IS402 Management & ERP Session 1 PDF

24/10/2024 IS402: IS Management & ERPDr. Lamiae BENHAYOUN (Coord) [email protected] Didactic...

24/10/2024 IS402: IS Management & ERPDr. Lamiae BENHAYOUN (Coord) [email protected] Didactic contract Didactic contract 1 What’s that ? 3 « All the behaviors of the professor that are expected of the student, and all of the behaviors of the student that are expected of the teacher.» Guy Brousseau (1985) 1  24/10/2024 Didactic contract 2 Professor’s behavior 4 Presence of body and mind throughout the course Respect for the cultural, religious or medical specificities of students (to be communicated to me at the end of this session) Course materials provided on Moodle at the end of each session Possibility of interacting on misunderstandings by email or Teams Exercises aimed at mastering the material on a theoretical and pragmatic level Fair grading taking into account current performance Anything else?? Didactic contract 3 Student’s behavior 5 Punctuality Tolerated delay: 15 minutes An unjustified absence = -5/20 on the attendance score You are not allowed to eat and drink in the classroom “sleep” in the classroom leave the room without permission use electronic gadgets without explicit request from me Communication Receipt of documents and information via Moodle and from your delegate No visits to the teacher's office outside office hours Possibility to answer your questions by email Didactic contract 4 Course goals 6 Direct goals Understand the concepts of Information System (IS), Information Technology (IT), and ERP Familiarize the student with key digital technologies and their applications Explain how to analyze an IS (functional solutions, coverage of business needs, etc.) Show how IS can contribute to improving operational performance and developing a competitive advantage for an organization P.S: For more details, please consult the syllabus on Moodle 2  24/10/2024 Didactic contract 4 Course goals 7 Contribution to the mission of UIR RBS Prepare, through education, practice and research, responsible and innovative managers to operate in a national and international context, towards a better Africa. Our graduates will understand the importance of responsible behavior for their professional careers Our graduates will adopt an international perspective and possess the oral and written communication skills to collaborate with the various stakeholders of an organization Our graduates will understand the importance of innovation in their professional environment Didactic contract 5 Pedagogic approach 8 Acquisition of conceptual learning via interactive courses and media content. Practical applications in the form of:  Case studies based on documents or videos to be produced in groups  Interactive quizzes integrated into certain courses accessible via mobile phone/laptop/tablet with internet connection Didactic contract 6 Course planning 9 Session Content* Session 1 General introduction to the course and digital transformation Session 2 From information to information system Session 3 IS and value creation – Group pitches Session 4 IOS Session 5 IS professions Session 6 Individual mid-term exam Session 7 Group presentations on digital transformation Session 8 ERP Session 9 SAP Overview Session 10 SAP Lab - First Login Session 11 SAP practical work – Bricks in the Master’s discipline Session 12 SAP practical work – Bricks in the Master’s discipline Session 13 SAP practical work – Bricks in the Master’s discipline *The course may be adjusted if deemed necessary by the professors 3  24/10/2024 Didactic contract 7 Group-project 10 Project description You will be divided into groups of 5 to 6 people Objective: Analyze business transformations in the digital age 1. C hoose a sector of activity ( List of i ndustri es avail abl e at: htt p: // hbs wk. hbs. edu/ i ndustri es/). D escri be its posi ti on and its rô l e bot h i n national and international economies. 2. C hooseONE digital technology. T hroughexamples of organizations operating in the selected sector, descri be how t hi s technol ogi gy transf or ms Business Models, User eXperience and Operational Processes. 3. Suggest recommandations to compani es of the sel ect ed sect or f or f ut ur e usage of this technology. Didactic contract 7 Group project 11 Project deliverables Deliverable 1: Chosen subject (To upload on Moodle the day before the 3rd session) ONE page including: Full names of the team members Sector selected and technology chosen (to argue on 500 words at most) Examples of companies that you might mobilize for this project To validate your subject, each group will ‘pitch’ his choice in 3 min during the 3rd session Didactic contract 7 Group project 12 Project deliverables Deliverable 2: Report (Before the 5th session. Moodle will be closed at midnight the day before ! ) 20 to 25 pages of text (1.5 line spacing, 12 Times font) excluding the summary page, the cover page, and the appendices. You will send your report in PDF and Word formats Particular attention is paid to the originality of the analysis and the quality of the writing. 