IS 130- Final Exam

How TPS Processes Data

1) Batch Processing: the firm collects data from transactions as they occur, placing them in groups or batches then prepares and processes the batches periodically 2) Online Transaction Processing (OLTP): transactions are processed online as soon as they occur and system performs these task in real time by means of online technologies.

Three basic roles of a manager

1) Interpersonal: figurehead, leader, liaison 2) Informational: monitor, disseminator, spokesperson, analyzer 3) Decisional: entrepreneur, disturbance handler, resource allocator, negotiator

Three Flow in Supply Chain

1) Material Flows: physical products, raw materials, supplies, and so forth that flow along the chain. Material flows also include the reverse flows 2) Information Flows: data related to demand, shipments, orders, returns, and schedules, as well as changes in any of these data. 3) Financial Flows: money transfers, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.

Five Basic Components of Supply Chain Management

1) Plan: developing metrics to monitor it is efficient and it delivers high quality and value to customers for the lowest cost. 2) Source: choosing suppliers for delivery, developing pricing, and payment processes with suppliers. 3) Make: manufacturing components, production, testing, packaging, etc. 4) Deliver: coordinate customer orders, develop network of warehouse, select carriers, invoicing. 5) Return: receiving defective returned or excess product.

Problems Along the Supply Chain

1) Uncertainties 2) needed to coordinate multiple activities, internal units, and business partners

Core ERP Modules

1. Financial Management 2. Operations Management 3. Human Resource Management Extended ERP Modules - Customer Relationship Management (mange customer data) - Supply Chain Management (companies than use other companies to supply things) - Business Intelligence (BI) (used for executives to make decisions) E-Business

Steering Committee

A group of managers and staff who represent the various organizational units; created to establish IT priorities and to ensure that the MIS function is meeting the organization's needs.

Major Limitations if ERP Implementations

Companies may need to change their existing business process to fit the predefined ERP best practice system Can be extremely complex Expensive Time consuming Can bring company to complete failure if it fails

IT Strategic Plan

A set of long-range goals that describe the IT infrastructure and identify the major IT initiatives to achieve the org's goals. Three objectives 1) Must be aligned with the org's strategic plan 2) Must seamlessly network users, applications, and databases 3) It allocates IS development resources among competing projects so that the projects can be completed on time and within budget and still have the required functionality.

What is Business Intelligence?

A tech-driven process for analyzing data and presenting actionable info to help executives, managers, and other corporate end-users make informed business decisions. Includes getting data in (date marts, data warehouses) and getting data out (applications); to/from suppliers customers, regulator, front line staff

Outsourcing

Acquiring IT application from outside contractors or external orgs

Continuous Development

Adding new code to an application when it is finished

Application Service Provider (ASP)

An agent or vendor who assemble the software needed by enterprises and then packages it with services such as development, operations, and maintenance.

Technologies available to support managers

Business Intelligence-data warehousing

Enterprise Resource Planning (ERP) Systems

Business process that integrates the planning, management, and use of all an org's resource, employing a common software platform and database. ERP II System: interorganizational systems that provide web-enabled link among a company's key business systems such as inventory, production, customers, suppliers, distributors, and other relevant parties Enterprise Application Integration (EAI): alternative to ERP (cheaper/easier)

Customer Relationship Management

CRM Systems: designed to support orgs CRM strategy CRM Strategy: to improve customer satisfaction, make the company's sales and service employee more productive, and generates increased profits. Lifetime value: the customers potential revenue stream over a number of years Customer churn: over time, all organizations inevitably lose a certain percentage of customers Low-end CRM Systems: for enterprises with many small customers (Amazon) High-end CRM Systems: for enterprises with a few large customers (Boeing)

Customize a Prewritten Application

Can be expensive and obsolete in a short time

Lease the Application

Can save money, attractive to small/median companies

IS Operational Plan

Consist of a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan Mission Statement: derived from IT strategy IS environment: summary of needs Objectives of the IS Function: best estimate of the goals of IS function Constraints of the IS Function: technological, financial, personnel, limitations The application portfolio: prioritized inventory of present applications that plan of projects to be developed during the year. Resource allocation and project management: listing of who is going to do what

Purchase a Prewritten Application

Contain the standard features required by IT apps

ERP Support for Business Processes

Cross-departmental process: originates in one department and ends in a different department or involves other departments. The Procurement, Fulfillment, and Production Process 1) The Procurement Process: originates when a company needs to acquire goods or services from external sources and concludes when the company receives and plays for them. 2) The Fulfillment Process: originates when the company receives a customer order, and concludes when the company receives a payment from the customer. 3) The Production Process: originates and ends in the warehouse dept., but involves production department as well.

