My Studies

Which of the following is a characteristic of information systems? A) contains components that operate independently to produce information B) comprised of components that interact to produce information C) comprised of components that interact to produce data D) comprised of five separate components that produce data and information

B) comprised of components that interact to produce information

Changing the ________ component of the five-component system would present the LEAST amount of organizational disruption. A) hardware B) data C) people D) procedures

B) data

Which of the following statements accurately describes the nature of quality information systems (IS)? A) Your mind and your thinking are the most important component in an IS. B) High quality information systems eliminate the need for human interpretation. C) The 'people- component of information systems refers to those uninvolved with IS development. D) Having the perfect IS is the key to effective decisions.

A) Your mind and your thinking are the most important component in an IS.

Which of the following phrases BEST defines Management Information Systems (MIS)? A) creating and utilizing information systems that promote the achievement of objectives B) answering the need for greater automation in businesses by using computer hardware and software C) organizing the phenomenon of humans interacting with computers to form a five-component system D) using data to provide information that is reliable, timely, and worth the cost

A) creating and utilizing information systems that promote the achievement of objectives

What type of information is often useful for lower-level managers who oversee a floor-level department? A) low granularity B) coarse granularity C) fine granularity D) high granularity

C) fine granularity

A company starts requiring its employees to change their passwords every 45 days instead of every 60 days. This represents a change in which component of the information system? A) procedures B) software C) data D) hardware

A) procedures

Totally manual inventory process

An example of totally manual would be a very small scale operation, such as a farmer's market. The items to sell are manually weighed or sold by quantity via verbally providing the total price to the customer. Once the items are gone, that's the indicator to restock, which is also manual!

Unstructured Decisions

An unstructured decision is one in which there might be several right answers that cannot be determined by a set of rules or formulas.

Determining Requirements

Any new system is dependent on the end user's ability to identify every requirement. When developing an information system, each of these requirements must be clearly defined.

Both: Structured Decisions and Unstructured Decisions

Both structured and unstructured decisions are a part of everyday business activity. Often, higher managerial positions include more unstructured decisions.

Porter's Generic Strategies model applies these 4 strategies:

Broad cost leadership Broad differentiation Narrow cost leadership Narrow differentiation

Coarse granularity

Coarse granularity refers to information that is highly summarized, usually in the form of a report. This type of information is useful to upper management.

Agile versus Predictive Methods

Compared to other methods of development, agile methods are more adaptive than predictive. Adaptive methods focus on adjusting quickly to changing realities. When the needs of a project change, an adaptive team changes as well. Extreme Programming is an example of an agile method. One of the fundamental ideas of XP is that no one process fits every project. Practices should be tailored to the needs of individual projects. Predictive methods, on the other hand, focus on planning the future in detail. A predictive team can report exactly what features and tasks are planned for the entire length of the development process. Predictive teams have difficulty changing direction.

Data

Data are the characters (alpha, numeric, and symbolic) fed into the computer system. They are stored in tables in a single format. The data can be manipulated and processed by the hardware, following the instructions of the software, to convert them into meaningful information. This information is the basis for important managerial decisions.

bridge between the computer side on the left and the human/people side on the right.

Data is the bridge between the computer side on the left and the human/people side on the right.

Outline factors to consider in systems development

Determining Requirements: Cooperate Identify Expectations Examine Previous Work Ask Questions Changing Requirements: Reworking Process Continuing Current Process Planning Ahead Budgeting Factors: Technological Changes Personnel Requirements Outsourcing vs in-house or consultants:

What is an example of the skill: Collaboration

Develop ideas and plans with others. Provide and receive critical feedback

Prototyping Steps - 2 - Develop

Develop the initial prototype, including the user interface to the system. The information technology staff, using input from the users, quickly develops a model prototype that accommodates the user requirements identified during Step 1.

Ana wants to launch an interactive component on the company's website to attract new customers. Her team thinks that it may not work since it has not been done at the company before. The team members may be lacking which of the following nonroutine skills? A) abstraction B) systems thinking C) collaboration D) experimentation

D) experimentation

Fear of failure is the biggest threat to which kind of nonroutine cognitive skills? A) abstraction B) systems thinking C) collaboration D) experimentation

D) experimentation

The skill of abstract reasoning can be defined as ________. A) the creation and testing of new alternatives B) the ability to show how system components' inputs and outputs relate to one another C) working with others to develop ideas and plans D) the ability to make and manipulate models

D) the ability to make and manipulate models

___________ granularity refers to information that is highly detailed. This type of information is useful for ____________ managers; for example, those who oversee a floor-level department. A manager can always summarize the detailed information from something that is finely granular.

Fine and lower-level

What is the purpose of MIS?

MIS is the development and use of information systems that help businesses achieve their strategies

What does MIS stand for?

Management Information Systems (MIS)

Managerial-level information system

Managerial-level information systems are helpful for making tactical decisions based on the strategic initiatives handed down from the executive level. Management information systems allow users to easily make these types of decisions. Decisions made at this level usually involve resource allocations, budget maintenance, and other broad-level issues.

Object-Oriented Development

Object-oriented development is an unstructured systems development methodology that, unlike structured methodologies, can model data. An OOD object combines data and the procedures it needs to create a module called an entity. For example, a customer module could include the customer data and the functionality of being able to modify, add, delete, or view that data. After it is tested and proven to work, it can be used anytime in any other program that contains customer information just by adding the customer module to that program.

Objects

Objects are entities that can interact with one another and are manipulated by one of the OOP languages.

