ADMS 2511 - Lecture notes for entire semester PDF

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Chapter 1 : Introduction to information systems Introduction : 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. An information system: collects, processes, stores, an...

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Chapter 1 : Introduction to information systems Introduction :

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. An information system: collects, processes, stores, analyzes, and disseminates information for a specific purpose 1.1 Why study Information systems? To become an informed user: knowledgeable about IS and IT - You get more value - Understand what is behind applications - Enhance quality of your CIE IT applications with your input - Make recommendations - Remain on top of things (new content) - Understand how IT improves performance, teamwork, and productivity - Use IT for your own business IT career opportunities - Chief information officer - IS director - Info center manager - Project manager - Ops managers - Programming manager - Systems analyst Difficult to manage IS b/c - Most firms are Hostage to IS - Very expensive to acquire, maintain and operate - Now everyone uses computer in cie -

NEW fcts of MIS department - Initiating and designing specific strategic info systems based on users needs - Incorporate Internet and E commerce - Managing system integration (internet, intranet and extranet) - Education users - Educating MIS staff about business - Partnerinr with other business units - Using business and tech knowledge to provide new ideas - Creating alliances with partners

1.2 Overview of computer-based information systems MIS deals with planning, development, management and use of information technology tools to help people perform their tasks. 1- Data: elementary description of things, event that are recorded, classified and stored, but not organized to convey meaning. (numbers, letters) 2- Information: organized data (assign meaning to numbers) 3- Knowledge: organized information to convey understanding, experience, accumulated learning and expertise (over time, u know GPD over 3.0 have more success) Hardware: Processor, monitor, keyboard, printer (accept, process and display data and info) Software: program that enable hardware to process data DatabaseL collection of files Network: Connecting system that allow to share resources Procedures: instructions for combining the above components to process info and generate output

Departmental IS or functional area IS: collection of apps from 1 department

Transaction processing systems (TPS) (support entire CIE) MIS Enterprise resource planning (ERP) (support entire CIE) Customer relationship management (CRM) Supplu chain management (SCM)

Information Technology Infrastructure IT infrastructure- physical facilities, IT components/services/personnel that supports the whole org -IT components are the computer hardware, communication technologies -IT personnel are the people -IT services include data management, systems development, security concerns ALL FAIS support business intelligence ERP: enhance communication between all areas TPS: Monitor, collect sotre and process data from basic transactions (money or no money involved) and directs the necessary info to departments. Interorganizational information system (IOS): connects many cie, usually for supply chain Support for organizational employees -

Knowledge worker: professionals, expert in a subject. They create info and knowledge with they integrate into the business. Advisors to managers

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Clerical workers: support everybody Lower level manager: day to day activity Middle manager: strategic decisions Office automation systems (OAS): Support all above. Use it to develop documents, schedule resources, and communicate Business intelligence systems: support for complex, non routine decision to middle mana and knowledge worker Expert system: Attemps to duplicate work of human experts. (navigation systems) Dashboards: Supports all managers of cie. Provide access to info and reports. (executive dashboard)

1.3 How does IT affect organizations? IT affects entire organizations! 1- Industries where software disrupted previous market leaders or new companies used software to gain comp. advantage. a. Book industry: amazon largest book publisher, e-books b. Music industry: iTunes & Spotify c. Video industry: blockbuster d. Software industry: Big ones threatened by open source e. Videogame industry: Phone games! f. Photography industry: Use your phone now g. Marketing industry: Facebook is the biggest h. Recruiting industry: LinkedIn i. Financial industry: No buyers j. Motion picture industry: Everything is done through software now k. Automobile industry: Software runs engine, controls many features l. Agriculture industry: Satellite analysis m. National defense: everything n. Education: Online courses o. Legal profession: Software analysis of documents IT reduces number of middle managers - More employee report to one manager - Makes him more productive IT changes a Manager’s job: - Changes how decisions are made - Offers real time info! - Business analytic tools (dashboards, search engines) - Geographically disperse team (remote supervision)

