Professional Documents
Culture Documents
i. Operational Excellence
ii. New Products, Services, and Business Model
iii. Customer and Supplier Intimacy
iv. Improved Decision Making
v. Competitive Advantage
vi. Survival
Information technology (IT): Consists of all the hardware and software that a firm
needs to use to achieve its business objectives. Information systems are more
complex.
Information system: Can be defined technically as a set of interrelated
components that collect (or retrieve), process, store, and distribute information to
support decision making and control in an organization.
1. Suppliers
2. Customers
3. Employees
4. Invoices/Payments
5. Products and Services
Types of IS
1. Transaction Processing Systems (TPS): keep track of the elementary activities and
transactions of the organization, such as sales, receipts, cash deposits, and etc.
2. Management Information Systems (MIS): summarizes and reports on the
companys basic operations using data supplied by transaction processing systems
3. Decision Support Systems (DSS): supports non-routine decision making for
middle management. Focus on problems that are unique and rapidly changing
4. Executive Support Systems (ESS): address non-routine decisions for senior
management. Focus on decisions requiring judgment, evaluation, and insight,
because there is no agreed on procedure arriving at a solution. Help senior
management make decisions about long-term trends such as What will the
employment levels be like in 5 years?
Enterprise Application
Definition: systems that span functional areas, focus on executing business processes
across the business firm, and include all levels of management.
1. Enterprise Systems: collect data from various functions of a business and store the
data in a single central data repository
2. Supply Chain Management Systems: help businesses manage relationships with
their suppliers
3. Customer Relationship Management Systems: help firms manage their
relationships with their customers.
4. Knowledge Management Systems: enable organizations to better manage
processes for capturing and applying knowledge and expertise.
1. E-business: refers to the use of digital technology and the internet to execute the
major business processes in the enterprise.
2. E-commerce: part of e-business that deals with the buying and selling of goods
and services over the internet
Positions:
End Users: representatives of departments outside of the information systems groups for
whom applications are developed
Collaboration:
Investment in collaboration technology can return large rewards, especially in sales and
marketing, research and development.
1. Productivity: sharing knowledge and resolving problems
2. Quality: faster resolution of quality issues
3. Innovation: more ideas for products and services
4. Customer Service: complaints handled more rapidly
5. Financial Performance: generated by improvements in factors above
Helps firms decide what information systems ads are value to the firm
Types of Decisions
1. Structured: Decision maker must provide judgment to solve problem. Deal with
Operational Management.
2. Semi structured: Involve definite procedure for handling them so do not have to
be treated as new. Deal with Middle Management.
3. Unstructured: Only part of problem has clear-cut answer provided by accepted
procedure. Deal with Senior Management
Predictive Analytics
Predictive analytics are being built into mainstream applications for everyday decision
making by all types of employees, especially in finance and marketing.
E.g.: eBays hunch.com to predict user affinities for items not immediately obvious
Location Analytics
Big data analytics that uses location data from mobile phones, sensors, and maps
E.g.: Waze, Google helping a utility company view customer costs as related to location.
E.g.: Can predict to open a photocopy shop or a restaurant around Ayer Keroh
Enterprise-Wide Knowledge Management Systems
- Disadvantage of Prototyping
Rapid prototyping can gloss over essential steps in systems development. If
the completed prototype works reasonably well, management may not see the
need for reprogramming, redesigned, full documentation in testing to build a
polished production system. This can backfire later with large quantities of
data or large numbers of users in a production environment.
c. End-User Development
Uses fourth-generation languages to allow end-users to develop systems with little
or no help from technical specialists.
- Fourth generation languages: less procedural than conventional programming
languages:-
i. PC software
ii. Query languages
iii. Report generators
iv. Graphics languages
v. Application generators
vi. Application software packages
vii. Very high-level programming languages
- Advantages:
i. More rapid completion of projects
ii. High-level of user involvement and satisfaction
- Disadvantages:
i. Not designed for processing-intensive applications
ii. Inadequate management and control, testing, documentation
iii. Loss of control over data
d. Application Software Packages
Save time and money, many offer customization features allows software can be
modified to meet unique requirements without destroying integrity of package
software. The key criteria in evaluating application software packages are:
functions, flexibility, user-friendliness, hardware, software resources, database
requirements and cost. The package evaluation process is often based on a request
for proposal (RFP), which is a detailed list of questions submitted to vendors of
packaged software.
e. Outsourcing
Several types:
i. Cloud and SaaS Provider: subscribing companies use software and
computer hardware provided by vendors
ii. External vendors hire to design, create software. Driven by firms need for
additional skills, resources, assets, and driven by cost-savings
Advantages:
Disadvantages:
Agile Development
Focuses on rapid delivery of working software by breaking large project into
several small sub-projects. Emphasizes face-to-face communication over written
documents, allowing collaboration and faster decision making
Component-Based Development
Groups of objects that provide software for common functions such as online
ordering, and can be combined to create large-scale business applications