mis fiches
TRANSCRIPT
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Business Information Systems
Why Do People Need Information?
Individuals: Entertainment and enlightenment
Businesses: Decision making and problem solving
Data vs. Information
DataA given or fact: a number, a statement, or a picture
The raw materials in the production of information
Information
Data that have meaning within a context
Raw data are processed in an IS to create final useful information
Process: Manipulation of data
Computer-based ISs: process data to produce information
Information must be usefulRelevant
Complete
Accurate
Current
Cost effective in business
Information have to be SMART:
Specific
MeasurableAccurate
Reliable
Timely
System: A set of components that work together to achieve a common goal
Subsystem: One part of a system where the products of more than one system are
combined to reach an ultimate goal
Closed system: Stand-alone system that has no contact with other systems
Open system: System that interfaces with other systems
Systems thinking:
Viewing organization in terms of suborganizations or subsystems
A framework for problem solving and decision making
Managers focus on overall goals and operations of business
Systems thinking (Cont.)
Information Map: data and information flow within an organization
Information Technology: all technologies that facilitate construction and
maintenance of information systems
The Benefits of Human-Computer Synergy
Synergy: combined resources produce output exceeding the sum of the outputs of the
same resources employed separately
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Translates human thought into efficient processing of large amounts of data
Decision Support Systems (DSS)
Contain models, or formulas, that manipulate data into information
Often answer what if? questions
Group Decision Support Systems (GDSS)
Generate ideas, establish priorities, and reach decisions in group environment
Executive Information Systems (EIS)
Can gather information from vast amounts of data for high-level executives
Highly useful in control and planningExpert Systems (ES)
Programmed with human expertise
Can help solve problems of unstructured nature
Geographic Information Systems (GIS)
Represents local conditions or features
Allows planning, decision-making, and monitoring of local conditions or activities
On-demand Output
Managers can obtain reports tailored to their needs at any time
Strategic Uses of Information Systems
Strategy
A plan designed to help an organization outperform its competitors
Strategic Information Systems
Information systems that help seize opportunities
Can be developed from scratch, or they can evolve from existing ISs
Strategic advantage:
Using a strategy to maximize strength
Competitive advantage:
The result of the use of a strategic advantage Reduce Costs Raise Barriers to Market Entrants
Input: Data are collected and entered into computer
Data processing: Data are manipulated into
information using mathematical, statistical, and other
tools
Output: Information is displayed or presented
Storage: Data and information are maintained for
later use
Input devices: introduce data into the IS
Processor: manipulates data through the IS
Output devices: display information
Storage devices: store data and information
Transaction Processing Systems (TPS)
Record data and perform basic processing
Cash registers and ATMs
Management Information Systems (MIS)
Recorded transactions and other data
produce information for problem solving anddecision making
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Establish High Switching Costs Create New Products or Services Differentiate Products or Services Enhance Products or Services Establish Alliances Lock in Suppliers or Buyers
An IS that helps achieve long-term competitive advantage
SIS embodies two types of ideas:
Potentially-winning business move
How to harness IT to implement that move
Two conditions for SIS:
Serve an organizational goal
Work with the managers of the other functional units
Being first is not enough for success (being first mover might be an obstacle)
Business ideas must be sound
An organization must carefully define what buyers wantEstablishing a recognizable brand name is important but does not guarantee
success; satisfying needs is more important
Business owners must develop new features to keep the system on the leading edge
Adopting a new technology involves great risk
No experience from which to learn
No guarantee new technology will work or customers and employees will
welcome it
Summary
The bleeding edge: failure in an organizations effort to be on the technological leading
edge
Allow competitors to assume the risk
Risk losing initial rewards
Can quickly adopt and even improve pioneer organizations successful
technology
Business strategy and strategic moves can give an organization an advantage
Basic initiatives for gaining a competitive advantageStrategic information systems require fundamental elements
Circumstances and initiatives that make one SIS succeed and another fail
Radio Frequency Identification:
An Overview of the Global Market and Industry
RFID is a wireless Automatic Identification and Data Capture (AIDC) technology that came to
market in the 1980s.
Radio-frequency identification (RFID) is an automatic identification method relying on storing
and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an
object that can be attached to or incorporated into a product, animal, or person for the
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purpose of identification using radio waves. Chip-based RFID tags contain silicon chips and
antennas.
