CIS FINAL chapters 11-14

Traditional Systems Life Cycle

- oldest method for building information systems - phased approach - formal division of labor between end users and information systems specialists - emphasizes formal specifications and paperwork - still used for building large complex systems - can be costly, time consuming, and inflexible

*End-User Development *

-Advantages More rapid completion of projects High level of user involvement and satisfaction -Disadvantages Not designed for processing-intensive applications Inadequate management and control, testing, documentation Loss of control over data -Managing end-user development Require cost-justification of end-user system projects Establish hardware, software, and quality standards

Systems Analysis*

-Analysis of problem to be solved by new system -Feasibility study -Systems proposal report -Information requirements

What is Business Intelligence?

-Analytics software to analyze buying patterns and determine the most effective marketing plan for different types of customers. For example, which customers would respond best to direct mail or e-mail, and to what types of messages.

Application Software Packages and Cloud Software Services

-Application software packages and cloud software services Save time and money Many packages offer customization features -Evaluation criteria for systems analysis include: Functions provided, flexibility, user-friendliness, required resources, database requirements, installation and maintenance efforts, documentation, vendor quality, and cost -Request for Proposal (RFP) A detailed list of questions submitted to packaged-software vendors Used to evaluate alternative software packages

Systems Development and Organizational Change

-Automation Replaces manual tasks -Rationalization of procedures Streamlines standard operating procedures -Business process redesign Reorganize workflow -Paradigm shifts Define new business model

Project Management Software Tools

-Can automate many aspects of project management -Capabilities for defining, ordering tasks Assigning resources to tasks, tracking progress Manage very large numbers of tasks and relationships -Microsoft Project -Cloud-based software -Project portfolio management software

Capital Budgeting for Information Systems

-Capital budgeting models Measure value of long-term capital investment projects Rely on measures of the firm's cash outflows and inflows -Principle capital budgeting models used to evaluate I T projects Payback method Accounting rate of return on investment (R O I) Net present value Internal rate of return (I R R) -Limitations of financial models

Change Management and the Concept of Implementation

-Change management Required for successful system building New information systems have powerful behavioral and organizational impact -Implementation All organizational activities working toward adoption, management, and routinization of an innovation -Change agent One role of systems analyst Redefines the configurations, interactions, job activities, and power relationships of organizational groups -Role of end users With high levels of user involvement System more likely to conform to requirements Users more likely to accept system -User-designer communication gap Users and information systems specialists -Management support and commitment Effects positive perception by both users and technical staff Ensures sufficient funding and resources Helps enforce required organizational changes

Outsourcing

-Cloud and SaaS providers Subscribing companies use software and computer hardware provided by vendors -External vendors Hired to design, create software -Domestic outsourcing Driven by firm's need for additional skills, resources, assets -Offshore outsourcing Driven by cost-savings -Advantages Allows organization flexibility in I T needs -Disadvantages Hidden costs, for example: Identifying and selecting vendor Transitioning to vendor

Management Structure for Information Systems Projects

-Corporate strategic planning group Responsible for firm's strategic plan -Information systems steering committee Reviews and approves plans for systems in all divisions -Project management group Responsible for overseeing specific projects -Project team Responsible for individual systems project

Internet of Things

-Creating huge streams of data from web activities, sensors, and other monitoring devices -Software for operational intelligence and analytics enable companies to analyze their big data

Knowledge storage

-Databases -Document management systems -Role of management

*Systems Design*

-Describes system specifications that will deliver functions identified during systems analysis -Should address all managerial, organizational, and technological components of system solution -Role of end users User information requirements drive system building Users must have sufficient control over design process to ensure system reflects their business priorities and information needs Insufficient user involvement in design effort is major cause of system failure

Building Organizational and Management Capital: Collaboration, Communities of Practice, and Office Environments

-Developing new organizational roles and responsibilities for the acquisition of knowledge -Dedicated staff / knowledge managers -Communities of practice (COPs) Activities include education, online newsletters, sharing knowledge

*Knowledge acquisition*

-Documenting tacit and explicit knowledge -Storing documents, reports, presentations, best practices -Developing online expert networks -Tracking data from TPS and external sources

Decision Support for Senior Management

-Executive support systems help executives focus on important performance information -Balanced scorecard method Measures outcomes on four dimensions: Financial Business process Customer Learning and growth -Business performance management (BPM) Translates firm's strategies into operational targets

