. Add features for next release. Example of paired programming: Target release dates.• Build test cases.• Write code and test it.• Release product.•Add features for next release One of the most CHALLENGING aspects to development is that there is a tremendous DIFFERENCES between INDIVIDUAL programmers—in subject area knowledge, speed of programming, number of defects, and code maintainability. Some methodologies work well when an organization has top-notch developers, but fall apart in other companies. In choosing a methodology, managers MUST BE AWARE OF the CAPABILITIES of the individual programmers—and beware of TURNOVER. Extreme programming and modern tools work because they enable a single developer or small team to produce systems instead of relying on a large number of programmers. Even SDLC relies on reducing communication needs by emphasizing the importance of splitting a problem into smaller , independent pieces. Each piece can be developed by one person or a small team—without needing to see all of the details from every other programmer . The GOAL IS TO ISOLATE the DETAILS and communicate only the formal interface connections.

Sales Force Automation

a type of program that automates business tasks such as inventory control, sales processing, and tracking of customer interactions, as well as analyzing sales forecasts and performance.

Rapid Application Development vs Extreme Programming Both agile methods. RAD: "a short development cycle based on 3 phases (Requirements, Design and Construction) with an ideal delivery time of between 90 and 120 days maximum" . EXtreme Programming: "Development teams work directly with the customer in very short cycles of one to two weeks maximum. Delivery of versions of the software occurs very early and at rapid intervals to maximize the impact of user feedback..." Agile for Dummies. A PDF training video

agile, fast and flexible. general terms. slide 35. Two agile agile RAD: 3 steps, compressed. 3-4 months. instead of 3-5 years. agile XP: Facebook. lots of small project. they make a module and upload. short amount of time and skilled techies. Scrum: daily. not on exam. superfast. Assumes Feasibility is done. Common in Bay Area.

Object Hierarchy

are defined from other base objects. The new objects inherit the properties and functions of the prior objects. Typically there is a base class of objects, and other objects are derived from the base definitions by adding properties and altering functions. This process results in an object hierarchy, illustrated in Figure 12.9, pg 786, that shows how the classes are derived from each other . The bank example has several types of accounts with each of these categories containing further subdivisions. An OBJECT is a software description of some entity. It consists of ATTRIBUTES THAT DESCRIBES the OBJECT, and functions (or methods) that describe the actions that can be taken by the object. Objects are generally related to other objects through an object hierarchy. An object has: object name object attributes/properties object functions/methods An object: Code pieces purchased or created to do specific tasks.

Joint Application Design (JAD)

big teams with lots of users in team. problem is poor documentation, sometimes not shared. LOOK AT SLIDE 43 CHOOSING METHODOLOGIES! A method to reduce design time by putting everyone in development sessions until the system is designed. Users, managers, and systems analysts participate in a series of intense meetings to design the inputs (data and screens) and outputs (reports) needed by the new system. created to speed up the design stage. With JAD the main system is designed in an intense three- to five-day workshop. As shown in Figure 12.20, users, managers, and systems analysts participate in a series of intense meetings to design the inputs (data and screens) and outputs (reports) needed by the new system.By putting all of the decision makers in one room at the same time, conflicts are identified and resolved faster. There is less need for changes later, when they become more expensive, so the system is cheaper to create. Application design can be accelerated and simplified by putting key users and developers together for a few days. By focusing on the single project, everyone gets input and can reach a consensus in a shorter time.

barriers to entry

economy of scale: high cost to produce economies of scope: many products to tie a core product. competitive advantage for apple. Product Differentiation (patent): war between google and apple.

Cloud Computing

is designed to price technology as a variable cost. Firms can establish servers and Web sites with no fixed costs. These sites can be scaled to almost any size—simply by paying more fees as the usage rates increase. CC makes it easy to obtain any level of computing. A computer is inexpensive, the services on CC are flexible and scale-able. For some businesses - Turnkey Computer System: a system that has been customized for a particular application. The term derives from the idea that the end user can just turn a key and the system is ready to go. Turnkey systems include all the hardware and software necessary for the particular application. Example: restaurant. TRANSACTIONS SYSTEMS (TS): many firms might want to run their own TS. In these cases, cloud computing is useful for higher level tasks such as teamwork and data analysis. Tools for meetings, sharing data, and even some data analysis and expert systems can be run as cloud services. Some enterprise features such as customer relationship management. Transactions Process System (TPS) = COLLECTION, MODIFICATION and RETRIEVAL of all transaction data, also known as real time processing.

Slide 24 Feasibility

learn the differences from below.

SLIDE 48, 49 (good to practice, 5 basic processes.) 50 (process one step one = 1.1) slide 51

look at it!!! External entity square, etc... very important!!!

Value Chain Question for teacher: what is the Qwest case?

no qwest. Evaluating the entire production process identifies how value is added at each step. Combining steps or acquiring additional stages of the value chain can lead to greater profits. Case: Qwest: Qwest Communications Awarded $24 Million Contract From Pac-West Telecomm For Optical Network Services. in 2000, the company signed with Qwest for exclusive rights to an OC-48 optical transport ring from central to southern California. The line provides speeds of 2.4 gigabits per second ("Qwest" 2000). Jason Mills, vice president of network operations for Pac-West, notes that... READ THIS ..."ISPs and corporations need to focus on their core business, not building, financing and administering a widely distributed access network" (Alcatel). the key feature of a value chain is to examine each step of production and determine how value is added at each step. If some steps show larger increases in value than others, they will be key points to tar get for strategic action. The second objective of value chain analysis is to encourage decision makers to examine the bigger picture in the industry . In many cases, a firm can benefit by expanding its operations beyond its traditional activities. For instance, an automobile manufacturer (Ford) might buy a car rental agency (Hertz). Now the manufacturer can control a large consumer of its products and control the sale of the used vehicles.

teacher: SOAP

objects specifically design to work on the Internet.