4  24/10/2024 Didactic contract 7 Group project 13 Project deliverables Deliverable 32 : Presentation (7th session) Presentation of 10 to 15 minutes, using ppt/prezi/explee… This presentation will be followed by 5 minutes of questions/answers. The order of passage will be drawn at random The presentation materials must be submitted on Moodle the day before the 7th session (PDF and original format) The contibution of each group member should be underlined in the presentation (Free riders, beware !! ) The grades will rely on the quality of the presentation content and format (Watch out for grammar errors) Didactic contract 7 Group project 14 Project’s grading criteria Conceptual Clarity of understanding and argument and insight expression Quality of Persuasiveness conclusions and and clarity of oral recommendations presentation Effectiveness in Contribution to answering classroom questions learning Didactic contract 8 Course grading system 15 Final grade = 10% * Attendance + 20% * Group project + 20% * Individual mid-term+ 50%* Final exam The attendance score includes attendance, participation and exercises. The project grade is based on the quality of the presentation. Individual contributions will be taken into consideration The mid-term consists of a mini-case and a multiple choice quiz. Additionally, pop quizzes for bonus points will take place throughout the course. The exam will cover all the content seen in class 5  24/10/2024 Session 1 : Organizational transformations in the digital era SESSION 1 1. Overview of IT 1. Overview of IT 1.1 Definition 18 Information Technology (IT): Refer to all forms of technologies applied to the creation, processing, storage, securing and exchange of information in electronic format. Include computers, communications networks, connected objects, the cloud, fax machines, electronic pocket organizers, etc. 6  24/10/2024 1. Overview of IT 1.2 History 19 ENIAC (Electronic Numerical IBM 5100 Integrator And Computer) 1945 1975 Windows 1.0 1983 World Quantum Wide computer Web 2019 1989 IBM Simon IoT (Internet of Things) 1992 2010 Big Data, IA 1997 1. Overview of IT 1.2 History 20 Where do IT stand today ?  Compute capacity, storage capacity, and the lifespan of computer hardware continue to increase rapidly  IT costs continue to fall rapidly  The cost of data storage continues to decline  IT is becoming increasingly accessible to all segments of the population  More and more objects are connected  Intelligent machines are omnipresent 1. Overview of IT 1.2 History 21 Hype cycle of Gartner 7  24/10/2024 1. Overview of IT 1.2 History 22 1. Overview of IT 1.2 History 23 1. Overview of IT 1.3 IT in numbers 24 4,6 trillion dollars of IT inverstments 1 trillion = 1 milliard de milliards (1018) Statistiques pour l’année 2023 24/10/2024 8  24/10/2024 1. Overview of IT 1.3 IT in numbers 25 «Here we spend $500 million a year on software, and about $1 billion in total technology costs. I look at these figures and I fear that one day we will realize that we should have invested in another type of technology, that we did not manage things well….» Hugh McColl, president of Bank of America 1. Overview of IT 1.3 IT in numbers 26 Budget overrun for the Taurus Zero paper project After surpassing $100 million, the CEO resigned. It took another three more years and twice the initial investment to complete the project. Implementation of an ERP system that cost 160 million dollars, 5 times more expensive than expected! Turnover fell by 5% 1. Overview of IT 1.3 IT in numbers 27 92% of respondents indicated that information technology was essential to the success of their business. 33% believe that the use 26% underlined that 33% listed IT as the of IT will contribute to their present sucess is fundamental sucess the success of their due to efficient IT use facor for the future. businesses. and leadership; 71% of respondents indicated that poor IT management is a direct cause of the failure of their businesses 58% of respondents identified loss of competitive 13% foresee advantage as the main consequence of not bankruptcy as a keeping pace with IT possible outcome. 9  24/10/2024 1. Overview of IT 1.4 Why invest in IT ? 28 1. Operational excellence 2. New Products/Services & Business Models 3. Efficient Customer Supplier Relationships 4. Improved decision-making 5. Competitive advantage 6. Survival ! 1. Overview of IT 1.4 Why invest in IT ? 29 1. Operational Excellence Efficiency to achieve more profits Contribution to process agility and productivity improvement Examples: Di sney Operational Command Center: Uses video cameras, digital park maps, and mobile apps to monitor attendance and prevent congestion. T oy ota TPS: Just-In-Time Production taking into account demand, resources and logistics capabilities and eliminating waste 1. Overview of IT 1.4 Why invest in IT ? 30 2. New Products/Services & Business Models IT can be integrated into the product/service but also shape the way it is offered to customers (i.e. Business Model) Business Model: describes how the business produces, supplies, and sells a product or service to make a profit Examples: Products: Apple iPad, Google Android OS,... Services: Uber, Blablacar, Yuka Bu si ness M od el s: Pay per use (Ryanair), Freemium (Dropbox), Auction (eBay) 10  24/10/2024 1. Overview of IT 1.4 Why invest in IT ? 31 3. Efficient Customer Supplier Relationships Customer Relations: Supplier Relations: Serving customers well helps build their Build effective operational and loyalty and provide a continuous source strategic relationships with key of profit. suppliers Examples: Examples: Marri ott which tracks the choices of Walmar t VMI: Allow its its recurring customers to offer them suppliers to have real-time personalized rooms visibility of its stocks for N estlé which has placed a QR code on appropriate replenishment Mousseline packets, allowing customers to access information relating to the Supply Chain. 1. Overview of IT 1.4 Why invest in IT ? 32 4. Improved decision making Without accurate information, managers' decisions are based on assumptions, resulting in: Overproduction, underproduction Increased costs Misallocation of resources... Unsuitable response time Examples: V eriz on Digital Dashboard: Provide managers with real-time data on customer complaints, network performance and line outages, to decide on the most appropriate solutions. Ma er sk' sInsurewave: A Blockchain-based platform letting each carrier ship captain know if their insurance covers them and at what price, to decide whether to cross or bypass. 