Grouping Objects Together

Objects that are similar are grouped together into what is known as a class. This approach allows a group of objects to inherit similar properties without having to define each object separately. Subclasses also inherit the properties of the objects in a certain class. To use OOD, you must use an object-oriented programming (OOP) language tool such as Java, C++, or Smalltalk. Object-oriented development is not a good methodology for user involvement because it is difficult to design and build a system by using this methodology. Thus, information technology staff members are usually required for this development methodology.

Explain how a competitive advantage can be accomplished through the use of information systems

One of the first steps an organization takes toward using information systems (IS) for a competitive advantage is analyzing the business by using the Porter models. This analysis is a three-step process: 1. Porter's Five Forces Industry Analysis enables the organization to study the industry of which it is a part. This gives the organization a better understanding of the forces the industry faces, and provides the basis for the company to determine how it wants to compete. 2. Porter's Generic Strategies model helps an organization determine the best way to compete in its industry and maximize profits. 3. Porter's Value Chain model enables an organization to break down its processes (activities) to look for opportunities for cost savings and identify potential uses of IS.

Using Porter's Models

One of the first steps an organization takes toward using information systems (IS) for a competitive advantage is analyzing the business by using the Porter models. This analysis is a three-step process: Step 1) Porter's Five Forces Industry Analysis enables the organization to study the industry of which it is a part. This gives the organization a better understanding of the forces the industry faces, and provides the basis for the company to determine how it wants to compete. Step 2) Porter's Generic Strategies model helps an organization determine the best way to compete in its industry and maximize profits. Step 3) Porter's Value Chain model enables an organization to break down its processes (activities) to look for opportunities for cost savings and identify potential uses of IS.

Examine Previous Work

One way to help identify all requirements is to examine the inputs and outputs used previously, and make sure they have been addressed in the new system.

Operational-level decisions

Operational-level decisions are usually highly structured and capture daily organizational transactions.

Scope

SDLC Phase I: Planning

Creating a data model occurs in which SDLC Phase?

SDLC Phase II: Analysis

functionality

SDLC Phase II: Analysis

Designing a database occurs in which SDLC Phase?

SDLC Phase III: Design

In which phase do you create a system of procedures?

SDLC Phase III: Design

In which phase do you run the two systems in Parrallel?

SDLC Phase IV: Implementation

In which phase do you handle revision requests in the SDLC?

SDLC Phase V: Maintenance

Partially automated inventory process

Smaller scale grocery stores (not at the Walmart level) - staff manually counts items on shelves, then from spreadsheets or other data collection tools, they enter the quantities into an inventory control information system, and that generates the information needed for restocking, trends, etc. The sales aspect in this scenario would likely be via manually keying the price to get the customer's total, rather than scanning a bar code which would identify many more pieces of information.

What are the set of instructions for the Five-Component Model?

Software and Procedures

Software

Software are the programs an information system uses to instruct the hardware what to do. Information systems use two types of software. System software controls the system resources, such as the operating system and utility programs, as well as how things are done. Application software is used to help businesspeople do their jobs. Examples include MS Office, QuickBooks, and Adobe Reader.

People

The people component consists of the system users and administrators. People follow the procedures necessary to complete different tasks and, ultimately, to obtain information needed to make business decisions. People are considered the most important component of any business information system.

Time and Budget Considerations

The pressure is always on to meet schedules and budget estimates. It is crucial to determine all costs and scheduling requirements at the beginning of the project and then strive to meet those goals.

Cooperate

The information technology (IT) professionals must be willing to work with the users to go through every test scenario to ensure that all requirements are addressed.

blueprint

a process model can be created to see relationships among activities.

What Is a Business Process

business process is a series of steps that defines how something is done

Enterprise Systems

allow organizations to share information and processes across different departments, ensuring there is improved efficiency within the organization.

In-House

an organization uses its own employees to perform services such as it's own payroll or call center services. This allows transactions to remain internal. Another option that still keeps transactions internal, if an organization doesn't have enough employees to support these services, is to hire consultants.

competitive strategy

an organization's goals and objectives are determined by its competitive strategy

Facilities

are storage areas, such as a warehouse that stores spare parts, tires, and other auto products. A database of stored data is also considered a facility.

Prototyping

is building a preliminary model of a proposed finished system that enables users to test, refine, and modify it so the end result is a usable and tested system.

data

is defined as recorded facts or figures.

Accurate information

is free from errors and based on correct data. An assumption about accuracy is that the information system being used is correct and pretested.

Information

is knowledge derived from data. information is data presented in a meaningful context. information is processed data, or sometimes, information is data processed by summing, ordering averaging, grouping, comparing or other similar operations difference that makes a difference.

Experimentation

is making a reasoned analysis of an opportunity, envisioning, potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources.

Abstract reasoning

is the ability to make and manipulate models

Systems thinking

is the ability to model the components of the system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed.

Collaboration

is the activity of two or more people working together to achieve a common goal, result, or work product.

A business information system is a group of interrelated components that interact to manipulate and process _____ into meaningful information.

data

Employees at various levels of an organization collect various pieces of valuable, 'good' information, and create _______________, enabling them to make solid business decisions.

knowledge

knowledge

knowledge enables people to make solid business decisions.

Phase II: Create the Components

ll five components are then created (hardware, software, data, procedures, and people) if it is a fully automated system. If it is a semi-automated system, only some components are created, such as hardware, software, and data, while procedures and people are omitted. Areas of improvement are identified and incorporated into the "to-be" process model. This model becomes the basis for the new information system. It is important to be sure that every improvement is made to the future processes.

