Unit 2 Information Systems Management C724 WGU

Managing Project Risk : Acceptance

accepting the risk will occur and doing nothing to avoid it or prevent it (knowing a baseball will break a window and plan on replacing the window when it occurs) can be active- you know and plan, or passive when you know but make no plan

Managing Project Risk : Reduction

acting to reduce the risk (install a pre-action fire suppression system to protect sensitive electronics)

Managing Project Risk : Avoidance

developing an alternative plan for achieving objectives by avoiding specific risk or risk category. (taking a different path in heavy traffic)

Planning and Organizing IT

-ITIL -Agile -Relationship with business strategy -value creation through technology use

Data

-raw material of observations, facts or ideas (can be text, pictures or numbers) example: Florida, Mary, the number 4326541234 by themselves means nothing

4 aspects of risk management

1. Risk assessment 2. Cost/benefit analysis 3. Vulnerability assessment 4. Implementation

Managing Project Risk

a. Acceptance: b. Avoidance: c. Sharing: d. Reduction: E. Transference:

Reasons major firms invest in Information Systems

- Achieve operational excellence -develop new products and services -attain customer intimacy and services -improve decision making -promote competitive advantage -ensure long term survival - develop strong relationships with suppliers

ITIL (Information Technology Infrastructure Library)

- a common set of best practices widely used by businesses to give guidance to companies and how to use IT as a tool for implementing change

Value creation through technology

- ie use to use chisel and rocks to document, now have spreadsheets

Business Strategies

Core Competency: markeplace leader, competitive advantage, central to employee focus Synergy: cooperation between businesses, combined expertise

Information Management vs information technology management

- Information management: concerned with collecting, managing, manipulating, organizing, and reorganizing and distributing information from a variety fo sources to a variety of audiences * the acquiring and managing of information within an organization and the sharing of that information with stakeholders - Information Technology Management: concerned with management of resources that facilitates access to information * the acquiring and managing of technology resources within an organization

EIS (executive information system)

- allows senior managers to make decisions to meet the strategic goals of the organization -lots of inputs, graphs, but you make the decision

Agile

- an operational method by which software developers iteratively gather requirements, plan, design, develop, test, and implement software.

Executive information system: EIS

- are a specific class of DSS that support strategic decision-making process for top level executives. Usually include a digital dashboard, showing graphs and charts showing up to the moment performance indicators on sales, profits, expenses, and inventory. It summarizes data but can drill down details. strategic decisions, executive management

Information Security Analyst

- are responsible for the security of a company's network, data, and information. They must determine where a company might be vulnerable to a cyber-attack and install or recommend protection against such threats such as firewalls, data encryption programs, and changes to training or operational polices

Database Administrator (DBA)

- build databases to store data to meet business needs. They design the databases, ensures that they operate efficiently and maintains data security and applies upgrades as needed

CTO (Chief Technology Officer)

- chief technology officer, the chief technology architect and has the responsibility for implementing technology strategies. has ultimate responsibility for all technology implementation, maintaining technology compliance regulations, and identifying technology risks for the company. The CTO's focus is on day-to-day operations, overall implementation of technology strategies, and efficiency of the IT systems. In most corporations, the CTO reports to the CIO.

TPS: Transactional Processing System

- collect, store, update, retrieve transaction data within an organization. (employee payroll, customer sales, and supplier payments) developed to decrease costs, processing times and increase accuracy. Routine business transactions, it is highly structured, with predefined rules and provides critical information to other departments and systems within the organization. Operational decisions, non-managerial employees tracks flow of daily routine transactions

Enterprise Resource Planning Systems (ERP)

- combines main (core) business systems and applications into one comprehensive system -typically a suite of integrated applications that an organization can use to collect, store, manage, and interpret data -often in real time -the focus is more internally focused on the busiess functions

Production and Operation

- is responsible for converting inputs, such as raw material and labor into useful outputs, such as products and services ** product life cycle, manufacturing, inventory management, quality control, research and development

IoT (Internet of Things)

- is the network of products (or things) that can be connected, communicate with each other and with the environment and transfer data over a network. (IE sensor in an automobile that alerts driver the tire pressure is low, or a washing machine that has WiFi.