Increasing User Involvement and Overcoming User Resistance

-External integration tools Link work of implementation team to users at all levels -User resistance to organizational change Counter implementation -Strategies to overcome user resistance User participation, education and training Management edicts and policies Incentives for cooperation Improvement of end-user interface Resolution of organizational problems prior to introduction of new system

Controlling Risk Factors

-First step in managing project risk involves identifying nature and level of risk of project -Each project can then be managed with tools and risk-management approaches geared to level of risk -Managing technical complexity Internal integration tools Project leaders with technical and administrative experience Highly experienced team members Frequent team meetings Securing of technical experience outside firm if necessary

*What Is Artificial Intelligence?*

-Grand vision Computer hardware and software systems that are as "smart" as humans -Realistic vision Systems that take data inputs, process them, and produce outputs (like all software programs) and that can perform many complex tasks that would be difficult or impossible for

Information Systems Plan

-Identifies systems projects that will deliver most business value -Links development to business plan -Road map indicating direction of systems development, includes: Purpose of plan Current systems/situation New developments Management strategy Implementation plan Budget -For an effective plan Identify decision-making improvements A clear understanding of long-term and short-term information requirements -Key performance indicators (KPIs) The strategic analysis identifies a small number of KPIs, determined by managers

Tools for Business Process Management

-Identify and document existing processes -Identify inefficiencies -Create models of improved processes -Capture and enforce business rules for performing, automating processes -Integrate existing systems to support process improvements -Verify that new processes have improved -Measure impact of process changes on key business performance indicators

Managerial Roles

-Information systems can only assist in some of the roles played by managers -Planning, organizing, coordinating, deciding, and controlling

The Decision Making Process

-Intelligence Discovering, identifying, and understanding the problems occurring in the organization -Design Identifying and exploring solutions to the problem -Choice Choosing among solution alternatives -Implementation Making chosen alternative work and continuing to monitor how well solution is working

Group Decision-Support Systems (GDSS)

-Interactive system to facilitate solution of unstructured problems by group -Specialized tools -Virtual collaboration rooms -Software to collect, rank, edit participant ideas and responses -Promotes collaborative atmosphere

What is the Role of Knowledge Management Systems in Business?

-Knowledge management systems among fastest growing areas of software investment -Substantial part of a firm's stock market value is related to intangible assets: knowledge, brands, reputations, and unique business processes

High-Velocity Automated Decision Making

-Made possible through computer algorithms precisely defining steps for a highly structured decision -Humans taken out of decision -Example: Trading programs at electronic stock exchanges. Trades executed in 30 milliseconds

*Major Types of AI and Examples of what AI's can do*

-Major Types of AI Expert systems Machine learning Neural networks and deep learning networks Genetic algorithms Natural language Processing Computer vision Robotics -Examples: (Have to remember) Recognize millions of faces in seconds Interpret millions of CT scans in minutes Analyze millions of financial records Detect patterns in very large Big Data databases Improve their performance over time ("learn") Navigate a car in certain limited conditions Respond to questions from humans (natural language); speech activated assistants like Siri, Alexa, and Cortana

Designing for the Organization

-Need to address ways in which organization changes with new system -Ergonomics Interaction of people and machines in work environment -Organizational impact analysis How system will affect organizational structure, attitudes, decision making, operations -Sociotechnical design Addresses human and organizational issues

Cameron International Builds a New System for Financial Reporting

-New Planning and Consolidation System -Demonstrates steps needed to design and build new information systems

Object-Oriented Development

-Object: Basic unit of systems analysis and design -Object-oriented modeling: Based on concepts of class and inheritance -Design phase: Describes how objects will behave and interact; grouped into classes, subclasses, and hierarchies -Implementation: Some classes may be reused from existing library of classes, others created or inherited -Systems analysis: Interactions between system and users analyzed to identify objects -Objects are reusable

*Knowledge Dissemination*

-Portals, wikis -E-mail, instant messaging -Search engines, collaboration tools -Training programs, informal networks, and shared management experience help managers focus attention on important information.