Executive

helpful for making strategic decisions that are unstructured, using highly summarized information.

Managerial

helpful for making tactical decisions based on the strategic initiatives handed down from the executive level.

Operational

highly structured and capture daily organizational transactions.

Reworking Process

if it is determined that a new requirement is vital, it should likely be added. However, the development process is slowed while developers assess the new requirement and how to add it.

process model

process model can be created to see relationships among activities. This model can then be used as a blueprint to create an information system

process model

process model provides the series of steps necessary to create a blueprint for the information system.

Procedures are to people, as ______________ is to _________________.

software is to hardware.

Continuing Current Process

the 2nd option to consider is to continue the development process, and add requirements as new features in future versions of the system.

Planning Ahead

the best option is to plan appropriately to proactively identify requirements, as adjusting requirements is not a simple task.

Supplier power

the influence an industry's suppliers can exert on the industry. This influence is high when a supplier can lower the quality of its products, reduce services, or raise prices without losing customers.

Customer bargaining power

the influence that customers can exert on an industry. If this force is strong, it restricts the ability of organizations operating in that industry to raise prices without losing customers.

Hardware

the physical equipment used by an information system (CPU, monitor, mouse, etc.). These devises are controlled by the computer programs (software).

Business Process Engineering

the systematic process of creating, assessing, and altering business processes to incorporate new information systems. This is done using a four phase model: • Phase 1 - Create an 'as-is' model. This ensures an understanding of the current process. • Phase 2 - Create the components (hardware, software, data, procedures, and people). • Phase 3 - Implement the processes, which should be more efficient, streamlines, and easier than the old process. • Phase 4 - Assess the results, to monitor the effectiveness of the new processes.

Gantt Chart

this chart displays tasks and dependencies, shown in a matrix view.

Work Breakdown Structure (WBS)

this is an outline view of the tasks to be completed, organized by phases. This document provides a scope of the major systems development tasks.

you can buy IT, but you cannot buy IS

you can buy IT, but you cannot buy IS (people factor)

What are the four strong non routine cognitive skills?

1) Abstract reasoning 2) Systems thinking 3) Collaboration 4) Ability to experiment

Customer Relationship Management

A customer relationship management (CRM) system includes a database, applications, and set of prebuilt procedures for managing contact with the customer. The system is designed to keep the customer central to all processes. In this way, all departments have access to the database so that no customer information is reduplicated elsewhere, which could result in the spread of misinformation.

What is the five-component framework?

A model of the components of an information system: Computer hardware, software, data, procedures and people.

Structured Decisions

A structured decision is one in which you follow a formula or set of steps to arrive at a consistent answer.

Teamwork

A team in an agile project is typically composed of five to nine members who are cross-functional and self-organizing. Team members normally take responsibility for tasks that deliver the functionality each iteration requires. They decide individually how to meet each iteration's requirements. Working software is the primary measure of progress. This, combined with the preference for face-to-face communication, means that agile methods produces less written documentation than other methods.

Which of the following statements about quality information is true? A) Quality information is derived from data. B) Quality information is context-free. C) Quality information can be used to produce facts and figures. D) Quality information is often free.

A) Quality information is derived from data.

According to a RAND study, what are the most important marketable skills in the new millennium? A) strong nonroutine cognitive skills B) computer programming and database development C) the ability to quickly follow through on requests made by team leaders D) knowledge of the world market

A) strong non-routine cognitive skills

What Are Necessary Data Characteristics?

Accurate Timely Relevant -- To context -- To Subject Just sufficient Worth its cost Reliable

Low-Cost Strategy

Advantages Successful firms using a low-cost strategy have the following internal strengths: Access to capital (production investment) Product design skills Marketing expertise An efficient distribution strategy Disadvantages The potential risks of a low-cost strategy include the following: Losing strategic advantage if most other firms lower their prices to match yours Advances in technology leapfrogging over your technology The possibility that firms with a focus strategy will compete just as well

Advantages and Disadvantages of Object-Oriented Development

Advantages: Code is modified easily by using other objects. Objects are reusable in other programs. Objects are modular (each object is independent from others in the system). Security is easy to set in program code. Disadvantages: Code is difficult to read and understand. OOD is ineffective at representing nonobjects. It takes longer to execute routines than traditional programming. It has fewer functions than traditional programming. It is not user-friendly in development because of its complicated use of objects during the programming and development processes. It requires extensive evaluation and monitoring.

Advantages and Disadvantages of Prototyping

Advantages: Development time and costs are reduced. Systems are likely to fulfill user requirements. User involvement provides valuable feedback to developers. Users adapt easily to the finished system because they are familiar with the functionality of the prototype. Disadvantages: Users use the prototype as though it is the final system, which it is not. Documentation is usually incomplete. User expectations are high and sometimes lead to disappointment with the final system. The prototype cannot accommodate a large number of users.