Advantages
1. No contact requirement
2. Read capability and sometimes a write capability
3. Real-time response
4. More durable than bar code
5. No need for multiple bar codes
Disadvantages
1. Average selling price (ASP) of $0.25
2. Relatively few industry standards
3. Occasional no-reads and mis-reads
4. Software integration hurdles
5. Requisite physical infrastructure
The goal: Improve margins
The strategy
Reduce costs
Controlling inventory, automating security or payment, eliminating labor
And increase sales
Eliminating stock outs
The tactics: Increase real-time visibility with RFID
A UPC on steroids, ePC assigns a number to each itemDifferentiating the 101st can of soup in a shipment from the 1,001st
Including where the soup was canned and where it is in the supply chain
Enumerating more than 16 million types of soup and more than 1 trillion cans of
each type
Summary
What are the top 10 facts about the
RFID market and industry?
1. Price above all. Right now, the market is more attractive for customers than suppliers.
2. RFID is a technology solution in search of a problem, and there is also an industry
problem in search of a solution.
3. The general industry is chasing volume, hoping that with greater volume comes much
lower costs and prices.
4. The market growth rate depends most on the price decline rate.
5. The industry and market suffer from too few standards.
6. Integration issues, from culture to software, are evident and often painful.
7. Distribution channel problems are impeding growth.
8. As of today, there is no killer application but the killer app may ultimately reside in thehomeland security market.
9. Profitable niches do exist for suppliers.
10.Customers will continue to benefit from the intelligent application of RFID technology.
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Internet, Intranets, Extranets and E-Commerce
The Development of the Internet
ARPANET was open system designed for the free flow of information, but
available only to members of academic institutions and some in the defense
industry.
U.S. government decided to split the network into a civilian one and a militaryone
Civilian network became the Internet
Internet is now a network of networks
Definitions
Uniform Resource Locator (URL)
Hypertext Transfer Protocol (HTTP)
Domain Name
Hypertext Markup Language (HTML)
Top Level Domain (TLD)
Intranet
A within-organization computer network that uses Internet technologies to
communicate
Extranet
Uses Internet technologies to facilitate communication and trade between
an organization and its business partners, such as suppliers
Business-to-Business Trading (B2B)
Electronic Data Interchange (EDI)
Exchanges and Auctions
Online Business Alliances
Application and Storage Service Providers
Business to consumer (B2C)
Advertising
E-retailing
Customer Relationship Management (CRM)
Consumer Profiling
Information Systems in Business Functions
ISs can help companies attain more effective and efficient business processes
Effectiveness
The degree to which a task is accomplished
Efficiency
Determined by the relationship between resources expended and benefits
gained in achieving a goal
IP Number
Domain Naming System (DNS)
A domain name is assigned to each IP
address
Domain names are registered by one of agroup of companies authorized to assign
unique names
Auctions and Reverse Auctions
Content Providers
Software SalesStock Trading
Distributed R&D
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Accounting
The purpose of accounting is to track every financial transaction within a company,
from a few cents to multi-billion dollar purchase,
from salaries and benefits to the sale of every item
Without tracking the costs of labor, materials, purchased services using a cost-
accounting system, a company may discover that it sells products below what it cost to
make them
Without a system of accounts receivable, managers may not know who owes the
company how much money and when it is due
Without an accounts payable system, managers can not know how much money the
company owes each supplier and when payment is due
Without a system that records and helps plan cash flow, managers cannot keep
enough cash in the bank to make payment on schedule
At the end of the year, the company cannot present a picture of its financial situation
(balance sheet and profit-and-loss report) unless it maintains a general ledger to recordevery transaction with a financial impact
Accounting and IT
That is why accounting was the earliest business functions to embrace IT
General ledger, accounts receivable, accounts payable, and cash flow books
conveniently lend themselves to computerization and can easily generate balance
sheets and profit-and-loss statements from records.
AISs automatically post transactions in the books and automate generation of reports
for management and legal requirementsThree types of AISs
Transaction processing systems (TPS)
Cost accounting systems
Managerial accounting systems
Transaction processing systems (TPS)
They route every purchase of raw materials or services to the accounts payable
system, which uses it to produce checks
Whenever a sale is recorded, the transaction is routed to the accounts receivable
system (which generate invoice) and other destination
Total of accounts payable and receivable can be automatically transferred tobalance sheet
Data from the general ledger can be automatically compiled to generate a
cash-flow report or a profit-and-loss report for the past quarter or year.
Accounting ISs can generate any of these reports on demand, as well as at
scheduled times.
Cost accounting systems
The cost accounting systems trackcost of labor, materials, consulting fees, and
every other expense related to products development and manufacture
The system automatically captures records of every $ spent (originally recorded
in the payroll and purchasing systems) and routes expenses to the appropriatework order (authorization to perform a work for a specific purpose)
Without cost accounting system, it would be impossible to determine the cost
developing a new product and manufacturing an item.
Managerial accounting systems
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Accounting systems assist managers in organizing quarterly and annual budgets
for departments, division, and entire corporations.
