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Information Systems in organization

Economic theories, Behavioral theories

Economic theories

Transaction cost theory ,Agency Cost theory

Transaction cost theory

By implementing Information Systems the transactions cost function will move more towards the inside which will subsequently lead to cheaper transaction costs.

Agency Cost theory

By implementing the use of Information Systems the Agency cost function will move more towards the outside which will lead to cheaper agency costs.

Behavioral theories

IT flattens Organizations, Postindustrial Organizations, Virtual firms

IT flattens Organizations

Structure can be flattened and react faster due to it systems

Virtual firms

• Those firms don’t possess a physical place
• Uses networks to link people, assets and ideas

Definition of IT Infrastructure

A set of physical devices and software applications which are service provided by the  hardware and software.

Moores law

Every 18 to 24 Months the microprocessing power of IT-devices are doubled

The law of mass digital storage

Throughout the evolution of electronic devices and the eagerness to be more efficient the Amount of storage accessible rose steadily till the 2000 and the increased really fast in the past 20 years to now 100 Gigabyte per dollar.

Metcalfe law

The Utility in participating in a network grows exponentially to the amount of nodes connected, The more people join the internet than the more participant grows exponentially

Declining community costs

Because of more efficient devices the cost of Internet speed is decreasing exponentially.

Standards

Standards enabled the world to work simultaneously without fearing to mis communicate between each other.

Electronic Commerce

E-Commerce, E-Business

E-Commerce

Describes the process of buying, selling or exchanging products, services or information via electronic devices such as computers, cellphones or via internet.=Showed that is event stable in recessions

E-Business

Is the same as E-commerce but it includes also the relationships with potential customers, partners, business and processing electronic transactions

Unique features of the Internet-U

Ubiquity

Ubiquity

·         Technology is available everywhere (work, home…)

·         Effect: Marketplaces removed temporary or geographic locations to become market spaces.

·         Strengthen customer convenience & lowering operational costs

Unique features of the Internet-G

Global reach & Universal standards

Global reach & Universal standards

·         Technology standards is now not limited to geographical boundaries.

·         Because of this decision billions of people have now access to businesses worldwide

·         Loosens cross-cultural boundaries

·         Lower market entry cost because of standardization

Interactivity

·         Companies have to interact with the user to actively achieve his attention

·         Effect: Costumers can have individual and tailored discussions with the service providers.

·         Consumer now have the opportunity to become part of the decision. making process.

Information density

·         Quality of the information available on the market

·         Effect: Greater price transparency, cost transparency and hinders engagement in price discrimination.

Personalization

·         Firms allows consumers to modify or change the service or product (messages, goods..)

·         Effect: personalized message can be sent to consumers

·         Product and services can be customized for various presences

Social technology

·         It provides a platform for people to share their content and to interact with them.

·         Effect: new business-models can emerges through those new platforms.

Forms of Electronic Commerce

Business to customer (B2C), Business to business (B2B), Consumer to consumer (C2C), Government to citizen (G2C), Mobile commerce

Business model

Content provides ,Service provides, Community provider, Portal

Web 2.0

Crowdsourcing and Social networking, Characteristics of things which survived after the Dotcom bubble burst.

E-Commerce marketing

§  Provides new ways to identify and communicate with costumers

§  Long-tail marketing

§  Behavioral targeting

§  Internet advertising formats 

§  Long-tail marketing

Big Head, Long Tail

Big Head

Blockbuster strategy Pareto optimum (80/20) Rule

Long Tail

Through internet Companies can offer unpopular products without facing the same economical loss as retail shop

EDI(Electronic Data Interchange)

The transmission of electronic business forms between business partners

M-Commerce

based on the GPS location of the cell-phone, it is used by banks and credit card companies to provide for example an managing app for their customers

Networks and communications Trends

Convergence, Broadband, Broadband wireless

Protocol

defines the format and order in how messages are exchanged between two or more parties.

**business process reengineering(BPR)**

A comprehensive assessment and redesign of business processes

Wireless Standard for Web Access

Bluetooth, Wifi, LTE, WiMax(cover one metropolitan area)

Mobile Wireless Standards for Web Access

4G(long range) and Wifi(short range)

5 Wireless Applications

CRM, SCM, RFID, EMR, WSNs

Enterprise Applications

designed to integrate computer systems that run all phases of an enterprise's operations to facilitate cooperation and coordination of work across the enterprise.

Enterprise Applications cons

Highly expensive to purchase and implement enterprise applications. Need to adopt to Business process changes. Need data standardization, management, cleansing

Next Generation Enterprise Application Pros

o   SOA standards

o   On-demand solutions

o   Cloud-based version

o   Social CRM

o   Business Intelligence

Knowledge managements

efficient handling of information and resources within a commercial(통상의) organization.