Data (Components of Information Systems)

-Input: can be alphanumeric data, text data, image data, audio data, information -Output: data that has been transformed by predefined process, raw material, facts that are valuable organization resource that must be well managed to benefit all end users in an organization

CFO (Chief Financial Officer)

- manages the company finances. manages the company's cash flow and evaluates and communicates financial risks. -is the financial planner and is responsible for analyzing the company's financial strengths and weaknesses. This individual must be transparent and accountable, providing financial data and advice to stakeholders. -often works as a strategic partner with the CEO. For example, the CEO and CFO might work together in merger and acquisition strategies. (Mergers are when two companies join as one company; acquisitions are when one company buys another company as the new owner.)

Multinational

- means that organizational divisions would be headquartered in different locations, whether partially with an international organization or completely with a transnational organization. Depending on the size of the organization, information systems and data storage in these models is either shared somewhat with domestic centralization of systems and data storage but with direct inputs from foreign locales, or an integrated architecture is developed with redundant systems that plan, control, and distribute intelligently at major locations across the enterprise.

Computer System Analyst

- must combine business knowledge with technical expertise. Primary responsibility is to analyze a user's needs and determine the most efficient and effective solution. They make hardware and software recommendations, performs cost analysis, and oversees the implementation and trouble shooting of new systems.

Types of Multinationals (franchising, licensing, or joint adventure)

- or foreign direct investment, or similarly branded, semi-independent organizations are controlled locally but coordinated (perhaps loosely) through the centralized organization's structure. Information systems and data storage in this model is typically decentralized at each foreign location, or strategic location(s) in the local region

CSO (chief security officer)

- or sometimes CISO chief information security officer, is concerned with overall security functions of a buiness, is the highest level executive concerned with the overall security functions and policies of a business. (Note that larger organizations may also have a CISO reporting to a CSO). -identifies business protection goals, works with the other executives to identify and analyze risks, and prioritizes security needs. -works with vendors and consultants to ensure both physical and data security. - must have up-to-date knowledge and experience in information security because it is a rapidly changing field. Important traits for this position include good judgment and excellent planning ability. Due to recent security breaches, the chief security officer job has become more critical to organizations. The U.S. president recently declared cyber-threats, breaches to critical technology infrastructure, a national emergency. Depending on the organization, the CSO may report directly to the CEO, the COO, the CIO, or some other C-level executive such as the chief risk officer (CRO).

IT Manager, project managers, and architects

- organize, direct, coordinate, and plan IT related activities, people, and projects within an organization.

Computer Support Specialist

- provides technical support to customers and employees through direct interactions or telecommunications. Several levels Tier 1 is general support. Tier 2is administer specific support Tier 3 provide system and application specific support, tier 4 provides architectural support (support at higher levels are considered analysists)

Web Developer

- responsible for creating and maintaining a company's website. Includes layout design, programming, and website usability studies. i. Search engine optimization (SEO): the process of ensuring the site is visible and highly ranked in search results, is high priority

Human Resources:

- responsible for processes related to the employees of an organization, including benefits, compensation, training, and performance. These support upper management in forecasting and planning demand and strategies ** recruiting and training, employee benefits and regulations management, employee records

CEO (Chief Executive Officer)

- responsible for the success of the company, also called president or managing director -is responsible for the success or failure of the company, creating the company culture, selecting the senior management team, setting strategy and vision, and selecting projects to fund. In larger companies, this position deals with high-level strategies and overall business growth planning.

Sales and Marketing

- sales analysis, set pricing marketing mix, and product promotions, customer profiling

ERP (Enterprise Resource Planning)

- systems tightly integrate functional areas such as accounting, finance, project management, inventory control, purchasing, human resources, customer retention, sales and marketing into one single comprehensive system. They provide communication between various systems that are integral to a business, allowing standardization of business procedures across all business units, cost can be very expensive, internally focused

SCM (Supply Chain Management)

- works to increase the efficiency of the process of getting materials developed into the products and pushed out to the customer. Provides tools to help the business manage supplier relationships, develop strategies to ensure quality products or services, create production schedules, procedures for returning defective products, and delivering the product or service to the customer. They lower expenses by providing supplies to be available at just the right time and in the right quantity.