1. Overview of IT 1.4 Why invest in IT ? 33 5. Competitive advantage Several alternatives: Offer innovations that are difficult to imitate, charge less for superior quality products, manage your resources and processes in an ingenious way Examples: Amaz onprevents the entry of Chinese competitors by listing a growing share of Chinese suppliers and reducing shipping costs through its FBA (fulfillment by Amazon) system. F ord has set up a Virtual work team integrating its best engineers and marketers worldwide to virtually design “a global car with a global appeal”. Less costs and more creativity! IKEA strengthens its position as a global leader by offering the augmented reality application IKEA Place app allowing users to visualize the appearance of furniture in their home 11  24/10/2024 1. Overview of IT 1.4 Why invest in IT ? 34 6. Survival ! Businesses choose to invest in IT to survive in a very dynamic environment and respond to its changes. Examples: R egula tory tr end s: Implementation by all American companies of IT controls to meet the requirements of the Sarbanes-Oxley law Soc ial tr end s: More and more consumers are paying attention to their food, hence the emergence of quality assessment applications (Yuka, Kwalito, Foodvisor, etc.) Ec onom ic Tr end s: Massive investments in prediction technologies and the cloud after the financial crisis. T ech nol ogical tr end s: Change in business model by record labels following the introduction of streaming SESSION 1 2. Digital transformation era 2. Digital transformation era 2.1 Fundamental digital technologies 36 Digital transformation A process of change induced by the intensive use of digital technologies Relies on “digi ti za ti on” : transformation of products, services and processes into digital variants Leads to a holistic review of the company thus creating value: Attractiveness Growth Pedagogy Economy Altruism Strengthen Enter new Promote skills Optimize Allow access the visibility markets development costs and to knowledge and efforts for all uniqueness of the offer 12  24/10/2024 2. Digital transformation era 2.1 Fundamental digital technologies 37 It all strated with SMAC Assistant Office personnel Data Science Prévisions IA Conna issance cl i ent Slack 365 d’activités La transformation de Optimisation Connexion et Empl oyee Réseau Experi ence l’abstraction des Social socialisation rapide et Hadoop Entreprise Data Viz données en actifs facile Data tangibles et Lake visualisables As A Digital Service Oracle Workplace Réseaux L’utilisation des SOCIAL Digital technologies mobiles ANALYTICS La centralisation des AWS Workgrid pour dépasser les accès aux données et contraintes de Big aux applications Plateforme Power collaboratives ATAWAD localisation Data BI Middleware Productivité OS Cluster Apps IoT Dématé- Store CLOUD rialisation MOBILE Conta i ners Enterprise Datacenters Apps Mobiles Mobility Smartphone / Management API Cloudera Tablettes Public / Privé / BYOD Hybride 2. Digital transformation era 2.1 Fundamental digital technologies 38 A “Social Media” strategy has become critical for all types of organizations (businesses, governments, etc.) SOCIAL Internal and external technologies: Internally: Externally: C orporat e Soci al net wor ks ( Facebook, T witter, etc.) open to i ndiv i dual s social network with the possibility of creating content and distributing it. Obj ectiv e: Mor e and mor e connect ed users, especi all y wit h the adv ent of Pr o mot e IoT coll aborativ e C ritical tool s f or v iral marketi ng, engagi ng users, wor k to understanding and even influencing their behavior. opti miz e An opport uni ty, as well as a danger, f or the reputation of productivity companies. 2. Digital transformation era 2.1 Fundamental digital technologies 39 In 2022, more active mobile plans than human beings alive on the planet! MOBILE 5 connected objects (Tablet, Smartphone, PC, etc.) per human being by 2023. Mobiles consulted on average 53 times per day This “Mobile First” or even “Mobile Only” use results in: Emergence of new businesses: Uber, Kaptain... Emergence of new applications: Mobile Banking, e-commerce, ‘phygital’ commerce… Migration to the c ompa ny wi th ou t b ord er s: Digital workplace, third places… BYOD p olicy: Reduced infrastructure costs and more flexibility for the employee More real-time metadata about customers to analyze 13  24/10/2024 2. Digital transformation era 2.1 Fundamental digital technologies 40 Gr ow th of g enera ted da ta with the multiplication of sources (Social Networks, IoT, etc.): ANALYTICS 5 exabytes (1018) from the beginning of civilization to 2003 In 2003, the same volume is produced every day Today we produce it in seconds Big Data are characterized by the 5V: Volume of data exponentially growing Velocity of data creation, collection and sharing Variety of types and sources Veracity of data (reliability of sources, accuracy of content) Value it can provide and insights gained Big data analysis enabling to : Moving from Product Marketing to Cu stom er Mark eti ng (Eg. Recommendation systems following assimilated behavior) Automate common processes and tasks (Ex. RPA, NLP) Help in decision-making (Ex. Paved to anticipate burglaries) 2. Digital transformation era 2.1 Fundamental digital technologies 41 ANALYTICS Data collection Data analysis Results and visualization Mul ti pl e sources Ref i ni ng( PC A, EFA, DataViz (Mapping, Curves, ( IoT, etc.) Clouds...) D atawar eouse, Open D ata, Modeli ng ( ID EF1X, Data Storytelling (Interactive