C724: Information Systems Management

Lesson 1: Organizational Roles of Information Systems

Essential Question: Explain how different types of information systems support specific job functions.

1.1: The Multiple Roles of Information Systems in Business

1-1: How are information systems transforming business, and why are they so essential for running and managing a business today?

1. Identify three major new information system trends.

2. Describe characteristics of a digital firm.

3. Describe the challenges and opportunities of globalization in a “flattened” world.

4. List and describe six reasons why information systems are so important for business today.

Global expenditure on information technology (IT) is on the rise, with businesses investing in services to overhaul their operations. The true value of IT investments lies in the organizational, managerial, and cultural transformations within companies.

There are multiple new trends being found in information systems:

1. IT innovations are enabling firms to create new products and services, develop new business models, and change the day-to-day operations of business (i.e. cloud computing, growth of mobile digital business platform for smartphones, machine learning systems, etc.)

2. New Business Models such as the launch of online video services (Netflix) have changed how movies and tv shows are distributed and created. Many viewers are canceling their cable and using only the internet for entertainment.

3. E-Commerce Expansion has reinvented how firms design, produce, and deliver their products and has increasingly included services, not just physical products. Information systems and technologies are the foundation of services-based e-commerce.

4. Management Changes have changed how managers run their firms by allowing them to go mobile with the advent of smartphones, high speed WIFI, and remote workers. This allows them to be in direct contact with those workers and provides them with almost instant access to information they need to make good and timely decisions.

5. Changes in Firms and Organizations have seen business firms put less emphasis on hierarchy and structure and more on employees taking on multiple roles and tasks and working with others in a team. Competency and skills are more important than position in the hierarchy. They emphasize more speed and accuracy based on data and analysis and they are aware of changes in technology, consumer attitudes, and culture. There is a better understanding of how important IT is in helping create and manage firms.

Some characteristics of a digital firm are:

• Almost all of the organization’s important business relationships with customers, suppliers, and employees are digitally enabled and mediated.

• Core business processes are digital.

• Key corporate assets (IP, core competencies, and financial and human) are managed digitally and available anytime, anywhere.

• They are more responsive and flexible than traditional firms.
  

Some of the challenges and opportunities that are found in globalization (“flattened world”) are:

• Competing for jobs, markets, resources, and ideas in foreign low-wage areas (outsourcing) so businesses can cut costs.

• Creation of jobs in information systems and other occupations. Outsourcing has accelerated the development of new systems in the Us and worldwide by reducing costs to build and maintain them.

• In other words, information systems have allowed for globalization.

Information systems are important for business today because they are essential for conducting day-to-day business in the US and other advanced countries and achieving strategic business objectives.

IT is a foundation for business in the 21st century and there is a growing interdependence between a firm’s ability to use IT and implement corporate strategies and achieve corporate goals. Firms invest heavily in information systems to achieve six strategic objectives:

1. Operational Excellence- businesses constantly look for ways to improve efficiency of their operations to achieve high profitability. (Walmart is the most efficient retail store in the industry).

2. New Products, Services, and Business Models- information systems and technologies are a major enabling tool for firms to create new products/services as well as new business models (describes how a company produces, delivers, and sells products/services to create wealth).

3. Customer and Supplier Intimacy- When a business knows its customers and serves them well, they come back (raises revenues); when a business engages more with suppliers, suppliers provide vital input (lowers costs).

4. Improved Decision-Making- information systems and technologies have made it possible for managers to use real-time data to make better decisions.

5. Competitive Advantage- when businesses achieve one of the above business objectives, they already have a competitive advantage. Doing things better makes for better sales and profit.

6. Survival- information systems and technologies are a necessity when doing business. Sometimes these are driven by industry changes or by federal and state statutes and regulations that require a digital record.

1-2: What is an information system? How does it work? What are its management, organization, and technology components? Why are complementary assets essential for ensuring that information systems provide genuine value for organizations?

1. Define an information system and describe the activities it performs.

2. List and describe the organizational, management, and technology dimensions of information systems.

3. Distinguish between data and information and between information systems literacy and computer literacy.

4. Explain how the Internet and World Wide Web are related to the other technology components of information systems.

5. Define complementary assets and describe their relationship to information technology.

6. Describe the complementary social, managerial, and organizational assets required to optimize returns from information technology investments.

Information technology (IT) is all the hardware (tools/machinery) and software (computer programs) that firms use to achieve their business objectives.

Information systems are interrelated components that collect, process, store, and distribute information for decision-making and control in an organization. It also helps managers analyze problems, create new products, and visualize complex subjects. They help shape data into useful and meaningful information.

In information systems, information is data that has been turned into something meaningful and useful to us. Data is raw facts that indicate events happening within an organization or its physical environment before it is organized and turned into information that people can understand and use.

There are 3 steps that produce the information that organizations need:

1. Input- collecting raw data

2. Process- converts raw data into meaningful information

3. Output- transfer the processed information back to the people or activities that will use it

Information systems also need feedback (which is output returned to appropriate people/activities) to improve the input stage.

There is a clear distinction between computers/computer programs and information systems despite information systems being computer-based.

To fully grasp information systems and use it effectively requires that you understand the broader organization, management, and IT dimensions of systems and their ability to provide solutions to challenges and problems in the business environment.

This broader understanding encompassing the management and organizational dimensions as well as the technical ones is called information systems literacy. Whereas computer literacy is the knowledge of information technology (IT).

Management Information Systems (MIS) tries to achieve this broader information systems literacy.

Organizational Dimensions- the key elements of an organization are its people, business processes, politics, and culture. Organizations typically have a hierarchical structure with senior, middle, and operational management levels. This hierarchy and the business processes of an organization are used to coordinate work. Information systems help by automating many business processes. You can also find an organization’s culture (assumptions, values, and ways of doing things) embedded in the information systems it uses. Conflict within an organization (due to differing interests and POVs) affect information systems as well.

Management Dimensions- consists of strategies managers use to overcome business challenges. They include the creation of new products/services and sometimes even include the re-creation of an organization in response to new knowledge and information. Information systems helps managers design and deliver new products/services and redirect and redesign their organizations.

Technology Dimensions- consists of computer hardware (physical equipment used for input, processing, and output activities) and software (programs that control and coordinate hardware) in an information system.

• Data Management- software that governs the organization of data on a physical storage media.

• Networking and Telecommunications Technology- physical devices and software that connects various pieces of hardware and transfers data from one physical location to another (i.e. How a network links computers to share data or printers- iManage at Barclay Damon).

The Internet is a global network of interconnected computers that communicate through universal standards. It’s the infrastructure that allows data to be shared across the globe and has created a new platform to build new products/services, strategies/business models. Can be thought of as the “hardware” or the physical location used in information systems. It is both a business necessity and competitive advantage.

• Intranets are different networks and systems that are linked within an organization using the same technology as the internet.

• Extranets are private intranets that have been shared with outside firms to coordinate purchases, collaboration on design, and other interorganizational work.

The World Wide Web (WWW) is a service/application provided by and run on the internet. It uses universally accepted standards for storing, retrieving, formatting, and displaying information and consists of a vast collection of documents and resources. These are all linked by hyperlinks and URLs, accessible through web browsers. It is the software that allows users to interact with online content and can be used as the foundation for new kinds of information systems.

Relationships with other technology components:

• Data Storage and Management- information systems rely on databases and storage to manage data. The internet provides access to these databases, while the WWW provides user-friendly interfaces to interact with that data.

• Networking- the Internet itself is a massive network, and it connects smaller ones (i.e. local area networks or LANs) to form one global system.

• Cloud Computing- many information systems now use cloud services, which are online. The WWW allows users to access these cloud-based applications/services from anywhere.

• Etc., etc.

The Internet provides the connectivity and infrastructure, while the WWW provides the platform for accessing and interacting with information. Together they are the backbone of information systems.

Complementary Assets are the needed assets to derive value from a primary investment (i.e. IT).

The relationship between complementary assets and IT are crucial. To maximize the value of their initial investment into IT, firms also need to invest in complementary assets such as:

• New Business Models- IT might require new ways to deliver products/services.

• Business Processes- IT can streamline operations but current processes need to be designed to take advantage of that.

• Management Practices/Behaviors- Effective use of IT requires changes in management to support new ways of working.

