isds 3100 v2

Manager

a trained, knowledgeable worker who is in charge of a team and often holds a masters degree in management or business administration

General Manager

Manager in charge of an entire organization or business unit

Fuctional Manager

Manager in charge of a functional area or team

Information system professionals

Represent the group of people that in an organization oversee the design, development, acquistion, implementation, and maintenance of the firms information system resources

Moores Law

If the current rate of improvement in the production process of transistor-based microprocessors continued, the number of of transistors that could be etched on an integrated circuit would double every one to two years

Moores law implications

Processing power and memory have increased

costs of computing power have declined

computers have become easier to use

Information System

Formal, socio-technical, organizational system designed to collect, process, store, and distribute information

Four components of IS

technology, process, people, structure

Information Technology

defined as hardware, software, and telecommunication equipment. IT is the cornerstone of any modern IS

Process

Defined here as the series of steps necessary to complete a business activity

Structure

the organizational design and relationships within the information system

Purpose of information systems?

Fulfilling organizational processing needs
• Improve efficiency and effectiveness. while reducing costs
• Achieve a (specified) Information System goal.
• Example: Grocery store
- To increase the efficiency and speed of customer check-out by using self-check out stations.

Firm strategy

The manner in which the organization intends to achieve its objectives.

Firm culture

the collection of shared beliefs, expectations, and values

Infastructure

the set of shared IT resources and services of the firm, constrains and enables opportunities for future information systems implementations

external organizational environment

the regulation

the competitive landscape

the general business and social trends

Three levels of organizational change

First order: Automate
Second Order: Informate
Third Order: Transform

First order change

only effects the technical system. it occurs when an IT innovation is introduced that modifies how an existing process is performed

easiest to envision
easiest to justify
easiest to manage

Second Order

effects the People component- the way people perform processes and the manner in which they interact with the technology change.

It occurs when the information intensity of the process being performed changes substantially due to the introduction of new IT

KEY challenges
- Provide appropriate training
- overcome the human tendency to resist change

Third order change

affects the structure component
Technology: a change in the way the organization selects, uses, and manages technology

People: a change in the reporting and authority structure of the organization

Process: a novel way of task accomplishment or a new set of task

-managing it requires significant managerial and executive involvement

Components of the hierarchical perspective

Operational level
management level
executive level
functional level
process perspective

Operational level

(short term). day to day activites that deliver the firms value propistion

IS that support this organizational level are called transaction processing systems (TPS)

the information technology underpinning a TPS is typically used to automate recurring activities and to structure day to day operations, ensuring that they are performed with speed and accuracy

Managerial level

midterm decision making; semi-structured
-the information systems that support this organizational level are typically called decision support systems (DSSs)
-DSSs provide the information needed by functional managers to engage in tactical decision making

Executive Level

-high level, strategic, long-range decisions
-The IS that support this organizational level are called executive information systems (EISs)
-these tools enable rapid evaluation of highly aggregated organizational and trend data while still providing drill-down features that enable executives to view detailed information

Functional systems

-are expressly designed to support the specific needs of individuals in the same functional area
-location optimization
-are tailored to those highly specific needs and use language that is familiar to the professionals in the area

Functional system limitations

-lack integration among separate systems and the introduction of considerable redundancy

-duplication of efforts, data, etc.

integration

to organize, streamline, and simplify a process or procedure or an application. we can categorize integration efforts on two dimensions their place and object

-the place can be either (internal or external)

-the object can be (business integration, systems integration)

Enterprise Resource Planning (ERP)

a modular, integrated software application that spans (all) organizational functions and relies on one database at the core

principal characteristics of ERP

modularity
application and data integration
configurability

Modularity

enables the organization that purchases one to decide functionalities to enable and which ones not to use

Application and data integration

an event that occurs in one of the modules of the application automatically triggers an event in one or more of the other separate module

configurability

offers configuration tables that enable the adopting firm to choose among a predefined set of options during the implementation of the application

ERP Advantages

-efficiency improvements through direct and indirect cost savings
-responsiveness
-knowledge infusion
-adaptability

Supply chain

the set of coordinated entities that contribute to moving a product from its production to its consumption

Supply chain management

the set of logistical and financial processes associated with the planning, executing, and monitoring, of supply chain operations

Customer Relationship Management

a strategic orientation that calls for iterative processes designed to turn customer data into customer relationships through active user use of, and learning from, the information collected

Knowledge Management

the set of activities and processes that an organization enacts to manage the wealth of knowledge it possesses
-creating knowledge
-capturing and storing knowledge
-disseminating knowledge

Analytics

Business analytics is the examination of business data in an effort to reveal useful insight that enables superior decision making

descriptive analytics

the focus is on what has occurred

predictive analytics

the focus is on what will occur

prescriptive analytics

the focus is on what should occur

three lines of data evolution

volume- the amount of data that organizations have to store and manage
velocity- the speed of creation and use of new digital data
variety-is the kind of digital data that organizations have to store and manage

Platform

a set of stable components that support variety and evolvability in a system by contorting the linkages among other components

digital platform

evolving socio technical systems that expose digital resources supporting innovation

Digital Marketplace

community of buyers and seller who exchange product information, coordination, and transactions using digital technologies

Aggregator

Organizations that mange an integrated digital platform and a digital market place

Systemic Effects are like…

Like a pool the bigger the splash the larger the ripples

Info systems are a failure if

Doesn’t see light of day

System is not use after implementation

System doesn’t fulfill processing needs

Digitalization

process of converting signals from analog into digital form.

