Info 3130 chapter 1

4. Implementation

-Building or purchasing solution -Testing solution, employee training -Change management -Measurement of outcomes -Feedback, evaluation of solution

Industry Level Changes

Citibank's Introduction of the ATM (Competition) Federal and/or state government regulations requiring improved record-keeping systems (Sarbanes Oxley Act)

Customer and Supplier Intimacy

Serving customers well leads to customers returning, which raises revenues and profits Example: High-end hotels using systems to track customer preferences and use to monitor and customize environments/experiences.

Information Systems

Set of interrelated components that manage information to Support decision making, coordination, and control Help with analysis, visualization, and product creation.

Business Processes

Set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.

True

Sharp distinction between computer or computer program verses an information system.

In the emerging, fully digital firm:

Significant business relationships are digitally enabled and mediated. Core business processes are accomplished through digital networks. Key corporate assets are managed digitally. Digital firms offer greater flexibility in organization and management. Time shifting, space shifting

Business Model

describes how a company produces, delivers, and sells products or services Example: How Apple transformed the music industry and simultaneously killed the Zune. Shifting focus from physical media to digital distribution Achieved through close relationships in industry More profit, less overhead, ease of access Apple's constant focus on innovations - iPod, iPhone, iPad

Input

Captures raw data from organization or external environment

Problem Identification Includes:

-Agreement that a problem exists -Definition of problem -Causes of problem -Ideas about what can be done given the resources available to the firm Examples of typical business problems within the three dimensions of information systems; organizations, technology and people (management).

Information Systems

-Fast changing and dynamic profession because information technologies are among the most important tools for achieving business firms key objectives. -Domestic and offshore outsourcing. Skills: -Uses of new and emerging hardware and software to achieve the six strategic business objectives. -An ability to take a leadership role in the design and implementation of new information systems.

Typical Technological Problems

-Insufficient or aging hardware -Outdated software -Inadequate database capacity -Insufficient telecommunications capacity -Incompatibility of old systems with new technology -Rapid technological change

Typical People (Management) Problems

-Lack of employee training -Difficulties of evaluating performance -Legal and regulatory compliance -Work environment, ergonomics -Poor or indecisive management -Lack of employee support and participation

2. Solution Design

-Often many possible solutions (brainstorming) -Consider as many as possible to understand the range of possible/plausible solutions

Typical Organizational Problems

-Outdated business processes -Unsupportive culture and attitudes -Political conflicts/in-fighting -Turbulent business environment, change -Complexity of tasks -Inadequate resources

4 elements of critical thinking

1. Maintaining doubt and suspending judgement 2. Being aware of different perspectives Including technology, organization, and people perspectives 3. Testing alternatives and letting experience guide 4. Being aware of organizational and personal limitations.

Role of Managers

1. Perceive business challenges 2. Set organizational strategy 3. Allocate human and financial resources 4. Creative work: new products and services.

Accounting

Accountants increasingly rely on information systems to summarize transactions, create financial records, organize data, and perform financial analysis. Skills: -Knowledge of databases and networks -Online financial transactions and reporting systems -How systems are used to achieve accounting functions

Culture

An organizations unique culture is defined by a fundamental set of assumptions, values and ways of doing things that has been accepted by the majority of its members. Culture is embedded in information systems UPS's focus on customer service providing transparency using package tracking systems.

Complementary Assets

Assets required to derive value from a primary investment Firms supporting technology investments with investment in complementary assets receive superior returns Example: Invest in technology and the people to make it work properly. Hire the subject matter experts. Contractors, Consultants, Flex-Labor

Strategic Business Objectives

Business firms invest heavily in information systems to achieve six strategic business objectives: Operational Excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival

Survival

Businesses may need to invest in information systems out of necessity, simply the cost of doing business. Competition & Compliance

Processing

Converts raw data into meaningful form

Organizations

Coordinate work through a structured hierarchy and business processes.

Information vs Data

Data are streams of raw facts Information is data shaped into a meaningful, useful form What is metadata?

Business Processes

Developing New Products Product Design & Development (Apple iPhone) Software Design & Development (iOS 7) Generating or Fulfilling Orders Pre-Ordering New iPhone Online Manufacturer packing and shipping iPhone order Creating a New Marketing Plan "The Best Smartphone, just got better!" Hiring Employees

Organizations use Information Systems to:

Do things faster: Automation and efficient business processes Do things better: Improved decisions by managers, organizational learning and development Do things smarter: Support business strategy and enable innovation Building an effective digital organization to compete on the internet and in the global economy

Social Assets

Examples: 1. The Internet and telecommunications infrastructure 2. Technology standards

Managerial Assets

Examples: 1.Incentives for management innovation 2. Teamwork and collaborative work environments

Organizational Assets

Examples: 1. Appropriate business model 2. Efficient business processes

3. Solution Evaluation & Choice

Factors and variables include: -Cost -Feasibility given resources and skills available -Length of time required to implement solution

Computer Literacy

Focuses mostly on knowledge of IT

Management Information Systems

Focuses on broader information systems literacy Issues surrounding development, use, impact of information systems used by managers and employees.

