Exam 1 Study Guide

Study Guide: CHAPTER 1 - INFORMATION, SYSTEMS, AND DECISION MAKING

1. What is Information?

• Information can be understood as the transmission of messages in the form of signals or messages.

• It encompasses the process of shaping minds, communicating knowledge, and providing form to various entities.

• Philosophically, it is often described as the "difference that makes a difference."

2. Information Processing

• Information processing involves the transformation of raw data into a hierarchy of understanding: Data, Information, Knowledge, and Wisdom (DIKW).

• Data is the foundation, and wisdom represents the highest level of understanding.

• Flawed data can lead to distorted information and flawed knowledge, ultimately resulting in ignorance.

3. Information, Disinformation, and Misinformation

• Disinformation refers to the deliberate generation of false information without a factual basis.

• Misinformation occurs when well-intentioned sources inadvertently spread falsehoods.

• Both disinformation and misinformation have gained prominence in recent years, particularly in the context of fake news.

4. Data Analytics

• Data analytics is the systematic process of scrutinizing, cleaning, reshaping, and modeling data.

• It aims to uncover valuable insights from data, inform decisions, and facilitate sound decision-making.

• Data analysis can be divided into three phases: descriptive, explanatory, and confirmatory.

5. Information Systems

• Information systems are interconnected components designed to collect, process, store, and disseminate information.

• They serve specific practical purposes, often aiding decision-making, coordination, and control.

• Information systems go beyond computer systems and databases, encompassing a broader range of tools and processes.

Study Guide: CHAPTER 2 - Strategic Planning for Information Systems

Introduction

·         The historical perception of strategic planning in Information Systems (IS).

·         The challenges faced by IS managers, including legacy systems, evolving technology, and digital transformation.

·         The importance of strategic planning in times of significant change.

·         The role of IS planning in achieving business objectives.

Collaboration between CEO and CIO

·         The necessity of collaboration between the CEO and CIO in IS planning.

·         The need to align technology with the overall business strategy.

·         Asking macro-level questions about system alignment with business goals.

·         The role of senior executives in supporting IS planning efforts.

Critical Issues in IS Planning

1.      Alignment between IS goals and business strategy:

o    Importance of aligning IS goals with broader business objectives.

o    Moving beyond detailed system architectures to focus on business benefits.

2.      Senior executive support:

o    The significance of executive support, especially when IS planning contributes to profitability.

3.      Comprehensive cost-benefit analysis:

o    The need for analyzing both tangible and intangible costs and benefits.

o    The importance of room for plan improvement and updates.

4.      Selection of responsible individuals:

o    Considerations for selecting the right person to develop and implement the IS plan.

o    Involvement of technology enthusiasts in specifying the plan.

Conceptualizing Business and IS Strategies

·         The relationship between business strategy and the environment.

·         Forward-looking aspects and external considerations in forecasting.

·         Competitive pressures and the need for strategic thinking.

·         Examples of companies innovating to establish new markets.

·         The importance of continuous innovation in maintaining competitiveness.

Categorization of Business Strategies

·         Classification of business strategies into four categories: initiation, growth, maturity, and decline.

·         The product life cycle concept and its relevance to business strategy.

·         The four scenarios based on different market growth and share combinations.

·         How companies can transition between these scenarios and the role of innovation.

Tools for Business Strategy

·         Introduction to economic and financial tools for optimizing operations.

·         The Boston Square and its integration of product life cycle and market share/profitability.

·         The significance of identifying a product's position within each stage.

·         Examples of companies adapting to market changes using the Boston Square.

IT Application Portfolio Model

·         Introduction to the IT application portfolio model.

·         Classification of IT applications into high-potential, strategic, key operational, and support categories.

·         The evolution of applications over time and their transitions between categories.

·         The importance of strategic management and senior management support in application development.

Competitive Forces Framework by Michael Porter

·         Introduction to Michael Porter's competitive forces framework.

·         The five competitive forces: new entrants, suppliers, customers, substitute products, and competitors.

·         How firms can position themselves to face competition effectively using this framework.

·         The role of IT in transforming value activities within a firm's value chain.

IT's Role in Sustainable Competitive Advantage

·         The debate about whether technology alone can create sustainable competitive advantage.

·         Consideration of competitive constraints, external factors, and public policy in sustainability.

·         Examples of technologies like ATMs and their varying impacts on early adopters.

·         The need for technology to be an integral component of overall business strategy.

Strategic Planning

·         The historical perception of strategic planning in Information Systems (IS).

·         The challenges faced by IS managers, including legacy systems, evolving technology, and digital transformation.

·         The importance of strategic planning in times of significant change.

·         The role of IS planning in achieving business objectives.

Collaboration between CEO and CIO

·         The necessity of collaboration between the CEO and CIO in IS planning.