Employ Custom Development

Custom-build an application, in house or outsource it

Customer Touch Points & Data Consolidation

Customer Touch Points: Interactions with customers; telephone, mailings, physical, email, websites, text messages, billboards, etc. 360-degree View: all customer-related data is available to every unit in the business via a data warehouse Collaborative CRM: provides effective and efficient interactive communication with the customer throughout the entire organization.

Business Intelligence Applications for Presenting Results

Dashboards: provides easy access to timely information and direct access to management reports. Designed specifically for top executives. Data Virtualization Technologies - Geographic Information Systems (GIS): A computer-based system for capturing, integrating, manipulating, and displaying data digitized maps. Real-Time BI: the use of real-time data for analysis as it is create rather than using historical data for analysis.

IT Architecture

Delineates the way an org should utilize its info resources to accomplish its mission.

Four Major Conversion Strategies

Direct conversation: the old system is cut off; and the new system is turned (least expensive, but most risky). Pilot conversion: introduces new system in one part of the org, then assessed. If OK, then continue with the org. Phased conversation: individual modules in stages, assessed, followed by additional modules. Parallel conversation: old and new systems simultaneously for a time.

Benefits of Operational CRM Systems

Efficient, personalized marketing, sales, and service A 360-degree view of each customer The ability of sales and service employees to access a complete history of customer interaction with the organization, reguardless of the touch point.

Information Technology Support for Supply Chain Management

Electronic Data Interchange (EDI): communication standard that enables business partners to exchange routine documents, such as purchase orders, electronically. Extranets: link business partners over the Internet by providing them access to certain areas of each other's corporate intranet. Portals: 2 types 1) Procurement Portals: for company's suppliers; automates the business processes involved in purchasing or procuring products between a single buyer and multiple suppliers 2) Distribution Portal: for company's customers to automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.

Software-as-a-Service Vendors

Eliminates need for customers to install and run the application on their own computers

Social CRM

Enable organizations to engage their customers in a collaborative conversation in order to provide beneficial value

Benefits of ERP Systems

Enables data flow among different departments Improves org flexibility: can respond quicker to changing business conditions Supports decision making: information on performance across areas for decisions Improves quality and efficiency: by integrating business processes

Mobile CRM systems

Enables organizations to conduct communications related to sales, marketing, and customer service activities through a mobile medium to maintaining relationships with its customers. (email)

Evaluating & Justifying IT Investment

Essentially, IT investment involves calculating the cost, assessing the benefits (values), and comparing the two.

Causes of ERP Failure

Failure to involve employees in planning/developing process Insufficient training Trying to do too much too fast in the conversation process Failure to perform proper data conversion and testing for system

On demand CRM Systems

Hosted by an external vendor in the vendor's data center. Less expensive, no maintenance, etc. (software as a service)

Fundamental Decisions in Acquiring IT Applications

How much computer code does the company want to write? How will the company pay for the app? Where will the app run? Where will the app originate?

Information Systems for Production/Operations Management

In-House Logistics and Materials Management: ordering, purchasing, inbound logistics (receiving) and outbound (shipping) Inventory Management: How much inventory material, parts, processes & finished products Planning Production & Operations: production, scheduling, inventory Computer-Integrated Manufacturing: Digital Manufacturing; integrates automated factory systems Product Life Cycle Management: manufacturers share product-related data

Functional Area Information Systems

Information Systems for Accounting and Finance: manage money flow w/in org For Financial Planning: management of financial assets Managing Financial Transactions: integrated accounting/finance packages with other areas Investment Management: stocks, bonds, real estate, tax laws, etc . Control and Audit: Controlling financial statements, review of forms for financial control

Interorganizational Processes: ERP with SCM and CRM

Interorganizational process: originates in one company and concludes in another company. - SCM (Supply Chain Management) and CRM (Customer Relationship Management): - ERP SCM: used for ordering fresh perishable products automatically - ERP CRM: generates product consumption analysis of certain area.