Will IT eliminate jobs? - Need to add value to every you do IT affects employee’s health and safety 1- Job stress a. Due to increased workload b. Can diminish productivity c. Bad for mental and physical health 2- Long-term use of keyboard a. Repetitive strain injuries (backaches, tension) b. Carpal tunnel syndrome c. Ergonomics! IT provides opportunities for people with disabilities - Speech recognition - Vision recognition - Can work from home 1.4 IMPORTANCE OF INFORMATION SYSTEMS TO SOCIETY IT affects our quality of life - Offers flexibility - Constant call (never away from office) Improvement in health care - Improves diagnosis - R&D - Plan surgery through VR - Administrative systems - Quick search online

CHAPTER 2: ORGANIZATIONAL STRATEGY, COMPETITIVE ADVANTAGE, AND INFORMATION SYSTEMS 2.1 BUSINESS PROCESSES Business process: Ongoing collection of related activities that products or services of value for the cie or customers 1- Input: Materials, services and information, that are transformed 2- Resources: People and equipment 3- Outputs * Customer: can be internal or external to the company Measurement methods: 1- Efficiency: How well you do things, without delay or waste 2- Effectiveness: The value added, quality

Accounting Business Processes • • • •

Managing accounts payable Managing accounts receivable Reconciling bank accounts Managing cash receipts

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Managing invoice billin Managing petty cash Producing month-end c Producing virtual close

Finance Business Processes • • • •

Managing account collection Managing bank loan applications Producing business forecasts Applying customer credit approval and credit terms

• Producing property tax • Managing stock transa • Generating financial ca

Marketing Business Processes • • • • •

Managing post-sale customer follow-up Collecting sales taxes Applying copyrights and trademarks Using customer satisfaction surveys Managing customer service

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Handling customer com Handling returned good Producing sales leads Entering sales orders Training sales personn

Production/Operations Management Busines • • • • • • •

Processing bills of materials Processing manufacturing change orders Managing master parts list and files Managing packing, storage, and distribution Processing physical inventory Managing purchasing Managing quality control for finished goods

• • • •

Auditing for quality ass Receiving, inspecting, Handling shipping and Handling vendor select

Human Resources Business Proces • • • • • •

Applying disability policies Managing employee hiring Handling employee orientation Managing files and records Applying health care benefits Managing pay and payroll

• Producing performance adjustments • Managing resignations • Applying training/tuition • Managing travel and e • Managing workplace ru • Overseeing workplace

Management Information Systems Business • • • • •

Antivirus control Computer security issues incident reporting Training computer users Computer user/staff training Applying disaster recovery procedures

• • • • •

Cross-functional processes Multiple functional areas collaborate to perform the process 1- Procurement process: a. Acquiring materials from a vendor b. Involves: warehouse, purchasing and accounting 2- Fulfillment process: a. Processing customer’s orders

Applying electronic ma Generating Internet us Managing service agre Applying user workstat Managing the use of p

b. Involves: sales department, warehouse, shipment, accounting Create competitive advantage: if you innovate your processes, execute them efficiently and effectively To achieve good processes: 1- Document the process by steps (E-ticketing)

Information systems and business processes

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Critical enabler of cie business processes Facilitate communication and coordination among functional areas (data) Executing the process Capturing and storing process data Monitoring process performance

Executing the process - Helps with efficiency and effectiveness - IS intertwined with process, embedded - Can inform people when it is time to do task - Providing data to do the task - Provide the means to do the task Capturing and storing process data - Such as dates, times, prdct numbers, qtt, prices, addresses, and who did what when and where - Called process data or transaction data - Entered manually or bar codes - Can be accessed by anyone once done - Provide instantaneous feedback: receipts, recommendations Monitoring process performance - How well a process is executing - At instance level (specific task) or process level - Status of order - Can detect problems (by comparing with standard) 2.2 BUSINESS PROCESS REENGINEERING, BUSINESS PROCESS IMPORVEMENT, AND BUSINESS PROCESS MANAGEMENT Measures of how well you’re going 1- Customer satisfaction: fulfill his needs, wants and desires by aligning processes 2- Cost reduction: optimize operations and supplier processes 3- Cycle and fulfillment time reduction: manufacturing and logistics processes 4- Quality: design, development, and prod. Processes 5- Differentiation: marketing and innovation