Advantages and Disadvantages of Rapid Application Development

Advantages: Rapid application development uses the 80/20 rule, which states that a usable 80% of the system can be developed in 20% of the time required to develop the complete system, after which additional iterations are made until the application is complete. Rapid application development is a good methodology to use when the project scope is limited and the business requirements are not complex. Project groups should be small or medium-sized and should include users. Rapid application development develops software by assembling and integrating existing software components into a new system. This method is called component-based development. By using RAD, organizations can quickly respond to new opportunities by assembling components into a complete set of services. Other advantages include the following: Flexibility Little manual coding compared with other programming methodologies, because most coding is done automatically Extensive user participation in the development process Disadvantages: Because RAD uses agile development (speedy delivery of software by breaking down a project into smaller projects), it is considered less scalable and may not contain all the features desired in a final application. It also costs more than other methodologies. The big trade-off is the speed of the development process. Because the RAD process moves so quickly, some features might be put off until later versions of the application are created (this process is known as time boxing). This strategy is used to limit scope creep and keep the application development process on a fast track. Other disadvantages include the following: Potential quality problems because of development speed Business needs not adequately met because of lack of controls Less efficient than other methodologies Prone to more problems because of the rapid development process

Requirements Creep

After the requirements are determined and the system is under construction, you must try to control the number of new requests users make. During later phases of development, it is especially difficult to add functionality without returning to earlier phases and thus delaying development. This is why it is important to determine all the requirements before beginning a project.

Development

Agile methods break tasks into small increments with minimal planning and do not directly involve long-term planning. Iterations are short time frames, typically one to four weeks. Each iteration involves planning, requirements analysis, design, coding, unit testing, and acceptance testing.

Agile Systems

Agile systems methodology is based on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. There are many specific agile development methods. Most promote development, teamwork, communication, and process adaptability throughout the life cycle of the project. Let's look at some of the features of agile methods.

Changing Requirements

At this point, the requirements can change, or new ones be added. The larger the project and the farther along it is in development, the more difficult it is to add or change functionality.

Which components of the five-component model of information systems are included on the human side? A) software and people B) procedures and people C) data and people D) software and procedures

B) procedures and people

A computer's operating system is an example of which component of an information system? A) procedures B) software C) data D) hardware

B) software

Information Systems Development

Before you begin the development process, you must first outline the goals and requirements for a project. There are several different approaches to the development process, and the goals of the project will help determine which one will be the best fit. Sometimes the goals or deliverables of a project can change, so an understanding of these different approaches allows for a more dynamic development process.

Which of the following is the BEST example of data? A) The starting salary of the last 10 people hired at CBD & Sons has remained stable since 2009. B) The average number of hours worked per week at Company X in December is 42.3. C) The advertised starting salary for a line engineer at FanCor is $42,137. D) TechCo employees stay on the job 24 percent longer than employees at NuTech do.

C) The advertised starting salary for a line engineer at FanCor is $42,137 Reason: No processing of data occurred.

The operations manager at a software development firm finds out from Kang's teammates that he rarely asks for feedback. And when he receives feedback, he does not respond positively to it. Kang seems to be lacking which of the following nonroutine skills? A) abstraction B) systems thinking C) collaboration D) experimentation

C) collaboration

The component of a business information system that is considered MOST important is the ________. A) software B) procedures C) people D) data

C) people

Collaboration is ________. A) the creation and testing of new alternatives B) the ability to show how system components' inputs and outputs relate to one another C) working with others to develop ideas and plans D) the ability to make and manipulate models

C) working with others to develop ideas and plans

Classes

Classes are collections of similar objects and can contain subclasses that inherit the properties of the class. A class can refer to a variable, value, or function.

What is an example of the skill: Abstract Reasoning

Construct a model or representation

Which of the following is one of the five characteristics of good information? A) subjective B) adequate C) timeless D) relevant

Correct Answer: D) Relevant 1. Accurate 2. Timely 3. Relevant 4. Sufficient 5. Reliable 6. Cost-Effective

__________ granularity refers to information that is highly summarized, usually in the form of a report. This type of information is useful to ________ management. It is information that is already summarized from finely granular information.

Course and upper

What is an example of the skill: Ability to Experiment

Create and test promising new alternatives, consistent with available resources.

In the five-component model of information systems, the ________component bridges the human side to the computer side. A) procedures B) hardware C) software D) data

D) data

What is the bridge for the Five Component Model?

Data

Maximizing Information Systems

Defining IS: Information systems are much more than hardware and software; they are tools that organizations use to gain strategic knowledge and a competitive advantage. Using IS: the organization must understand different ways IS can be used to provide a marketplace advantage. IS provides the capability to conduct low-cost transactions while decreasing processing time. Integrating IS: Integrating IS into a web storefront can expand the scope of an organization from local to international. The organization can then compete with much larger organizations and offer differences that make it attractive.

RAD - Step 3 - Construction

During step 3, iterative cycles of development, testing, refining, and redevelopment are continued until a prototype of the application is complete. Developers use computer-aided software engineering tools to convert the data model into a functional database. A good first prototype reduces the application development process schedule to a minimum. The organization keeps the client users apprised of all functional changes. Developers and client users conduct meetings to review the tests, modify requirements for the next iteration, develop additional test scripts, retest, and arrive at the final iteration of the application. User documentation is then developed and the client users' acceptance testing is conducted just before final implementation of the application is launched.

RAD - Step 4 - Implementation

During the fourth step, the organization begins using the complete and final application. The required interfaces are created, users are trained on the system, new procedures are written, and possible enhancements are identified for future versions.

RAD - Step 2 - User Design

During the second step, the developers and the client users meet in joint application development workshops. They develop the requirements from Step 1 in more detail, convert the entities into a data model represented by an entity relationship (ER) diagram, develop test scripts, and create forms representing screen layouts. They develop reusable components and a functional database based on the ER diagram. They begin initial planning on a working prototype so rapid iterations can be limited during the next step. Workshop participants use computer-aided software engineering tools during this step to facilitate a quick and agile approach to user design.