Analytical CRM Systems

Provides business intelligence by analyzing customer behavior and perceptions

The Push Model vs the Pull Model

Push Model: companies manufacture products based on forecast (make-to-stock) Pull Model: companies manufacture products based on customer orders (make-to-order)

Alternative Methods and Tools for Systems Development

Joint Application Design (JAD): Used during System Analysis and Design stages. Group-based tool for collecting user requirements and creating design. Rapid Application Development (RAD): combines JAD, prototyping & integrated computer assisted software engineering tool to rapidly produce a system. Agile Development: Requires frequent meeting & communication. Delivers functionality in rapid iterations, which are usually measures in weeks. End-User Development: end-users develop their own application with no IT support.

Solutions to Supply Chain Problems

Just-in-time (JIT) inventory systems: deliver the precise number of parts to be assembled into a finished product t precisely the right time. Information Sharing: electronic data interchange and extranets; to improve demand forecasts. Vendor-managed inventory (VMI): the supplier, rather than the retailer, manages the entire inventory.

Implementation

The deployment or process of converting from a old computer system to a new one

The Manager's Job and Decision Making

Management: process by which an org achieves its goals through the use of resources (people, money, material, information). Decision: a choice among two or more alternatives that individuals and groups make.

Business Intelligence Applications for Data Analysis

Multidimensional Analysis or Online Analytical Processing (OLAP) (aka, multidimensional analysis): The ability to manipulate and analyze large volumes of data simultaneously (slicing and dicing) from multiple perspectives (dimensions). Data Mining: searching for valuable business information, in large databases, data warehouse or data marts. Identifying previously unknown patterns. Decision Support Systems (DSS): combine models and data to analyze semi structured problems and some unstructured problems. 1) Sensitive Analysis: keeping all the factors constant except one to determine the extent to which the desired outcome is influenced by variations in that one factor 2) What-If Analysis: attempts to predict the impact of a change in the assumptions (input data) on the proposed solution. (E.g. what will happen to total inventory cost if carrying inventory cost is raised by 2%.) 3) Goal-Seeking Analysis: A backward or reverse solution. Attempts to calculate the value of the inputs necessary to achieve a desired level of output. (E.g. what sales volume do we need to generate a $3 million dollar profit?)

Conducting the Cost-Benefit Analysis

Net Present Value (NPV): converting future values of benefits to their present-value equivalent by discounting them at the org's cost of funds. Return of Investments (ROI): measures management's effectiveness in the generating profits with its available assets invested in the project. Breakeven Analysis: determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project. Business Case Approach: writing a business case to justify funding one or more applications or projects.

Implementing ERP Systems

On-Premise ERP Implementation - Vanilla approach: company implement standard ERP package using the package built-in configuration option. - Custom approach: functions designed specifically for that firm - Best of breed approach: combination of Vanilla and Custom Software-as-a-service ERP Implementation: Renting ERP system over the internet. - Advantages: used anywhere, avoid hardware/software cost, and scalable. - Disadvantages: security, control Enterprise application Integration (EAI): connects all existing applications to communicate and share data, but less costly.

Reports

Routine: produced at scheduled intervals, like once a week Ad hoc (on demand): out of routine - Drill-down reports: specific criteria (sales person in zip code) - Key indicator reports: summaries performance of critical activities (cash flow) - Comparative reports: comparing two or more units Exception Reports: only information that falls outside certain standards

IT Planning

Organizational Strategic Plan: Identifies the forms overall mission, goals that follow from the mission, and steps to reach those goals The Craig School of Business educates and inspires a diverse student body and support economic development Central California and beyond. Has three goals 1) Educating & inspiring students 2) Fostering a diverse student body 3) Supporting economic development

Use Open-Source Software

Orgs obtain a license to implement an open-source software product and either use it as is, customize it, or develop applications.