They help also managers control budgets by tracking income and expense in real
time comparing them with the amounts predicted in the budgets.
Electronic Data Processing (EDP) Audits
Ensure electronic systems comply with standard regulations and acceptable rules
Ensure systems cannot be manipulated to circumvent acceptable principles
Finance
The job of financial managers is to manage money as efficiently as possible by:
Collecting payables as soon as possible
Making payments by the latest time allowed by contract or law
Ensuring sufficient funds are available for day-to-day operations
Taking advantage of opportunities to accrue the highest yield on funds not usedfor current activities
Cash Management
Financial ISs help balance the need to accrue interest against the need to have cash
available
Cash management systems (CMS):
Handle cash transactions specifically
Electronic fund transfer (EFT):
Electronic transfer of cash from one bank account to another
Investment Analysis and Service
Analyze and project prices of a specific stock or bond
Transmit buy and sell orders electronically
Provide clients with a detailed statement
Monitor account information and news online
Engineering
ISs reduce engineering lead time or time-to-market
Key to maintaining a competitive edge
Computer-Aided Design (CAD) Systems
Help engineers and technicians design new products and quickly modify
and store drawings electronically
Rapid Prototyping:
Creating one-of-a-kind products to test design in 3D
Manufacturing & Inventory Control
IT helps in these manufacturing activities:
Plant activity scheduling
Material requirement assessment
Material reallocation between orders
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Dynamic inventory management
Grouping work orders by characteristics
Resource qualification for task completion
Materials Requirement Planning (MRP)
Take customer demand as initial input (ie DELL model)
Number of product units needed and when they are needed
Use long-range forecasts to put long-lead material on order
Help reduce inventory cost while ensuring availability
Combines MRP with other manufacturing-related activities to plan the manufacturing
process such as:
Shop activity control and purchasing
Source of demand
Customer order entry and forecasting
Support functions such as financial management, sales analysis, and data
collection
Manufacturing Execution Systems (MES)
Track, schedule, and control manufacturing processes
Collect data such as:
Hours machine operates every day of the month (resale value)
Hours the machine is idle and why (productivity)
Monitoring and Control
Supply chain management (SCM)Managers know status of product during manufacturing
Recent IS control as well as monitor manufacturing process
System at Ford Motor Company designed to ensure no assemble steps are missed
Marketing, Sales, & Customer Service
Market Research
Statistical models help market researchers find the best populations for new and
existing products
Targeted MarketingDatabase management systems (DBMS) help define potential customers as
narrowly as possible
The Internet as a Marketing and Selling Medium
Web lets companies reach more shoppers and serve them better
Mobile Commerce (M-Commerce) is the newest form of marketing
Commercial announcements pervade the Web
Sales Force Automation
Equipping salespeople with information technology to facilitate productivityIT allows salespeople to present different options for products and services on the
spot
Customer Relationship Management
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Customer Relationship Management (CRM) software for companies to better serve and
know customer needs
Track past purchase and payments
Update online answers to frequently asked questions
Analyze customers contact with company
Web-based Customer Service available 24/7
Human Resources
Employee Record Management
Reduce space needed to store records, time to retrieve them, and costs of both
Promotion and Recruitment
Search databases for qualified personnel
Use intranet to post job vacancies
Use the Web to recruit
Training
Multimedia software training is replacing classrooms and teachers
Training software simulates an actual task or situation and includes evaluationtools
Evaluation
Evaluation software helps standardize the evaluation process and adds a certain
measure of objectivity and consistency
Compensation and Benefits Management
ISs can help manage compensation efficiently and effectively
Calculate salaries, hourly pay, commissions, and taxes
Automatically generate paychecks or direct deposits
Special software helps manage benefits, such as health insurance, life insurance,
retirement plans, and sick and leave days
Enterprise Resource Planning (ERP)
All business functions served by one system that supports different activities for different
departments
Support supply chain management, the series of main and supporting activities from
order to delivery
Groupware and Collaborative Work
GroupWare lets workers in different locations communicate ideas, brainstorm, and work
together as if they were in the same place
Document Control
Users can distribute and track electronic documents without working with
outdated information
Collaborative Projects
Users can coordinate work on a single document from many different terminals
Ethical and Societal Issues Privacy? What Privacy?
What is Privacy?