• Organizational Culture- A culture that embraces change and innovation helps to effectively implement IT solutions.

• Training- Employees need to be trained to use new IT systems effectively.

Investing in all of these allows organizations to achieve superior returns on their initial IT investments. This in turn improves productivity and competitive advantage.

To get the best returns from IT, organizations must also invest in complementary social, managerial, and organizational assets. These additional assets are crucial for ensuring the IT is effectively integrated and leverage within the organization.

• Social- supporting the Internet, it’s culture and telecommunications infrastructure; IT- enriched educational programs that raise computer literacy within the labor force; network and computing standards (government & private sector); regulations and laws that create a fair and stable market environment; the presence of technology and service firms in adjacent markets to assist in implementation.

• Managerial- a strong senior management that supports change and is willing to invest in new technologies and processes; incentive systems that monitor and reward efficiency, individual innovations and team contributions that encourage employees to make the most of IT investments; training programs that ensure employees have the needed skills to use IT effectively.

• Organizational- a supportive organizational culture that values efficiency and effectiveness; an appropriate business model that aligns with the capabilities of the IT investments; efficient and streamlined business processes can enhance the benefits of IT by increasing productivity; decentralizing authority by allowing employees to make decisions empowers them to respond quickly to changed and opportunities; having a strong and capable IS team can develop and maintain IT systems that meet the evolving needs of the business.

1.3: What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems?

1. List and describe each discipline that contributes to a technical approach to information systems.

2. List and describe each discipline that contributes to a behavioral approach to information systems.

3. Describe the sociotechnical perspective on information systems.

Information systems is a multidisciplinary field that can be divided into technical and behavioral approaches. Although information systems are composed of machines, devices, and “hard” physical technology, they are sociotechnical systems. That means that they require a great deal of social, organizational, and intellectual investments to make them work.

The technical approach emphasizes mathematically based models to study information systems, along with the physical technology and formal capabilities of these systems.

The disciplines that fall under the technical approach are Computer Science, Management Science, and Operations Research.

Computer Science establishes theories of computability, methods of computation, and methods of efficient data storage and access.

Management Science puts an emphasis on the development of models for decision-making and management practices.

Operations Research concentrates on mathematical methods to optimize certain parameters within organizations. (i.e. transportation, inventory control, and transaction costs).

Behavioral issues that arise in the development and long-term maintenance of information systems are an important part of the I.S. field. Strategic business integration, design, implementation, utilization, and management are all issues that cannot be explored using the technical approach and so a behavioral approach needs to be used instead.

Sociology, Psychology, and Economics all fall under the behavioral approach umbrella.

Sociologists focus on how groups and organizations shape the way systems are created and on how those systems affect individuals, groups, and organizations. 

Psychologists are interested in how human decision-makers perceive and use formal information.

Economists want to understand how digital goods are created, the dynamics of the digital markets, and how new information systems affect the control and costs of structures within a firm.

_____________________________________________________________________

Side Bar: The behavioral approach does not ignore technology, rather I.S. technology is often the trigger for a behavioral problem/issue. Although it doesn’t ignore technology, this approach typically focuses on changes in attitudes, management, and organizational policy, and behavior.

_____________________________________________________________________

In a sociotechnical perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained. Meaning that the successes and failures of information systems are hardly ever all technical or all behavioral; it’s a combination of the two that is the decided factor. Adopting this perspective helps to avoid a purely technological approach to I.S. Technology must be changed and designed to fit organizational and individual needs.

1.2 Collaborating with Information Systems

Essential Question: What is the impact of business processes, collaboration, and social business?

2.1: What are business processes? How are they related to information systems (I.S.)?

1. Define business processes and describe the role they play in organizations.

2. Describe the relationship between information systems and business processes.

To operate, businesses deal with many pieces of information about suppliers, customers, employees, invoices, payments, and their products/services. Work activities are organized in a way that uses all these bits of information to operate efficiently and enhance the performance of the firm.

Business processes are a collection of activities required to make products/services. They are the unique ways that activities are organized, coordinated, and focused within an organization. Many business processes are also linked to a specific functional area (i.e. manufacturing & production, sales & marketing, etc.). Others are cross-functional and require coordination across departments.

Computer-based information systems make this coordination possible and efficient because of the volume of information that must flow quickly between decision-makers within each department.

Information systems automate several steps in business processes that were originally done manually, this makes the processes more efficient. Information systems also constantly change the way a business works and supports new business models.

2.2 How do systems serve the different management groups in a business, and how do systems that link enterprise improve organizational performance?

1. Describe the characteristics of transaction processing systems (TPS) and the roles they play in a business.

2. Describe the characteristics of management information systems (MIS) and explain how MIS differ from TPS and from DSS.

3. Describe the characteristics of decision-support systems (DSS) and how they benefit businesses.

4. Describe the characteristics of executive support systems (ESS) and explain how these systems differ from DSS.

5. Explain how enterprise applications improve organizational performance.

6. Define enterprise systems, supply  chain management systems, customer relationship management systems, and knowledge management systems and describe their business benefits.

7.  Explain how intranets and extranets help firms integrate information and business processes.

Transaction Processing Systems (TPS) are computerized systems that are used by operational managers and perform and record the daily routines that are needed to do business.  for example, they help managers keep track of day-to-day activities (i.e.  sales, receipts, payroll, etc.).  They also monitor the status of internal operations and the firm's relations with the external environment. In addition, TPS are major producers of information that is used by other systems and business functions.

TPS are so vital to a business that TPS failure for a few hours could mean the end of a firm and any firms connected to it.

Business Intelligence is data and software tools  for organizing, analyzing, and providing access to data that helps managers and other enterprise users make more informed decisions.  Business Intelligence Systems (BIS) Used by middle management (i.e. helps with monitoring, controlling, decision-making, and administrative activities).

Management Information Systems (MIS)  supports decision-making at different levels of management. It provides managers with regular reports and the information needed for good decision-making. MIS follows a systemic approach to improve processes and focuses on management needs and business objectives.  MIS  are generally not flexible and have very little analytical capabilities.

Differences between MIS and other BIS:

TPS v. MIS: TPS are operational-level systems used for day-to-day processes/transactions and track basic information. MIS uses data provided by the TPS to generate reports that management uses for decision-making.

DSS vs. MIS: Decision-Support Systems (DSS) are interactive systems used for decision-making, they use external data as well as TPS and MIS. DSS are typically used for unstructured/semi-structured decision-making and focuses on “what if” analysis and are oriented towards problem-solving. MIS are more structured and focus on routine reporting and tracking of operations within an organization.

Another type of BIS is Decision-Making Systems (DSS). DSS focus on problems that are unique and rapidly changing. They help businesses make informed decisions about procedures that may not have predefined solutions or when there’s an element of uncertainty. DSS can increase efficiency in decision-making, and they can enhance problem-solving capabilities.

BIS also help senior management make decisions that are focused on strategic issues and long-term trends inside and outside the firm.

Executive Support Systems (ESS) are designed to support senior/executive management in decision-making and to incorporate data from external events (i.e. new tax laws). They summarize internal systems data (MIS & DSS) and display the data that is the most important to senior managers.

ESS differs from DSS not only because of the level of users (middle vs. top) but also because it supports structure problems, whereas DSS can handle both structured and unstructured. ESS uses both internal and external data; DSS only uses internal. ESS presents summary information in a graphical format using a digital dashboard and DSS provides more information.

A digital dashboard displays graphs and charts of key performance indicators on one screen. it delivers comprehensive and accurate information for decision-making.

Enterprise Applications:

Getting different kinds of outdated systems in a company to work together to update and combine smaller systems is a major issue that firm’s face today. One solution is to implement enterprise applications (Systems that span functional areas, focus on executing business processes across the firm, and include all levels of management). Enterprise applications help businesses become more flexible and productive by automating processes, coordinating them more closely, and integrating groups of processes so they focus on efficient management of resources and customer service.

Enterprise Systems, or Enterprise Resource Planning (ERP) Systems are used to integrate business processes in manufacturing & production, finance & accounting, sales & marketing, and HR into a single comprehensive software system. This improves efficiency, enhances collaboration and innovation, allows for better decision-making, improves security, standardizes/centralizes data, and reduces costs.