For new BP the best plan for arrange setup costs:

pay someone else to provide services as web hosting

Pilot Development

pilot: multiple locations, like McDonalds, Ford. old software. Install it in one location, and if successful, then next location, etc.. For pilot testing, designers can bring extra workers, managers, and systems designers to one location and work out the problems with the system. Once the system is running well, it can be implemented at other locations.

Sources of Funds

ppt: VENTURE CAPITAL: Venture Capitalists are typically formed as Limited Partnerships in which the Limited Partners invest in the Venture Capital fund. The fund manager is sometimes called the General Partner and the job of the General Partner is to source good deals and to invest in the ones that they think will return the most money to the Limited Partners. ANGEL INVESTOR: An angel investor invests in PEOPLE, not an idea. They have a high net worth, excluding their home of $1 million or more, or who has an income of $200,000 per year (or $300,000 for a married couple) with the expectation that this income will continue into the future. PARTNERS:

The goal of a business plan is to:

precisely describe the business you wish to start the market environment, and your strategy.

End User Development

simply means that users do all of the development work themselves. In many ways, it resembles prototyping, except that users (instead of analysts from the MIS department) create and modify the prototypes. Clearly the main advantage is that users get what they want without waiting for an MIS team to finish its other work and without the difficulty of trying to describe the business problems to someone else. Two basic reasons explain why end-user development is increasingly popular. First, most MIS organizations are facing a two- or three-year backlog of projects. This means that if you bring a new project to MIS, the designers will not even start on it for at least two years (unless you give up some other project). The second reason is that software tools are getting more powerful and easier to use at the same time. Today it is possible for users to create systems with a SPREADSHEET in a few hours that 10 years ago would have taken MIS programmers a month to build with third-generation languages. The potential problems of end-user development are not always easy to see. Most of them arise from the fact that users generally lack the training and experience of MIS analysts and programmers. For instance, systems produced by end users tend to be written for only one person to use. Other problems stem from the bottom-up approach inherent in end-user development. People in different areas of the company will wind up working on the same problem, when it could have been solved once by MIS. Data tends to be scattered throughout the company, making it hard to share and wasting space. Not following standards generates incompatibilities among systems, making it difficult to combine systems created by different departments or even by people within the same department. End users are limited by the capabilities of commercial software. The initial systems may work fine, but as the company grows and changes, the commercial software might be unable to support the necessary changes. As a result, some users have created systems that produce incorrect answers, take too long to run, or lose data. The last, and possibly most important, complication is that end-user development takes time away from the user's job. Some users spend months creating and modifying systems that might have been created by MIS programmers in a fraction of the time.

Capability Maturity Model Integration (CMMI)

teacher: similar to SDLC, but going up instead. is one of the leading models and based on best practice. Independent assessments grade organizations on how well they follow their defined processes, not on the quality of those processes or the software produced Wiki: a process improvement training (not about improving quality of product) and can be used to guide process improvement across a project, division, or an entire organization. Maturity levels for processes: INITIAL, MANAGED and DEFINED. The CMMI is a framework for business process improvement. A model to process to evaluate an organizations abilities (capabilities). To improve development by following a process that is measurable and sustainable. Quantify the process to fine-tune it. THE IDEA: to support/encourage mediocrity in development. No star programmers, all should be interchangeable. Stars are inferior to the firm. PRO: good when high turn around. Good for large organizations and government. CON: when software require creativity/flexibility/new approaches, not good enough talents. Research done by Carnegie Mellon University. PHASES: 1. Initial. Ad hoc (formed, arranged, or done for a particular purpose only) development with undefined processes. Often driven by individual programmers. 2. Managed. Standard project management tools to track costs and schedules. Basic processes to ensure development is repeatable. 3. Defined. Management and development is defined and standardized. Processes are documented and followed. 4. Quantitatively Managed. Detailed measures are collected and evaluated. 5. Optimizing. Continuous improvement methods are applied to fine-tune and improve the development process.

Cookies

teacher: your primary key on your website. I.D. file on your machine. 3rd party cookies: ads. A Web cookie is a small text file that the server asks the browser to store on the user' s computer . As shown in Figure 14.4, whenever the browser requests another page from that server, it returns the cookie text file containing an identification number. A proxy server can hide your IP address. Sites that you visit see only the address of the intermediate server. If you have problems with some sites, you might set it to Prompt, but that will generate warning messages on almost any site you browse. Privacy tab to "Never allow websites to request your physical location," that you might want to select: In-Private browsing mode ensure minimal information is ex-changed or stored on your computer. "Tell Web sites I do not want to be tracked." The problem with this option is that it is not yet a standard and none of the Web sites actually support it. Firefox has a "private browsing" option. Press the Alt key to acti-vate the menu, choose T ools/Start Private browsing.

Variables

wikipedia: Variables in programming may not directly correspond to the concept of variables in mathematics. The value of a computing variable is not necessarily part of an equation or formula as in mathematics. In computing, a variable may be employed in a repetitive process — assigned a value in one place, then used elsewhere, then reassigned a new value and used again in the same way (see iteration). Variables in computer programming are frequently given LONG NAMES to make them relatively DESCRIPTIVE of their use

teacher: build or buy

you want to buy if possible. Longer development time equals higher risk, perhaps higher costs. But you can customize.