Enhancing Activities

Each activity can be identified and enhanced to create cost savings, thus allowing a larger profit margin.

Encapsulation

Encapsulation is the act of storing data and procedures together in an object.

Enterprise application integration

Enterprise application integration (EAI) is less comprehensive than ERP, but it includes a set of software applications that work to connect the existing systems of an organization together, helping to reduce the occurrence of information silos, which is when information remains in one department, when really it needs to be shared across departments to reduce redundancies and increase efficiency.

Enterprise Resource Planning

Enterprise resource planning (ERP) includes a database, modules (a set of applications), and a set of prebuilt procedures, which are used to consolidate business operations into one consistent platform. ERP systems include the features of CRM systems, as well as include accounting, inventory, manufacturing, and human resource applications. Because ERP systems encompass so many parts, they can be tricky to manage, and an organization must spend the time upfront to make sure that the system is helping to maximize the efficiency of the organization, rather than hinder it.

Executive-level information system

Executive-level information systems are helpful for making strategic decisions that are unstructured, which are then passed down to the managerial level. An executive information system allows the user to obtain highly summarized information by simply entering requirements into the system.

Customer-Centered Program

Extreme Programming gets its name by taking traditional Programming to "Extremes," based on the idea that if some is good, more is better. Extreme Programming leads to quick delivery of useful Programming code and a substantial reduction in project risk. It accomplishes this by creating checkpoints that enable customer feedback and requirements review, avoiding Programming features until they are absolutely needed, and Programming in pairs in which one programmer writes the code and the other tests it.

Customer Driven

Extreme Programming is different from all other systems development approaches because it is customer driven. It allows customers to rank features they want in the system and create a list of their desires. Programmers can then immediately write code to address the most-desired feature. After testing this feature, programmers develop the next feature on the customers' wish list. Extreme Programming requires teamwork among customers, managers, and programmers. It is a very rapid type of systems development that relies on listening to what the customer wants, creating the code to accommodate it, and then quickly moving on to develop the next function.

Customer Friendly

Extreme Programming is the most customer-friendly methodology for systems development. Most methodologies require building a system to meet all possible requirements, resulting in a complete system that takes a long time to develop. In contrast, Extreme Programming solicits customer satisfaction from the beginning by delivering the software when it is needed and then moving on to the next customer request. Extreme Programming responds well to changing customer requirements late into the systems development life cycle.

Communication

Face-to-face communication is preferable to written documents when team members are in the same location. When team members work from different locations, they maintain daily contact through videoconferencing, conference calls, email, and other methods. Working software is the primary measure of progress. This, combined with the preference for face-to-face communication, means that agile methods produces less written documentation than other methods.

What are the actors in the Five-Component Model?

Hardware and People

Expert User

High level of knowledge of how the IS system works and can train others on how to use the system. Expert users can help convert from an old system to a new one, and conduct peer training.

Determining User Requirements

How do you know what the system needs to do? To determine this, you must be able to communicate in detail with the users of the proposed system. You need to figure out their needs and then translate them into system requirements.

Prototyping Steps - 1 - Identify

Identify the basic user requirements, such as the input and output needed. Developers ask users to identify the input and output they need and the form in which they need it. At this time, the input forms and output reports are designed and created.

Value Chain Analysis Advantages

Identifying Inefficiencies Enhancing Activities Modifying Activities Identifying Weak Information Systems

Porter's Generic Strategies model

In this model, generic means that these strategies are not industry-specific. Porter's Generic Strategies are applied at the business-unit level These generic strategies are used for 2 reasons: 1) Existing firms use them to leverage their strengths to select the strategy that results in the most profit 2) New businesses use them to determine the best way to operate.

Porter has generically labeled the primary activities in the value chain as follows:

Inbound Logistics Operations Outbound Logistics Marketing and Sales Service

Service

Includes all activities for servicing the customer after the sale.

Outbound Logistics

Includes all activities needed to collect, store, and distribute the output created

Marketing and Sales

Includes all activities used to market and sell the products or services.

Information Granularity

Information Granularity is the degree of detail needed for managers to make decisions.

What drives information systems?

Information technology (IT)

Inheritance

Inheritance allows an object to inherit (gain) properties from objects in different classes or subclasses.

Operations

Involves activities used to transform inputs into outputs for products or services.

Inbound Logistics

Involves relationships with suppliers, including any activity related to receiving, storing, and disseminating inputs.

Computer User

Knows proper procedure for operating a computer and general navigation.

Using the Five Component Model, as we move right, what becomes difficult to change?

People

Porter's Five Forces industry analysis model

Michael Porter's Five Forces Industry Analysis model seeks to analyze the forces that exist in the industry of which a business is a part. The main reasons to use this model are: 1) To better understand the industry in which it competes 2) To determine how attractive it is to start a business in a given industry To determine how to conduct a successful business in a given industry

What is an example of the skill: System Thinking

Model system components and show how components' inputs and outputs relate to one another.

Organizational strategy

Organizational strategy is the alignment of a company's planning, decisions, and actions to enable it to reach its goals, mission, and objectives. Organizations create information systems for one of 2 purposes: • To obtain its goals, objectives, or mission • To solve a major problem or meet a challenge

Budgeting Factors

Organizations commit large resources to systems development, and expect a return on their investment. Some tools to help determine the system's cost include the following: • Cost-benefit analysis • Cost projections on systems development • Examining past projects and their costs

Technological changes

Organizations must conduct a thorough research on the latest technologies before beginning a large systems development project to avoid having to upgrade to more efficient technology during the development stage.