Supply Chain Management (SCM) Systems Help firms manage their relationships with their suppliers.  They help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products/services so they can source, produce, and deliver goods/services efficiently. The ultimate goal is to get the right amount of product from their source to their consumption in the least amount of time and at the lowest cost. These systems increase firm profitability.

SCM Systems are one type of interorganizational system because they untomate the flow of information across organizational boundaries.

Customer Relationship Management (CRM) Systems help firms manage their relationships with their customers, it provides information to coordinate all of the business processes that deal with customers (i.e. sales, marketing, etc.) to optimize revenue and customer satisfaction/retention.

Some firms perform better than others because they have better knowledge, that is unique, about how to create, produce, and deliver products/services.

Knowledge Management Systems (KMS) enable organizations to better manage processes for capturing and applying knowledge and expertise. They collect all relevant knowledge and experience in the firm and make it available wherever and whenever it is needed to improve business processes and management decisions. KMS also link the firm to external sources of knowledge.

Intranets and extranets are key in integrating  information and business processes. Intranets are private networks for staff used for boosting productivity, collaboration, and communication while cutting costs. Extranets expand this to external entities like customers and suppliers, enhancing partnerships, customer service, and secure information sharing. Both play unique, but complimentary, roles in advancing organizational communication and cooperation.

2.3: Why are systems for collaboration and social business so important, and what technologies do they use?

1. Define collaboration and social business and explain why they have become so important in business today.

2.  List and describe the business benefits of collaboration and social business.

3.  Describe a supportive organizational culture and business processes for collaboration.

4.  List and describe the various types of collaboration and social business tools.

Collaboration is working with others to achieve shared and explicit goals. It may be a short-term or long-term endeavor, based on what's needed. Collaboration can take place in an informal setting or within a formally organized team framework.

Teams are formal groups whose members collaborate to achieve specific goals. Teams are often short-term. 

Collaboration is more important today than ever before because of multiple factors:

• Changing Nature of Work: Work has evolved from independent stages to requiring close coordination and interaction.

• Growth of Professional Work: Professional jobs in the service sector demand substantial education and information sharing, with expertise and decision-making distributed among team members.

• Emphasis on Innovation: Innovation is often a group process.

• Changing Culture of Work and Business: Research on collaboration supports the idea that diverse teams create better outputs, more efficiently than individuals working on their own. Popular notions of the crowd also provide cultural support for collaboration and teamwork.

Social Business is the use of social networking platforms, including Facebook, Twitter, and internal corporate social tools, to engage employees, customers, and suppliers.

The goal is to deepen interactions with groups inside and outside of the firm in order to expedite and enhance information sharing, innovation, and decision-making.

Social Business has become important in business today because if firms could tune into the conversations that their customers, suppliers, employees, managers, etc. are having without their knowledge or influence, then they would strengthen their bonds with them. This would drive operational efficiencies, spur innovation, and accelerate decision-making.

The benefits of collaboration and social business are increased productivity, quality, innovation, customer service, and financial performance (profitability, sales, and sales growth).

A collaborative business culture and processes is more dependent on teams at all levels of the organization to develop policies, products, designs, processes, and systems. Team performance is rewarded as well as individual performance in their teams. Middle management builds the teams, coordinates their work, and monitors their performance. It is more “social”. “Command and Control” organizations are no longer the norm.

There are multiple tools used in collaboration and social business, they include:

• Email and IM (including Text Messages): operates on computers, mobile phones, tablets, and other wireless devices. Allow for real-time communication.

• Wikis: websites where users can contribute and edit text content and graphics without any prior knowledge on how to develop webpages or any programming techniques. Useful for storing and sharing corporate knowledge and insight.

• Virtual Worlds: online worlds where companies like IBM and Cisco have virtual meetings, interviews, guest speaker events, and employee training.

• Collaboration & Social Business Platforms: software products that provide multifunction platforms for collaboration and social businesses among teams so they can work together from different locations (i.e. Microsoft SharePoint).

• Virtual Meeting Systems: videoconferencing such as Zoom, Microsoft Teams, FaceTime, etc.

2-4: What is the role of the information systems function in business?

1. Describe how the information systems function supports a business.

2. Compare the roles played by programmers, systems analysts, information systems managers, the chief information officer (CIO), the chief security officer (CSO), the chief data officer (CDO), and the chief knowledge officer (CKO).

Information Systems Department is the formal organizational unit that is responsible for IT services and consists of several specialists. It supports a business by maintaining the hardware, software, data storage, and networks that make up the firm's IT infrastructure.

SPECIALISTS:

• Programmers are highly trained technical specialists who write the software instructions for computers.

• Systems Analysts are responsible for translating business problems/requirements into information requirements and systems; they are the go-between for the information systems groups and the rest of the organization.

• Information Systems Managers lead teams of programmers and analysts, project managers, database specialists, etc, They also manage computer operations, data entry staff, and external specialists such as hardware vendors and manufacturers, etc.

• The Chief Information Officer (CIO) is a senior manager who supervisors the use of IT in the firm. They are the head of the Information Systems Department.

• The Chief Security Officer (CSO), also called the Chief Information Security Officer (CISO), is responsible for the security of a firm’s information systems and enforcing security policies. This includes educating and training users and specialists on security, keeping management aware of any security threats/breakdowns, and maintaining tools and policies chosen to implement security.

• The Chief Data Officer (CDO) ensures that the firm is collecting appropriate data to serve its needs, deploying appropriate technologies for analyzing the data, and using it to support business decisions and maximize value.

• The Chief Knowledge Officer (CKO) is responsible for the firm’s knowledge management program; they help design programs and systems to find new sources of knowledge or better use existing knowledge in organizational and management processes.

The Chief Privacy Officer (CPO) is another specialist important to the Information Systems Department. They are responsible for making sure the firm is compliant with existing data privacy laws.

End Users are representatives of departments outside the IS group whom applications are developed for.

IT Governance decides how the ISD should be organized and includes strategy and policies for using IT within a firm by specifying the decision rights and framework for accountability to ensure that the use of IT supports the firm’s strategies and objectives.

Lesson 2: Information Systems and Organizational Performance

[Add Notes]

Lesson 3: Challenges of Information Systems

Essential Question: How are competitive advantages sustained with the use of information systems?

3-1: Which features of organizations do managers need to know about to build and use information systems successfully?

Managers build information systems based on the organization's needs and interests, and information systems can influence the organization with new technologies. They influence each other.

The interactions between IT and organizations are influenced by the organization’s structure, business processes, politics, culture, surrounding environment, and management decisions.

What’s an organization and how does it relate to information systems technology?

The technical definition of an organization is a stable, formal structure that takes resources from the environment and processes them to produce outputs. It is defined by three elements:

1. Capital & Labor: Primary production factors that are provided by the environment.

2. The Firm: Transform inputs into products/services. 

3. Products/Services: Consumed by the environment, supply inputs are received, and the cycle starts again.

In microeconomics, firms transform capital and labor into products and services through production. These products and services are consumed by the environment, which in turn, supplies the organization with more capital and labor, restarting the cycle.

[insert graphic]

Organizations are formal legal entities and social structures and are more stable than informal groups (i.e. groups of friends) in terms of longevity and routineness.

The behavioral definition of an organization is the collection of rights, privileges, obligations, and responsibilities that are balanced over a period of time via conflict and conflict resolution. This definition is more realistic and emphasizes group relationships, values, and structures.

The technical definition encourages us to focus on how the different inputs combine to create outputs when new technology is introduced into the firm suggesting that organizations are infinitely changeable. The behavioral definition suggests that building new (or rebuilding old) informational systems involves a more technical approach because some information systems change the organizational balance of rights, privileges, obligations, responsibilities, and feelings built over time. Making changes to these elements can take a long time and can be disruptive.

The technical and behavioral definitions of an organization are not contradictory, they are complementary to each other. The technological one tells how thousands of firms, in competitive markets, combine capital, labor, and I.S., whereas the behavioral one shows us the inner workings of an individual firm so we can see how that technology affects it.

All modern organizations are bureaucratic with a clear division of labor and specialization arranged in a hierarchy of authority where everyone is accountable to someone, and authority is limited. This creates an impartial system and universal decision-making.

Other organizational features such as the routines (daily SOPs) and business processes (collection of routines) of the firm and its politics, culture, environment, and structure are all essential for managers to know so that information systems can be created and used successfully.