Common requirements for all majors

How IT helps achieve six business objectives Central role of databases Business analytics and intelligence systems Working with specialists and systems designers Ethical, social, legal environment and issues Use of IT to meet legal requirements

Technology

IT Infrastructure: Foundation or platform that information systems are built on: Computer hardware Computer software Data management technology Networking and telecommunications technology Internet and Web, Extranets, Intranets Voice & Communications Platforms

Information System Literacy

Includes the behavioral and technical approach

Operational Excellence

Information Systems and technology applications enable organizations to achieve greater efficiency and productivity in operations resulting in higher profits. Example: Wal-Mart's Retail Link system links suppliers to stores for superior replenishment system Suppliers have complete access to inventory information and in turn are held accountable for KPIs Vendor managed inventory system. Power of Buyer Mercy of Buyer Wal-Mart is the most efficient retailer in the industry and exemplifies operational excellence.

Role of Critical Thinking

Involves sustained suspension of judgement with an awareness of multiple perspectives and alternatives.

People

Information systems require skilled people to build, maintain and operate them. Employee attitudes affect an organizations ability to use systems productively.

Business Assets

Intellectual Property Core Competencies Financial & Human Capital In the digital firm any piece of information required to support key business decisions are available at anytime and anywhere in the firm. Instant Access to Information Individual Digital Transformation Example: iCloud

The Internet has created a flattened world.

Internet technologies and global communication have greatly reduced the economic and cultural advantages of developed countries. Drastic reduction of costs of operating and transacting on global scale. Competition for jobs, markets, resources, ideas Dependence on imports and exports Requires new understanding of skills, markets, opportunities.

Marketing

No field has undergone more technology-driven change in the past five years than marketing and advertising. Skills: Work with databases for tracking and reporting on customer behavior, product performance, customer feedback, product development. Enterprise systems for product management, sales force management, customer relationship management.

Competitive Advantage

Often results from achieving previous business objectives. Being better then the other guy! Delivering better performance Charging less for superior products Responding to customers and suppliers in real time Example: Best Buy vs. Circuit City Online, In-Store, Reward Zone, Price Match Best Buy, Wal-Mart, Apple, UPS are all industry leaders because they know how to use information systems to achieve advantages over their competitors.

The Digital Firm

One in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.

Feedback

Output returned to appropriate members of organization to help evaluate or correct input stage

Operations management in services and manufacturing:

Production managers, administrative service managers, and operations analysts Skills: Hardware and software platforms for operations management Use database and analytical software for coordinating and optimizing resources required for producing goods and services

Solving Info Systems Related problems

Rarely are business problems simple or straightforward. Most business problems involve a number of major factors that can fall into the three dimensions of IS (Organization, Technology, People)

Information Technology

The hardware, software and telecommunications equipment a business uses to achieve objectives.

Management

The job of management has been transformed by information systems. Impossible to manage business today without information systems. Skills: Use of information systems for each function of job, from desktop productivity tools to applications coordinating the entire enterprise.

Finance

The relationship between information systems and financial management and services is so strong that many advise finance majors to double major in information systems. Skills: Use systems for financial reporting, direct investment activities, implement cash management strategies Plan, organize, implement information systems strategies for the firm

Output

Transfers processed information to people or activities that use it.

Outsourcing and offshoring

Two types: outsourcing to domestic U.S. firms and outsourcing to low-wage countries such as India and China -Production programming, system maintenance, call centers -Benefits: Lower costs of building and maintaining systems within the United States. Increased need for managerial positions.

How information systems affects business careers

When firms cannot achieve business objectives these objectives become challenges. Information systems often present solutions, partially or fully, to these challenges. Success in today's job market requires a broad set of skills. Job candidates must have problem-solving skills as well as technical skills so that they can complete specific tasks. The service sector will account for 95% of the new jobs that are created or open up by 2022.

Improved Decision Making

Without accurate information: Managers must use forecasts, best guesses, luck Results in: Overproduction, underproduction of goods and services Misallocation of resources Poor response times

Problem Solving

it is a continuous process, not a single event. A four-step process: 1. Problem Identification 2. Solution Design 3. Choice 4. Implementation

Information Systems

powerful instruments for creating value. Investments in information technology can result in superior returns: Productivity increases Revenue increases Superior long-term strategic positioning Investing in information technology does not guarantee good returns. There is considerable variation in the returns firms receive from systems investments. Factors: Adopting the right business model Investing in complementary assets (organizational and management capital)

Poor Outcomes

raise costs, lose customers Real-time data improves ability of managers to make more informed decisions. Verizon Wireless created web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages.

Business Processes

related tasks and behaviors for accomplishing work. May be informal or include formal structure and rules (protocol).

Intimacy

with suppliers allows them to provide vital inputs, which lowers costs Better communication with suppliers (Retail Link) Dell & Samsung co-location for manufacturing monitors JCPenney's information system which links sales records to contract manufacturer (supplier in Hong Kong)