*Project Management Objectives*

-Project management: Activities include planning work, assessing risk, estimating resources required, organizing the work, assigning tasks, controlling project execution, reporting progress, analyzing results -Five major variables: Scope Time Cost Quality Risk

Dimensions of Project Risk

-Project size Cost Time Number of organizational units affected Organizational complexity -Project structure Structured, defined requirements run lower risk -Experience with technology Team familiar with hardware and software

Runaway Projects and System Failure

-Runaway projects: 30-40 percent IT projects Exceed schedule, budget Fail to perform as specified -Types of system failure Fail to capture essential business requirements Fail to provide organizational benefits Complicated, poorly organized user interface Inaccurate or inconsistent data

Computer-Aided Software Engineering

-Software tools to automate development and reduce repetitive work, including: -Graphics facilities for producing charts and diagrams Screen and report generators, reporting facilities -Analysis and checking tools -Data dictionaries -Code and documentation generators -Support iterative design by automating revisions and changes and providing prototyping facilities -Require organizational discipline to be used effectively

What Types of Systems Are Used for Enterprise-Wide Knowledge Management?

-Structured documents Reports, presentations Formal rules -Semistructured documents E-mails, videos -Unstructured, tacit knowledge 80% of an organization's business content is semistructured or unstructured

Structured Methodologies

-Structured: Techniques are step-by-step -Process-oriented: Focusing on modeling processes or actions that manipulate data -Data flow diagram (DFD) Represents system's component processes and flow of data between them -Data dictionary -Process specifications -Structure chart

*Information System Costs and Benefits*

-Tangible benefits Can be quantified and assigned monetary value -Intangible benefits Cannot be immediately quantified but may lead to quantifiable gains in the long run EX. more efficient customer service -Systems that influence decision making: ESS, DSS, collaborative work systems

Locating and Sharing Expertise

-Use communication technologies to make it easy for employees to find appropriate experts in a firm. -Social networking and social business tools for finding knowledge outside the firm -Saving -Tagging -Sharing web pages

Formal Planning and Control Tools

-Used for documenting and monitoring project plans -Help identify bottlenecks and impact of problems -Gantt charts Visual representation of timing and duration of tasks Human resource requirements of tasks -PERT charts Graphically depict tasks and interrelationships Indicate sequence of tasks necessary

Portfolio Analysis

-Used to evaluate alternative system projects -Each system has profile of risk and benefit High benefit, low risk High benefit, high risk Low benefit, low risk Low benefit, high risk

Scoring Models

-Used to evaluate alternative system projects, especially when many criteria exist -Assigns weights to various features of system and calculates weighted totals -Many qualitative judgments involved -Requires experts who understand the issues and the technology

Genetic Algorithms (GAs)

-Useful for finding optimal solution for specific problem by examining very large number of possible solutions for that problem -Conceptually based on process of evolution Search among solution variables by changing and reorganizing component parts using processes such as inheritance, mutation, and selection -Used in optimization problems -Able to evaluate many solution alternatives quickly

*Change Management Challenges for Business Process Reengineering, Enterprise Applications, and Mergers and Acquisition*

-Very high failure rate among enterprise application and BPR projects (up to 70 percent for BPR) Poor implementation and change management practices Employee concerns about change Resistance by key managers Changing job functions, career paths, recruitment practices -Mergers and acquisitions Similarly high failure rate of integration projects Merging of systems of two companies requires: Considerable organizational change, complex systems projects

*Location Analytics *

Ability to gain business insight from the location (geographic) component of data -Mobile phones -Sensors, scanning devices -Map data

Systems Development*

Activities that go into producing an information system solution to an organizational problem or opportunity -Systems analysis -Systems design -Programming -Testing -Conversion -Production and maintenance

Big Data Analytics

Big data: Massive datasets collected from social media, online and in-store customer data Help create real-time, personalized shopping experiences for major online retailers Smart cities -Public records -Sensors, location data from smartphones -Ability to evaluate effect of one service change on system

Prototype

Building experimental system rapidly and inexpensively for end users to evaluate, serves as template for final system

Operational Intelligence

Business activity monitoring. Collection and use of data generated by sensors

Examples of Knowledge Work Systems

CAD (computer-aided design) -3D printing Virtual reality systems -Simulate real-life environments -3D medical modeling for surgeons

Big Data and the Internet of Things Drive Precision Agriculture

Demonstrates IT's role in providing information and business intelligence that help a small business like farmers improve efficiency

Robotics

Design, construction, and operation of machines that can substitute for humans in many factory, office, and home applications (home vacuums). - Used in dangerous situations like bomb disposal