Politics:

Due to the differing positional specialties, concerns, and perspectives of individuals in a firm, there are often divergent viewpoints about how resources, rewards, and punishments should be given out. Political resistance is the biggest obstacle in bringing about change, especially in the creation of new information systems.

Culture:

Every organization is founded on a set of core assumptions that are accepted without question by its members, shaping the organization's goals and products. The organizational culture is built around these assumptions. It guides in decision-making related to products that will be produced, the methods of production, the location, and the target audience.

Organizational culture can be a powerful unifying force that helps prevent conflict and promote understanding and agreement on procedures and common practices. It can also be a powerful restraint on changes within the organization, especially technological ones.

Environment:

Organizations and their environments share a mutual relationship. Organizations are influenced by and rely on the surrounding social and physical environments, while they can also impact these environments.

Information systems are key instruments for environmental scanning, helping managers identify external changes that might require an organizational response.

Environments tend to change faster than organizations. This is because new technologies, products, and changing public tastes (often resulting in new government regulations) put strain on the organization's culture, politics, and people.

Sometimes new technology and the resulting innovation radically change the business landscape and environment, these are called “disruptive technology”. Disruptive Tech, in some cases, are substitute products that perform better than anything currently produced. Not all change or technology is disruptive.

Structure:

All organizations have a structure, these are described by Mintzberg's Classification, which identifies five basic types of organizational structure:

1. Entrepreneurial Structure: Young, small firm in a fast-changing environment. Simple structure, managed by one CEO (i.e. small start-up business).

2. Machine Bureaucracy: Large bureaucracy with a slowly changing environment. Produces standard products. Centralized management team (i.e. mid sized manufacturing firm).

3. Divisionalized Bureaucracy: Combination of multiple machine bureaucracies, each producing a different product or service. One Central headquarters (i.e. Fortune 500 films). 

4. Professional Bureaucracy: Knowledge-based organization where goods and services depend on the expertise and knowledge of professionals. Department Heads with weak centralized authority (i.e. law firms and schools). 

5. Adhocracy: Task force organization that must respond to rapidly changing environments. Consists of large groups of specialists organized into short-lived multidisciplinary teams and has weak central management (i.e. consulting firms). 

3-2: What is the impact of information systems on organizations?

Economic Impacts of Information Systems

I.S. has significant economic impacts on organizations including:

1. Cost and Capital Substitution- Decrease in the cost of I.T. allows it to be used in place of more costly capital such as labor (i.e. middle managers and clerical workers), buildings, and machinery. This encourages managers to invest more in IT instead of other traditional capital.

2. Transaction Costs- IT reduces the costs incurred when a firm has to buy - what it can’t make - from the marketplace, making it more economical to hire external suppliers. This also reduces the number of employees needed.

3. Outsourcing- Using IT allows firms to outsource work to less expensive markets.

4. Internal Management Costs- Using IT allows managers to oversee more employees which reduces the cost of agency - supervising and managing employees (fewer managers will need to be hired).

5. Firm Size and Revenue- As the use of IT reduces agency and transaction costs, firms can increase their revenues.

In sum, IT leads to smaller firm sizes, fewer managers, and increased revenue per employee as firms invest more in IT.

Organizational and Behavioral Impacts of Information Systems

Some organizational and behavioral impacts that I.S. has on an organization are:

1. I.T. Flattens Organizations: I.T. allows large, bureaucratic organizations, created pre-computer era, to reduce the number of employees and levels in their organization’s hierarchy. This empowers lower-level employees and increases the efficiency of management. This leads to faster decision-making and fewer managers.

2. Postindustrial Organizations: Organizations increasingly rely on knowledge and competence rather than formal positions. I.T. supports this by allowing workers to be self-managing and decentralizing decision-making. It also encourages the development of temporary task forces that come together to complete specific tasks.

3. Organizational Resistance to Change: Implementing I.S. can be challenging due to organizational resistance. This resistance arises because information systems influence access to information, change personal routines, and require retraining. Overcoming this resistance requires changing technology, tasks, structure, and people simultaneously. This is also the most common reason why implementation fails.

The Internet and Organizations

The internet impacts the relationships between firms and external entities. It also impacts the organization of business processes inside the firm. Using the internet increases the accessibility, storage, and distribution of information and knowledge for firms. This dramatically lowers the transaction and agency costs that most firms face.

____________________________________________________________________

3-3: How do Porter’s competitive forces model, the value chain model, synergies, core competencies, and network economics help companies develop competitive strategies using information systems?

Porter’s Competitive Forces Model helps companies develop competitive strategies using I.S. by focusing on five key forces that shape the competitive environment:

1. Traditional Competitors- I.S. aid companies in keeping costs down and distinguishing their products/services, this enables them to compete effectively against traditional direct competitors through unique propositions or cost benefits.

2. New Market Entrants- I.S. increases barriers to market entry, helping companies protect their market position. Efficient I.S. make it difficult for new entrants to compete on cost and quality.

3. Substitute Products/Services- Substitutes can be found in almost all industries and customers seek out those substitutions if prices get too high. I.S. allows companies to focus on filling gaps within market niches and tailor what they offer to specific customers. This makes it more difficult for customers to find substitutions.

4. Suppliers- The power of supplies can have a significant impact on firms if firms can’t maintain a competitive edge. For instance, having more than one supplier for the same product/service reduces the supplier’s power to control pricing. I.S. helps in strengthening ties with different suppliers which leads to many benefits, including maintaining a competitive edge.

5. Customers- I.S. helps enhance customer relationships by providing better service, personalization, and efficient communication. In doing this, I.S. takes away the customer’s power to control prices by reducing the likelihood that they can easily switch to a competitor and get the same exact thing. It also strengthens customer loyalty.

By leveraging Information Systems to address these competitive forces, companies can develop strategies that enhance their market position, improve operational efficiency, and create sustainable competitive advantages.

The Value Chain Model helps companies develop competitive strategies by highlighting specific activities where the business can best apply competitive strategies and where I.S. are most likely to have an impact.

This model considers the firm as a series or chain of basic activities that add value to a firm and breaks them into two categories: Primary or Support.

Primary activities are closely related to the production/distribution of the firm's products/services and include inbound logistics (receiving /storing materials), operations (transform inputs to outputs), outbound logistics (storing/distributing finished products), sales and marketing (promoting/selling products), and service (maintaining/repairing goods/services).

Support activities make the primary activities possible and include organization infrastructure (administration/management), human resources (employee recruiting/hiring/training), technology (improving products/the production process), and procurement (purchasing input).

Synergies help companies develop competitive strategies using I.S. by tying the operations of two different businesses together so that they can act as a whole. I.S. helps companies combine their operations, lower costs, and increase cross-marketing of products/services.

Core competencies help companies develop competitive strategies using I.S. by encouraging or enhancing existing competencies and helping employees become aware of new external knowledge.

Network economics helps companies develop competitive strategies using I.S. such as Internet sites that help build a community of like-minded users. This also builds loyalty and enjoyment and unique connections to customers, making it difficult for them to switch to other companies.

Lesson 2 Question that I originally got wrong (OG answered “Organizational”).

An organization implemented a new human resources information system. However, the system does not contain a module for tracking employee benefits.

Which type of impact is the company facing?

1. Behavioral

2. Organizational

3. Internet

4. Economic

____________________________________________________________________

Lesson 3 Knowledge Check

1. An organization has noticed a change since it implemented a strategic information system. Management has decided to conduct an analysis of the organization's change. Which three components do strategic information systems change?

Information systems change the organization and its products, services, and operating procedures. This pushes the organization into new behavioral patterns. 

2. A company has maintained a competitive advantage and its industry through innovation. However, it has noticed that it has been facing major competition. What are the reasons why the competitive advantage of strategic systems doesn't last long? 

Competitors can copy strategic systems causing them to become obsolete rapidly, this makes sustainable competitive advantage difficult. Markets, customer expectations, and technology changes and globalization has made these changes even more unpredictable

3. A new competitor has entered the market and is offering a similar product to the company. The company has decided to implement a new system to maintain a competitive advantage. Which question should managers ask to identify the systems that provide a strategic advantage to their firms?

What are the business and industry value chains for this company? A business must understand this to identify the best system.

