OMIS 350

Four major enterprise applications 1. Enterprise systems

-collects data from different firm functions and stores data in single central data repository -resolves problem of fragmented data -Enable: A. coordination of daily activities B. Efficient response to customer orders (production, inventory) C. Help managers make decisions about daily operations and longer-term planning

Six strategic business objectives: 5. Competitive Advantage

-delivering better performance -charging less for superior products -responding to customers and suppliers in real time -examples: Apple, Walmart, UPS

Business culture definition and example

Each organization has a unique culture, or fundamental set of assumptions, values, and ways of doing things, that has been accepted by most of its members. (Work, university etc)

Knowledge workers

Such as engineers, scientists, or architects, design products or services and create new knowledge for the firm.

Data workers

Such as secretaries or clerks, assist with scheduling and communications at all levels of the firm.

Six strategic business objectives: 3. Customer and supplier intimacy

--Serving customers well leads to customers returning, which raises revenues and profits. Example: high-end hotels that use computers to track customer preferences and used to monitor and customize environment --intimacy with suppliers allows them to provide vital inputs, which lower costs. Example: JCPenney's information system which links sales records to contract manufacturer.

Six strategic business objectives: 4. Improved Decision Making

--without accurate information: Managers must use forecasts, best guesses, luck Results in: -overproduction -misallocation of resources -poor response times Poor outcomes raise costs, lose customers Example: Verizon's Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, and so on.

DSS (decision support systems)

-Serve middle management -Support nonroutine decision making *Example: what is the impact on production schedule if December sales doubled? -May use external information as well TPS/MIS data -Model driven DSS (voyage-estimating systems) -Data driven DSS (Intrawest's marketing analysis systems)

Four major enterprise applications 4. Knowledge management systems

-Support processes for capturing and applying knowledge and expertise How to create, produce, deliver products and services -collect internal knowledge and experience within firm and make it available to employees -link to external sources of knowledge

ESS (executive support systems)

-Support senior management -address nonroutine decisions (requiring judgement, evaluation, and insight) -incorporate data about external events (e.g., new tax laws or competitors) as well as summarized information from internal MIS and DSS Example: digital dashboard with real-time view of firm's financial performance: working capital, accounts receivable, accounts payable, cash flow, and inventory

Six strategic business objectives: 6. Survival

-information technologies as necessity of business -industry-level changes *Example: Citibank's introduction of ATMs -Governmental regulations requiring record-keeping *Example: Toxic Substances Control Act, Sarbanes-Oxley Act, Dodd-Frank Act

Four major enterprise applications 2. Supply chain management systems

-manages firm's relationships with suppliers -share information about: *orders, production, inventory levels, delivery of products and services. -goal: right amount of products to destination with least amount of time and lowest cost

Four major enterprise applications 3. Customer relationship management systems

-provide information to coordinate all of the business processes that deal with customers (sales, marketing, customer service) -help firm's identify, attract, and retain most profitable customers

MIS (management information systems)

-serve middle management -provide reports on firm's current performance, based on data from TPS -provide answers to routine questions with predefined procedure for answering them -typically have little analytic capability Example: summarized annual sales data

TPS (Transaction Processing Systems)

-serve operational managers and staff -perform and record daily routine transactions necessary to conduct business (sales order entry, payroll, shipping) -allow managers to monitor status of operations and relations with external environment -serve predefined, structured goals and decision making

Importance of collaboration

-short lived or long term -informal or formal (teams) Growing importance of collaboration: -changing nature of work -growth of professional work--"interaction jobs" -changing organization of the firm* -changing the scope of the firm -emphasis on innovation* -changing the culture of work

Enterprise applications

-systems for linking the enterprise -span functional areas -execute business processes across firm -include all levels of management

Social business

-use of social networking platforms, internal and external -engage employees, customers, and suppliers -goal is to deepen interactions and expedite information sharing -"conversations" -requires information transparency * driving the exchange of information without intervention from executives or others

Definition of a digital firm & examples

1. A digital firm is one in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. 2. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations. 3. Key corporate assets, intellectual property, core competencies, and financial and human assets--are managed through digital means. Example: Cisco Systems, 3M, and IBM

Four functional areas of business

1. Sales and marketing 2. Manufacturing and production 3. Finance and Accounting 4. Human Resources

Three principle levels in a hierarchical firm

1. Senior management 2. Middle management (scientists and knowledge workers) 3. Operational management (production and service workers, Data Workers

Three activities of information systems 1. Input

Captures raw data for organization or external environment. Example: (hardware, employee typing)

Production or service workers

Actually produce the product and deliver the service

Six strategic business objectives: 2. New Products, Services, and Business Models

Business model: describes how a company produces, delivers, and sells a product or service to create wealth. -Information systems and technologies are a major enabling tool for firms to create new products and services, as well as entirely new business models. Examples: Apple iPad, Google Android's OS, and Netflix.

Three activities of information systems 2. Processing

Converts raw data into meaningful form Example: classify, arrange, calculate data

Six Strategic business objectives: 1. Operational excellence

Operational Excellence: improvement of efficiency to attain higher profitability Information systems, technology an important tool in achieving greater efficiency and productivity Example: WalMart's retail link system links suppliers to stores for superior replenishment system

Technical vs behavioral areas of IS

Technical approach: -emphasizes mathematically based models Examples: computer science, management science, operations research Behavioral approach: -behavioral issues (strategic business integration, implementation, etc) Examples: psychology, economics, sociology

Business Processes

The way a business organizes it's workflows, the method it uses to accomplish tasks, and the way it coordinates its activities among employees, customers and suppliers determines its business processes. Can be assets or liabilities Examples: -manufacturing and production -sales and marketing -finance and accounting -human resources

Three activities of information systems 3. Output

Transfers processed information to people or activities that use it. Example: (receipt, etc)