Personnel Requirements

Organizations must consider what types of people, and what skill sets are needed on the systems development team. Business users are typically on a team, with the following responsibilities: • Identifying requirements • Ensuring the system includes the requirements • Testing the system • Assisting in training their peers

Technological Advances

Organizations need to consider the latest technologies at the beginning of a project, rather than after several project phases have been completed. Improved technologies are desirable, but need to be evaluated fully during the initial development phases.

What is the most important component in the 5 Component Model?

People (You)

Outsourcing

Outsourcing is the process of contracting work with another company to provide services that might be beyond the capabilities of internal employees. There is typically a financial advantage, in that the organization doesn't have to provide benefits to the outsource contract workers. Some examples would be outsourcing a business' payroll or call center services.

Extreme Programming Development Phases

Phase 1: Planning Phase 2: Designing Phase 3: Coding Phase 4: Testing Phase 5: Listening

business process engineering (BPE)

Phase I: Create the As-Is Model Phase II: Create the Components Phase III: Implement the Processes Phase IV: Assess the Results

What are the phases of the SDLC?

Phase I: Planning Phase II: Analysis Phase III: Design Phase IV: Implementation Phase V: Maintenance

Polymorphism

Polymorphism is the ability to appear in different forms, such as an object appearing as the collection of its subobjects.

Phase IV: Assess the Results

Procedures are created to assess the processes. The results are used to monitor the effectiveness of the new processes. When changes need to be made or problems are identified, the entire BPE process is restarted.

Procedures

Procedures are the instructions for users operating computer information systems. Procedures are to people what software is to hardware. These instructions include how to use the system, how to back up the data, how to log on and log off the system, and all of the other interactions that take place between the user and the system.

Software is to hardware as ______________ are to _________________.

Procedures are to people

Process Modeling

Process modeling is a graphic representation, using process modeling notation, of how data flow and how activities are related in an organization.

Rapid Application Development

Rapid application development (RAD) is a methodology that enables a rapid development process for systems while maintaining an acceptable level of quality. It uses modern application techniques and iterative prototyping to restructure the way information systems are developed, thus reducing the development time frame.

Prototyping Steps - 4 - Refine

Refine and build the final system based on the input from Step 3. The finished system is now ready, and users begin using it.

Prototyping Steps

Step 1: Identify Step 2: Develop Step 3: Test Step 4: Refine

The Rapid Application Development Life Cycle

Step 1: Requirements Planning Step 2: User Design Step 3: Construction Step 4: Implementation

Support Activities

Support activities are those that indirectly assist and support the primary activities of the organization. Porter has generically labeled the support activities in the value chain as follows: Procurement Human Resource Management Technological Development Infrastructure

Management Models

The Five Forces Industry Analysis The Generic Strategies The Value Chain

Human Resource Management

The activities related to acquiring employees (hiring, training, and development).

Procurement

The activities related to acquiring inputs for the organization.

Technological Development

The activities related to the equipment an organization uses, such as hardware, software, and procedures.

Infrastructure

The activities related to the functional areas of an organization, such as accounting, finance, and government relations.

The data is the data, the information you conceive from it is the value that you add to the information system

The data is the data, the information you conceive from it is the value that you add to the information system

Focus Strategy

The focus strategy is usually combined with either the low-cost strategy or the differentiation strategy to attract a narrow segment of the population. Let's examine the characteristics and risks of a focus strategy Characteristics of a focus strategy include High customer loyalty Lower sales volumes but higher profits Passing higher costs to customers Potential risks of a focus strategy include Imitations and changes in target segments Broad markets possibly adapting to compete

Moore's Law

The number of transistors on a chip will double approximately every two years.

The quality of your thinking is a large part of what?

The quality of your thinking is a large part of the quality of the information system.

Phase III: Implement the Processes

The system built based on the new process model is now implemented. The new process should be more efficient, streamlined, and easier than the old process.

Systems Development Life Cycle (SDLC)

The systems development life cycle (SDLC) is a rigid, phased approach to systems development that, if followed correctly, offers a high chance of success. Systems that are developed by using the SDLC are usually high quality, meet an organization's requirements, are completed on time and within budget, work efficiently, and are cost-effective. Organizations that use the SDLC might have a varying number of phases, depending on the importance of each phase to the organization. Regardless of how many phases are used, they encompass the same tasks; the difference lies in the structure of each phase. For the purposes of this topic, the SDLC is divided into the following five phases:

Systems Development

There are various methods of system development. Desired outcomes and the project timeline play a key role in deciding which strategies and techniques to employ when developing Information Systems. Note: when studying the SDLC you will notice that some sources refer to each step by a standard name while others use a descriptive approach. This reflects a reality in the system development field. By gaining familiarity with both the concept and purpose of each step, you should be able to identify them regardless of the nomenclature.

Modifying Activities

There might be opportunities to modify the value chain activities to achieve lower costs.

RAD - Step 1 - Requirements Planning

This first step defines the scope and requirements of the project. This is done through numerous meetings between the developers and client users. During these meetings, the primary business functions are identified and then broken down into entities. The output from this step includes a list of entities required and diagrams that show the relationships among the processes and data elements required.

Phase I: Create the As-Is Model

This first step involves studying the organization as it currently stands and then creating a business process model (using process modeling notation) of all its activities. System users may help with this step to ensure its accuracy. The reason for this phase is to be sure the current system is understood so that areas for improvement can be identified.