6- Productivity: each individual work processes

!! Reduce cost and increase quality!! Business processes reengineering (BPR) (top down) - Strategy to make processes more productive and profitable1 1- Examine existing ones 2- How to best reconstruct those to improve business fcts - Very popular due to information technology capabilities (automation and standardization) Business process improvement (BPI) (Bottom up) - Less radical and less disruptive than BPR, more incremental - Reducing variation in output by looking for cause in process or inputs - Involves experts - Six Sigma: Method for BPI: searches for defects, but now good for services too as it focuses on value 1- Define phase: document as is process activities, resources, inputs and outputs, customer requirement 2- Measure phase: identify relevant: time, cost. Collect data for those measures over time, as well as interviews, surveys 3- Analysis phase: ID problems and causes, benchmark process with similar cie or areas. Use process simulation software 4- Improve phase: ID solutions, and implement them. Eliminate process that do not add value, reduce delays and improve resource use. 5- Control phase: Monitors, make sure it is stable Business process management (BPM): To sustain BPI over time - Methods and tools that support a. Design b. Analysis c. Implementation d. Management e. Continuous optimization

1- Process modelling: graphs about all steps in process (see dependency and interactions) 2- Web-enabled technology: display & retrieve data via web browser. Allow to integrate people and apps in the process 3- Business activity monitoring (BAM): Measure and manage processes, ID failures. Tracks process operations and ID if they will fail BPM activities supported by BPM suites - Integrated set of applications with process maps, tolls for process modelling, simulation, execution, coordination between fcts, and reconfiguration 2.3 BUSINESS PRESSURES, ORGANIZATIONAL RESPONSES, AND INFORMATION TECHNOLOGY SUPPORT BUSINESS PRESSURES

Market pressure: due to global economy, and intense competition 1- Globalization 2- Changing nature of workforce: diversified 3- Powerful customers: knowledgeable, Internet Technological pressure: 1- Technological innovation and obsolescence (BYOdevice, IT can’t control them, but increase productivity) 2- Information overload Social responsibility: 1- Social responsibility: CSR, philanthropy Green IT: Facility design and management, carbon management, laws 2- Compliance with government regulation 3- Protection against fraud and terrorist attacks 4- Ethical issues: right vs wrong Digital divide: cap between who has info and who hasn’t Organizational responses 1- Strategic systems (automated teller): allow to increase market share, netter negotiate, and block competitors 2- Customer focus: using IT tools and business processes 3- Make-to-order and mass customization 4- E-commerce 2.4 COMPETITIVE ADVANTAGE AND STRATEGIC INFORMATION SYSTEMS Competitive strategy: statement that ID cie approach to compete, its goals, and plans and policies. Helps seek competitive advantage Strategic information systems: help implement strategic goals, and improve performance and productivity.

Porter’s competitive force model

1- Threat of new entrants a. When low barrier 2- Bargaining power of suppliers (when many buyers, little suppliers 3- Bargaining power of customers: Choice + loyalty 4- Threat of substitutes: various options: cell phone, land line 5- Rivalry: people see your info system online, they copy it quickly Digital products: almost 0$ in VC (new song on itunes)

Porter’s value chain model

*To identify specific activities where cie can use competitive advantage for greatest impact. Exemple for manufacture company Strategies for competitive advantage *Often, can only focus on one or two