Computer Programmer

- write codes to instruct computers to perform certain tasks. Must have eye for detail and strong with analytical problem solving, languages usually include Java, C++ (a software engineer is a higher-level programmer)

Major Business Functions Provided by inforamtion systems

-Accounting and finance (accounts payable, A/R, budgeting, general ledgers, payroll, cash flow, financial transactions -human resources ( recuriting and training, employee benefits and regulations management, employee records Production and Operations ( product life cycle, manufacturing, inventory management, quality control, research and development) Sales and Marketing (sales analysis, set pricing, marketing mix, and product promotios, customer profiling)

IS decision and management Systems

-EIS: executive info systems -DSS: decision support systems -MIS Management Support systems -TPS: transaction processin systems

Network-based Strategies

-Network ecnomics: the cost of adding another business participant to a business venture is small, and the potential gain is great -virtual company model: networks of people and resources join together to provide a service or create a product without the traditional storefront boundaries -business ecosystems: a network of businesses, such as suppliers and distributors, are involved in providing delivery of a service or product through cooperation. The ecosystem must be flexible and adaptable to meet market demands. The rapid changes technology have caused businesses to work together, aligning talents and resources to reach a common goal or vision in a mutually beneficial relationship.

Strategies and How IS can help companies achieve these strategies

-Product differentiation: offering higher quality products or service, built on business identifying a core competency and basing their business around that core competency - Strong partnerships with suppliers - Customer satisfaction - Synergy: the cooperation between several businesses to produce a better product or service that would be possible if each business worked independently, when they combine, they can offer a better products at lower costs, results in higher profits e. Competitive advantage

Global Exporting

-all services from the organizations home location means not changing the centralized structure and requiring all but production to stem from the centralized domestic location, including systems and data storage

Information Technology management

-concerned with the management of resources that facilitate access to information

Critical Issues to consider in information systems

-convey relevance and value of information system to the organization -manage relationships between information systems and stakeholders (supplier, user, customer) -implementation of effective inforamtion systems solutions

Decision Support Systems (DSS)

-focus on supporting all phases of specific decision-making processes and procedures for arriving at a solution. It replaces decision maker by making automatic decisions. It supports the entire decision-making process but actual decision is ultimately made by a human middle management, tactical to strategic decisions. Uses info from MIS and TPS along with externa factors such as stockholders'

Network and Computer Systems Administrator

-install and repair computer systems - identify and fix network issues. Make sure the company's web pages are loading and emails were sent.

Knowledge

-intellectual capital -needs to be dispersed throughout the organization to be valued -use inforamtion technology and information systems to spread knowledge -vital tool for firms that use suppliers -knowledge management systems (KMS): document and share best practices and share processes - the practical application of the information given, the company understands the information and makes decisions and generalization based on the information

Information Management

-is concerned with collecting, managing, manipulating, organizing, and reorganizing, and distributing information from a variety of sources to a variety of audiences. Basic activities include user input, processing of data, and output

Information

-meaningful organization of data so that statements can be made about them Example: the number of single mothers in the US in 2013-2015 with an income below $20,000 or if you have a list of customer names and phone numbers the name Mary and formatted number (432) 654-1234 have more meaning (example is a payroll spreadsheet)

COO (Chief Operating Officer)

-over sees the daily operations in a business, is the director of operations, responsible for the oversight of internal operations on a day-to-day basis and for monitoring production quotas. -ensures that the limited resources are used to provide the maximum value for stakeholders. This role communicates the organization's mission statement to employees.

Software (Components of Information Systems)

-prepackaged sets of coded instructions that end users directly interact with, in order to indirectly communicate with other major components of the information system to get a task done. (is made up of programs and instructions to run your computer and network) i. Systems software: operating system, direct and control hardware components of the IS (examples Windows OS, Mac OS, and Unix) ii. Utility software programs: perform periodic system maintenance activities such as virus detection, storage space consolidation, backup and recovery, intrusion detection, and access authentication monitoring iii. Application software: programs that are commonly used by end users as a means of increasing their productivity by directly applying them to specific tasks inherent in the work they are suppose to accomplish (word processors, electronic spreadsheets, and presentation software)

Accounting and Finance

-responsible for managing the flow of cash through the organization (accounts payable/receivable, payroll, and other processes provide valuable information for the overall organization for the purposes of budgeting, planning and control ** accounts payable/receivable, budgeting, general ledgers, payroll, cash flow and financial transactions

KMS (Knowlege Management Systems)

-strive to reach organizational goals by making the best use of corporate knowledge. Focus on methods of capturing, refining, developing, and storing this knowledge. Team work is a critical component to make KMS successful. It uses technology (internet, collaboration software tools, and databases) to facilitate the capturing of corporate data. Helps deal with personnel turnovers and rapid changes. Types of knowledge captured is company policies, project documentation, how a particular task is completed, and lessons learned from a project. Benefits include improved company morale, employee performance, and customer service, helps make informed decision and avoid data overload.