Computer Vision Systems

Digital image systems that create a digital map of an image (like a face, or a street sign), and recognize this image in large data bases of images in near real time Ex. Facebook's DeepFace can identify friends in photos across their system, and the entire web Passport control at airports

Intelligent techniques

Diverse group of techniques such as data mining used for various goals: discovering knowledge, distilling knowledge, discovering optimal solutions

*Knowledge management value chain*

Each stage adds value to raw data and information as they are transformed into usable knowledge -Knowledge acquisition -Knowledge storage -Knowledge dissemination -Knowledge application

Testing

Ensures system produces right results Unit testing: Tests each program in system separately System testing: Test functioning of system as a whole Acceptance testing: Makes sure system is ready to be used in production setting Test plan: All preparations for series of tests

*Predictive Analytics

Estimates future trends and behavior patterns -Statistical analysis -Data mining -Historical data -Assumptions Incorporated into numerous B I applications for sales, marketing, finance, fraud detection, health care -Credit scoring -Predicting responses to direct marketing campaigns

Enterprise-wide knowledge management systems

General-purpose firm-wide efforts to collect, store, distribute, and apply digital content and knowledge

Business Intelligence and Analytics Capabilities

Goal is to deliver accurate real-time information to decision makers -Production reports -Parameterized reports -Dashboards/scorecards -Ad hoc query/search/report creation -Drill down -Forecasts, scenarios, models

What Are the Different Types of Decisions, and How Does the Decision Making Process Work?

Improving hundreds of thousands of "small" decisions adds up to large annual value for the business -Unstructured: Decision-maker must provide judgment, evaluation, and insight to solve problem -Semistructured: Only part of the problem has clear-cut answer provided by accepted procedure -Structured: Repetitive and routine; involve definite procedure for handling so they do not have to be treated each time as new

What Are the Business Benefits of Using Intelligent Techniques for Knowledge Management?

Intelligent techniques: Used to capture individual and collective knowledge and to extend knowledge base -To capture tacit knowledge: Expert systems, case-based reasoning, fuzzy logic -Knowledge discovery: Neural networks and data mining -Generating solutions to complex problems: Genetic algorithms -Automating tasks: Intelligent agents Artificial intelligence (A I) technology: -Computer-based systems that emulate human behavior

*Semistructured*

Middle management, who make decisions where only part of the problem has clear-cut answers provided. Examples include designing a marketing plan, developing a departmental budget, and designing a new corporate website.

*aKnowledge application*

New business practices New products and services New markets

Machine Learning Helps Akershus University Hospital Make Better Treatment Decisions

Organize treatments and improve safety and Illustrates the ability of machine learning systems to analyze vast quantities of data and find patterns

*Unstructured*

Senior Management, who make decisions with unstructured characteristics. Examples include deciding entrance or exit from markets, approving a capital budget, and deciding long term goals.

*Knowledge Management (KM)*

Set of business processes developed in an organization to create, store, transfer, and apply knowledge

Knowledge work systems (KWS)

Specialized systems built for engineers, scientists, other knowledge workers charged with discovering and creating new knowledge

Programming

System specifications from design stage are translated into software program code

*Structured*

The operational management made up of individual employees and teams who make decisions with structured characteristics. Examples include determining overtime eligibility, restocking inventory, offering credit to customers, and determining special offers to customers.

*Real-World Decision Making*

Three main reasons why investments in I T do not always produce positive results -Information quality: High-quality decisions require high-quality information -Management filters: Managers have selective attention and have variety of biases that reject information that does not conform to prior conceptions -Organizational inertia and politics: Strong forces within organizations resist making decisions calling for major change

Geographic information systems (GIS)

Ties location-related data to maps Example: For helping local governments calculate response times to disasters

Business process management (BPM)

Used by firms to manage business process redesign Steps in BPM: Identify processes for change Analyze existing processes Design the new process Implement the new process Continuous measurement

Intelligent Agents

Work without direct human intervention to carry out repetitive, predictable tasks -Deleting junk e-mail -Finding cheapest airfare Model behavior of consumers, stock markets, and supply chains; used to predict spread of epidemics

Learning Management System (LMS)

a computer application that automates the administration, development, and delivery of employee training programs Support multiple modes of learning: CD-ROM, web-based classes, online forums Massively open online courses (MOOCs)

Natural Language Processing

processing that allows the computer to understand and react to statements and commands made in a "natural" language, such as Google Translate Digital assistances: Siri, alexa