Lecture 1 Semester 1 2019 notes - descriptive PDF

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lecture notes for introductory topic - helps understand the content and what to expect...

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UNSW Business School/ Information Systems and Technology Management

INFS1602 Digital Transformation in Business

LECTURE #1 – INTRODUCTION + PART 1: WHY MIS? Coverage: Course Outline & Policies Chapter 1: The Importance of MIS Chapter 2: Business Processes, Information Systems, and Information Chapter 3: Organizational Strategy, Information Systems, and Competitive Advantage

Welcome to INFS1602 Term 1 2019

We have 512 students this session! 2 lecture streams (attend the lecture you are enrolled in) 21 tutorial streams (attend the workshop you are enrolled in) 12 tutors (contact list will be published soon on Moodle)

Chona Ryan – [email protected] Lecturer in Charge Consultation: Wednesdays 1-3pm Or by appointment

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INFS1602 Information Systems in Business GOALS & EXPECTATIONS: § Level one introductory course > preparation for higher IS courses § Expectation: high level of independent learning, different from high school § Note: higher year students – this is an introductory course > highly structured § TOPIC KEY LEARNING + SKILLS KEY LEARNING + ATTITUDE § This course aims to give students an appreciation of how existing and emerging technology affects: § the operation and management of businesses (internal), § the relationships that businesses have with external entities (customers, suppliers, regulators etc) (external), and § the products and services that businesses can offer (creation and innovation)

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ASSESSMENT S

SKILLS

LABS & WO RKS HOPS

LECT URES

INFS 1602 – DIG IT AL T R ANS F OR MAT ION IN BU S INES S (T 1 2019)

Information Technology Infrastructur e Basics

Why MIS?

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The Importance of MIS

Organisation al Strategy & Competitive Advantage

Hardware & Software & Database Processing

Outline

Presentation

Presentation

Using IS for Competitive Advantage

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The Cloud & Mobile Systems

Enterprise Resource Planning & SCM

Open Discussion

Problem Solving

Information Systems Management

6 Social Media Information System & CRM

Debate

7 Business Intelligence Systems

Mind-map

8 Information Systems Management

Project Managemen t

Synthesis of Topics

9 Information Security

10 Recap and Review

Essay Writing & Constructive Critique

ONGOING HOMEWORK (5%), IN-CLASS PARTICIPAT ION (10%), MY LAB (5%)

Week 4: Project Plan

Week 6: Midsemester Exam (15%)

Week 8: Group Assignment Due (15%)

Exam Period: Final Exam (50%)

Higher Courses Information Systems Technology & Management

Course Learning Outcomes:

1) Discuss IS components and their use. 2) Identify different approaches for developing information systems. 3) Illustrate how organisations could leverage on IS to improve organisational / managerial efficiency & effectiveness. 4) Propose how an organisation could use information systems and technology (IS/IT) to compete in a global marketplace. 5) Evaluate the range of cultural, security, privacy & ethical issues confronting individuals and organisations as a consequence of IS/IT. 6) Explain and discuss the suitability of various IS infrastructure options. 7) Communicate an argument in oral and written form. 8) Demonstrate collaborative skills and teamwork

Course Elements – Blended Learning Format Face to Face Lectures + MYLab MIS : Graded online activities (VIDEOS, SIMULATIONS, DYNAMIC STUDY MODULES (DSM)) MYLab MIS: Supplemental online (Extra non-compulsory STUDY PLAN : PRACTICE & QUIZ ME) + Face to Face Workshop (requires prior preparation) + Value Add Extras J

Course Elements – Value Add Elements ü Weekly Learning Guide – step by step task list ü Lecture notes (includes application, examples & additional materials/videos) New this session: ü Weekly Chapter Summary Notes (different from Lecture Notes) – ü FAQ page ü Weekly ONLINE ‘Rush Hour Consultations’ in a form of a chat –

Course Elements – Blended Learning Format Lectures 5 x 2hr lectures – WK 1, 3, 5, 8 & 9 What to expect from Lectures? Highlights of the Chapters covered -Broad Coverage Key concepts Key features & functions (concept/framework/system) Benefits/Risks/Business Impacts When and Where are they suitably applied Examples (success/failures)

Course Elements – MyLab MIS

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9 Modules – Matches your Workshop Topics per week

ü See schedule posted on Moodle ü Activities assigned as ”Assignments” for the week varies ü Follow ‘Learning Guide’ posted on Moodle for the week ü MyLab MIS is 5% of your final mark ü It is important that you do not delay going through your Lab learning requirements ü Mark based on score achieved

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Course Elements - Workshops

ü 2 hours per week (weeks 1 -10)

