ISA235 Notes Exam 1 Cahpter 1,2,18 PDF

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ISA235 Notes

Exam 1

Chapter 1- The Importance of MIS Introduction Video: ● Information systems are vital to success, are in use by all business functions ● Companies are more and more reliant on technology 4 Key Dimensions of the Course 1. Information 2. Business Processes 3. Decision Making 4. Integration

“This Could Happen to You” Character in story is fired because: ● Failed to build on her bosses ideas, or create her own o Failed to conceptualize ideas or understand the ins and outs of business models o Failed to take advantage of the resources she had (senior management, collaborating with other workers on her ideas)

Q1: Why is introduction to MIS the most important class in the business school? Moore’s Law: A ratio of price to performance of computers has fallen drastically, meaning that the cost of data processing, communications and storage is basically free. Moore’s Law → Business Opportunities and Applications

ISA235 Notes

Exam 1

o “What are the cost-effective business applications of social media? ▪ Companies use social media data to process capabilities on the cloud ▪ Business User’s of these technologies need to be able to analyze the cost-effectiveness of these features to see if they are worth investment. ▪ Users must be able to asses, evaluate and apply information in business decision-making. Moore’s Law → Any routine skill will be outsourced o “How can I attain job security?” ▪ Attain job security by having a marketable skill and the confidence to use it ▪ Routine skills are not enough for success, because of Moore’s law they will be outsourced → Which is why you need Non-Routine Cognitive Skills Component Abstract Reasoning Systems Thinking Collaboration

Ability to Experiment

Jobs:

4 Components of Non-Routine Cognitive Skills Definition The ability to make and manipulate models. The ability to model the components of the system to connect the input and outputs among those components The activity of two or more people working together to achieve a common goal. Making reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities and developing the most promising ones, consistent with the resources you have.

Example Construct a model or representation Being able to connect a can of beans to US Immigration policy. Develop ideas and plans with others. Provide and receive critical feedback Create and test promising new alternatives, consistent with available resources.

ISA235 Notes

Exam 1 ● Jobs with studies in information systems have higher after graduation placement rates. ● Tradable Jobs: One that was not dependent on a particular location, meaning it can be outsourced. o Figure 1-3 ▪ Many jobs are being outsourced ▪ Computer Systems jobs are sky rocketing, and is expecting to continue ● The myth that all computer science jobs are overseas is false.

Historically -Education -Industry

Wage Determination Now -Nature of work -As the price of technology decreases, the value of jobs that benefit from it increase dramatically.

Bottom Line: This course is the most important course in business because… 1. It will give you the background you need to assess, evaluate, and apply emerging information systems in technology into business 2. It can give you the ultimate job security- marketable skills- by helping you learn abstraction, systems thinking collaboration and experimentation 3. Many MIS jobs are available and the market for them is going to grow.

Q2: What is an information system? Component Hardware

Definition Tools, physical equipment

Example The computer, storage, keyboard, monitor

Software

Programs used by a computer

Microsoft Word

Data

Information

Information within a document

ISA235 Notes

Exam 1 Procedures

Methods of doing things

People System Information System

Methods to start and navigate programs You

A group of components that interact to achieve some purpose A group of components that interact to produce information.

5 Components in Every System → Means that building a system requires many different skills.

Q3: What is MIS? MIS (Management Information Systems)- Management and use of information systems that helps businesses achieve their strategies. 3 Components of MIS 1. Management and Use 2. Information systems 3. Strategies Management and Use of Information Systems Information systems must be 1) managed 2) developed and 3) adapted to meet dynamic business needs. ● Regardless of your line of business you will need to manage or develop information systems ● To be successful you must take an active role in specifying the system’s requirements o Only you will know what your business ( and therefore system) needs, not the IT people, which is why you need to know how to manage & develop them. MIS is for achieving business strategies

ISA235 Notes

Exam 1

● A business is not alive, it cannot act, PEOPLE can o Information systems exist to help people achieve these strategies ● Information systems are created to help people discover actionable insights from their data and about their time and money investments

