BISM1201 Flashcard Notes (Quizlet) for Mid Semester PDF

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BISM1201 Notes in Flashcard Style covering notes from Week 1 up to Mid Semester....

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11/04/2021

BISM1201 Flashcards | Quizlet

BISM1201 Terms in this set (65) Why are information systems so essential for running and managing a business today? Week 1 What exactly is an information system? How does it work? What are its people, organisational, and technology components?

Dimensions of IS (organisational

Organisation, Technology, People

components)

Organisation: Coordinate work through structured hierarchy, culture and business processes Technology: Define each IS dimensions

People: Most important element and require skilled people to build, maintain and use IS. Employee attitudes affect ability to use systems productively. As technology change fast but people don't, need training.

1. Operational Excellence Business Drivers of IS (Businesses invest in IT to achieve six important business objectives)

2. New products, services, business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival

Business Dimension: O

Operational excellence Improved efficiency and productivity-> higher profits

New products, services, business models Business Dimension: N

(note: Business model: how a company produces, delivers and sells its product and services)

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Customer and supplier intimacy - Customers who are served well become repeat customers who purchase more Business Dimension: C

- Uses IT to foster an intimate relationship with its customers, keeping track of preferences and so on - Close relationship with suppliers result in lower cost

Improved decision making not having the right info at the right time can result in over/under Business Dimension: I

production, misallocate of resources, and poor response times => Poor outcomes raise cost and lose customers. Real time data improves ability of managers to make decisions

Competitive advantage People: - develop strategy - design new services - select vendor Organisation: - develop new business culture Business Dimension: C2

- create new business units - train support staff Technology: - cloud systems - websites and mobile tech - security systems Using IS successfully to achieve a competitive advantage requires a precise coordination of technology, organisation and people

Survival - Business may need to invest in IS out of necessity; simply the cost of doing business Business Dimension: S

- Keeping up with competitors - Federal and state regulations and reporting regulations - COVID-19 related regulations (recording all visits) - Firms that are digital outperform their rivals

What are Porter's competitive forces model and Porter's value chain model? How do information systems help businesses compete? Week 2

How do information systems help businesses compete using quality and design? What is the role of business process management/modelling in enhancing competitiveness?

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1. competitors 2. new market entrants 3. substitute products Porter's Competitive Forces Model

4. suppliers 5. customers

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New Market Entrance - Different entry level difficulties depending on capital costs and expertise knowledge Advantages: - not locked into old plants and equipment - hire younger, cheaper, innovative employees Porter's Competitive Forces Model: N

- Not encumbered by old worn-out brand names - More highly motivates than traditional occupants Weaknesses: - Depend on outside financing for new plants and equipment expensive - Less experienced workforce - Little brand recognition

Substitute products and services - if prices too high customers turn over to substitutes Porter's Competitive Forces Model: S

- new tech create new substitutes - the more substitutes in industry, the less control over pricing and lower profit margins

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Customers - the ability to attract and retain customers (while denying competitors) and charge high prices Porter's Competitive Forces: C

- power of customers (easily switch to competitors or force competitors and business to compete on price alone where little product differentiation in transparent market place where info easily accessed (internet) - bargaining power)

Market power of suppliers can significantly impact firm profits Porter's Competitive Forces: S

The more suppliers a firm has, the greater control it can exercise over those suppliers in terms of price, quality, and deliver schedule (bargaining power)

Competitors - When rivalry is intense, companies can attract customers with Porter's Competitive Forces: C2

aggressive price cuts and high-impact marketing campaigns - In markets with lot of rivals, suppliers and buyers can go elsewhere if they feel that they're not getting a good deal

Basic Strategy: Align the IT with Business Objectives ignoring IT, claim not to understand IT, and tolerate IS Strategies for Dealing with Competitive

failure in the IT area - such firms pay expensive amount

Forces: 1/5

in poor performances. Correct way: take an active role in shaping its use and measure its impact on revenue and profits

Low Cost Leadership IS Strategies for Dealing with Competitive

IS to achieve lowest prices and operational cost (efficiency in moving

Forces: 2/5

product through your pipeline, minimizing inventory and time delays between receipt of the goods, and the customer purchase)

Product Differentiation IS Strategies for Dealing with Competitive

Manufacturers and retails using IS to customize and personalise

Forces: 3/5

products and services to fit the precise specifications of individual customers (mass customization)