A Framework for Computerized Decision Analysis

Problem Structure 1) Structured Decisions: deal with routine and repetitive problem for which standard solutions exist. 2) Semi-structure Decisions: only some of the decisions process is structed. 3) Unstructured Decisions: deal with complex, unannounced problems. No standard solution, but human intuition & judgement play important role. Nature of Decisions; three broad categories of managerial decisions 1) Operational control: executing task efficiently and effectively 2) Management control: using resources efficiently 3) Strategic planning: long-range goals and policies Computer Support for Structured Decisions: math, stat models, BI, etc. The Decision Matrix: low and mid level managers, executives

Tools for Systems Development

Prototyping: defines an initial list of user requirements, builds a model of the system, and then refines the system Integrated Computer-Assisted Software Engineering Tools (CASE): a group of tools that automate many of the task in the SDLC. Component-Based Development: Components are reusable applications that generally have one specific function, such as a shopping cart, user authentication, or a catalog. Object-Oriented Development: An object-oriented (OO) system begins not with the task to be performed, but with the aspects of the real word that must be modeled to perform that task.

Operational CRM System

Support Front-Office Processes- Sales, Marketing, and Service Two Major Components 1) Customer-facing applications: for customer service and support, sales force automation and marketing. - Cross-selling: marketing of additional related products to customer based on a previous purchase. - Upselling: marketing product or services of greater value in place of or along with a customer's initial product - Bundling: a group of products or services at a lower price. 2) Customer touching applications: search & comparison capabilities, technical help (manuals), customized products, personalized products, FAQs, email responses, loyalty programs (rewards programs).

System Design and Programming

System Designs: describes how the system will resolve the business problem Deliverable: set of technical system specifications User interface, system input/output Hardware, software, database, telecommunications, personnel, and procedures A blueprint of how these components are integrated Frozen: when system specifications are approved by all participants Scope Creep: adding functions after the project has been initiated. Time frame expands beyond agreed-upon limits Programming translating the design specifications into computer code Testing: assessing whether the computer will produce the expected and desired results

Systems Development Life Cycle (SDLC)

System Investigation : Addresses the business problem or opportunity by means of the feasibility study. Feasibility Study: 1st thing of systems investigation. Analyzes which solution works best 1) do nothing and continue to use existing system 2) Modify existing systems 3) Develop new system Technical feasibility: whether company can develop or acquire hardware & software Economic feasibility: if it can be afforded Behavioral feasibility: addresses human issues Go/No Go decision System analysis: examining the business problem that the org plans to solve with an info system Primary purpose --- to gather info about the existing system to determine new requirements Deliverables: system requirement

Operations and Maintenance

Systems Require Several Types of Maintenance: - Debugging: removes errors; continues throughout the life of the system - Updating: to accommodate changes in business conditions (regulations) - Adding: new functions

People involved

Systems analysts: IS professionals who specialize in analyzing and designing info systems Programmers: IS Professionals-- modify existing computer programs or write new ones to satisfy user requirements Technical Specialist: experts on a certain type of technology such as a database pr telecommunications Stakeholders: everyone who is affected by the changes in company's info systems

Open-source CRM

Systems whose source code for open-source is available at no cost

The scope of business intelligence

The Development of One or a Few Related BI Applications: information silos for a department The Development of Infrastructure to Support Enterprise-wide BI: felt throughout organization, long term Support for Organizational Transformation: to complete in the marketplace

Supply Chains

The flow of materials, information, money and services from raw material suppliers, through factories and warehouse to end customer. Supply Chain Visibility: the ability of all orgs within a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers' production processes and transportation networks. The Structure and Components of Supply Chains - Upstream: procurement from external suppliers (selecting suppliers the company needs to produce product/service). ] - Internal: packaging, assembly or manufacturing takes place - Downstream: where distribution takes place, usually by external distributors

Information Systems for Human Resource Management (HRIS)

To track vacation, sick leave, benefits, etc. Recruitment: finding potential employees, evaluating them, and deciding which ones to hire Human Resource Development: evaluations, trainings, education credits Human Resource Management: Payroll and employees' records: paychecks, direct deposits, etc. Benefit administration: healthcare, dental care, pensions, contributions

Information System for Marketing

Track and make reports (what is selling, what is not, where, what is the preference, what is being returned)

Transaction Processing Systems (TPS)

Transactions: any business event that generates data worth storing in a database (e.g. product manufactured, a service sold, a person hired, or payroll check generated) Transaction Processing System (TPS): supports the monitoring, collection, storage, and processing of data from the org's basic business transactions; collects data continuously, and in real time.

Interorganizational Information Systems (IOS)

enables these components to take place.