Q4: Why is the difference between information technology and information systems important to you? Information Technology: The products, methods, inventions, and standards that are used for the purpose of producing information. ● IT pertains to the hardware, software, and data components

Definition

Components

Information Technology The products, methods, inventions and standards that are used for the purpose of producing information. Hardware Software Data Components

You can buy IT or lease hardware as products Information Technology 1. Products 2. Methods 3. Inventions

Information Systems A group of components that interact to produce information. Hardware Software Data Procedures People You cannot buy IS as a product

ISA235 Notes

Exam 1 4. Standards

Chapter 2-

How does the knowledge in this chapter help you? Issues in the story: ● Felix was unable to download the attachment ● Addison had to drive all the way to the geographical location to go to the meeting ● There was no efficient way to relay the information to Felix when he had to step out

Q1: Why does the all road team need to understand the business processes?

ISA235 Notes

Exam 1 Business Processes are key to every business’s success—professionals must be able to answer questions like: ● ● ● ● ● ● ●

Can we change the way we work to better achieve our goals? Can we do out work with less cost? How can we eliminate special cases? Why is it difficult to get something done? Why do we have so many forms to fill out? Can we improve processes using information systems? Do our information systems need to be changed to more closely fit our processes?

Key process skills of business professionals: 1. Create process models 2. Discuss changes 3. Know how information systems can support processes a. Can you use existing information systems to support? b. Do benefits of making a new information system outweigh the costs? Making generalized stations about business processes leads to convos. that are too high level → Abstractions or models must be created to see how they would change with a business decision

Q2: How can business process modeling help ALLROAD? How allroad works? 1. Negotiates with vendors to supply parts at given prices under certain terms 2. Commitment from vendor→ Description, photo, prices and sales data on website 3. Orders quantity of parts → Receives from vendor→ Places them in inventory 4. Customer orders→ Operations personal remove items from inventory → Ship to cust. Business Process: A network of activities for accomplishing business functions.

ISA235 Notes

Exam 1

Business Process Modeling Notation (BPMN): A notation that is standard for creating business processes diagram Swimlane Format (31) : A graphical arrangement in which all of the activities for a given role are shown in a single vertical lane. ● Activities: given tasks that need to be accomplished ● Roles: A subset of the activities/procedures in a business process that are preformed by an actor o Write the name of the role, not the person, because people change roles ● Actor: A person, group, department, organization or information system ● Resource—People, or facilities, or computer programs assigned to roles. ● Repository: A collection of data that is stored within business processes. o Could be a file, a box of receipts or o n the cloud ● Data Flows: The movement of data from one activity to another. o The medium & format of data delivery is also unimportant. ● Sequence/Control Flows: After a role does one activity, they must then do another. ● Decision: An answer to a yes or no question, or at the very least something that is truly binary ( 2-options) o If the question is not yes or no you would have to have multiple diamonds ● Sub-process: An activity that is complex enough to have its own work process. ● Annotation- Anything needed to adjust the model Components of Business Processes 1. 2. 3. 4. 5.

Resources Decisions Activities Roles Repository

Q3: How can information systems improve process quality?

ISA235 Notes

Exam 1 Information systems improve process quality: which is measured by process effectiveness and process efficiency. ● Effective Business Process: One that enables the organization to accomplish its strategy. ● Process Efficiency: The ratio of benefits to costs. Using Information Systems to Store Vendor Data Actors Hardware Follows instructions from software

Instructions Software

Bridge Data

Instructions for hardware

Instructions Procedures Instructions for people

Computer Side

Actors People Follows instructions from procedures

Human Side

Automation: Moves from human side to computer side, activities formally done by people are moved to computers who follow directions of the software. Data: Plural Datum: Singular Store Vendor Product and Performance Data in a Database ● Business users must be able to develop processes in order to create a system worth the costs

Q4: What is information? Data: Recorded facts or figures Information: ● Knowledge derived from data= Information ● Data presented in a meaningful context

ISA235 Notes

Exam 1 ● ● ● ●

Processed data = information Processed data by summing, ordering, averaging, grouping, comparing or other operations Human conceives data from information In the mind of a human, which is why humans are most important to information systems.

