Summary Information Systems Today, H7-10 PDF

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Chapter 7 MIS Traditional business functions - Marketing and sales - Supply chain management (SCM) - Accounting and finance - Human resourcesNot distinct independent silos, but highly interrelatedProcesses associated with PROCURING GOODS from external vendors; 5 steps: Negtotiate price and terms Iss...

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Chapter 7 MIS Traditional business functions - Marketing and sales - Supply chain management (SCM) - Accounting and finance - Human resources Not distinct independent silos, but highly interrelated Processes associated with PROCURING GOODS from external vendors; 5 steps: 1. 2. 3. 4. 5.

Negtotiate price and terms Issue purchase order Receive goods Receive invoice Settle payment

Processes associated with SELLING a PRODUCT or SERVICE; 7 steps: 1. 2. 3. 4. 5. 6. 7.

Create customer record Check credit Create order Allocate stock Pick, pack and ship Prepare and send invoice Collect payment

Processes associated with PRODUCING GOODS. Make-to-stock and make-to-order. Make to Stock is a four step procedure of 1. Procure inputs, 2. Schedule production, 3. Production, 4. Quality control. Followed by stocking the product Make to order has the same 4 steps as MtS, but first has two others: A. Process sales order and B. (Design/engineer product). After those to come the four steps of Make-to-Stock. Last step in this line is Ship product. Same four steps, difference is A+B at make to order and ship vs stock product. The value chain is a set of business activities that add value to the end product. Information flows through first CORE activities and SUPPORT activities.

Core activities are: 1. 2. 3. 4. 5.

Inbound logistics Operations and manufacturing activities Outbound logistics Marketing and Sales Customer service

The support activities are (also) in the graph, an addition to them is Administrative activities Enterprise System approach: consolidated information storage for different business activities(BA). Create a data warehouse(common database) where all information (e.g. Order, Inventory & Invoice) is. All BA can see into this warehouse, e.g. Inbound Logistics, Operations and Outbound Logistics. Package software vs. custom software. Package software Written by third-party vendors Used by many different organizations Useful for standardized, repetitive tasks Cost effective Example: Microsoft Office

Custom Software Developed exclusively for a specific organization Designed for particular business needs Higher development costs

Vanilla version of software contains features and modules that an enterprise system comes with out of the box. Certain processes might not be supported Customized software contains additional software or changes to vanilla version. It always needs to be updated with new versions of vanilla. Business Process Management (BPM). 5 steps 1. 2. 3. 4. 5.

Develop a vision for the organization Identify critical processes that are to be redesigned Understand and measure existing processes as a baseline Identify ways IS can be used for improvement Design and implement a prototype of the new processes

Several conditions that can lead to a successful Business Process Management: -

Support by senior management Shared vision by all organizational members Realistic expectations Participants empowered to make changes The right people participating Appropriate funding

Enterprise Resource Planning (ERP): Applications that integrate business activities across departmental boundaries. Emphasis has been shifted from resources and planning to enterprise. ERP control: -

Centralized control vs. control within specific business units Level of detail provided to management Consistency of policies and procedures

The business requirements for ERP are a selection of modules and core and extended components Core components support primary internal activities. Extended components support primary external activities. ERP core components are: Financial Management, Operations Management and Human Resource Management. Formula for Enterprise System Success; a 5 step model: 1. 2. 3. 4. 5.

Secure executive sponsorship Get help from outside experts Thoroughly train users Take a multidisciplinary approach to implementations Initiate evolving the ERP architecture

Service-Oriented Architecture (SOA): -

Business processes are broken down into services Services are designed to achieve desired results for service consumer (ex.; Oil Change) SOA approach enables businesses to react more swiftly to changing needs

Three principles of service: Reusability, Interoperability and Componentization ERP vendors are offering products for transitioning to SOA

Summary: -

Business processes require the integration of stand-alone legacy systems ERP systems support data integration and offer modules for the main processes The implementation of an ERP system can be a big challenge In an environment that changes rapidly and where company borders blur, SOA offers increased flexibility