____________________________________________________________________

U3 (Sec. 2) L1- Organizational Software and Hardware Needs,

U3 (Sec. 2) L3- Emerging Technologies, and

U3 (Sec. 2) L4- Managing Information Systems

5-1: What is IT infrastructure and what are the stages and drivers of IT infrastructure evolution?

IT infrastructure is the shared technology resources that provide the platform for the firm's specific information system applications. It includes investing in hardware, software, and services. These are shared across the entire firm. Infrastructure should support the firm's business and I.S. strategy as the services it can provide are directly linked to its IT infrastructure.

There have been five stages/eras in the evolution of IT infrastructure. They are:

1. The Mainframe & Minicomputer Era (1959-Present):

MAINFRAME:

Beginning of widespread commercial use of mainframe computers that could provide timesharing, multitasking, and virtual memory. It was characterized by centralized computing power to multiple users. 

MINICOMPUTERS:

In 1965, minicomputers began decentralizing computing. They were powerful machines that cost less and were customizable to fit specific needs. Recently, they have evolved into mid-range computers/servers and are a part of a network.

2. The Personal Computer Era (1981-Present): Defined by the widespread adoption of personal computers by businesses. The Wintel PC became the standard desktop PC. This also launched the creation of a series of highly valuable productivity software tools (i.e. word processors) in both the home and corporate settings.

3. *The Client-Server Era (1983-Present): Involves desktop/laptop computers, called clients, networked to powerful server computers that provide many different services and capabilities. Computer processing work is divided between these two computers.

Two types of client/server networks: Two tiered Client/Server Architecture and Multi-tiered Client/Server Architectures (a.k.a. N-tier Client/Server Architectures).

4. The Enterprise Computing Era (1992-Present): In the early 1990s, firms began integrating various networks and applications into a cohesive enterprise-wide infrastructure. After 1995, businesses adopted the Transmission Control Protocol/Internet Protocol (TCP/IP) standard to connect different networks. This linked different computer hardware and smaller networks and allowed a seamless flow of information across organizations with external entities.

5. The Cloud Computing Era (2000-Present): As a result of the increased bandwidth of the internet. Cloud computing has allowed IT infrastructure to be delivered as a service over the internet. This model can be accessed from any computer, anywhere, and is the fastest-growing form of computing.

______________________________________________________________________

*Sidebar:

A Wintel PC is any computer that uses both the Intel microprocessors and a Windows operating system.

A Client is a point-of-entry for users (i.e. desktop, laptop, etc.)

A Server is a computer specifically optimized to provide software and other resources to other computers (clients) over a network (i.e. access to webpages, processes, and stores of shared data).

A Two-Tiered Client/Server Architecture is the simplest form of the client/server networks. It consists of a client computer networked to a server computer, with processing split between the two machines. Often found in small businesses.

Multi-Tiered Client/Server Architectures are used by most larger corporations. In this network, the work of the entire network is balanced over several different levels of servers.

Client/Server computing allows businesses to distribute work across several smaller, less expensive machines vs. using a centralized mainframe system.

______________________________________________________________________

Developments in computer processing, micro-chips, storage devices, networking, hardware/software, and software design were the drivers that helped drastically change IT infrastructure by exponentially increasing computing power and reducing costs.

Several key technological advancements include:

1. Moore’s Law: the assertion that the number of components on a chip doubles every year, boosting computing power while also greatly reducing costs.

2. The Law of Mass Digital Storage: shows that while digital data doubles every year, storage costs continue to drop exponentially.

3. Metcalf’s Law: highlights that the value/power of a network grows exponentially as a result of an increase in network members/users. The demand for IT has also been driven by the social and business value of digital networks.

4. Failing communications costs and the expansion of the Internet have also led to a surge in the use of IT infrastructure.

5-2: What are the components of IT infrastructure?

There are seven (7) major components of IT infrastructure, and each represents investments that need to be coordinated to provide the firm with a cohesive infrastructure:

1. Computer Hardware Platforms- Include, from the first computer hardware platform: mainframes, servers, and PCs. From the second computer hardware platform: tablets and smartphones.

2. Operating Systems Platforms- The leading operating systems are windows, Unix, and Linux. Also includes Google's Chrome OS, android, and iOS.

3. Enterprise Software Applications- The largest providers are SAP and Oracle. Also includes middleware software supplied by IBM and Oracle (uses existing application systems to achieve firmwide integration). Microsoft is also trying to move into the market by focusing on the lower ends of the market (small/medium sized businesses).

4. Networking/Telecommunications- Windows server is predominantly used as a local area network (LAN) operating system, next is Linux and Unix. Large, Enterprise wide area networks use variance of Unix. Both use the TCP/IP protocol suite. Telecommunications services are provided by Verizon, AT&T, and other vendors.

5. Consultants & System Integrators- The leading consulting firms that specialize in IT infrastructure are Accenture, IBM services, HP, Infosys, and WiPro.

6. Data Management & Storage- Responsible for organizing and managing the firm's data. The leading providers are IBM (DB2),  Oracle, Microsoft (SQL Server), and SAP Sybase (Adaptive Server Enterprise).

7. Internet Platforms- Include hardware, software, and management services to support a firm's website, web hosting services, routers, and cabling or wireless equipment.

5-3: What are current trends in computer hardware platforms?

There are eight (8) hardware trends, they are:

1. The Mobile Digital Platform- Alternatives to PCS and larger computers. Includes iphones, androids, tablet computers (i.e. iPads),  and digital ebook readers with some web access (Kindles and Nooks). These alternatives are becoming the primary way of accessing the internet and for business computing.

2. Consumerization of IT & BYOD- Bring your own device (BYOD) is an aspect of the consumerization of IT, in which new IT that first emerges in the consumer market spreads into business organizations. It also includes software services such as Google search, Gmail, Google Maps, Dropbox, and even social media platforms. This trend has made it more difficult for firms to manage and control risks associated with hardware/software use and to ensure these technologies are serving the needs of the firm.

3. Quantum Computing- Uses the principles of quantum physics to represent data and perform operations on these data. Can process units of data as 0, 1, or both simultaneously whereas conventional computers can only process either 0 or 1.

4. Virtualization- The process of presenting a set of computing resources so that they can all be accessed in ways that are not restricted by physical configuration or geographical location. Enables a single physical resource (i.e. a mainframe)  to appear as multiple logical resources (i.e. mainframe running multiple instances of an operating system) and appears as though it is multiple machines and not just the one. Common method to reduce costs and space needed.

5. Cloud Computing- A model of computing where computer processing, storage, software, and other services are provided as a shared pool of virtualized resources over a network (the Internet) and can be accessed as needed from anywhere and on any device that is connected. It consists of three different types of services: Infrastructure as a service (IaaS), Software as a service (SaaS),  and Platform as a service (PaaS).

6. Edge Computing- A method of optimizing cloud computing systems by performing some data processing on a set of linked servers at the edge of the network (near the source of data). This reduces how much data is flowing between local computers, other devices, and the central cloud data center. Also reduces delays in the transmission and processing of data.

7. Green Computing- Practices and technologies for designing, manufacturing, using, and disposing of computers, servers, and associated devices (i.e. monitors) to minimize the impact on the environment. Energy Efficiency.

8. High Performance/Power-Saving Processors- Reduce power requirements and hardware sprawl (uncontrolled growth of various hardware components in a network); this is crucial to reduce power consumption and prolong battery life.

5-4: What are the current computer software platforms and trends?

1. Open Source Software is produced and maintained by a global community of programmers and is often downloadable for free. Linux is the most well-known open-source operating system related to Unix. It is the leading operating system for servers, Mainframe computers, and supercomputers.

2. Java is an operating system-independent, processor-independent, object-oriented programming language that is the leading interactive programming environment for the web. Java can also be found in mobile phones, tablets, cars, etc. It was designed to run on any computer or computing device, regardless of the specific microprocessor or operating system the device uses.

3. HTML (Hypertext Markup Language) is a page description language for specifying how text, graphics, video, and sound are placed on a webpage and for creating dynamic links to other webpages/objects. Originally designed to create and link static documents made up of mostly text, HTML is unable to efficiently integrate interactive pages that have multimedia elements without the use of third-party plug-ins, apps or add-ons. HTML5, the next iteration of HTML, solves this problem and makes it possible to embed images, audio, and video directly into a web document without add-on programs. This makes it easier for web pages to function across different display devices (i.e. mobile phones).