Digital Transformation

The application and exploration of digital tech to radically rethink business and organizational models

Digital Technology

Electronic equipment and components that manipulate digital signals

Digital Innovation

Application of digital technologies to create new and improved products

Network

A collection of interconnected nodes.

physical networks

networks, where the nodes of the network are connected by physical links (i.e., railroad tracks, telephone wires).

virtual network

is that connections between network nodes are not physical but intangible and invisible. The nodes are typically people rather than devices.

the value of the network for its members is a function of …

its size—that is, the more nodes the network has, the more valuable it is to its members.

Network Effects:

A phenomenon whereby a node joining a network creates value for all other network nodes.

Positive feedback

is simply defined as that self-reinforcing mechanism by which the strong gets stronger and the weak gets weaker.

Negative feedback

opposite dynamic of Positive feedback the stronger gets weaker and the weaker gets stronger.

A tippy market

a market that is subject to strong positive feedback, such that it will “tip” in favor of the firm that is able to reach critical mass and dominate it

a tipping point

The moment in the evolution of a market where one organization or technology reaches critical mass and goes on to dominate it— the point where winners and losers are defined

Do all markets tip?

Not all markets tip, and winner-take-all dynamics are more the exception than the rule.

How to Recognize a Tippy Market

1. The presence and strength of economies of scale. Strong economies of scale, whether traditional economies of scale or network effects, provide an advantage to larger firms.

2. The variety of the customer needs. Customer demand for variety creates the potential for the development of distinct market niches that the dominant player may be unable to fulfill

When economies of scale are limited and the market has a wide range of different needs,

the potential for market tippiness is the weakest

When economies of scale are significant and demand for variety is high, the potential for market tippiness depends on

the number and size of the available market niches.

Two-Sided Networks

❖ Networks that have two types of members

❖ Users of content and suppliers of content (i.e. Adobe PDF format)

❖ Buyers and suppliers of goods (i.e. Digital marketplaces)

❖ Value of the network to one type of member depends on the number of members from the other side

Marketplaces

are two-sided (or multisided) networks where demand and offer meet. The sponsor enables this encounter and often facilitates transactions between the participants

Platforms

are two-sided networks with specific members on the two sides: users and developers.

In computing terms the software foundation on which other software is built.

The importance of network effects in platforms

The more users who join the platform, the more valuable contributing applications to it becomes for the developers and other users.

Network effects occur

in the presence of technology standards, but are not restricted to the technology arena.

One of the most important implications of the above discussion is that customers will pick a

network, not a product or a service provider.

Classic information goods

products that a customer purchases for the sole purpose of gaining access to the information they contain.

A simple test for recognizing information goods is to verify

whether the product can be digitized (i.e., can be encoded into bits and stored in digital format). If so, the product is an information good.

Classic Information Goods characteristics

❖ High production costs

❖ Negligible replication costs

❖ Negligible distribution cost

❖ Information is not the carrier

❖ Sunk costs

❖ No natural capacity limits

❖ Not consumed by use

❖ Experience good

Richness

represents the amount of information that can be transmitted, the degree to which the information can be tailored to individual needs, and the level of interactivity of the message.

Reach

represents the number of possible recipients of the message. Traditionally, as information has been constrained by its physical carrier

process virtualization

the performance of all or some of the steps in a process by software instructions executed by a digital computer

Process Virtualizability

Process performed without participants (objects) physical interaction

four elements, or requirements, of Process virtualizability

the sensory requirements,

the relationship requirements,

the synchronism requirements,

the identification and control requirements

Digital Disruption

The software-induced redefinition of value creation and operational activities that makes (traditionally) valuable assets and capabilities irrelevant or difficult to exploit without a digital transformation.

Sensory requirements:

Need to experience a range of sensory stimuli

Relationship requirements:

: Need to interact in a social or professional context

Synchronism requirements:

Degree to which the activities need to occur in real time

Identification and control requirements

Degree of need for unique identification of all participants and behavior control

Representation

the capability of IT to effectively simulate actors and interactions

Monitoring and identification

the capability of IT to authenticate process participants and objects

Disruptive technologies are defined by the following two characteristics:

The technology offers a different set of attributes than the technology the firm currently uses in its products.

The performance improvement rate of the technology is higher than the rate of improvement demanded by the market

Mobile Platform Characteristics

ubiquity, identifiability, and context awareness.

Ubiquity

represents the idea that users of the device can access needed resources from (in theory) anywhere.

Identifiability

represents the idea that mobile devices uniquely identify their user.

Context awareness

enabled by the fact that mobile devices can be geolocated. In other words, modern smartphones that incorporate a GPS receiver can communicate their position to any software application running on them.

business model

an abstraction that captures the firm’s concept and value proposition

while also conveying what market opportunity the company is pursuing, what product or service it offers, and what strategy it will follow to seek a dominant position.

Customer Segments

all the people (i.e., consumers) or organizations for whom your firm is creating value.

Value Proposition

the specific set, or bundle, of products and services that create value for customers.

Channels

the specific physical or digital conduits, or touch points, the firm utilizes to deliver value to its customers.

Customer Relationships

are tangible and emotional connections the firm establishes with the customer.

4 questions of business model

1. Who is the business designed to serve?

2. What will the firm do for those customers?

3. How will the firm create its value proposition?

4. How will cash flow in and out of the business?

Brick and Mortar

traditional” organizations, those firms that have physical operations and locations (e.g., stores) and don’t provide their services exclusively through the Internet.

Bricks and clicks, or click and mortar

label used to refer to organizations that have hybrid operations.

Pure Play

organizations “born online”—that is, firms that have no stores and provide their services entirely through the Internet.