Q5: What data characteristics are necessary for quality information? ● Quality of information you create depends in part on your thinking skills 1. Accurate a. Must be correct an complete b. Crucial for management c. Cross-Check information to ensure accuracy i. When you begin a new information system, be skeptical 2. Timely a. Available in time for its intended use 3. Relevant a. To context- summarized to a level meaningful to the viewer b. To subject- focused on the data/information needed 4. Just barely sufficient a. You will have to ignore some data given the vast amount of data available to you 5. Worth the cost a. Relationship between cost and value, must be worth the cost b. Hurdle Rate—percentage of return on investment (factoring in risk) i. Developing the IS ii. Operating and maintaining the IS iii. Salary for reading and processing the data the system produces

Chapter 18 Extension

ISA235 Notes

Exam 1 Two Dimensions of Process Quality: 1. Efficiency: It does not waste resources a. Use of resources 2. Effectiveness: It accomplishes what it is supposed to do. a. Accomplish strategy Change in Technology ● The second reason for managing processes ● Causes the entire process to be re-evaluated to make sure that it can keep up Changes in Business Fundamentals ● The third reason for changing managing processes is a change in business fundamentals A change in any of the following might result in the need to alter business processes: ● Market ● Product lines ● Supply Chain ● Company Policy ● Company organizations ● Internationalizations ● Business Environment

Q2: What are the stages of business process management? (BMP) 3 Options for Changes in Business Processes 1. Plan to develop or modify business processes 2. Wait and let the need to change happen a. Usually results in crisis or emergency

ISA235 Notes

Exam 1

Business Process Management Stages – systematically 1) Creating 2) Assessing and 3) Altering business processes Creating the business model: Done by users who have expertise of business processes 1. Model Processes a. Build an As-Is Model which documents the current situation i. Adjust role resources and or change process structure ii. Revise first revision 2. Implement Processes 3. Assessing the business model a. Evaluating is done by the same users who create the model 4. Create Process Components i. If the solution involves an information system then it is created or adapted at this point ii. New changed business processes, along with any necessary IS, are implemented. Control Objectives for Information related Technology (COBIT)- A set of standard practices that are used to assess the stages of the BPM cycle.

Scope of Business Process Management

Scope Departmental

Description Example Business process Accounts payable resides within a single business function.

Enterprise

Business process

CRM, Enterprise

BPM Role BPM authority belongs to a single department manager who has authority to resolve BPM issues. BPM authority is

ISA235 Notes

Exam 1

Inter-Enterprise

crosses into multiple departments within an organization.

resource management

Business process crosses into multiple organizations

Supply Chain Management

shared across several or many departments. Problem resolution via committee and policy. BPM authority is shared by multiple companies

Q3 How do business processes and information systems relate? Business Process and Information Systems are not the same thing, but they do overlap. ● They have different components ● Process: refers to the overall business process ● Procedure: A component of IS that is embedded within a process activity 1. Information Systems elements are embedded within business processes, but some business processes are not part of any information system 2. Business Process uses two separate information systems, and in general, a business process can use zero, one ore more information systems. 3. Information systems may be used by other business processes

Q4 Which process comes first, business processes or information systems? ERP Systems- Promise to do everything for an organization Business Processes First: If you built the business processes first and then built the IS as a consequence to the design ● Organization will engage in business process management o Will construct a system components in the create process components of the BPM cycle

ISA235 Notes

Exam 1 o Works well for businesses that are being constructed, but will pose problems down the road. Information Systems First: Attempt to determine needs of the representative future users ● Business analysts would meet with buyers and other departments that would have interest in the data o Would then design components and construct a system ● Can make business processes a poor step child of the information systems Off the Shelf Software: Software that is premade and adapted to an organizations needs

It is better to start with Business Processes because… 1. Processes are closer to the businesses’ competitive strategy 2. More likely to result in aligned systems and goals

Q5: How will BPM practiced in the real world? Business requirements force the stages of the BPM cycle Defining the Process Problem ● Process problems arise from process quality, changes in technology and changes in business fundamentals.

ISA235 Notes

Exam 1...