4. Web services are loosely coupled software components that exchange information with each other using universal web communication standards and languages. Information can be exchanged between two different systems regardless of the operating system or programming languages in use. The foundation technology for web services is XML (Extensible Markup Language), a more powerful and flexible markup language than HTML that can perform presentation, communication, and storage of data.

5. The collection of web services that are used to build a firm’s software systems is called Service-Oriented Architecture (SOA). SOA is a set of self-contained services that communicate with each other to create a working software application.

6. Software Outsourcing & Cloud Services- Many firms still operate legacy systems that continue to meet their needs and would be extremely expensive to replace. However, they are purchasing or renting their new software applications from outside sources. There are three external sources for software: Software Packages & Enterprise Software, Software Outsourcing, and Cloud-Based Software Services/Tools (pg. 193).

5-5: What are the challenges of managing IT infrastructure and management solutions?

1. Dealing with Platform and Infrastructure Change- when a firm grows it can quickly outgrow its infrastructure and, as it shrinks, firms can have excessive infrastructure that is no longer needed. One solution is to have scalability (pg. 196) built into the infrastructure. Another example is for firms using mobile and cloud computing, mobile device management (MDM) software will be needed. This software enables IT to monitor mobile usage, install or update mobile software, backup and restore mobile devices, and remove software and data from devices that are stolen or lost.

2. Management and Governance- who will control and manage the firm’s IT infrastructure is a long-standing issue between I.S. managers and CEOs.

3. Making Wise Infrastructure Investments- Investing in IT infrastructure is crucial, but finding the right balance is key. Spend too much, and you waste resources. Spend too little, and you fall behind competitors. Should companies buy or rent IT infrastructure is another important decision to make. The Total Cost of Ownership (TCO) model helps analyze all costs, including acquisition, installation, training, support, maintenance, and more. Hardware and software costs are just a small part of the total, so managing ongoing costs is essential. Centralizing and standardizing IT resources can reduce costs and the need for a large IT support staff. The Competitive Forces Model suggests considering market demand, business strategy, IT strategy, and technology assessment to determine the right level of IT investment. This helps align IT spending with strategic goals and market needs.

Ch. 6 Foundations of Business Intelligence: Databases and Information Management

6-1: What are the problems of managing data resources in a traditional file environment?

1. Data Redundancy & Inconsistency:

Redundancy - the presence of duplicate data in multiple data files, leads to storage waste and data inconsistency.

Inconsistency - the presence of different values for the same attribute when the same data are stored in multiple locations.

2. Program-Data Dependence: the close relationship between data stored in files and the specific programs required to update and maintain those files such that changes in programs require changes to the data. 

3. Inflexibility: Traditional file systems can complete routine scheduled reports after extensive programming, but not ad hoc reports nor can they respond to unanticipated information requirements quickly.

4. Poor Security: Management has little control or data management in a traditional file system. They may have no way of knowing who is accessing the organization’s data or who is changing it.

5. Lack of Data Sharing & Availability: It is almost impossible for information to be shared or accessed quickly due to the fact that information in different files and in different parts of the organization can’t be related to each other. Information is unable to flow freely across different functional areas.
   

6-2: What are the major capabilities of database management systems (DBMS), and why is a relational DBMS so powerful?

1. Data Definition - specifies the structure and content of the database.

2. Data Dictionary - an automated or manual file that stores information about the data in the database, including names, definitions, formats, and descriptions of data elements.

3. Data Manipulation - [language] a specialized language for accessing and manipulating the data in the database (i.e. SQL).

Due to it’s flexibility and accessibility, relational DBMS is a powerful tool and is the primary method used to organize and maintain data in I.S. It organizes data in two-dimensional tables called relations with rows and column that can be easily combined to deliver the data required by users.

6-3: What are the principal tools and technologies for accessing information from databases to improve business performance and decision-making?

BUSINESS INTELLIGENCE TECHNOLOGIES

Data Warehouses - store large amounts of current and historical data from various sources and then consolidates it, making it easier to perform complex queries and analyses.

Data Marts - smaller, decentralized warehouses, that only contain a portion of the organization’s data for a specific function or population of users.

Hadoop - an open-source software framework that enables distributed parallel processing of huge amounts of data across many inexpensive computers. It can process large quantities of data, including structured data, semi-structured data, complex data, and unstructured data.

In-Memory Computing - Technology for rapid analysis and processing of large quantities of data by storing the data in the computer’s main memory (RAM) rather than in secondary storage.

Analytical Platforms - a pre-configured hardware/software system that is specifically designed for high-speed analysis of large datasets.

Data Lake - a repository for raw unstructured data or structured data that for the most part has not yet been analyzed, and the data can be accessed in many ways.

—-

Online Analytical Processing (OLAP) - supports multidimensional data analysis and allows users to view the same data in different ways using multiple dimensions.

Data Mining - Analysis of large pools of data to find patterns and rules that can be used to guide decision-making and predict future behavior. Discovery-driven and provides insights into corporate data that cannot be obtained with OLAP. The types of information obtainable from data mining include associations, sequences, classifications, clusters, and forecasts (p.234).

Text Mining - tools that extract key elements from unstructured natural language text, discover patterns and relationships and summarize the information.

Web Mining - The discovery and analysis of useful patterns and information from the World Wide Web. Web mining looks for patterns in data through content mining (the process of extracting knowledge from the content of web pages), structure mining (examines data related to the structure of a particular website), and usage mining (examines user interaction data recorded by a web server whenever requests for a website’s resources are received).

6-4: Why are data governance and data quality assurance essential for managing the firm’s data resources?

Data Governance and Quality are important for ensuring that data for your business remains accurate, reliable, and readily available for those who need it. It establishes the organization’s rules for sharing, disseminating, acquiring, standardizing, classifying, and inventorying information.

Questions I Need to Study from Sec. 3 (Ch. 6)

1. An organization has requested a method to access information on how often data specific to the human resources (HR) department is stored and retrieved.

Which element will help the organization access this information?

Entity-relationship diagram

Data dictionary

Data table

Data definition diagram

2. An organization needs a strategy on how the data within the company are to be organized, maintained, and who is allowed to view the data or change them.

Which database management strategy will help the organization?

Data security

Data quality assurance

Information policy

Database administration

3. A research institution is collaborating with multiple partners and wants to ensure that the shared data is of high quality.

Which technique ensures the quality of data in a collaborative environment?

Data visualization

Data normalization

Data masking

Data broadcasting

4. Which problem of the traditional file environment is solved by database management systems ensuring that every occurrence of repeated data has the same values?

Poor security

Program-data dependence

Inconsistency

Lack of sharing

5. In order to better handle the volume of data from online operations, a company is implementing a database management system. The company wants to prioritize data normalization.

What should this company do to prioritize normalization?

Create indices on specific table columns

Control who can access specific information

Divide information into related tables

Ensure that permissible values are used

Things to Study from Sec. 3 (CH. 6):

1. Blockchain - enables organizations to create and verify transactions on a network nearly instantaneously without a central authority. The transaction information is stored as a distributed ledger and is continually reconciled.

2. Nonrelational database management systems - use a more flexible model. They are useful for large volumes of structured and unstructured data that are difficult to analyze with traditional SQL-based tools.

3. Normalization - ensures data consistency by designing table structures to reduce redundancy and dependency.

Ch. 7 Telecommunications, the Internet, and Wireless Technology

7-1 What are the principal components of telecommunications networks and key networking technologies?

7-2 What are the different types of networks?

7-3 How do the Internet and Internet technology work, and how do they support communication and e-business?

7-4 What are the principal technologies and standards for wireless networking, communication, and Internet access?

Principal Components:

Client Computer

Dedicated Server Computer

Network Interfaces

Connection Medium - Telephone Wire, Coaxial Cable, Radio Signal (Cell Phones), Wi-Fi.

Network Operating System (NOS) - routes and manages communications on the network and coordinates network resources (can reside on every computer in the network or a dedicated server computer).

Hub/ Switch - A connection point between computers. A hub is a simple device that connects network components, sending a packet of data to all other connected devices. A switch has more intelligence than a hub and can filter and forward data to a specified destination on the network.