Business-information technology alignment The tight integration of the IT function with the organization’s strategy, mission, and goals. IT supports the cie directly Good alignment: 1- Organizations view IT as an engine of innovation that continually transforms 2- Cie view their internal and external customers and their customer service fct as very important 3- Cie rotate business and IT experts across departments and job fct 4- Cie provides goals that are clear to each IT and employee 5- Cie ensures IT employee understand how cie makes or lose money 6- Cie creates vibrant and inclusive cie culture Bad alignment: 1- Mana and IT have different objectives 2- Cie and IT are ignorant of the other group expertise 3- Lack of communication ** Need collaborative environment IT governance: structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing risks versus return over IT and its processes  Managing IT throughout cie: planning, acquisitions, implementation, ongoing support, monitoring and evaluation

CHAPTER 3: ETHICS AND PRIVACY 3.1 Ethical issues Set of principles of right and wrong that individuals use to make choices that guide behavior. Ethical frameworks -

Canadian Standard association

1- Utilitarian approach: Most good with least harm 2- Right approach: The one that best protect and respect moral rights. To make own choice, to told the truth, not be injured, right to privacy 3- Fairness approach: treat all equally, or fairly 4- Common good approach: all society, for the greater good Two approaches: traditional and GVV TRADITIONAL APPROACH

GIVING VOICE TO VALUES (GVV) APPROACH

1. Recognize an ethical issue

1. Identify an ethical issue

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Could this decision or situation damage someone or some group?

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What are the different issues that give rise to the ethical issue?

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Does this decision involve a choice between a good and a bad alternative?

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What are the values of the individuals or organizations underlying the ethical issue(s)?

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Is this issue about more than what is legal? If so, how?

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Is there a possibility of action to resolve the ethical issue?

2. Get the facts 

What are the relevant facts of the situation?

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Do I know enough to make a decision?

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Which individuals and/or groups have an important stake in the outcome?

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Have I consulted all relevant persons and groups?

3. Evaluate alternative actions

2. Purpose and choice 

What personal choices do you have in reacting to this ethical issue?

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What is your most appropriate professional choice, being guided by professional rules, and what would be a “good” choice?

3. Stakeholder analysis

TRADITIONAL APPROACH 

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Which option will produce the most good and do the least harm? (the utilitarian approach) Which option best respects the rights of all stakeholders? (the rights approach) Which option treats people equally or proportionately? (the fairness approach)

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Who is affected by the ethical issue?

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How are they affected, considering if I do give voice to resolving the issue?

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How are they affected, considering if I do not give voice to resolving the issue?

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How can I connect with the stakeholders to best deal with the ethical issue?

Which option best serves the community as a whole, and not just some members? (the common good approach)

4. Make a decision and test it 

GIVING VOICE TO VALUES (GVV) APPROACH

Considering all the approaches, which option best addresses the situation? What is the outcome of my decision and what should I do next? How can I implement my decision with the greatest care and attention to the concerns of all stakeholders? How did my decision turn out, and what did I learn from this specific situation?

4. Powerful response 

Who is my audience?

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What types of things could I say to provide a response to the ethical issue? What are some inhibiting arguments that would prevent me from acting? What could I say in response to the inhibiting arguments (called an enabling argument)? What external arguments (called levers) support my enabling arguments?

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What external research supports or refutes my arguments?

5. Scripting and coaching 

What words (script) could I use when talking about the ethical issue? (consider both positive and negative responses)

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Who can I practise with?

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How would I approach my audience to provide the best

TRADITIONAL APPROACH

GIVING VOICE TO VALUES (GVV) APPROACH opportunity for discussing the ethical issue?

Traditional: decide the nature of an action you take GVV: deal with ethical issue in co-operative way

Ethics in corporate environment Many have code of ethics Three big tenets: 1- Responsibility: accept consequences of your actions 2- Accountability: who is responsible 3- Liability: legally New ethical problems with computers: - Companies keep more data longer - Easy to collect and distribute data - Problem with privacy and intellectual property - Easy ...