In regards to MIS, what does management mean?

To Develop, maintain and adapt.

Identify Expectations

To do this, the users must first identify everything the system is expected to do. They can then work with the IT staff to explain their expectations.

Outsourcing vs in house vs consultants

To provide the proper level of support for managing the needs of clients and customers, organizations can outsource some of their work to other resources, or us in-house operations or consultants.

Super User

User understands the information system and how it works. This user could participate in defining requirements for a new or improved system and can identify the needs of the users. Super users help identify system inputs and outputs, such as data and reports.

Prototyping Steps - 3 - Test

Users test the prototype and provide input for additional modifications. After the initial prototype is developed, the users test the system by entering data and looking at the results. If modifications are needed, Steps 1 and 2 are completed iteratively to accommodate the changes. The users then test the new version of the prototype.

Identifying Weak Information Systems

Value chain analysis can also be used to identify areas that need improvement, especially those related to information systems (IS).

Porter's Value Chain model

Value chain is a network of value-creating activities with primary activities that create value and secondary activities, which indirectly contribute to value creation.

Fully automated inventory process

Walmart's process is fully automated - after scanning an item at checkout, a network of information systems takes that information and reduces inventory of that item, reflecting time to reorder, offering buying trends, and other information that is key to many functional areas (marketing, purchasing, etc.).

Identifying Inefficiencies

When the activities of an organization are broken down by a value chain analysis, the results enable an organization to identify inefficiencies.

Automation occurs

When the work moves away from people to the hardware.

Ask Questions

When they communicate, both users and IT staff must ask detailed questions and provide detailed answers regarding all possible requirements. When organizations put the required time and effort into determining requirements, they improve their chances for success in systems development.

Differentiation strategy

a business implements differentiation when it makes its product or service stand out from that of its competitors. This is appropriate where the target customer segment is willing to pay a premium price, there is a competitive market, and customers have specific under-served needs. The organization focuses on satisfying these under-served needs in ways that are difficult to copy. Because the product or service is unique, increases in suppliers' costs may be able to be passed along to the customers, if they can't find a substitute product or service. Product Differentiation examples: Differentiation through additional features: Suitcases on wheels - unique convenience to users Suitcases with 360 wheels Differentiation through the power of the 'brand': Coke vs Pepsi Sprite vs 7Up Differentiation through design: Manual gear shifting in cars vs automatic Potential risks of a differentiation strategy include: Imitation by competitors Changes in consumer tastes and shopping habits

Resources

are items of value, such as suppliers, customers, or auto parts.

The more _____________________ an organization becomes, the easier it is to compete in the marketplace.

automated

Rivalry

competition in an industry

Cost focus market segmentation

capitalizes on cost behaviors in some segments. Ex: Southwest Airlines has a low cost focus, only flying one type of airplane and stays in high-density markets.

Activities

change inputs into outputs and represent the action items in a process model.

Structured

follow a formula or set of steps to arrive at a consistent answer.

Process modeling is a __________ representation, using process modeling notation, of how data flow and how activities are related in an organization.

graphic

business process

is a network of activities, repositories, roles, resources, and flows that interact to accomplish a business function. (MIS etext, page 364) is a series of steps that defines how something is done. It is also a series of steps which *transforms* inputs to outputs.

information system (IS)

is an assembly of hardware, software, data, procedures, and people that produces information.

a business process consists of

one or more activities

Market Segmentation / Focus

organization focuses on serving a defined, focused market segment with a narrow scope. The competitive advantage usually occurs through product innovation and/or brand marketing, rather than efficiency. It should target market segments that are less vulnerable to substitutes, or where competition is weakest. Some characteristics of a focus strategy are: High customer loyalty Lower sales volumes but higher profits Passing higher costs to customers Some risks of a focus strategy are: Limitations and changes in target segments Broad markets possibly adapting to compete

Differentiation focus market segmentation

organizations focus on differentiation in a target segment. Ex: Ferrari targets high performance sports car segment - offers differentiation through design and high performance, allowing them to charge premium prices.

Cost Leadership

organizations strategize to reduce their overall production and distribution costs, and appeal to cost-conscious customers. They set their prices at the lowest point to maintain a value ratio of cost and quality. They can achieve this by maintaining low operating costs through process efficiencies and gaining control over the supply chain. Cost leadership examples: • Wal-Mart - develops close relationships with suppliers and vendors to save costs through large volume purchases, and passes those savings on to the customers. • Dell Computers - maintains a market share by maintaining low inventories - builds computers as ordered. Some disadvantages to a low-cost strategy are: • losing the strategic advantage if other organizations lower their prices to match yours • advances in technology passing over your technology because you are conserving costs

Unstructured

possibly several answer options would work, but they cannot be determined by a set of rules or formulas.

Threat of substitutes

products in another industry that could be substituted for the products in the industry being studied. This force is intense when close substitutes can constrain the ability to raise prices, or when the demand for a product can be affected by a change in the price of a substitute.

Data are ____________ without further meaning.

raw facts • 100 is a raw fact/data • 100 points is data • Betty received a 95% on her test score - this 'fact' is data. It is not considered information. However, if we said 95% is the average test score of the top 10 students in the class, then it becomes information, and is useful. Think of raw data (data) as not very descriptive and standing alone.

Threat of new entrants

refers to how difficult it is to enter an industry. This force is intense if it is easy to enter an industry because this increases competition and makes it more difficult to retain market shares.

Fine granularity

refers to information that is highly detailed. This type of information is useful for lower-level managers; for example, those who oversee a floor-level department.