Chapter 8 MIS The challenge of Supply Chain Management (SCM) To supply the right product of the right quality in the right quantity at the right time and at the right place. 1. What is needed? Where? When? 2. How can I get it? (sourcing) 3. How do I deliver it to where it is needed? The goals of Supply Chain Management is to use technology and teamwork to build efficient and effective processes that create value for the end customer. A supply chain is a network of organizations involved in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer -

All activities associated with the movement and transformation DOWNSTREAM of goods Flow of information UPSTREAM from customers to suppliers

The elements of a supply chain are: - Materials management - Physical distribution - Information management Key developments in logistics and SCM: 1. Reduced transport intensity of freight 2. Falling product prices 3. Deregulation of transport 4. Productivity improvements 5. Emphasis on inventory reduction 6. Changes in company structure Challenges of SCM are: - Short life cycles - More comples xupply networks - Collaboration: connection of IT systems and processes to manage complexity - Out-sourcing  shift of value-creating processes to suppliers - Need for flexibility - Measuring and tracking: life-tracking Logistics involves getting: the right product, in the right way, in the right quantity and right quality, in the right place at the right time, for the right customer at the right costs. The 4 phases of development of SCM Phase 1: Integration of the functionals of the internal supply chain Phase 2: Information exchange Phase 3: Collaboration Management Phase 4: Synchronisation Logistics is a function within SCM. SCM includes: - Product development, design research, promotion and sales. – channel conflicts. – Power and dependence. – control over governance issues

Four performance drivers” Inventory requirements Transportation

DRIVERS

Facilities

Information The Bullwhip effect: Variation in demand is exaggerated as information moves upstream and away from the point of use. Variation in demand is exaggerated due to infrequent demand and/or inventory level information exchange, order batching, possible transportation delays.

Bullwhip effect costs can be effectively mitigated by: - Sharing point of sale data - Collaborative forecasting - Collaborative future product promotion planning Performance objectives: Hard objectives (quantifiable and easily measured) - Cost (doing things efficiently) - Quality (doing things right) - Speed, time (doing things fast) Supporting Capabilities - Controlling variability - Dealing with uncertainty: the agility advantage - Acting responsibly: the sustainability advantage (the triple bottom line: environmental, social and economic) Soft objectives - Image of customer service Order winners and order qualifiers - Order winners are factors that directly and significantly help products to win orders in the marketplace. Key factors are actually buying the product -

Order qualifiers are factors that are regarded by the market as an “entry-ticket”, like quality accreditation, unless the product meets certain criteria it will not be qualified to compete.

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Winners and qualifiers are specific to individual segments and performance criteria

Chapter 9 MIS Making the Business Case Business case sells an investment. It lays out the costs and benefits, is used to make a “go or no-go” decision, it may be used to justify continued funding an ensures that an investment is adding value. Identifying costs and benefits: - Tangible Costs – total cost of ownership (TCO) - Non-recurring costs and recurring costs - intangible costs Identifying benefits - Tangible benefits - Intangible benefits Performing Cost-Benefit analyses  Comparing competing investments When presenting the business case you should be aware of the following: - Know the audience - Convert benefits to monetary terms - Devise proxy variables - Measure what is important to management Customized vs off-the-shelve software Customized software: - Customizability – tailored to unique needs - Problem specificity – pay only for what is needed Off-the-Shelve software: - Less costly than customized systems - Faster to procure than customized systems - Of higher quality than customized systems - Less risky than customized systems Open source software: - Program’s source code is freely available for use and/or modification (Linux is a prevalent example) - Free to use, but “hidden” support costs (typical no support for the free version; commercial vendors may offer commercial grade support to industry users for a fee Off the shelve systems can often be customized Off the shelve systems may interact with open-source systems Options to gain new information system: - Build information system - Buy prepackaged system - Outsource development to third party - Open source software 4 steps in the systems development process 1. Systems planning and selection