Focus on niche market IS Strategies for Dealing with Competitive Forces: 4/5

IS to enable specific market focus and serve the narrow target market better than competitors (by producing and analysing customer buying patterns, tastes, and preferences to then efficiently pitch marketing to smaller and smaller target markets - one to one marketing)

IS Strategies for Dealing with Competitive Forces: 5/5

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Strengthen customer and supplier intimacy Strong linkages to customers and suppliers increase switching costs and loyalty to the firm

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- Internet reduces barriers to entry - Internet blurs difference amongst competitors - Easier for rivals to compete on price alone - Internet creates new substitution threats - formed the basis for new products The internet's impact on competitive

- Internet increases bargaining power of suppliers - Internet shifts greater power to end consumers -

advantage

Raises bargaining power of customers, who can quickly find the lowest-cost provider on the internet - Provide new opportunities for building brands with very large and loyal customer bases - Force firms to change

Smart Products = IoT offer new functionality, greater reliability and more intense use of products. They expand opportunities for products and service Internet of Things (IoT)

differentiation, while providing opportunities for improving both products and customer experience May decrease the power of suppliers of industrial components if the physical products become less important

Highlights specific activities in a business where competitive strategies can best be applied and where information systems are likely to have a strategic impact. Primary activities Create value for customers as most directly related to the production and distribution of the firm's products and services Support activities make the delivery of the primary activities possible Business Value Chain Model

Benchmarking Comparing the efficiency and effectiveness of your business process against strict standards and then measuring performance against those standards Best practices most successful solutions or problem-solving methods

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The support and primary activities establish the "firm value chain." The different support activities are as follows: Administration and Management: Electronic scheduling and messaging systems Human Resources: Workforce planning systems Technology: Computer-aided design systems Procurement: Computerized purchasing systems Cont. Primary v Support Activities

The different primary activities are as follows: Inbound Logistics: Automated warehousing systems Operations: Computer-controlled machining systems Sales and Marketing: Computerized ordering systems Service: Equipment maintenance systems Outbound Logistics: Automated shipment scheduling systems

Total Quality Management TQM makes quality the responsibility of all people and functions within an organization. or Six Sigma How do IS improve quality?

Most companies cannot achieve this level of quality but use Six Sigma as a goal to implement a set of methodologies and techniques for improving quality and reducing costs. Specific measure of quality. (1) reduce cycle time and simplify the production process (2) benchmark (3) use customer demands to improve products and services (4) improve design quality and precision (5) improve production precision and tighten production tolerances

By knowing... What they do in the business How do businesses survive a competitive

Where they are standing in the market

world?

Why they are here

By knowing...

Where they could be How they can get there What they need to do

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Way you provide service/produce How do organisational components work

Way you deliver value

together to deliver value?

Way you achieve your objectives Way you manage your business and organisations

When a customer perceives a particular business' product or services as being more valuable than the price they pay for it, the business has created value Value IS to to maximise their values by gaining operational excellence generate new product and services, improve decision making and gain advantage in the market

Business Process Related tasks and behaviours for accomplishing work Business Process -> BPM?

Business Process Management (BPM) is about managing entire chains of events, activities and decisions that ultimately add value to the organization and its customers

BPM is managing entire chains of events, activities, and decisions that ultimately add value to the organization and its customers. These "chains of events, activities and decisions" are called processes Why BPM? - Technology alone is often not enough to improve business - Organizational changes often necessary - Minor changes in work habits - Redesigning entire business processes - Aims to continuously improve processes - Uses variety of tools and methodologies to Understand existing what is the role of Business Process

processes

Management (BPM) in enhancing

- Design and optimize new processes

competitiveness? Benefits of BPM Increased customer satisfaction Increased employee satisfaction Increased operational efficiency Modelled and analysed end-to-end processes facilitates communication and planning Improved compliance with standards (services, production and strategy) Improved cost and quality management Improved cycle time (reduced) Provides decision support in analysis design

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Business Process Modelling Notation (BPMN) vs: BPM is incremental and ongoing BPR is a more radical approach to rethinking and redesigning business processes How to communicate BPM Business Process Reengineering (BPR) - The radical rethinking and redesign of business processes - Not continuous improvement, but elimination of old processes, replacement with new processes, in a brief time period - Can produce dramatic gains in productivity - Can produce more organizational resistance to change

Business Process Management and BPM Lifecycle Week 3

Importance of Business Process Modelling Business Process Model and Notation (BPMN)

The 'process discovery' is process modelling Why model processes? Process modelling helps to better understand the process and to identify and prevent issues BPM Lifecycle