·         The need to align technology with the overall business strategy.

·         Asking macro-level questions about system alignment with business goals.

·         The role of senior executives in supporting IS planning efforts.

Critical Issues in IS Planning

1.      Alignment between IS goals and business strategy:

o    Importance of aligning IS goals with broader business objectives.

o    Moving beyond detailed system architectures to focus on business benefits.

2.      Senior executive support:

o    The significance of executive support, especially when IS planning contributes to profitability.

3.      Comprehensive cost-benefit analysis:

o    The need for analyzing both tangible and intangible costs and benefits.

o    The importance of room for plan improvement and updates.

4.      Selection of responsible individuals:

o    Considerations for selecting the right person to develop and implement the IS plan.

o    Involvement of technology enthusiasts in specifying the plan.

Conceptualizing Business and IS Strategies

·         The relationship between business strategy and the environment.

·         Forward-looking aspects and external considerations in forecasting.

·         Competitive pressures and the need for strategic thinking.

·         Examples of companies innovating to establish new markets.

·         The importance of continuous innovation in maintaining competitiveness.

Categorization of Business Strategies

·         Classification of business strategies into four categories: initiation, growth, maturity, and decline.

·         The product life cycle concept and its relevance to business strategy.

·         The four scenarios based on different market growth and share combinations.

·         How companies can transition between these scenarios and the role of innovation.

Tools for Business Strategy

·         Introduction to economic and financial tools for optimizing operations.

·         The Boston Square and its integration of product life cycle and market share/profitability.

·         The significance of identifying a product's position within each stage.

·         Examples of companies adapting to market changes using the Boston Square.

IT Application Portfolio Model

·         Introduction to the IT application portfolio model.

·         Classification of IT applications into high-potential, strategic, key operational, and support categories.

·         The evolution of applications over time and their transitions between categories.

·         The importance of strategic management and senior management support in application development.

Competitive Forces Framework by Michael Porter

·         Introduction to Michael Porter's competitive forces framework.

·         The five competitive forces: new entrants, suppliers, customers, substitute products, and competitors.

·         How firms can position themselves to face competition effectively using this framework.

·         The role of IT in transforming value activities within a firm's value chain.

IT's Role in Sustainable Competitive Advantage

·         The debate about whether technology alone can create sustainable competitive advantage.

·         Consideration of competitive constraints, external factors, and public policy in sustainability.

·         Examples of technologies like ATMs and their varying impacts on early adopters.

·         The need for technology to be an integral component of overall business strategy.

Study Guide: Chapter 3 - Information Systems Project Management

Introduction

·         The profound impact of information technology on individuals and society.

·         The evolution of information technology and its influence on various aspects of life.

·         The increasing complexity of information system applications and the importance of effective project management.

The Role of Project Management

·         The historical perspective of project management.

·         The recognition of project management as a critical skill for IT professionals.

·         The integration of project management principles into college curricula.

Characteristics of an Effective IT Project Manager

·         The key attributes and skills that make an effective IT project manager:

o    Communication

o    Human Interaction

o    Creativity

o    Persistence

o    Observance

o    Organization

o    Outcome-Oriented

o    Balanced Distraction

Planning and Control in Project Management

·         The significance of project planning, execution, and control.

·         The role of the project plan as a blueprint for execution.

·         The importance of controls for ensuring smooth project execution.

Components of Planning

·         The key components of the planning phase:

o    Goals and Objectives

o    Durations

o    Budget

o    Approach

o    Milestones

o    Modules

o    Authorization

o    Responsibility

o    Deliverables

o    Control

o    Contingencies

Considerations for Effective Planning

·         The importance of addressing fundamental questions before the planning process:

o    Environmental and Organizational Climate

o    Top Management's Attitude Toward Technology

o    Current Technology Utilization and Capability

o    Potential Resource Barriers

o    Potential Personnel Issues

o    Strategic Vendor Alliances

o    End-User Computer Proficiency

·         How these questions lay the groundwork for successful planning.

Subsystem Planning

·         The importance of carefully planning subsystems in larger projects.

·         Delegating authority to competent individuals in both technical and administrative domains.

·         The benefits of involving key players in the planning process.

Scope Management

·         The importance of clearly defining project scope and limitations.

·         The role of the project manager in establishing boundaries.

·         How scope management contributes to project integration and objectives.

Components of Scope Management

·         The various components and subsections of scope management:

o    Clear definition of project boundaries

o    Logical breakdown of the project

o    Organizational context

o    Long-term objectives

o    Alignment with organizational mission and objectives

o    Justification for the project

o    Expected outcomes

o    Success factors

o    Resource estimation

o    Completion date determination

o    Execution and control support

o    Responsibility definition

o    Performance measurement

o    Comprehensive project roadmap

User Involvement

·         The role of project scope management in determining user involvement.