2. Systems analysis 3. Systems design 4. Systems implementation and operation Phase 1: systems planning and selection - Resources are limited so projects must be lilmited - Analyst gathers information and builds the case - Multiple approaches to selecting projects (forma IS / Ad-hoc Planning process) - The business case role Phase 2: Systems analysis - Collecting requirements (may be the most important part of systems development; dictates how the proposed system should function) - Modeling data (what data is needed? Modeled using Entity-Relationship diagrams) - Modeling processes and logic (Model the data flow; model the processing logic) - Develop system designs & evaluate, selecting one Phase 3: systems desing The system design chosen from Phase 2 is now elaborated to where it could be built - Human-computer interface (point of contract between user and the system; data entry and management forms) - Databases and files - Processing and logic (modeled using one of many techniques; models converted into code in Phase 4) Phase 4: Systems implementation and operation Convert design into a working system - Software programming & software testing - System conversion, documentation, training and support. Different conversion strategies a. Parallel: old and new systems are used at the same time b. Direct: old system is discontinued on one day, and the new is used on the next c. Phased: parts of the new system are implemented over time d. Pilot(single location) entire system is used in one location Reasons for external acquisition of information systems”: - Limited IS staff - IS staff has limited skill set - IS staff is overworked - Problems with performance of IS staff Steps taken with external acquisition of IS: 1. Systems planning and selection 2. Systems analysis 3. Development of a request for proposal 4. Proposal evaluation 5. Vendor selection

Chapter 10 MISWhat is computer crime? Using a computer fora n illegal act Targeting a computer while committing an offense - Unauthorized access of a server to destroy data Using a computer to commit an offense - Using a computer to embezzle funds Using computers to support a criminal activity - Maintaining books for illegal gambling on a computer Hackers: - Anyone with enough knowledge to gain unauthorized access to computers - Hackers who aren’t crackers don’t damage or steal information belonging to others Crackers - Individuals who break into computer systems with the intent to commit crime or do damage - Hacktivists: Crackers who are motivated by political or ideological goals and who use cracking to promote their interests Types of computer crimes: Unauthorized access: - Stealing information - Stealing use of computer resources - Accessing systems with the intent to commit information modification Information modification - Changing data for financial gain - Defacing a website Computer criminals come in all shapes and sizes, in order of infractions they are: 1. Current or former employees 2. People with technical knowledge who commit business or information sabotage for personal gain 3. Career criminals who use computers to assist in crimes 4. Outside crackers – crackers commit millions of intrusions per year Computer viruses and other destructive code - Viruses - Denial-of-Service (DOS attacks) - Spyware spam and cookies - Phishing Internet hoaxes: - False messages circulated about topics of interest - Users should verify the content of emails before forwarding - May be used to harvest emails for SPAM mailings Cybersquatting - Buying & holding a domain name with the intent to sell - The 1999 anti-cybersquatting consumer protection act makes it a crime if the intent is to profit from the goodwill of a trademark belonging to someone else Cyber harassment - Use of a computer to communicate obscene, vulgar or threatening content that causes a reasonable person to endure distress Cyberstalking

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Tracking an individual, performing harassing acts not otherwise covered by Cyber harassment, or inciting others to perform harassing acts Cyber Bullying - Deliberately causing emotional distress All three are closely related, a cyberstalker may be committing cyberharassment and cyberbullying. Technological safeguards: Physical access restrictions Physical access controls typically focus on authentication - Something you have (keys; smart cards) - Something you are (biometrics) - Something you know (password, PIN code) Firewalls: Filter traffic - Incoming and/or outgoing traffic - Filter based on traffic type - Filter based on traffic source - Filter based on traffic destination - Filter based on combinations of parameters Encryption Virus monitoring and prevention Standard precautions - Purchase, install and maintain antivirus software - Do not use flash drives or shareware from unknown or suspect sources - Use reputable sources when downloading material from the internet - Delete without opening any e-mail message received from an unknown source - Do not blindly open email attachments, even if they come from a known source - If your computer system contracts a virus, report it Audit control software - All computer activity can be logged an recorded - Audit-control software keeps track of computer activity - Only protects security if results are monitored Secure data centers Securing the facilities infrastructure - Backups - Backup sites - Redundant data centers - Closed-circuit television - Uninterruptible power supply Information systems controls Preventive controls - Prevent events occurring (e.g. block unauthorized access Detective controls - Determine if anything has gone wrong (e.g. detect that an unauthorized access has occurred Corrective controls - Mitigate problems after they arise...