ü See course roadmap for topics ü Reflect on Ethics issues relating to the topic ü You MUST attend the workshop that you are enrolled in

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Preparation (Homework)– 5%

ü Follow ‘Learning Guide’ issued on Moodle each week; always on last slide of guide ü Consider how you would answer the discussion / case study questions ü Do your Preparation Work before you come to workshop (all prep work are individually checked by your tutors). You need to print and hand in your homework every week. Email submissions not accepted •

In Class Participation – 10%

ü Presentation & discussion ü Debates, problem solving, simulations, mind map, outlines, critique 1

ü Assessed as a team as well as individually 0

Course Elements - Your Private Study

ü Allow 10 hrs per week for this course ü Pay attention and take notes during lectures ü Study material in the textbook, the lecture slides, the activities and preparations for workshops ü Don’t lag behind your required MyLab MIS homework ü Do not rely on notes from other people/sources (risky!)

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IMPORTANT NOTE ü Students responsibility to keep updated with Course requirements and policies ü Regularly check for announcements on Moodle ü Check your UNSW email account regularly (at least once a day) ü We do not use other means to contact you other than those mentioned above (i.e. NO QQ, Weibo, Wechat, WhatsApp, Twitter, Facebook) ü Must official UNSW email account when emailing lecturer or tutors ü We observe business hours with communication Mon-Fri 9am to 6pm ONLY ü IDENTIFY yourself clearly in your email ü ID#, Last name, First name, tutorial day time on subject line ü

(example z3305752 Ryan, Chona/ M11-1)

ü Observe email etiquette ü E.g. Use email for short queries (no long essays please), don’t spam etc. ü Necessity of frequent or long emails = Consultation sessions ü Refer to ‘Who to Contact’ file on Moodle so you can direct your enquiry to proper channel

PART I: Why MIS? Chapter 1: The Importance of MIS

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Chapter 1 Learning: 1. What is Managing Information Systems (MIS)? Why is Introduction to MIS Important? 2. Five Component Framework of Information Systems 3. Digital Transformation 4. Why do we cover Ethics in our topics?

What Is MIS? Management and use of information systems that help organisations achieve their strategies.

Difference between Information Technology & Information Systems? IT >Products >Methods >Inventions >Standards IT drives the development of IS

Copyright © 2017 Pearson Education, Inc.

Components of an Information System

Components interact to produce information

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Example: General Electric Key Elements 1.

Management and use

2.

Information systems

3.

Strategies

GENERAL ELECTRIC Founded: 1892 Products/Services:

Goal of MIS – Managing IS to achieve business strategies 1. 2.

3. 4. 5. 17

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Energy Appliances Oil and Gas Aircraft Engineering Finance

Operational Electric Motors excellence Healthcare New products, Lighting services, and Wind turbines business models Software Customer and Locomotives supplier intimacy Weapons Improved decision making Competitive advantage Copyright © 2017 Pearson Education, Inc. Survival

Example: MUSIC

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Fundamental Forces Changing Technology

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Example: processing speed & storage

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Bottom Line of MIS Course 1. Gives background you need to assess, evaluate, and apply emerging information systems technology to business 2. Gives you marketable skills by helping you learn abstraction, systems thinking, collaboration, and experimentation ETHICS: Why do we reflect & discuss ethics every topic? Ethics Guides help us to think about ethical dilemmas and clarify their values

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PART I: Why MIS? Chapter 2: Business Processes, Information Systems, and Information

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Chapter 2 Learning: ü Terminologies and Definitions ü Understand internal organizational activities – business processes, process quality, efficiency vs effectiveness ü Information Quality

Business Process 1. What is a business process ? 2. Example of a business process? 3. Why is it important to model our processes? 4. What does it mean to be effective in our processes? To be efficient in our processes?

How Can Business Process Modeling Help Organizations? (Best Bikes example) Swimlane format

Business Process – network of activities for accomplishing a business function Activities – specific tasks that need to be accomplished as part of the process Role –subset of activities performed by an actor Actor – person, group, department, organization or an information system Notice: no names on roles, no $ on activities Think: Why do we need to model our business process? Copyright © 2017 Pearson Education, Inc

Revised Best Bikes’ Processes

Think: Not all products for 3D printing? Which products? Machine capacity? Min order qty? Skill required?

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Copyright © 2017 Pearson Education, Inc

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How Can Information Systems Improve Process Quality? Process Quality: measured by Efficiency vs Effectiveness Effectiveness = enables organization to achieve strategy Efficiency = ratio of benefits to costs (Think: At what point can I drive my cost down and achieve better profit but NOT compromise on product/service quality?)