·         How modular project breakdown aids in user input.

Time Management

·         The critical role of effective time management in IT project management.

·         The challenges of timely project delivery in the IT field.

Time Management Principles

·         The importance of being organized and prioritizing work.

·         Assessing and addressing time management issues.

·         Methods for managing time effectively.

Time Management Assessment

·         Questions to assess time management skills and challenges.

Avoiding Distractions

·         Recognizing the impact of information technology on time management.

·         Strategies for maintaining a balance between work and personal life.

Meetings and Decision-Making

·         The significance of meetings and decision-making in project management.

·         The role of effective meetings in achieving project goals.

·         Principles for productive meetings.

Pert/CPM

1. Introduction to PERT/CPM

·         Understanding the role of IT project management in planning, scheduling, and controlling activities.

·         The importance of managing projects within timeframes and budgets.

2. Information System Projects

·         Components and scope of information system projects.

·         Stakeholders involved in IT projects.

·         Interdependencies and the need for systematic record-keeping and communication.

3. PERT/CPM Overview

·         Description of Program Evaluation Review Technique (PERT) and Critical Path Method (CPM).

·         The evolution of PERT/CPM and their similarities.

·         Integration of PERT/CPM in project management software.

4. Objectives of PERT/CPM

·         Identifying the minimum time required for project completion.

·         Recognizing critical activities and their importance.

·         Monitoring progress of critical and non-critical activities.

·         Analyzing the flexibility of non-critical activities.

·         Assessing the likelihood of completing the project on time.

5. Visual Representation

·         Understanding the graphical representation of PERT.

·         Using arrows and labels to represent activities, their start, duration, and completion.

·         Example: Personal web page development project network.

6. Critical Path

·         Defining a path in PERT/CPM.

·         Identifying the critical path as the longest path.

·         Analyzing multiple paths and their durations.

·         The significance of the critical path in project management.

7. Critical Path Analysis

·         Computing earliest start (ES) and earliest finish (EF) times.

·         Determining the latest start (LS) and latest finish (LF) times.

·         Calculating slack time for non-critical activities.

·         Practical application using an example.

8. Estimating Activity Duration

·         Factors influencing activity duration estimation.

·         Historical data, documentation, and expert input.

·         Triangular distribution for estimating duration.

·         Calculating the expected duration using optimistic, most likely, and pessimistic estimates.

·         Determining the variance and its significance.

9. Practical Example

·         Applying PERT/CPM to a seven-activity project.

·         Drawing a network diagram.

·         Calculating expected durations and variances.

·         Identifying the critical path and slack times.

·         Analyzing the probability of project completion by a certain date.

10. Summary and Conclusion - Recap of key concepts in PERT/CPM. - The practical significance of PERT/CPM in IT project management. - The role of accurate estimation and critical path analysis in project success.

Additional Tips:

·         Practice drawing PERT/CPM diagrams for various scenarios.

·         Understand the impact of changes in activity duration on project timelines.

·         Explore project management software that can automate PERT/CPM calculations.

·         Learn to interpret and use the results of PERT/CPM analysis for effective project decision-making.

·         Stay updated with industry best practices and advancements in project management methodologies.

Project Risk Management:

·         Information system projects involve various risks related to commitment, resources, personnel, management support, and vendor commitments.

·         Effective project managers must identify, assess, and manage these risks.

·         Risk assessment involves evaluating the consequences and probabilities of each risk, with special attention to those with severe consequences and high likelihood.

·         Various methods can be used for risk assessment, including expert interviews, PERT/CPM estimation, analysis of previous cases, and computer simulation.

·         The goal of risk management is not to eliminate risk entirely but to understand, assess, and respond to risks while optimizing opportunities.

·         Risks can be categorized as internal or external, tangible or intangible, and technical or behavioral.

Project Success Measures:

·         Project management success is measured based on various factors:

o    Customer satisfaction: User satisfaction with the system's usefulness and impact.

o    User involvement: The level of user participation in system development.

o    Top management support: Continuous support from top management throughout the project.

o    Competent team members: Selecting and motivating the right individuals for the project.

·         Success is not solely determined by cost and time but also by user satisfaction and meeting expectations.

·         Other measures include Net Present Value (NPV), Return on Investment (ROI), and Payback analysis.

Project Closure:

·         Project closure involves transitioning a project into normal operation and closing accounts and documentation.

·         It's essential to ensure that a project doesn't turn into an ongoing, ineffective effort.

·         Closure benefits project managers by organizing and properly filing all project-related documents and accounts.

·         It includes seeking formal acceptance, user validation, recognition, and acknowledgment.

·         Lessons learned and user reactions are documented for future reference.

·         Interactions and experiences with vendors are also archived to inform future projects.

·         The impact of the project on work processes and productivity is evaluated.