ADMS 2511 - Lecture notes chapter 1-13 PDF

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ADMS 2511 Chapter 1 Information technology: Any computer based tool that people use to work with information and to support the information and information-processing needs of an organization. Information system: Collects, processes, stores, analyzes, and disseminates information for a specific purp...

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ADMS 2511

Chapter 1 Information technology: Any computer based tool that people use to work with information and to support the information and information-processing needs of an organization. Information system: Collects, processes, stores, analyzes, and disseminates information for a specific purpose. Informed user: A person knowledgeable about information systems and information technology. Informed users tend to get more value from whatever technologies they use. -

Information systems are difficult to manage and they are very expensive the acquire, operate, and maintain.

Technology Jobs: - Chief Information Officer: Highest ranking IS manager, is responsible for all strategic IS planning in the organization. - System Manager: Manages a Particular existing system. - System Analyst: Interfaces between users and programmers, determines information requirements and technical specifications for new applications. - Business Analyst: Focuses on designing solutions for business problems; interfaces closely with users to demonstrate how IT can be used innovatively. - Web Designer: Creates World Wide Web sites and pages. Function of the MIS department: - Initiating and designing specific strategic information systems. - Managing system integration, including the internet, intranets, and extranets. - Education non-MIS managers about IT. - Partnering with business unit executives. - Etc… Date items: Are elementary description of things, events, activities, and transactions that are recorded, classified, and stored but not organized to convey any specific meaning. It can be numbers, letters, figures, sounds, and images. Information: Is data that have been organized so that they have meaning and value to the recipient. For example, GPA is a data number but if its coupled with the student’s name, the recipient interprets the meaning. Knowledge: Consists of data and/or information that have been organized and processed to convey understanding experience, accumulated learning, and expertise as they apply to a current business problem.

Computer-based information system: Is an information system that uses computer technology to perform some or all of its intended tasks. Computer-based information systems have many capabilities such as: - Perform high-speed, high-volume numerical computations. - Provide fast, accurate communication and collaboration within and among organizations. - Store huge amount of information in an easy-to-access, yet small space. - Allow quick and inexpensive access to vast amount of information worldwide. - Interpret vast amounts of data quickly and efficiency. - Automate both semi-automatic business processes and manual tasks. Basic components of computer-based information system: - Hardware: Consist of devices such as the processor, monitor, keyboard, and printer. Together these devices accept, process, and display data and information. - Software: Is a program or collection of programs that enable the hardware to process data - Database: is a collection of related files or tables containing data. - Network: Is a connecting system (wireline or wireless) that permits different computers to share resources. The top four are called information technology components. - Procedures: are the instructions for combining the above components to process information and generate the desired output. Application: Is a computer program designed to support a specific task or business process. Departmental Information System: The collection of application programs in a single department. Two information systems that support the entire organizations are: 1. Enterprise Resource Planning (ERP): Are designed to correct a lack of communication among the functional area ISs. 2. Transaction Processing System (TPS): Supports the monitoring, collection, storage, and processing of data from the organization’s basic business transactions, each of which generates data. Interorganizational Information Systems: Information systems that connect two or more organizations. For example, supply chain management which is the flow of materials, information, money, and services from suppliers of raw materials through factories and warehouses to the end customers. Electronic Commerce Systems: Are another type of interorganizational information system. These systems enable organizations to conduct transactions, called business to business (B2B) electronic commerce, and customers to conduct transactions with businesses, called business to consumer (B2C) electronic commerce.

Support for Organizational Employees Clerical workers: Who support managers at all levels of the organization, include bookkeepers, secretaries, electronic file clerks, and insurance claim processors. Knowledge workers: Are professional employees such as financial and marketing analysts, engineers, lawyers, and accountants. All knowledge workers are experts in a particular subject area. Office Automation Systems (OASs): Typically support the clerical staff, lower and middle managers, and knowledge workers. Like office Business Intelligence Systems: Provide computer-based support for complex, non-routine decisions, primarily for middle managers and knowledge workers. Expert Systems (ESs): Attempt to duplicate the work of human experts by applying reasoning capabilities, knowledge, and expertise within a specific domain. Dashboards: Are a special for of IS that support all managers of the organization. They provide rapid access to timely information and direct access to structured information in the form of reports.

How Does IT Affect Organizations? - IT reduces the number of middle managers - IT changes the manager’s job - IT can eliminate jobs - IT Affects Employees at work o IT affects employees’ health and safety o IT provide opportunities for people with disabilities Importance of Information Systems to Society - IT affects our quality of life - The robot revolution is here - Improvements in health care

Chapter 2 Business process: Is an ongoing collection of related activities that create a product or a service of value to the organization, its business partners, and/or its customers. - Inputs: Materials, Services, and information that flow through and are transformed as a result of process activities. - Resources: People and equipment that perform process activities.