Ones right to control information about oneself
Not a constitutional right per se; secured by laws or convention
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Increasing number of organizations may access information via better IT
hardware and software
Business and civil rights advocates dispute degree of privacy vs. utility of
information access
Business Arguments
Necessary to collect basic financial and personal information as cheaply as
possible
Consumers benefit eventually from competitive environment augmented by
readily available information
Consumer Arguments
Resent unsolicited mail and telephone calls
Resent being refused credit because of credit bureau mistakes
Frightened by dossier phenomenon
Loss of control over information unfairinformation gathered for a particular
purpose with permission should remain restricted
Seven Commandments of Personal Data Collection and Maintenance
1 Companies should inform people who provide information of specific,exclusive
purpose
2 Relevance: Companies should record and use only data necessary to fulfill their
own purposes
3 Accuracy: Companies should ensure that their data are accurate
4 Currency: Companies should make sure that all data about an individual are
current
5 Security: Companies should limit data access to only those who need to know
6 Time Limitation: Companies should retain data only for the time period
necessary
7 Scrutiny: Companies should establish procedures to let individuals review theirrecords and correct inaccuracies
Summary
There are various business functions and ISs have a role in ALL these functions
ISs relate to each other in basic business functions
IT is used in business functions to make business more effective and more efficient
Enterprise resource planning (ERP) systems help run different functions
Subcontracting and Outsourcing
Outsourcing
Short-term contractual relationship with a service firm to develop a specific
application
Long-term contractual relationship with a service firm to take over an
organizations IS functions
Application Service Provider
Allows use of applications via the Internet
In-house use of development tools to create applications
Outsourcing means two different things:
A short-term contractual relationship with a service firm to develop a specific
application for an organization
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A long-term contractual relationship with a service firm to take over all or some of
an organizations IS functions
An organization trusts all activities associated with its ISs to another company:
Purchasing and maintaining hardware
Developing, purchasing, and maintaining software
Installing and maintaining communications networks
Developing, maintaining, and operating Web sites
Staffing help desks
Running the IS daily operations
Managing customer and supplier relations
4 major considerations:
What are our core business competencies? Of the business we conduct, what
specialties should we continue to practice ourselves?
What do we do outside our specialties that could be done better for us byorganizations that specialize in that area?
Which of our activities could be improved if we created an alliance with IS
organizations?
Which of our activities should we work to improve internally?
Advantages of Outsourcing
Improved financial planning
Reduced license and maintenance fees
Increased attention to core businessShorter implementation cycles
Reduction of personnel and fixed costs
Increased access to highly qualified know-how
Ongoing consulting as part of standard support
Increased security
Risks of Outsourcing
Loss of control
Loss of experienced employees
Risks of losing a competitive advantageHigh price
Two classifications of ready-made software:
Inexpensive applications to help in the office
Expensive, large applications that span an entire
organization:
Human resource management
Financial management
Benefits
Immediate system availability
High quality
Low price
Available support
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Application Service Providers
An organization that offers the use of software applications through communication
lines
Ethical and Societal Issues
Computer Use Policies for Employees
End-user computing encourages increased productivity, but business computers are
often used for unproductive personal activities
Most state statutes do not address unauthorized use of computers
Employers should provide clear guidelines stating acceptable and unacceptable use of
company computers
Summary
There are several options available for systems acquisition:
Outsourcing
Ready-made softwareUser-developed applications
ASP
There are trade-offs for each option
Each set of circumstances will dictate the appropriate approach
Project management and change
3 main objectives of change control:
1-Influence the factors that create changes to ensure they are beneficial
2-Determine that a change has occurred3-Manage actual changes when and as they occur
Former view: the project team should strive to do exactly what was planned on time
and within budget
Problem: stakeholders rarely agreed up-front on the project scope, and time and costs
estimates were inaccurate
Modern view: Project management is a process of constant communication and
negotiation
Solution: changes are often beneficial and the project team should plan for them
A formal, documented process that describes when and how official projectdocuments and work may be changed
Describes who is authorized to make changes and how to make them
Often includes a change control board, configuration management and a process for
communicating changes
What and Why?
Changes relate to alterations in the projects overall baseline including:
-Scope: requirement, design, methodology/processes
-Cost: budget, contract price, procurement
-Time: phase-release- and overall delivery schedule
-Quality: stakeholder expectations, contracted requirement
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Benefits of change:
-Reduced life cycle costs (eg lower maintenance or operating costs)
-Increased returns from the project (eg earlier project completion)
-Reduced project delivery costs (eg lower implementation costs)
-Intangible improvements (eg stakeholder satisfaction)
However, keep in mind that change implies problems
The organisational context of project management
Structural frame:
Focuses on roles and responsibilities, coordination and control. Organisation charts help
define this frame.
Political frame:
Assumes organisations are coalitions composed of various individuals and interest
groups. Conflict and power are key issues.
Human resource frame:
Focuses on providing harmony between needs of the organisation and needs of people
Cultural frame:Focuses on symbols and meanings related to events. Company culture is an important
point.