Blockchain...) MERISE...) infographics) Of all types Lear ni ng ( Machi ne ( Struct ured, Se mi- l ear ni ng, D eep Str uct ured, learning) Unstructured) 2. Digital transformation era 2.1 Fundamental digital technologies 42 St ore, on re mot e serv ers connect ed by the I nter net, data accessi bl ef rom any device Cloud The same data source, unique, and always up to date. Features Secure data storage Powerful computer processing Hosting of specialized applications Support for business transformations Benefits Efficiency Scalability Reliability Reduction of IT Adjustable and Access to innovative infrastructure costs scalable deployment and secure features (Servers, Software, according to Maintenance) company activity at any time 14  24/10/2024 2. Digital transformation era 2.1 Fundamental digital technologies 43 Types of Cloud services Cloud Definition Some poviders Infrastructure Amazon, Windows Provides servers and storage on an infrastructure to meet as a Service Azure, Rackspace, scalable computing and real-time storage requirements (IaaS) Google Amazon, Heroku, Plarform as a Additionally offers an operating system, an execution Force.com, Apache Service (PaaS) environment, and software servers Stratos. Adds “on-demand” access to applications (Office 365, JD Edwards, SAP, Software as a etc.), thus avoiding installation, hosting and maintenance Salesforce, Google, Service (SaaS) for the customer. Microsoft Business Supports business processes whose activities are IBM, Wipro, Ovum, Process as a distributed across multiple interacting applications Cognizant Service (BPaaS) 2. Digital transformation era 2.1 Fundamental digital technologies 44 After the SMAC: the DARQ Large-scale collaboration and Automation of business transaction between strangers Distributed processes Ledger Self-executing smart contracts Make the benefits of Improved data provenance analytics more widely and reliability available Artificial Analyze and use Intelligence unprecedented amounts of data Reality Virtual, augmented and assisted Global Cybersecurity Information on demand and Transformation Quantum accessible hands-free Discovering new computing designs and responding to growing computational demands 2. Digital transformation era 2.1 Fundamental digital technologies 45 DARQ vs. DARK ! DARK side of technology compliance. Problems to anticipate at levels: Regulatory: Protection of personal (GDPR), medical (HIPAA), financial (PCI DSS) data, etc. Technological: Technologies responsible by design, Robustness... Organizational: CSR, Audit, SSI, DPO, awareness content, etc. 15  24/10/2024 2. Digital transformation era 2.2 Dimensions of digital transformation 46 User User eXperience eXperience Business Operational (UX) Models (BM) Processes (OP) IT in all user interactions with the company and its products: Improve the perception of instrumental qualities (usability) Improve the perception of non-instrumental qualities (aesthetics, values conveyed) Positive emotional reactions (subjective feelings, physiological reactions, cognitive evaluations) IT for UX today Voice Augmented Multi-device Immersive Target commands reality experience interface Marketing 2. Digital transformation era 2.2 Dimensions of digital transformation 47 User eXperience Business Business Operational (UX) Models Models (BM) Processes (OP) IT to change the way business Business makes profits: Definition Some companies Model Box, Netflix, Integrate a digital It is not the product that has value but Subscription Magazines, component into the its use product for a stronger BabyPlays, STIB impact on its market Deliver a standard product or service Disintermedi Dell, Compagnies as directly as possible to customers ation aériennes Use powerful marketing tools to build loyalty and Monetizing collected customer data by get recommended Google, PwC, Data driven selling or trading it internally or GoogData externally Enhance your corporate Outside In: Exploit external ideas to image through modern Procter & Gamble, Crowd- create value and dynamic services sourcing Inside out: Bring unused ideas or assets GloaxoSmithKline to external partners 2. Digital transformation era 2.2 Dimensions of digital transformation 48 User eXperience Business Operational (UX) Models (BM) Processes (OP) Digitization Process: Automation allowing companies to refocus their employees on more strategic tasks and intelligently streamline processes. Employee Empowerment: Virtualization tools to separate process from workplace and free up physical spaces Yi eld ma nag em ent: Real- ti me data coll ecti on and anal ysi s about products, regi ons, e mpl oyees and cust omers to enabl e up- to- date, f act- based deci si on maki ng, away from guesswork 16  24/10/2024 2. Digital transformation era 2.3 Impact on the socio-economic sphere 49 1. Emergence of GAFAM Web giants that concentrate the most technologies and revenues worldwide Benefits per second in 2023 ! 2. Digital transformation era 2.3 Impact on the socio-economic sphere 50 2. Global Economy Global Global Firms: Competition: Decentralization and Find out about and offshoring facilitated have products by IT from different Ubiquitous cultures delivered computing to you Global Capital: Exceeding the initial roles of financial institutions (Cryptocurrencies) SESSION 1 3. Exercises 17  24/10/2024 3. Exercices Case study 52 You are asked to answer the following questions following the viewing of a video addressing digitalization in the agricultural sector (Video also available on Moodle) https://www.youtube.com/watch?v=g8tHedBgrRA Each team answers both questions ans sends me their document through Moodle 1. What digital technologies in the SMAC and DARQ spectrums are discussed in this video? 