Customer Relationship Management (CRM)

-technology to merge marketing with business processes -strengthens customer relationships -organizes customer information to use for marketing -manages the customer relationship, often in a very personal way, to develop long term relationship with that custoemer -internal usesd by customer service reprentatives -external to use for e-commerce - Are externally focused on customer relationships.

Relationship with business strategy

-the adoption of an IS must be aligned with the organizational goals. Several levels of goals, objectives, and decisions exist and include strategic, tactical, and operational aspects.

CIO (Chief Information Officer)

-the company's top technology leader. is a business leader who analyzes internal business processes such as payroll and billing, reshapes the physical infrastructure and network purchases to meet business goals, and leads the workforce to implement critical IT internal projects. This position requires strong organizational and interpersonal skills. The job focus is strategic in nature: developing and implementing the corporate IT strategy. The CIO must have a broad knowledge of IT.

Hardware (Components of Information Systems)

-the computer and all of its peripherals, physical IT devices (equipment) that are integrated into an information system. The physical equipment and devices that make up a computer system and are connected by networks. Primary hardware equipment are various types of computers (laptops, workstations, minicomputers, and mainframes) i. Input devices: mouse, keyboard, touchscreen, voice recognition, microphones, scanner ii. Output devices: printer, monitor, speakers iii. Storage devices: portable hard drive, flash drive, tape drive, cloud

TPS (Transaction Processing System)

-tracks daily routine transactions that are essential to conduct business, real time -like a cash register, lowest level, scans and shows product price, tracks inventory

How can Businessess effectively implement strategies of outsourcing and offshoring

1-understanding the cultural and financial costs and benefits to all of its stakeholders (customers and employees included), 2- having a complete understanding of expected service level and output, and how it may be interpreted or distorted through a foreign lens, 3- recognizing potentially hidden costs of managing cultural difference 4- understanding the potential effects to its supply chain

Management inforamtion systems (MIS)

: users lower to middle line mangers. Provides performance reports based on results from TPS such as product cost data, sales data, and expense data. This guides managers with tactical decisions and predictions for future business performance. What if scenarios to help make decision for short to medium business direction (1-2 years). Tactical decisions, lower management first level managers with reports on current performance and historical records to help keep an organization running smoothly

Information Systems

All of Information technology (hardware, software, networks, data) plus people and processess -all the components that work together to process data into useful information, a system that accepts input data and processess it into information output -people, processes, hardware, software, networks, and data comprise of 6 major components of a computer-based information system. -Information systems provide managerial and operational support to businesses by collecting and processing data into useful information as well as providing storage, retrieval, and security of data and the information it's transformed into. The application of information technology together with the appropriate people and processes, to support business activities. Examples: online reservation booking, track customer activities, predicting future sales * implemented with the purpose to bring competitive advantage to the business

Information Technology

Hardware Software Networks Data ** is a subset of information systems, refers to the nonhuman, non-processing components of information systems (hardware including network devices, software applications and data). The hardware and software required to manage and deliver information. (server hardware, personal computers, switches, telephones, and peripheral devices) Examples: telephone, radio equipment, data, voice, and video equipment, computer peripherals

People (Components of Information Systems)

People: most important, individuals who interace with the hardware, software, network data, they typically use the inforamtion to get work done, the information ystem professionals and users

Porters Five Forces

Potential Entrants: can someone make your same product? There is existence of barriers to entry (patents, rights...) Threats of Subsitutes: a substitute product uses a different technology to try to solve the same economic need, can someone make your product cheaper or more efficient Bargaining Power of Customers: the ability of customers to put the firm under pressure based on price, which also affects the customer's sensitivity to price changes Bargaining Power of Supplier: suppliers to the firm can be a source of power over the firm wen there are few subsitutes Competitive Rivarly: is the biggest determinant of the competitiveness of the industry rivals is vital. Positioning depends on how the public perceives a product and distinguishes it from the competitors