Consider: Option A & B = Benefits but A costs more than B?

A cost > B cost but A carries less risk? (consider impact of risk, cost of failure, probability of that risk happening)

How do we measure cost of an activity? (consider labor, materials, time, risk)

Let’s discuss: Grocery Self- Checkout counters

Using Information Systems to Improve Process Quality

Example: Storing Data (Cost, Service Elements, Quality, Source) -saves on time to retrieve data, cost to retrieve, accuracy of data that need to be retrieved (risk of error increases) Notice the symmetry of components on each side

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Information vs Data Information: Knowledge derived from data •

Meaningful context

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Data is just the data

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Information you conceive from the data is the value add to the information system

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Difference of perception between people

Example: SID, Names, Grades vs Ave grade of class

Consider: grocery example …. Prices, SKU#, Batch code, vs How many units are due to expire in the next 2 weeks?

What Data Characteristics Are Necessary for Quality Information? Consider: UNSW students use of Moodle Learning Management System • • •

Are all students on 1602 Moodle officially enrolled? Context: appropriate Subject: Econ course data not relevant to INFS1602 Lecturer

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PART I: Why MIS? Chapter 3: Organizational Strategy, Information Systems, and Competitive Advantage

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Chapter 3 Learning: ü Terminologies and Definitions ü Value Chain Model ü Porter’s Five Forces ü Four Basic Competitive Strategies

Important Business Concepts

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Strategy – specific patterns of decision to leverage on core competencies to attain competitive advantage

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Core Competencies – unique skills & proficiencies that can be utilized in value creation activities

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Competitive Advantage - a product or service that an organisation’s customers place a greater value on than similar offerings from a competitor

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First mover Advantage - when an organisation can significantly affect its market share by being first to market with a competitive advantage (think: Sony Walkman – portable music)

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Synergies – output of some units can be used as inputs to other units (consider example: General Electric)

How Does Organizational Strategy Determine Information Systems Structure?

Strategy Determines Information Systems

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Analyzing the Organization’s Environment (Level of Environmental Turbulence)

Porter’s Five Forces Consider in your analysis: a. Health of industry? b. Your position in the industry

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What Five Forces Determine Industry Structure? q Ø Ø Ø Ø

Rivalry players in the competitive space high vs low concentration Price sensitivity Ability to differentiate

q Threat of new entrants Ø High when it is easy for new competitors to enter a market, and low when there are significant entry barriers Ø Some industries have high barriers to entry, e.g. computer chip business, pharmaceutical firms Ø New companies have new equipment, younger workers, but little brand recognition Ø Specialisation q Bargaining Power of Customers Ø Impact demand Ø Can customers easily switch to competitor’s products? Ø Can they force businesses to compete on price alone in transparent marketplace? Ø Are customers locked in? Ø To reduce customer power (and create a competitive advantage), an organisation must make it more attractive for customers to buy from them than from their competition q Ø Ø Ø q Ø

Bargaining power of suppliers Ability to impact price Number & Size of suppliers Uniqueness Threat of new substitutes Alternatives? Consider alternatives (other forms but targets similar outcomes/purpose)

Let’s Discuss: Airline Industry Australia

http://www.tourisminvestment.com.au/en/research-insights/aviation.html

What Is Competitive Strategy? Consider: • • • •

Automation reduces cost – (example: customer service) Apple’s ecosystem Hilton’s ONQ CRM system Contract agreements?

Porter's Four Competitive Strategies

Example: Auto Industry 1. FORD 2. FERRARI 3. LOW cost Pick Up 4. BMW

Think: goals, objectives, processes, skill, culture, activity must be consistent with chosen strategy 2-40

How Does Competitive Strategy Determine Value Chain Structure?

Linkage s

Alignment of chosen strategy to value chain structure

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Think: goals, objectives, processes, skill, culture, activity must be consistent with chosen strategy 2-41

Task Descriptions for Primary Activities of the Value Chain

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How Do Value Chains Determine Business Processes and Information Systems?

Consider: Hotel brands, Wedding gown designer, Doctors (ie Concierge doctors), Auto Industry

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Consider: Hotel brands, Wedding gown designer, Doctors (ie Concierge doctors), Auto Industry

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How Do Information Systems Provide Competitive Advantages? Principles of Competitive Advantage

Examples: Think about mobile phone industry, Airlines, Telecomm

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REMINDERS:

1. 2. 3.

NEXT LECTURE > WEEK 3 COMPLETE ALL MY LAB MIS COMPONENTS –check due dates in the system (or in your learning guide) DON’T FORGET TO PRINT YOUR HOMEWORK AND BRING TO CLASS

Thank You And Have a Great Week!...