Information technology (IT)

refers to the products, methods, inventions, and standards that are used for the purpose of producing information. IT pertains to the hardware, software, and data components.

Solid Lines with arrows

represent control flow

Dashed Lines with arrows

represent data flows

Data flows

represent the data that move between activities in a process.

Diamond shape

represents a decision point, from which 2 distinct paths may follow - a 'Yes' condition, and the other representing a 'No' condition

Rectangle (horizontal, with rounded corners)

represents an activity

Vertical rectangle (similar to a 'page')

represents data

Circle, thick outline

represents the end of an activity, process, etc.

Circle, thin outline

represents the start of an activity, process, etc.

value chain

value chain of a firm is simply a process-oriented view of its systems and subsystems, with each one showing and processing the inputs and demonstrating the outputs in the form of products or services.

SDLC Phase IV: Implementation

• - this phase brings the system to a 'live' status. This includes the following: o Building the system o Testing - this is based on test scripts and plans that have been developed to test the functionality of the system. There are several levels of testing, which include: ♣ unit tests - stand-alone tests, using controlled input. ♣ Integration tests - this involves input from other programs, and output from the new system feeding into other programs, to ensure that program interfaces are accurate. ♣ User tests - these are usually the final tests, with users of the system actually testing it as a full system, to identify any errors before it becomes a 'live' system. User acceptance is required for the system to be approved. o Conversion - if a system is replacing another system or systems, software programs need to be written to convert the data from the old system to the new system. There are several ways that data can be converted to a new system: ♣ Parallel - this requires running both the old system and the new system at the same time, insuring the results are the same. Once the new system is confirmed to be accurate, the old system is shut down. A primary drawback is the high costs involved in running both systems, although for a relatively short period of time. ♣ Pilot - a new system can be implemented to a small pilot group / location, while the entire organization runs the old system. ♣ Plunge - the entire organization cuts over to the new system, immediately shutting down the old system. This is the most cost -effective conversion method, but does not allow for a fall back if the new system doesn't perform with the same results as the old. ♣ Phased - this allows for the new systems to be installed in phases, as they are developed. o Training - the users of the new system must be trained. Often, the users who were a part of the development team train their peers on the new system.

Systems Development Life Cycle Strengths

• Ability to monitor and maintain control over large projects • Detailed phases that guide systems development in a controlled manner • Good documentation • Great user input into requirements • Easy systems maintenance • Ability to make changes to the information technology staff without affecting the development process

Good information has the following characteristics:

• Accurate: - free from errors, and based on correct data. • Timely:- information is available when a decision needs to be made. • Relevant: - appropriate for the type of decision being made. • Sufficient: - enough information for its intended use, without having extraneous, unnecessary data. • Reliable:- information from trusted sources / systems / people • Cost-Effective: - the information provides a benefit associated with a certain rate of return

What are the three main roles that you could fulfill in the workplace regarding Information Systems:

• Computer User- Knows proper procedure for operating a computer and general navigation. • Super User- User understands the information system and how it works. This user could participate in defining requirements for a new or improved system and can identify the needs of the users. Super users help identify system inputs and outputs, such as data and reports. • Expert User- High level of knowledge of how the IS system works and can train others on how to use the system. Expert users can help convert from an old system to a new one, and conduct peer training.

Systems Development Life Cycle Weaknesses

• Longer development time than other methodologies • Increased development costs • Need for well-defined systems at outset, before development starts • Rigid process • Some difficulty in estimating scheduling and budgeting • Limited user input

Five Forces are

• Rivalry. • Threat of substitutes • Customer bargaining power • Supplier power • Threat of new entrants

SDLC Phase V: Maintenance

• this phase addresses any problems and makes modification, after it is 'live'. Tasks involved in the maintenance phase include: o Resolving requests for revisions o Addressing reported problems, by investigating the cause and resolving o Issuing patches - when modifications are needed, updates are created and implemented

SDLC Phase I: Planning

• this phase determines the scope, and identifies the tasks the system must accomplish. Some primary components of this phase are: o Defining the scope of the system o Conducting feasibility studies, to determine the viability of the project. There are 4 feasibility studies that take place (remember the acronym COST): ♣ Cost - ensuring funding is available for the project ♣ Organizational - does the project fit within the organization's culture, customs, and goals? ♣ Scheduling - a preliminary schedule is drafted, with some float, to determine the project start and completion dates. ♣ Technical - is the technology to build the system available? Does the organization have the expertise to build it? o Form a project team - the team is composed of an IT project manager, IT staff, a representative from upper management, and users of the proposed system.

SDLC Phase II: Analysis

• this phase identifies the features and functionality of the system, using the project plan from Phase 1 as input. Major tasks in this phase include: o Identify system requirements - this requires extensive input from the business users of the system to identify every task the new system needs to support. Strong interviewing skills are required to gather this detailed information from users. o Identify system object requirements - this entails identifying the types of forms, reports, and queries needed to produce the information required. o Identify system security requirements o Identify personnel procedures - those individuals needed to run the system, and the procedures that must be followed o Create a data model - identifying tables and fields for a new or revised database

SDLC Phase III: Design

• using the output from phase 2, the design phase creates each of the features and functionalities of the system. This entails the following: o Design hardware - identifying and ordering hardware o Design programs (software) o Design a database - tables and fields that store the data o Create job descriptions, related to the proposed users of the final systems, including the procedures they will follow as system users o Create system procedures - these pertain to security, data backup, and system failure recovery plans