Network (Components of Information Systems)

a telecommunication network that enables computers to exchange data resources and information. -a system of computer's joined together so they can communicate shared resources. -a group of two or more computers and other devices connected to each other

Reactions to global information systems challenges

a. Decentralization development: where developers in different locations develop their own solutions independently b. Duplicated systems development: where developers in the centralized location develop information systems and tools, which are then intended to be operated on similar systems at each of the international locations (Laudon & Laudon, 2012) c. Networked development: where development and operations are planned, combined, and coordinated between international locations

Challenges to global information systems

a. Legal: Laws that limit information transfer, including trans border privacy and data transfer laws and other regulations. For example, American companies like Google and Microsoft are required to allow European citizens to opt-in to information sharing instead of opting-out as with their American customers. b. Social: Social and cultural norms. An example would be finding a chicken or lamb Maharaja Mac in Indian McDonald's versus the normal Big Mac. Another example is the number of hours worked. In the United States, the average workweek is 38 hours, but in Holland it drops to 29 hours (Kurtz, 2013). c. Cultural: Cultural particularism, which are societal norms instilled in populations that tie them emotionally to local brands or habits. For example, many American citizens prefer products with the Made in the USA label.

Responding to Pressure

a. Political and Legal: organizations respond to these pressures by enacting policies, complying to standards, and allying with experienced partners b. Cultural: organizations respond to these pressures by using ethical business practices, building strong cultural ties with their stakeholders (both inside and outside) c. Technological: organizations response by planning for improvements to reduce or mange complexity, creating faster and more accurate models to make better decisions, and innovating to sustain competitive advantages, to keep up with competitors, or to enter new markets. d. Economic: organizations respond by realizing the need to plan for or react to changing workforce, powerful suppliers, customers, and or competitors.

Challenges in Obsolescene

a. Scope: the specifically defined output or deliverable(s) intended at the end of the project b. Cost (IE resources): the necessary human (laborers), capital (equipment), and liquid (cash) assets necessary to complete the project output c. Quality: the degree of satisfaction by which each of the above components is satisfied.

Porter's 5 Forces

a. Threat of new entrants: is high when there are few barriers to prevent competitors from entering a business, the web has removed costly startup barriers such as having to have a store front. A barrier might be a person has to maintain a license in order to complete their work, this would make it more difficult than just learn as you go and anyone could do it b. Threat of substitutes: if there are a lot of choices for a product the threat would be high. IE you can buy eBooks instead of hard cover books c. Power customers: (buyer)when the customer has many options of where to buy a product, the threat is high. Some businesses have customer loyalty rewards to encourage a buyer to continue using their product d. Power of suppliers: ex. Gas prices fluctuate based on the oil industry, the supplier has the control e. Competitive rivalry: when there are many competitors in the industry, the threat is high. If a product is proprietary, and belongs to a single organization, then the threat is low.

Strategies for operating in international locales

global exporting multinational types of multiationals (franchising, licensing or joint adventure)

Managing Information Systems

input: (going into your computer), and converts that data (processing) into meaningful and actionable information Output: that forms the basis of action, output on screen, database, print, etc storage: data secured on devices or future access and business use (internal and external (the cloud)

MIS (Management Information Systems)

is a combined network of hardware and software cooperating to collect, process, store, and distributes information to support the managerial role to increase business values and profits

DSS (decision support system)

is an information system that supports business or organizational decision making activities -makes the decision for you (Ie you can apply for a credit card and will instantly say if your approved or not) -helps managers know whats on deliveery trucks, and how many employees then need to unload that truck when it arrives

Managing Project Risk :Sharing

partnering with groups or individuals who have more experience and who will accept or absorb some or all of the risks involved (when planning an event, you work with community to get sponsors)

Components of Information Systems

people processes networks data hardware software

Managing Project Risk : Transference

shifting risk to another party (purchase insurance)

Processes (Components of Information Systems)

structured sequence of activities that govern the use, operation, and maintenance of IS. Must have clearly defined input and output guidelines, operational processes could be the procedure to take customers orders

Porter's Five Forces

threat of entry threat of substitute supplier power buyer power (customers) competitive rivalry