2. How have these technologies contributed to the 3 aspects of digital transformation (UX, BM, OP)? 3. Exercices MCQ 53 Go to the link of the Quiz on Moodle and follow the instructions 18  0. Reminder 0. Reminder 0.1 Digital transformation Digital transformation A process of change induced by the intensive use of digital technologies Relies on “digitization”: transformation of products, services and processes into digital variants Leads to a holistic review of the company thus creating value: Attractiveness Growth Pedagogy Economy Altruism Strengthen Enter new Promote skills Optimize Allow access the visibility markets development costs and to knowledge and efforts for all uniqueness of the offer 0. Reminder 0.2 Digital technologies SMAC Assistant Office personnel Data Science Prévisions IA Conna issance cl i ent Slack 365 d’activités La transformation de Optimisation Connexion et Empl oyee Réseau Experi ence l’abstraction des Social socialisation rapide et Hadoop Entreprise Data Viz données en actifs facile Data tangibles et Lake visualisables As A Digital Service Oracle Workplace Réseaux L’utilisation des SOCIAL Digital technologies mobiles ANALYTICS La centralisation des AWS Workgrid pour dépasser les accès aux données et contraintes de Big aux applications Plateforme Power collaboratives ATAWAD localisation Data BI Middleware Productivité OS Cluster Apps IoT Dématé- Store CLOUD rialisation MOBILE Conta i ners Enterprise Datacenters Apps Mobiles Mobility Smartphone / Management API Cloudera Tablettes Public / Privé / BYOD Hybride 1 0. Reminder 0.2 Digital technologies DARQ Large-scale collaboration and Automation of business transaction between strangers Distributed processes Ledger Self-executing smart contracts Make the benefits of Improved data provenance analytics more widely and reliability available Artificial Analyze and use Intelligence unprecedented amounts of data Reality Virtual, augmented and assisted Global Cybersecurity Information on demand and Transformation Quantum accessible hands-free Discovering new computing designs and responding to growing computational demands 0. Reminder 0.3 How to reap the benefits of digital technologies? To benefit from data via these technologies, you must: Process and interpret data Establish a structure according to the objectives and systematizing the continuous environment of the management of interpreted organization in order to create data. value. This continuous management This value can be perceived at must be integrated into the the BM, UX and OP levels. company's practices and assets Generate Information from Implement an data Information System Session 2 : From the Information to the Information System 2  SESSION 2 1. Information 1. Information 1.1 Data/ Information/ Knowledge 1. Information 1.1 Data/ Information/ Knowledge A data is a set of symbols (numbers, letters, images, sounds, etc.) used to describe objects or events. OBSERVATION Data expressed as Objects and symbols (figures, texts, events from (Name, classification, drawings) the real world measure) How valid is it? Distortion between what we want to describe and the symbols we used to describe it 3 1. Information 1.1 Data/ Information/ Knowledge Exhibition in an art gallery Art lover Message posted: A pretty painting that looks like « Bassin aux nymphéas » of Monet 1. Information 1.1 Data/ Information/ Knowledge  Information is a data interpreted in a format that makes sense for a receiver Data expressed as INTERPRETATION INFORMATION symbols (figures, (Inferred from the texts, drawings) (Interpretive model) data) A data can generate different information according to its interpretation (Painting resembling a known masterpiece, Canvas at affordable price...) 1. Information 1.1 Data/ Information/ Knowledge Exhibition in an art gallery Art lover Art seller Message posted: Message posted: A pretty painting that Impressionist panting at a looks like « Bassin aux reasonable price nymphéas » of Monet 4 1. Information 1.1 Data/ Information/ Knowledge What do you see? 1. Information 1.1 Data/ Information/ Knowledge Raw data Interpreted information Production Finance planning Marketing Resources management Sales Warehousing Accounting Pieces Database Information Logistics Executive System management Expedition HR Raw material Commands Supply chain Purchases Maintenance 1. Information 1.1 Data/ Information/ Knowledge Each individual has its own interpretive model. Data expressed as INTERPRETATION INFORMATION symbols (figures, (Inferred from texts, drawings) (Intrepretive model) the data Contextual factors Cognitive style E.g. Financiers perceive recovery E.g. An engineer looks at quantitative information, salespeople perceive information while an artist is more turnover information intuitive Criticality of the decision to be taken Adherence to company culture E.g. Interpreting customers’ financial E.g. Compared to long-standing data to issue an invoice or take them employees, new recruits may know to court and apply different analysis techniques Lucas (2009) 5 1. Information 1.1 Data/ Information/ Knowledge Gosh, it’s too hot ! I should turn on the heating to The thermometer shows avoid a cold! 2 ° outside 1. Information 1.1 Data/ Information/ Knowledge  Knowledge is an understood information, i.e. assimilated and used, which leads to an action. Florence Stenuit Hautdidier (CNAM) APPROPRIATION KNOWLEDGE INFORMATION (Explanations, (Inferred from the (Internalisation to lead to justifications, data) action) advice…) Knowledge refers to information plus know-how Kogut & Zander (1992) It results from the interaction between what we perceive of reality and what is already in our memory. F. Varela (1993) 1. Information 1.1 Data/ Information/ Knowledge Knowledge types Transmitted via formalized Explicit media (Reports, documents,...) Knowledge Not fully codifiable, Tacit appropriable by practice Nonaka (1994) 6 1. Information 1.1 Data/ Information/ Knowledge INTELLIGENCE KNOWLEDGE (Understanding and (Explanations, Learning anticipation to make justifications, (Continuous adaptation) the right decisions) advice…) Intelligence is the ability to make good use of developed knowledge in order to make the right decisions and actions while adapting to the environment. 