- Outputs: The product or a service created by the process. - Inputs, resources and outputs can be measured. Business process can be measured by efficiency and effectiveness. Efficiency focuses on doing things well in the process; for example, processing from one process activity to another without delay or without wasting money or resources. Effectiveness focuses on doing the things that matter; that is, creating outputs of value to the process customer- for example high quality products. Cross-functional business process: Happen in multiple areas of an organization, such as product development, which involves design, engineering, manufacturing, marketing, and distribution. Other processes involve only one functional area. - The procurement process: Includes all of the tasks involved in acquiring need material externally from a vendor. - The fulfillment process: Is concerned with processing customer orders. Fulfilment is triggered by a customer purchase order that is received by the sales department. Competitive Advantage: Is an advantage over competitors in some measure such as cost, quality, or speed; it leads to control of a market and to larger-than-average profits. - Organizational strategy: is a planned approach that organization takes to achieve its goals and its mission statement. Also want to defeat the competitor. Information Systems and Business Processes: IS plays a vital role in the following 3 areas: - Executing the process: An IS helps organizations execute process efficiently and effectively, they play a critical role in executing the processes. o For example, issue of purchase order during the procurement process.

- Capturing and storing process data: Process create data such as dates, times, product

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numbers, quantities, prices, and addresses, as well as who did what, when, and where. ISs capture and store these data, commonly referred to as process data or transaction data. o Automatic capture: When taking order through website. o Manual capture: When taking order over the phone, employee enters data manually in the system. Monitoring process performance: A third contribution of IS is to help monitor the state of the various business proves. That is, the IS indicates how well a process is executing. o When warehouse dispatches an order, the order tracking is monitored to determine if the order was delivered on time.

Excellence in business process results: - Customer satisfaction - Cost reduction - Cycle and fulfillment time reduction

- Quality - Differentiation - Productivity BPR, BPI and BPM: - Business Process Reengineering: “Starting from scratch” or “clean sheet” to evaluate and redesign business processes to be more efficient and effective. More radical in nature and requires more effort, investment, and resources. - Business Process Improvement: “Incremental changes” that organize work around business processes rather than individual tasks or activities. Companies search for root causes to assess why performance varies against expectation/benchmark. (for example broken machine). - Business Process Management: “Includes methods and tools to support the design, analysis, implementation, management and continuous optimization. o For example: ongoing evaluation and improvement.

Business environment: Is the combination of social, legal, economic, physical, and political factors in which businesses conduct their operations. Significant changes in any of these factors are likely to create business pressures on organizations. There are 3 major types of business pressures: market, technology, and societal, political and legal pressures. - Market Pressures: Market pressures are generated by the global economy, intense competition, the changing nature of the workforce, and powerful customers. o Globalization: The ability to reach foreign markets and for a foreign market to reach your market. o The Changing Nature of the Workforce: The workforce, particularly in developed countries, is becoming more diversified. Increasing numbers of women, single parents, minorities, and persons with disabilities are now employed in all types of positions. Work from home. o Powerful Customers: Consumer sophistication and expectations increase as customers become more knowledgeable about the products and services they acquire. - Technology Pressures: The second category of business pressures consists of those pressures related to technology. o Technological Innovation and Obsolescence: Technology being developed at rapid pace and companies need to keep on top to stay in business and/or grow. Classic example is Smartphone. o Information Overload: Too much information for managers to process and they need to be able to access and navigate this information for effective decision making. - Societal/Political/Legal Pressures

o Social Responsibility: Social issues that affect businesses and individuals range from the state of the physical environment to company and individual philanthropy. Digital divide between individuals who have access to information technology and individuals who don’t. o Compliance with Government Regulations: Another major source of business pressures is government regulations regarding health, safety, environmental protection, and employment equity. o Protection against Fraud or Terrorist Attacks: Computer systems can be used to create fraudulent or fictitious transactions that are used to steal funds from banks or other organizations, or to engage in identity theft. o Ethical issues: Ethics relates to general standards of right and wrong. Information ethics relates specifically to standard of right and wrong in information processing practices. Organizational Responses: Organizations are responding the various pressures. - Strategic Systems: Systems that enable firms to increase market share, better negotiate with suppliers and prevent competitors’ entry into market. - Customer Focus: Trying to make customers’ happy through customer service so as to retain them and not lose to competitors - Make-to-order and Mass Customization: Is a strategy of producing customized (made to individual specifications) products and services. - E-business and E-commerce: Doing business over the internet. Strategic Information Systems: Provide a competitive advantage by helping an organization implement its strategic goals and improve its performance and productivity. Any information system that helps an organization either achieve a competitive advantage or reduce a competitive disadvantage qualifies as strategic information systems. Poster’s Competitive Forces Model: - Threat of new competitors: o Is Low when: New competitors’ entry is difficult o Is High when: New competitors’ entry is easy o Effect of Internet: Usually, threat is increased as competitors find ways to enter market. (Virtual marketplace) - Bargaining power of suppliers: o Is Low when: Buyers have many choices o Is High when: Buyers have lesser choices o Effect of Internet: Mixed effect. Power decreases because ability to search alternatives. Power increases because some companies have locked in supply chain. - Bargaining power of customers/buyers: o Is Low when: Not too many companies to buy from, Loyalty programs (air miles)

o Is High when: Many companies to buy from o Effect of Internet: Power is usually increased as customers are able to find alternatives online (used book websites vs. York U Bookstore)