(Emphasizing on learning)

Theories in Management

Rationalism, Experimentalism

Rationalism

= Scientification (I think therefore it exists)

Experimentalism

=Humanization(Knowledge is experience, We only the truth by experiencing it)

Two dimension of knowledge

Tacit knowledge, Explicit knowledge

Tacit knowledge

Hard to explain to others

Explicit knowledge

Easy to transmit in language and communication

SECI —> Model

Socialization, Externalization, Combination, Internalization

Socialization

Observation is the key in socialization

o   Externalization

\-Convert tacit into explicit

\-Quintessential knowledge creating activity

o   Combination

\-Create explicit knowledge from explicit knowledge

\-Exchange and combine

\-Formal education and training

o   Internalization

\-From explicit knowledge to tacit knowledge

\-Learning by doing

\-Documentation

Enabling condition for Knowledge creation-I

Intention

Intention

·        Organization aspiration to meat its goals

·        Most important criteria for judging the truthfulness

Enabling condition for Knowledge creation-A

Autonomy

Autonomy

·        Increase the unexpected opportunities and motivations

·        Perform many functions like rugby approach

Enabling condition for Knowledge creation-C

Creative Chaos

Creative Chaos

·        Stimulate interaction

·        Promote greater reflections, increase tension and focused attention

Enabling condition for Knowledge creation-Red

Redundancy

Redundancy

·        Overlapping approach

·        Provide different points of view

·        Lead to tacit knowledge and speed knowledge creation

Enabling condition for Knowledge creation-Req

Requisite Variety

Requisite Variety

·        Internal diversity

·        Work together

·        Flat and flexible structure

I Shape skill

Someone who has a deep knowledge on a specific domain or area.

T shape Skills

Someone who has a variety of knowledge on a specific domain or area

A shape skills

Someone who has has deep knowledge on various domains and areas and can integrate them together.

Knowledge Spiral

Can transfer one knowledge type through various steps into another knowledge type

KM Strategy

Codification strategy, Personalization strategy   

Codification strategy

\-Codifying and storing organizational knowledge

\-Sets of rules about what to do.

Personalization strategy   

\-Provide creative solution through interpersonal interaction

\-Experiences and skilled people

Comparison strategy-People to document

Knowledge management, Information Technology, Human Resources

Knowledge management

·        Develop and electronic document system that codifies, stores etc. and allows reuse of knowledge

Information Technology

·        Invest heavily in IT, the goal is to connect people with reusable codified knowledge.

Human Resources

·        Hire new people.

·        Train people in groups and through computer based distance learning.

Comparison strategy-Person to Person

Knowledge management, Information Technology, Human Resources

Decision making and IS

Structured,   Semistructured,   Unstructured

Structured

Operational Management

Semistructured

Middle Management

Unstructured

Senior Management

The courts stages of the decision making process 

Intelligence→Design→Choice→Implementation

Intelligence

Discovering, indentifying and understanding the problems occurring in the organization

Design

Identifying and exploring solutions to the problem.

Choice

Choosing among solution alternatives

Implementation

Makes chosen alternatives work.

Three reason why information technology don’t always produce positive results

o   Information quality

o   Management filters

o   Organizational inertia and politics

·        BI in the enterprise

o   Business intelligence

o   Business analytics

o   Business intelligence vendors

Six Elements in BI environment

o   Data from the business environment

o   BI Infrastructure

o   BI analytics toolset

o   Managerial users and methods

o   Delivery platform —> MIS, DSS, ESS

o   User interface

·        BIG DATA

o   No consensus of the definition.

o   We rather concentrate on describing the characteristics of Big data

o   Three Characteristics V3

o   Three Characteristics V3

§  Volume (Scale)

§  Variety (Complexity)

·        Various formats, types and structure

·        Static data vs streaming data

§  Velocity  (Speed)

·        Data is begin generated and bleed to be processed fast

·        Late decision —> missing opportunities

·        Importance of Big Data

o   Pre big data Companies relied on the insight and competencies of the CEO or präsident

o   Now post big data everybody has the chance to obtain insight and the information without great effort or expertise.

Systems development

Activities that go into producing information systems solution

Systems Analysis

Analysis of problems that organization aims to resolve using information systems

Feasibility study

Determining achievability of solution

Establishing information requirements

Stating information needs that new system must satisfy/Identifying who, when, where and how components of information

System Design

Describes system specifications that will deliver functions identified during systems analysis

Programming

Process of translating system specifications into program code

Testing

Checks whether the system produces desired results under known conditions/Unit testing, system testing, acceptance testing, test plan

Conversion

Process of changing from old system to new system

Production and maintenance

Production is stage after new system is installed and the conversion is complete