OMIS 3500 MIDTERM YVETTE MONISTERE

6 Strategic Business Objectives

1. operational excellence

2. new products, services and business models

3. customer and supplier intimacy

4. improved decision making

5. competitive advantage

6. survival

operational excellence

improvement of efficiency to attain higher profitability

new products, services, and business models

-Business model: describes how company produces, delivers, and sells product or service to create wealth.

customer and supplier intimacy

intimacy with suppliers allows them to provide vital inputs, which lowers costs.

competitive advantage

delivering better performance, charging less for superior products, responding to customers and suppliers in real time.

survival

information technologies as necessity of business, industry level changes.

Hierarchy of Responsibility

Senior MGMT

Middle MGMT

Operational MGMT

Knowledge Workers

Data Workers

Production or Service Workers

Separation of Business Functions

Sales and marketing

human resources

Finance and Accounting

Manufacturing and Production

managers set _______________ ________ for responding to business challenges

operational strategy

IT Infrastructure

provides platform that system is built on.

Management Information Systems (MIS)

serves middle management to provide reports based on data from TPS.

Four main actors

1. suppliers of hardware and software

2. business firms

3. managers and employees

4. firm's environment

Approach of this book

Sociotechnical View

digital firm

one where nearly all of the organizations' significant business relationships with customers, suppliers, and employees are digitally enabled and mediated.

business processes

are a collection of related, structured activities or tasks preformed by people or equipment. They product a service or product for a particular business goal or customer.

Business Model

describes how company produces, delivers, and sells product or service to create wealth

business culture

is the combination of values behaviors and goals within a workplace. culture is influenced by employees and employers as well as clients and business partners.

organizational politics

is present in most organizations. every business has a hierarchy and with this hierarchy comes an uneven distribution of power.

Businesses ______ be seen as a collection of business processes

CAN

Business processes can be

assets or liabilities.

Examples of Functioning Business processes.

manufacturing and production

sales and marketing

finance and accounting

human resources

SALES --> ACCOUNTING --> MANUFACTURING AND PRODUCTION

Transaction Process System (TPS)

serves operational managers and staff to preform and record daily routine transactions.

Management Information Systems (MIS)

Serves middle management to provide reports based on data from TPS.

Decision Support Systems (DSS)

serves middle management to support decision making using external information with TPS and MIS data.

Model driven DSS

Voyage-estimating systems.

Data Driven DSS

Intrawest's marketing analysis systems

Executive Support Systems (ESS)

Serves senior management to address nonroutine decisions, use of digital dashboards. summarizes information from MIS and DSS.

Enterprise Applications

systems for linking the enterprise, spans functional areas.

Enterprise Systems

Collects data from different firm functions and stores data in single central data repository, resolves problem of fragmented data.

Supply Chain Management Systems (SCM)

right amount of products to destinations with least amount of time and lowest costs.

Customer Relationship Management Systems (CRM)

helps firms identity, attract, and retain most profitable customers.

Knowledge Management Systems (KMS)

support processes for capturing and apply knowledge and expertise.

Traditional Competitors

all firms share market space with competitors who are continuously devising new products, services, efficiency, and switching costs.

New Market Entrants

some industries have high barriers to entry. for example computer chip businesses.

Substitute Products and Services

substitutes customers might use if your prices become too high.

Customers

Can easily switch to competitors products?

Suppliers

Market power of suppliers when firm cannot raise prices as fast as suppliers

4 Generic Strategies for dealing with competitive force

1. low cost leadership

2. product differentiation

3. focus on market niche

4. strengthen customer and supplier intimacy

low cost leadership

produce products and services at a lower price than competitiors

product differentiation

enable new products or services, greatly change customer convenience and experience.

focus on market niche

use information systems to enable a focused strategy on a single market niche

strengthen customer and supplier intimacy

use information systems to develop strong ties and loyalty with customers and suppliers.

PORTERS 5 COMPETITIVE FORCES

1. buyers

2. suppliers

3. substitutes

4. new entrants

5. existing rivals

PORTERS 4 GENERIC STRATEGIES

1. overall cost - lower costs higher revenue ex. walmart

2. overall differentiation - do something different ex. apple

3. cost focus - cost leadership strategy in narrow market ex. aldi

4. differentiation focus - ferrari

ethics

principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviors.

5 Moral dimensions of the information ages

1. information rights and obligations

2. property rights and obligations

3. accountability and control

4. system quality

5. quality of life

Privacy

claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state; claim to be able to control information about yourself.

Privacy Act of 1974

established a Code of Fair Information Practices that governs the collection, maintenance, use, and dissemination of personally identifiable information about individuals in systems of record by federal agencies. Developed soon after the internet came into existence around 1969-1970

In the US Privacy is protected by:

1st amendment (freedom of speech)

4th amendment (unreasonable search and seizure)

additional federal statues (privacy act of 1974)

Fair Information Practices

set of principles governing the collection and use of information.

How are we different than the European Union?

They have stricter restrictions on gathering data about private individuals. Europeans practice opt-in whereas Americans practice opt-out. Advertisers like the opt-out option.

Used to drive changes in privacy legislation:

COPPA

Gramm-Leach-Bliley Act

HIPAA

Do-Not-Track Online Act of 2011

FTC and FIP Principles

notice/awareness (Core Principle)

- websites must disclose practices before collecting data

Choice/consent (Core Principle)

- consumers must be able to choose how information is used for everyday practices

Access/participation

- consumers must be able to review and contest accuracy of personal data.

Security

- data collectors must take steps to ensure accuracy of data

Enforcement

- must be mechanism to enforce FIP Principles.

Property Rights :Intellectual Property

intangible property of any kind created by individuals or corporations

3 Main Ways Intellectual Property is Protected

1. Trade Secret- intellectual work or product belonging to business not in public domain.

2. Copyright: statutory grant protecting intellectual property from being copied for the life of the author plus 70 years.

3. Patents : grants creator of invention an exclusive monopoly or ideas behind invention for 20 years.

Digital Millenium Copyright Act (DMCA)

makes it illegal to circumvent technology based protections of copyrighted materials.

Health Risks

Repetitive Stress Injury (RSI)

Computer Vision Syndrome (CVS)

-eyestrain and headaches related to screen uses

Technostress

- aggravation, impatience, fatigue.