- Threat of substitute products/services: o Is Low when: Not many substitutes available, Switching costs such as smartphone contracts

o Is High when: Many substitutes available. (Communication, landlines, telephones, apps, etc)

o Effects of Internet: Threat is increased due to many options available - Rivalry amongst existing firms: o Is Low when: Less firms, Not intense competition o Is High when: More firms, Intense competition o Effects of Internet: Rivalry has increased due to internet as there are additional opportunities available for companies to innovate, sell etc. Poster’s value chain model: Identifies points where an organization can use IT to achieve competitive advantage. - Primary Activities: Those that are related to production and distribution (creates revenue). These activities create value - Support Activities: These support primary activities (doesn’t create revenue like human resources). Contributes to firm’s competitive advantage by supporting the primary activities.

Strategies for competitive advantage: - Cost Leadership: Produce products and/or services at the lowest cost in the industry. (Produce at the least cost). - Differentiation: Offer different products, services or product features. - Innovation: Introduce new products and services, add new features to existing products and services or develop new ways to produce them. - Operational Effectiveness: Improve the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals. - Customer-orientation: Concentrate on making customers happy. Business-IT Alignment: Integration of IT function with organization’s strategy, mission and goals. That is, the IT function directly supports the business objectives of the organization. (6 characteristics) (4marks). - View IT as engine of innovation - View internal/external customers and customer service function as very important - Rotate business and IT professionals across jobs/depts. - Provide goals that are clear to IT and business employees

- Ensure IT understand money function in organization - Create a vibrant and inclusive culture IT governance: The purpose of IT Governance is to provide effective oversight over the use of technology. “a structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing risk versus return over IT and its processes.

Chapter 3 Ethics: The set of principles of right and wrong that individuals use to make choices that guide their behaviour. Ethical Frameworks: - The utilitarian approach: States that an ethical action is the one that provides the most good or does the least harm. - The rights approach: Ethical action is the one that best protects and respects the moral rights of the affected parties. - The fairness approach: Posits that ethical actions treat all human beings equally, or, if unequally, then fairly. - The Common good approach: This approach argues that respect and compassion for all others is the basis for all ethical actions. It emphasizes the common conditions that are important to the welfare of everyone. Ethics in the Corporate Environment: Many companies and professional organizations develop their own codes of ethics. Code of ethics: A collection of principles intended to guide decision making by members of the organization.

Fundamental tenets of ethics include responsibility, accountability, and liability: - Responsibility: Means that you accept the consequences of your decisions and actions. - Accountability: Means determining who is responsible for actions that were taken. - Liability: A legal concept that gives individuals the right to recover the damages done to them by other individuals, organizations, or systems. The diversity and ever-expanding use of IT applications have created a variety of ethical issues. These issues fall into four general categories: Privacy, Accuracy, Property, and Accessibility. - Privacy issues involve collecting, storing, and disseminating information about individuals. - Accuracy issues involve the authenticity, fidelity, and correctness of information that is collected and processed.

- Property issues involve the ownership and value of information. - Accessibility issues resolve around who should have access to information and weather they should pay a fee for this access. Privacy: The right to be left alone and to be free of unreasonable personal intrusions. Information Privacy: The right to determine when, and to what extent, information about you can be gathered and/or communicated to others. Digital Dossier: An electronic profile of you and your habits. Profiling: The process of forming a digital dossier. Threats to privacy: - Electronic Surveillance - Personal Information in Databases - Information on internet bulletin boards, newsgroups, and social networking sites Privacy Policies (or Privacy Codes): An organization’s guidelines for protecting the privacy of customers, clients, and employees. Opt-in Model: A model of informed consent in which a business is prohibited from collecting any personal information unless the customer specifically authorizes it. Opt-out Model: A model of informed consent that permits a company to collect personal information until the customer specifically requests that the data not be collected.

Chapter 4 Information security: All of the processes and policies designed to protect an organization’s information and information systems (IS) from unauthorized access, use, disclosure, disruption, modification, or destruction. - A Threat to an information resource is any danger to which a system may be exposed. The exposure of an information resource is the harm, loss, or damage that can result if a threat compromises that resource. Five factors are contributing to the increasing vulnerability: making it much more difficult to secure them. 1. Today’s interconnected, interdependent, wirelessly networked business environment. 2. Smaller, faster, cheaper computers and storage devices. 3. Decreasing skills necessary to be a computer hacker. 4. International organized crime taking cover cybercrime.

5. Lack of management support. Cybercrime: Involves in illegal activities conducted over computer networks, particularly the internet. 4.2 Unintentional Threats to information Systems: - Human Errors: o Car...