Router - used to communicate with the internet. Routes packets of data through different networks, ensuring that the data sent gets to the correct address.

Key Networking Technologies

Client/ Server Computing - a distributed computing model in which some of the processing power is located within small, ­inexpensive client computers and resides literally on desktops or laptops or in handheld devices. Linked to one another through a network that is controlled by a network server computer.

Packet Switching - method of slicing digital messages into parcels called packets, sending the packets along different communication paths as they become available, and then reassembling the packets once they arrive at their destinations

TCP/IP & Connectivity - uses a suite of protocols, TCP refers to the Transmission Control Protocol, which handles the movement of data between computers. It establishes a connection between the computers, sequences the transfer of packets, and acknowledges the packets sent. IP refers to the Internet Protocol (IP), which is responsible for the delivery of packets and includes the disassembling and reassembling of packets during transmission.

Local area network (LAN) - Up to 500 meters (half a mile); an office or floor of a building -

WLAN (Wireless LAN)

Campus area network (CAN) - Up to 1,000 meters (a mile); a college campus or corporate facility

Metropolitan area network (MAN) - A city or metropolitan area

Wide area network (WAN)- A regional, transcontinental, or global area

The Internet is a worldwide network of networks that uses the client/server model of computing and the TCP/IP network reference model. Every computer on the Internet is assigned a unique IP address. The Domain Name System (DNS) converts IP addresses to more user-friendly domain names.

Questions I Need to Study from Sec. 4 (Ch. 5)

1. A company's IT team needs to monitor and troubleshoot issues with the corporate network.

How will network performance tools enable the IT team to monitor and troubleshoot network issues?

By providing insight into network traffic and utilization

By predicting network issues before they occur

By eliminating the need to upgrade network infrastructure

By automatically fixing detected network problems.

2. A hospital needs to minimize the impact of network issues on critical medical systems.

How will network analysis tools enable hospital IT staff to safeguard critical systems?

By correlating infrastructure problems with system errors

By forecasting where future network failures will occur

By rerouting traffic away from problem network segments

By automating upgrades of outdated network devices

3. An organization heavily relies on real-time communication between employees at different office locations.

Which type of network architecture facilitates real-time communication among geographically dispersed employees?

Peer-to-peer (P2P)

Cloud computing

Client/server

Internet of Things (IoT)

4. A company needs to efficiently transfer large datasets between its regional offices.

Which network architecture optimizes the transfer of large datasets across regional office locations?

Virtual private network (VPN)

Peer-to-peer (P2P)

Distributed systems

Client/server

5. A multinational corporation requires a network architecture that can efficiently handle data transfer between its headquarters and remote branches located in different countries.

Which core components of a network architecture are leveraged to ensure efficient data transfer between a multinational corporation's headquarters and its remote international branches?

Load balancers and content delivery networks

Network protocols and encryption technologies

Firewalls and intrusion detection systems

Routers and switches

Ch. 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

9-1 How do enterprise systems help businesses achieve operational excellence?

9-2 How do supply chain management systems coordinate planning, production, and logistics with suppliers?

9-3 How do customer relationship management systems help firms achieve customer intimacy?

9-4 What are the challenges that enterprise applications pose, and how are enterprise applications taking advantage of new technologies?

Ch. 11 Managing Knowledge and Artificial Intelligence

11.1: What is the role of knowledge management systems in business?

Knowledge management is a set of processes to create, store, transfer, and apply knowledge in the organization. It promotes organizational learning by increasing the ability of the organization to learn from its environment and to incorporate knowledge into its business processes.

3 Types of K.M. Systems:

1. Enterprise-Wide Knowledge Management Systems- General-purpose firmwide efforts to collect, store, distribute, and apply digital content and knowledge.

2. Knowledge Work Systems- Specialized systems built for engineers, scientists, and other knowledge workers charged with discovering and creating new knowledge for a company.

3. “Intelligent” Techniques- Tools for discovering patterns and applying knowledge to discrete decisions and knowledge domains.

11.2 What are artificial intelligence (AI) and machine learning? How do businesses use AI?

AI is an effort to develop computer-based systems that can think and behave like humans. In its more realistic definition, it is a computer program that takes data input from the environment, processes the data, and, then, produces outputs.

There are eight (8) major types of AI:

1. Expert Systems- Use the knowledge of individual experts in an organization to create sets of rules, which are then turned into “If-THEN” computer codes.

2. Machine Learning- Software that can identify patterns and very large databases without explicit programming, but with significant human training.

3. Neural Networks & Deep Learning- Loosely based on human neurons, they find patterns and relationships in large amounts of data. Neural networks are pattern detection programs. Deep learning uses multiple layers of neural networks to reveal the underlying patterns in data, and, in some limited cases, can identify patterns without human training.

4. Genetic Algorithms- Algorithms based loosely on evolutionary natural selection and mutation, commonly used to generate high-quality solutions to optimization and search problems.

5. Natural Language Processing- Algorithms based loosely on evolutionary natural selection and mutation, commonly used to generate high quality solutions to optimization and search problems. 

6. Computer Vision Systems- Systems that can view and extract information from real-world images.

7. Robotics- Systems that can view and extract information from real-world images and deals with design, construction, operation, and use of movable machines that can substitute some human actions.

8. Intelligent Agents- Software agents that use built-in or learned knowledge to perform specific tasks or services for an individual.

11-3: What types of systems are used for enterprise-wide knowledge management, and how do they provide value for businesses?

11-4: What are the major types of knowledge work systems, and how do they provide value for firms?

Computer-aided Design (CAD) Systems, Virtual Reality (VR) Systems, and Augmented Reality (AR) Applications, which create interactive simulations that behave like the real world.

Ch. 12 Enhancing Decision Making

12-1 What are the different types of decisions, and how does the decision-making process work?

1. Structured

2. Semi-Structured

3. Unstructured

Unstructured decisions are when the decision-maker must provide judgment, evaluation, and insight to solve the problem. Novel, important, and non-routine. No agreed upon solution (i.e. approve capital budget, decide long-term goals, etc.).

Structured decisions are repetitive and routine. They involve a pre-defined procedure for handling issues (i.e. determine overtime eligibility, restock inventory, etc.).

Semi-Structured decisions are a mixture of both unstructured and structured decisions (i.e. design marketing plan, develop a departmental budget, etc.).

Decision-making is a multi-step process consisting of four stages:

1. Intelligence - discovering, identifying, and understanding the problems happening within the organization.

2. Design - identifying and exploring various solutions to the problem(s).

3. Choice - choosing among the alternative solutions.

4. Implementation - making chosen solution work and monitoring how well it is doing so.

12-2 How do information systems support the activities of managers and management decision making?

Managerial Roles fall into three categories:

1. Interpersonal - act as figureheads for the organization when representing their companies in public. Act as leaders for their employees by attempting to motivate, counsel, and support them. Act as liaisons between the different levels of the organization and the members of the management team.

2. Informational - act as the “nerve” centers of their organizations, receiving the most up-to-date information and sharing it with the individuals who need it.

3. Decisional - managers make decisions, initiate new activities, handle issues arising in the organization, allocate resources, negotiate conflicts, and mediate between conflicting parties.

Information Systems are not always helpful for all managerial roles.

There are three main reasons why I.S. does not always produce positive results within the managerial roles where it might improve decisions.

1. Information Quality - High quality decisions require high quality information. The quality dimensions that affect the quality of decisions are the accuracy, integrity, consistency, completeness, validity, timeliness, and accessibility of the information.

2. Management Filters - Like all humans, managers absorb information through a series of filters to make sense of the world around them. They are bad at assessing risk and are risk averse. Managers perceive patterns when there are none and make decisions based on intuition, feelings, and how the problem is framed vs. actual data.

3. Organizational Inertia and Politics - Organizations are bureaucracies with limited capabilities and competencies for acting decisively. Decisions taken by a firm often represent a balancing of the firm’s various interest groups rather than the best solution to the problem. Firms tend to ignore poor performance until threatened by outside takeovers, and they systematically blame poor performance on external forces beyond their control.

12-3 How do business intelligence and business analytics support decision making?

Business intelligence and analytics promise to deliver correct, nearly real-time information to decision makers, and analytic tools help them quickly understand the information and take action.