1. Information 1.1 Data/ Information/ Knowledge Know how to use knowledge to create value + selection + experience + rules+ constraints + Intelligence learning = Advice, explanations, justifications Knowledge + reasoning + abstraction + linking + application = Structured, summarized and interpreted data Information + signification + structure = Texts, facts, images, codes Data 1. Information 1.2 Characterizing Information Unexpected: New creative alternatives Expected: Confirmation for uncertainty reduction Surprise effect Summary: Problem Identification Level of Detailed: Assessment and Flow detail Problem Solving Possible typologies Type of Quantitative: Encrypted, Aim coding statistical Qualitative: Not measurable Type of support Paper Digitized 7 1. Information 1.2 Characterizing Information Types of information according to its aim OPERATION - Essential to the functioning of the company – transaction control information – job control and results information INFLUENCE - Information whose purpose is to influence the behavior of internal and external actors (Stimulate, motivate...) ANTICIPATION - Allows you to predict some upcoming changes in your socio-economic environment (Strategy, risk...) 1. Information 1.2 Characterizing Information Aim of information Operation Influence Anticipation Examples Customer order Hallway noise Competitor innovations Supplier Memos Marketing information An employee's pay slip The internal newspaper Amendment of Communication pads legislation on a particular product Properties Mandatory Very different depending Steering Information Very repetitive on the company : Relates to little Very formalized Inexistent very repetitive tasks Widely computerized important Exists in many forms Structured informal Impacts If unstructured, it would Can penalize the This information is to be cause many problems at economic performances analyzed with caution the interface of units by the bad atmosphere because it can endue and employees established... many negative aspects 1. Information 1.2 Characterizing Information Types of Information according to its flow INGOING - Coming from outside the company and routed to it SPANNING - Flows are born at one point of the company to lead to another point or sometimes the initial one OUTGOING - These information flows are produced by the company and are intended for external actors. 8 1. Information 1.2 Characterizing Information SPANNING INGOING Company OUTGOING Suppliers Suppliers customers customers banks banks Partners Partners Shareholders... Shareholders... 1. Information 1.2 Characterizing Information Supplier 1 : Multinational Client 1 : Pékin Retailers enterprise division A : division B : Houston Rabat Supplier 2 : Client 2 : Bali Wholesalers, distributors division C : division D : Munich Hong-Kong Supplier n : Client 3 : Prague Hypermarkets 1. Information 1.2 Characterizing Information Information flow Ingoing Spanning Outgoing Examples A supplier invoice, Circuits of information: Customer invoice, customer order,... commercial, production, supplier order, annual accounting, … report to shareholders, advertising, sponsorship,... Properties Important for managing Produced by the Promotes the relationships with company for its own use, performance of the partners circulates through company predefined circuits In support of its commercial activity Usages Direct use for the Can induce Profit creation current operations of inconsistencies due to the company different ways to code, store … Strengthening the competitive advantage 9 1. Information 1.3 Let’s recap ! Everyone manipulates and Digital technologies exchanges information using IT according to the processes Key tools to process the Everyone is putting in place masses of data collected processes to capitalize on IT internally and externally All identify opportunities to Implementation of an Processing to facilitate the interpretation of data into use IT to the advantage of the organization as a whole Information information with high System added value for the organization Perceived value in the redefinition of BM, UX, OP for a more efficient Responsibility of operators and company business managers in addition to IT specialists SESSION 2 2. Information System 2. Information System 2.1 Definition et dimensions The company’s activity relies on Under internal and external constraints Operating Monitoring system Information system System Management Management of of physical flow decisions’ flow Transform raw Mananagement of Set objectives and material (material, control the operating information flow data, etc.) into system to achieve products/services them Information about constraints Exchange between operating and monitoring systems Information about operational tasks 10 2. Information System 2.1 Definition et dimensions Definition of an IS The information system of the enterprise is the part of the real that is constituted of organized information, events having an effect on this information, and of actors who act on this information or on the basis of this information, according to processes aimed at a purpose of management and using information technologies. D. Berthier, C. Morley, M. Maurice-Demouriaux, Systèmes d’Information et Management, Vol. 10, n°3, 2005, p. 26 2. Information System 2.1 Definition et dimensions Definition of an IS IS is an organizational communication language that is designed to represent certain aspects of past or future activity reliably and objectively, quickly and economically. The sentences and words of this language are the data whose meaning comes from rules developed by men or by machines. J.