Process modelling provides a thorough understanding of the processes, scope, their interactions and connections and is the prerequisite to conduct process analysis, redesign or automation

Participants Decisions How to identify elements of business processes in scenarios

Options/choices Parallel activities/tasks Activities/tasks Resources Objects (document, letter, application draft etc)

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draw: - start event - end event - start catching message event - end throwing message event - timer start event - end terminate event - activities / task - sub-process (collapsed) - sub-process (expanded) - sequence flow - association BPMN Visual Constructs

- message flow - exclusive gateway (XOR) - exclusive gateway split (XOR-split) - exclusive gateway join (XOR-join) - parallel gateway (AND) - pools - lanes - data object - data store - application received - order fulfilled - white box - black box

How should managers build a business case for the acquisition and Week 5 (week 4 common BPMN mistakes implicit/explicit modelling)

development of a new information system? What are the core problem-solving steps for developing a new information system? What are the alternative methods for building information systems SDLC/Waterfall (this week) vs Agile/Scrum (next week)

A process of creating and maintaining IS. ISD is about business project What is information system development (ISD)?

management and business analysis Involve all five components/scopes of IS: - hardware, software, data, procedures, people

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Problems with process (as identified through BPM) Problem with existing system/scale -> Not processing orders fast enough Increasing competition Desire to make more effective use of information Expanding into new markets requires new systems Why initiate ISD process? Merger or acquisition -> Buying out a competitor Policy New regulations imposed by government Situational Advances in technology Changes in a platforms (e.g. Windows) -> Requires a new version of a system

IS Projects never finish/overrun schedule Over budget and over time Do not accomplish principal goals Requirements difficulties Scheduling and budgeting estimates Plus... Lack of governance, internal politics Poor communication between IT and business, input from users Unclear/unrealistic expectations Lack of fact-based analysis Scope creep - size, budget etc. Changes in personnel, inadequate skills Why ISD projects fail

Maintenance costs Over sold/hype Non IS Poorly managed Lack of a solid project plan Poorly defined roles and responsibilities Poor communication Ignoring project warning signs Lack of user input Business politics Competing priorities Stakeholder conflict Meeting end user expectations Bad decisions

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Flow control: how the ISD project flows from one stage to the next, and onto completion Are the stages sequentially/repeatedly/parallel Success factors for managing ISD

performed? Managerial controls: How do the projects owners, that is, the people paying the bills, keep in touch with the process, or lack of the project?

Business Case: proposal to management seeking approval for an investment Seven Major Factors in Making the Business Case 1. Long-term strategic lowering production costs, differentiation of How should managers build a case for the

product/services, increasing scope of the firm (e.g. global expansion),

acquisition and develop of a new

matching or exceeding competitor capabilities

information system?

2. Improved decision making 3. Customer and supplier relationship s 4. Survival (required by the market) 5. New product and services 6. Financial rationale 7. Fitting with the long-term IT plan of the firm

Portfolio Analysis Companies should examine their portfolio of projects in terms of potential benefits and likely risks. (image) 1. First focus on High benefit + Low risk (promise early returns and low risk) 2. Second examine High benefit + High risk Portfolios and scoring models

3. Should totally avoid Low benefit + High risk 4. Re-examine Low benefit + Low risk for possibility of rebuilding to a more desirable system with higher benefits Scoring models - Give alternative systems a single score based on the extent to which they meet selected objectives - Require experts who understand the issue of technology

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(System Analysis) define and understand the problem develop alternative solutions choose the best solution Implement the solution [Definitions] Defining and understanding the problem Members of the organization must agree that a What are the core problem-solving steps for developing a new information system?

problem actually exists and that it is serious. Developing Alternative Solutions Evaluating and choosing solutions Feasibility study to determine whether each proposed solution is feasible or achievable Implementing the solution In the final step of implementing solution, these activities to be performed... - Hardware selection and acquisition - Software development and programming - Testing

[TABLE] Options Delivery time. Cost. Quality. Quality(fit need) In-house above criteria by... Tailored off-the-shelf software [slow, medium, high] Standard off-the-shelf In-house (internal to an organization): an IS developed 'from scratch' by IS staff to suit the business requirements of the application. Options for building a system Tailored off-the-shelf software: pre-written software is purchased from a supplier, but it is possible to configure it to be specific to the business by altering it as required for the customer as well as enabling the customer to define (within the limits set by the package vendor) how the software will run using pre-written configuration par...