There are six analytic functionalities that BI systems deliver to achieve these ends:

1. Production Reports - pre-defined reports based on specific industry requirements.

2. Parameterized Reports - users enter parameters in a pivot table to filter data and isolate the impacts of those parameters.

3. Dashboards/ Scorecards - visual tools for presenting performance data defined by users.

4. Ad Hoc Queries/ Searches/ Report Creation - allow users to create their own reports based on queries and searches.

5. Drill Down - the ability to move from a high-level summary to detailed views of data.

6. Forecasts/ Scenarios/ Models - the ability to perform linear forecasting and what-if scenario analysis and analyze data using standard statistical tools.

Other important analytics that are used in BI are:

Predictive Analytics - use statistical analysis, data mining techniques, historical data, and assumptions about future conditions to predict future trends and behavior ­patterns.

Location Analytics - uses the location component of data, including location data from mobile phones, output from sensors or scanning devices, and data from maps to help a marketer determine which people to target with mobile ads about nearby restaurants and stores.

Operational Intelligence - is a type of business activity monitoring that uses data from web activities, smartphones, sensors, gauges, and monitoring devices about activities inside and outside the organization. It enables organizations to analyze streams of day-to-day big data as they are generated in real time.

BI primarily focuses on organizing and presenting data. In contrast, BA leverages this data for predictive and prescriptive analytics, enabling businesses to anticipate future trends and optimize their operations for better decision-making.

BI and BA systems empower organizations to harness data effectively for informed and proactive actions.

12-4 How do different decision-making constituencies in an organization use business intelligence?

Ch. 13 Building Information Systems

13.1: How does building new systems produce organizational change?

Automation - the most common form of IT-enabled organizational change - moderate returns - low risk. Used to assist employees with performing tasks more efficiently and effectively.

Rationalization [of Procedures] - a deeper form of change - quickly follows after automation due to automation revealing bottlenecks in production - modest returns - low risk - the second most common form of change. Used to streamline SOPs and to make continuous quality improvements (i.e. Total Quality Management (TQM) and Six Sigma). Limited to specific parts of a business.

[Business Process] Redesign - a more powerful type of change - higher returns - higher risks. Processes are analyzed, simplified, and redesigned. It recognizes workflows, combines steps to reduce waste, and eliminates repetitive, paper-intensive tasks. It also removes jobs sometimes. Requires a new vision of how processes are organized. Limited to specific parts of a business.

Paradigm Shift(s) - is the most radical form of change - involves rethinking the nature of the business and organization. Often fails because extensive change is difficult to implement. High return - high risk.

Many organizations are turning to Business Process Management (BPM) to provide a variety of tools and methodologies to analyze existing processes, design new processes, and optimize processes. There are five steps that companies go through when using BPM:

1. Identify Processes for Change

2. Analyze Existing Processes

3. Design the new Processes

4. Implement the new Processes

5. Continuous Measurement

pg. 494

13.2: What are the core activities in the systems development process?

**The first two steps are preparatory steps for the system.

1. Systems Analysis - analysis of a problem that a firm tries to solve with an I.S.

   a. Define the problem

   b. Identify the cause

   c. Specify the solution

   d. Identify the needed information requirements that must be met by a system solution.

2. Systems Design - shows how the system will fulfill the objective set by the systems analysis. It is the overall plan or model for the system. I.S. may have many possible designs.

   **The last four steps translate the design of the system into actuality. 

3. Programming - system specifications are turned into software program code. Today, many organizations purchase the software needed for the new system from an external source instead of creating it themselves.

4. Testing - exhaustive and thorough process that determines whether the system produces the desired results under known conditions. It is broken down into three steps/ activities:

   a. Unit Testing or Program Testing - consists of testing each program separately in the system. Used to locate errors in programs, these are then corrected.

   b. System Testing - tests the functioning of the I.S. as a whole. It tries to determine if things will function together as planned and whether discrepancies exist between what is expected and how it actually works.

   c. Acceptance Testing - provides the final certification that the system is ready to be used in a production setting.

5. Conversion - the process of changing from the old system to the new system. There are four main strategies that can be employed:

   a. the parallel strategy - both the old system and its potential replacement are run together for a time until everyone is assured that the new one functions correctly. Safest approach because the old system can be used as backup in the in event that there are errors or disruptions in the new system. Very expensive approach.

   b. the direct cutover strategy - replaces the old system entirely with the new system on an appointed day. Very risky approach that can be more costly than in the parallel approach.

   c. the pilot study strategy - introduces the new system to only a limited area of the organization, such as a single department or operating unit. When the pilot is working smoothly, it will then be installed throughout the rest of the organization (simultaneously or in stages).

   d. the phased approach strategy - introduces the new system in stages, either by functions or by organizational units.

6. Production & Maintenance - After the new system is installed and conversion is complete, the system is said to be in the production stage. During this time the system will be reviewed by users and technical specialists to determine if objectives have been met and to decide whether revisions or modifications need to be made. After the system has been fine-tuned, it must be maintained while it is in production to correct errors, meet requirements, or improve processing efficiency. Changes in hardware, software, documentation, or procedures to a production system to correct errors, meet new requirements, or improve processing efficiency are termed maintenance

13-3: What are the principal methodologies for modeling and designing systems?

Structured Methodologies:

• Have been used since the 70s.

• Techniques are step by step and each one builds on the previous.

• Top-down

• Process-oriented, focus mainly on modeling the processes, or actions that capture, store, manipulate, and distribute data as it flows through the system.

• Primary tool used to represent a system’s component process and the flow of data between them is the Data Flow Diagram (DFD).

  • DFD provides a graphic model of information flow and breaks them up into manageable levels of detail. Very specific.

  • Process specifications describe the transformation occurring within the lowest level of the data flow diagrams. They express the logic for each process.

• Another tool used is a Data Dictionary, which has information about individual pieces of data and data groupings. It defines the contents of data flows and data stores.

• Software design is modeled using hierarchical structure charts.

Object-Oriented Development:

• Addresses the issues that structured methodologies have with modeling data realistically and well.

• Uses the object as the basic unit of systems analysis and design

  • Object combines data and the specific processes that operate on those data.

• Based on the concepts class and inheritance.

• More iterative and incremental than structured development.

13-4: What are alternative methods for building information systems?

• Traditional Systems Life Cycle (Waterfall Method): the oldest method for building I.S. and uses a phased approach by dividing systems development into formal steps.

  1. Systems Analysis

  2. System Design

  3. Programming

  4. Testing

  5. Conversion

  6. Production & Maintenance

• Prototyping: An iterative process of systems development that consists of building an experimental system quickly and inexpensively for end users to evaluate. It is meant to be a preliminary model that continues to be refined until it meets the user’s requirements. Consists of four steps:

  1. Identify the user’s basic requirements

  2. Develop an initial prototype

  3. Use the prototype

  4. Revise and enhance the prototype

• Application Software Packages & Cloud Services: Reduces the amount of design, programming, testing, installation, and maintenance work required to build a system. They are helpful if a firm does not have the internal information systems staff or financial resources to custom develop a system.

• Outsourcing: Consists of using an external vendor to build (or operate) a firm’s I.S. instead of the organization’s internal information systems staff. Can cut costs or help firms to develop applications without internal staff.

13-5 What are new approaches for system building in the digital firm era?

1. Rapid Application Development (RAD): uses object-oriented software, visual programming, prototyping, and tools for very rapid creation of systems.

2. Joint Application Design (JAD): used to accelerate the generation of information requirements and to develop initial systems design.

3. Agile Development: breaks a large project into a series of small subprojects that are completed in short periods of time using iteration and continuous feedback.

4. Automated Software Testing: tools that speed up testing and improve quality by automating tasks that were previously manual.

5. Low-code/ no-code: enable people with minimal or no programming skills to create workable systems in a short period of time.

6. DevOps: emphasizes close collaboration between the software developers who create applications and the IT operational staff who run and maintain the applications.

NEED TO STUDY:

A government agency must develop a highly secure and scalable database for citizen information.

Which methodology ensures the secure and scalable development of the citizen database?

Mobile website

Rapid application development (RAD)

Traditional systems life cycle

DevOps

Lesson 4.1: IT Integration Strategies and Their Impact on Organizational Needs

Essential Question: How do IT integration strategies affect organizational needs?