-L.. Peaucelle (1981) 2. Information System 2.1 Definition et dimensions Definition of an IS An organized set of resources: hardware, software, personnel, data, procedures, etc. making it possible to acquire, process, store information (in the form of data, texts, images, sounds, etc.) exchanged in and between organizations. (Reix, 2004) 11 2. Information System 2.1 Definition et dimensions Dimensions of an IS Hardware Physical equipment for collecting, Organization storing, and disseminating information (Computers, mobiles, servers, clouds, networks, etc.) Technologies Management Software Detailed and pre-programmed instructions to control and coordinate hardware components (Analytics, monitoring, communications, etc.) 2. Information System 2.1 Definition et dimensions Business processes Culture Series of steps to carry out an activity Values, habits and priorities (Delivery, recruitment, etc.) Differs from one company to another Formal rules to guide the completion of Shape the use of IT tasks Commonly Approved Informal Practices Structure Involve the use of IT Organizational design (Hierarchy, Organization decentralization) Reporting (functional, matrix, departmental) Define the use of IT Technologies Management 2. Information System 2.1 Definition et dimensions Human resources capable of using technologies to: Prepare for decision-making Organization See changes in internal and external environments Process data and interpret it Technologies Management Decide and act Guide the strategy Create products/services Design the organizational structure 12 2. Information System 2.2 Changes induced by the IS Systemic effects Mutual interactions between the three dimensions: Management (HR) - Design and develop - Define tasks - Propose and implement - Design the company - Use and adhere language - Ensure maintenance - Implement control systems, rules and procedures - Establish information circuits In support of the processes Technologies and the dominant culture: - acquire - store - to treat - communicate Organization (Processes) Interaction 2. Information System 2.2 Changes induced by the IS Systemic effects The 3 dimensions of an IS are interdependant A change in a dimension is likely to affect the other dimenions Examples: Advanced technology with insufficiently trained HR would not be effective A technology with too many operational modules (SAP type) is unsuitable for a small structure (Start-up) Complicated technology without clear organizational processes around it cannot be implemented 2. Information System 2.2 Changes induced by the IS Levels of change 2nd : Inform 3rd : Transform 1st : Automate Transformer la Automate manual Informer Inform la prise de decision-makers Transform the Definition tasks décision and decision-making conduite de business conduct l'entreprise Réformer la structure Increase production Redéfinir les missions Reform de the company l'entreprise Redefine user missions structure (flattened, capacity des utilisateurs (Aplatie, decentralized, etc.) décentralisée,...) Effects Redéfinir les rôles des Redefine user roles in the utilisateurs dans Réingénierie Reengineering dethe Reduce labor costs company l'entreprise l'interaction entre les interaction between and user efforts Rationnaliser Rationalize thel'usage use ofdes processus processes ressources resources 13 2. Information System 2.3 Stakes of IS Definition A stake characterizes a set of benefits or losses related to a situation or an event. It is whay you risk on the result of something such as a game or competition. [Cambridge dictionary] Types of IS stakes Strategic stakes Social stakes Organizational Environmental stakes stakes 2. Information System 2.3 Stakes of IS An overhaul of the IS to improve agility Cost reduction and coordination time (Inditex: Just-in-time production as an alternative to outsourcing in Asia) Digital workplace (collaborative work, teleworking, virtual Organizational teams) stakes Improved decision making (accessible massive data and powerful analysis tools) An unnecessary overhaul of the IS which can generate risks Technology risks: Vulnerabilities to cyberattacks and bugs Risks linked to employees: Lack of digital intelligence leading to infobesity, technostress, poor management of personal/professional life balance Risks linked to regulations: Non-compliance with laws (GDPR, HIPAA, SOX, etc.) 2. Information System 2.3 Stakes of IS Implement an IS to create winning strategy Aggregation of non-market services and market services (Amazon, FNAC, etc.) Strategic stakes Business Models based solely on non-market services (Doctissimo, LesNumériques) Implement an IS that is not aligned with the company’s socioecomic contect Compulsory chrono-competition (stock markets, energy suppliers, etc.) Failed digital shift which led to the fall of companies (Kodak, Surcouf, etc.) 14 2. Information System 2.3 Stakes of IS Implement an IS to cover community needs Information exchange for collective intelligence (Wikipedia, Open Source communities) Access to the world for the most disadvantaged or isolated Social stakes (Microcredit facilitated by the Internet, network of care and medical expertise in Africa) Implement an IS that might generate social issues There is no such thing as forgetting on the Internet: e- reputation No more privacy issues with the advent of IoT Risk of manipulation by buzz (Hoaxes distributed via social networks) 2. Information System 2.3 Stakes of IS Illusory environmental improvements Expectation of less mobility with the GPS, but more movements observed Planned obsolescence of computers generating more Environmental electronic waste stakes Greenhouse gas emissions 4% in 2020 due to digital (versus 8% for land transport and 2% for air transport) Carbon footprint resulting from data centers (Gangnam Style, viewed 3.4 billion times, consumed the equivalent of the annual production of a nuclear power plant) Pollution due to emails sent (12 billion emails are sent every hour worldwide, emitting 50 Gwh, or the hourly production of 18 nuclear power plants) 2. Information System 2.4 Types of IS Different needs and processing of information Decisions impacting the Design of unifying entire organization (Eg: vision and mission Strategic Management Introduction of a new Top management product) Control of daily Decisions for each division operations Middle Management independently of the rest of Sub-division managers and independent teams the organization (Eg: Regional Marketing Plan) Decisions for operator Produce and Operational Management provide services functions (Eg: Quantity to Plant and administration operators produce) Sales & Marketing Production Finance Acconting Human Resources 15 2. Information System 2.4 Types of IS Different IS according the the needs Decison Support Strategic Management System (DSS) Top management Management Middle ManagementInformation System (MIS) Sub-division managers and independent teams Transactional Processing System Operational Management (TPS) Plant and administration operators Sales & Marketing Production Finance Acconting Human Resources 2. Information System 2.4 Types of IS Transactional Processing System (TPS) A basic system that: supports the day-to-day operations of the company, records routine and daily transactions, consists of highly structured and predetermined tasks, Examples: Operational Sales and Production & Finance & HR functions Marketing Maintenance Accounting Examples of Order Machine control General Employee Skills systems management system ledger Inventory system Quality control Fund Payroll Sales system management management commission system system system 2. Information System 2.4 Types of IS Management Information System (MIS) An advanced system that: manipulates highly aggregated information, i.e. made from a large volume of data (e.g. the monthly or annual turnover of an agency) facilitates decision-making using past and present data from TPS relies on data warehouse technology and multi-dimensional analysis offers temporal views of the company's key indicators (e.g. turnover, total sales, best products sold, annual cost of storing a product), in the form of reports Evolution of turnover Evolution of net income 16 2. Information System 2.4 Types of IS Management Information System (MIS) Types de reports generated: Scheduled Progress Reports: Reports in a predetermined format designed to provide managers with information at regular intervals. Examples: weekly sales analysis reports, monthly financial statements. Exception records: production of information on exceptional situations Example: Report containing only customers who exceed their credit limit. 2. Information System 2.4 Types of IS Decison Support System (DSS) A sophisticated system that: is used for non-routine decisions supporting strategy relies on internal information from TPS and MIS, but also external allows you to answer questions that do not have a priori solutions such as:  In which market should we position ourselves?  What measures should we adopt to deal with a new entrant? integrates mathematical models and predictive techniques over a wider scope than MIS, offered via an interactive simple interface SESSION 2 3. Exercises 17 3. Exercises 3.1 Case study Go to Moodle and dowload the document « Session 2 – Case Study » reporting the implementation of IBM Watson at CréditMutuel. The case is also available at https://www.ibm.com/watson/stories/creditmutuel Answer the following questions and send the response’ document through Moodle 1. What are the motivations of Credit Mutuel to implement this system? 2. What type(s) of IS is it? Justify your answer 3. What are the changes induced with regard to the 3 dimensions of an IS? 4. So what is the level of change induced by this IS? 5. In your opinion, what are the stakes that this system represents? 18  05/11/2024 0. Reminder 0. Reminder 0.1 Types of IS 2 Different types of IS according to the needs Decision Support Strategic Management System (DSS) Top management Management Information System Middle Management (MIS) Sub-division managers and independent teams Transactional Processing System Operational Management (TPS) Plant and administration operators Sales & Marketing Production Finance Accounting Human Resources  05/11/2024 0. Reminder 0.2 Different types of decisions supported by IS 3 Different needs and decisions Decisions impacting the Design of unifying vision and mission Decision Support Strategic Management System entire organization (Eg: Introduction of a new (DSS) Top management product) Decisions for each Control of daily Management Information System division independently operations Middle Management of the rest of the (MIS) Sub-division managers and independent teams organization (Eg: Regional Marketing Plan) Transactional Processing System Decisions for Produce and Operational Management provide services (TPS) Plant and administration operators operator functions (Eg: Quantity to Sales & Marketing Production Finance Accounting Human produce) Resources 0. Reminder 0.3 Let's recap! 4