Information Systems PDF

Content of LU1: The features and components of information systems in today's global environment. 1.FEATURES AND COMPONENTS OF AN IS 2.ROLE OF INFORMATION SYSTEMS IN TODAY'S BUSINESS 3.PRESPECTIVES OF INFORMATION SYSTEMS The information systems chronology: - Charles Babbage's Difference Engine...

Content of LU1: The features and components of information systems in today's global environment. 1.FEATURES AND COMPONENTS OF AN IS 2.ROLE OF INFORMATION SYSTEMS IN TODAY'S BUSINESS 3.PRESPECTIVES OF INFORMATION SYSTEMS The information systems chronology: - Charles Babbage's Difference Engine, 1832; - Ada Lovelace: first computer programmer (1848); - Alan Turing June 23, 1912 June 7, 1954 “Code-breaking war hero, now considered the father of computer science and artificial intelligence.”; - Grace Hopper (1906–1992) was a computer scientist and rear admiral in the United States Navy. Hopper translated mathematical notation into machine code. She wrote "first computer debugging” program; - Katherine Johnson (1918–2020) was an American mathematician whose orbital mechanics calculations as a NASA employee were crucial to the success of the first and future U.S. crewed spaceflights; - Margaret Heafield Hamilton ( born in 1936) is an American computer scientist, systems engineer, and business owner. She was the director of the MIT Instrumentation Laboratory's Software Engineering Division, which developed on-board flight software for NASA's Apollo program; EVOLUTION: 1. Vacuum Tubes; 2. Transistors; 3. Integrated Circuits; 4. Microprocessors. Computers’ evolution: see on the first pwp Technology Drivers of Infrastructure Evolution: Moore’s Law- “the number of components on a chip with the smallest manufacturing costs per component (generally transistors) had doubled each year.” 1.1 Features and components of an Information System - From the 80s to the present day: Comes to artificial intelligence, with high speed (with one or more cores per processor, high frequency and data transfer between computer components). Programs with a high degree of interactivity with the user and the world wide web (internet). All this has boosted the storage of huge amounts of data and cloud. 1 Data storage timeline: How Information Systems are Transforming Business By June 2018, more than 160 million businesses worldwide had dot-com Internet sites registered; Social media (Facebook, Instagram) attracted more than 2 billion monthly visitors worldwide; Social networking tools being used by businesses to connect employees, customers, and managers; Internet advertising continues to grow at more than 20 percent per year; New laws require businesses to store more data for longer periods; Changes in business result in changes in jobs and careers. What’s New in Management of Information Systems? IT Innovations: - Cloud computing, big data, Internet of Things - Mobile digital platform - AI and machine learning New Business Models - Online streaming music and video - -On-demand e-commerce services E-commerce Expansion - E-commerce expands to nearly $1 trillion in 2018 - Netflix now has more than 125 million U S subscribers - Online services now approach online retail in revenue - Online mobile advertising now larger than desktop Management Changes - Managers use social networks, collaboration tools - Business intelligence applications accelerate - Virtual meetings proliferate 2  Firms and Organizations Change - More collaborative, less emphasis on hierarchy and structure - Greater emphasis on competencies and skills - Higher-speed/more accurate decision making based on data and analysis - More willingness to interact with consumers (social media) - Better understanding of the importance of IT What 's a system? - its components are interconnected with flows (information, in this case); - It has inputs and outputs. What is an Information System? - It’s not just technology (more than software/hardware); - IT: The hardware and the software a business uses to achieve an objective; - IS: interrelated components that manage information to: Support decision making and control Help with analysis, visualization, and product creation - Data: streams of raw facts; - Information: data shaped into meaningful, useful form “An information system is a collection of people, procedures, and equipment designed, constructed, operated, and maintained to collect, record, process, store, retrieve, and display information.” - they support companies’ everyday lives; - IS have the capacity to do tasks faster than humans. - People: they input data; - Equipment: the collection of hardware and software; - Processes: tasks/activities to do daily. - Also, IS collects data, activities and many other stuff, while being connected with the firm (they’re sequences that recognize people). The interdependence between organizations and information systems 3 Data and Information Data: input, like raw material; Information System: combines different types of data in order to transform it into information; Information: output, organized and relevant. - There are different types of IS, because of the different ways we can use them. HOW DOES AN IS WORK? The (input) which involves capturing or collecting raw data sources. The (processing) involves converting this raw input into a more useful and appropriate manner. The (output) involves the transfer of information processed people or activities that will use (processes the inputs and produces outputs that are sent to the user or other system). - can also be used as inputs of other system It may also contain a feedback mechanism which controls or improves operation. - There is a sharp distinction between computer or computer program versus information system. - Feedback Output is returned to appropriate members of the organization to help evaluate or correct the input stage. 4  - Computer/computer program vs. information system Computers and software are technical foundations and tools, similar to the material and tools used to build a house. - IS saves time in companies’ activities. ADVANTAGES OF AN IS As in any system, various parts work together aiming at a common goal. An information system is no different, but the goal is a more reliable and less bureaucratic flow of information. It also saves time in companies’ activities. Its main advantages are: Reducing operating and administrative costs and gain productivity; More integrity and accuracy of the information; More stability; More secure access to information. Optimization of information flow allowing more flexibility; Good information for good decision making. SYSTEM INFORMATION IN ORGANIZATIONS Information is a key factor in managing to be an important and indispensable resource both in the domestic context and in the relationship with the outside. The more viable, timely and comprehensive information for this, closer together will be the company and the greater their potential will face competition; The competitive advantages are now achieved through the use of communications systems and networks that interrelate companies, customers and suppliers. Real time accessing and process huge amounts of data. Storing these data to be correlated to obtain information and turn knowledge. 5 The information systems department - An organizational unit responsible for the services of information technologies. Includes programmers, systems analysts, project managers, system administrators, etc. - It is usually a department with autonomy headed by a chief information officer (CIO). CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS 6 TECHNICAL APPROACH: - Emphasizes mathematically based models; - Computer science, management science, operations research. BEHAVIORAL APPROACH: - Behavioral issues (strategic business integration, implementation, etc.) - Psychology, economics, sociology. SOCIOTECHNICAL SYSTEMS: - Management information systems: Combine computer science, management science, operations research, and practical orientation with behavioral issues; - It has four main actors: Suppliers of hardware and software, Business firms, Managers and employees, Firm’s environment (legal, social, cultural context). - Sociotechnical view: Optimal organizational performance achieved by jointly optimizing both social and technical systems used in production. Helps avoid purely technological approach. 1.2 THE ROLE OF INFORMATION SYSTEMS IN TODAY’S BUSINESS How IS are transforming organizations: - Flattening - Decentralization - Flexibility - Location Independence / Local autonomy - Low transaction and coordination costs - Empowerment - Collaboration and teamwork The Globalization: - The Internet dramatically reduces the costs of operating at global scale. It provides opportunities and threats to the global market level: - Management and control - Competition - Ways of working 7  - Logistics systems - among other. The rise of digital business: - Digital relationships among customers, suppliers and employees. - Firms core business processes run by digital means. - Digital management of corporate capital. - Understand / feel quickly and respond to the external changes. - Paradigm shift in time / space. The strategic business objectives of an information system: - Excellence operational - New products, services and business models - Close contact with customers and suppliers (intimacy) - To improve the decision making - Seek competitive advantage - Survival / maintain position in the market Excellence Operational: - Improve efficiency to achieve higher profitability / profit. - Systems and information technologies are an important tool to achieve high efficiency and productivity. - Example: Continente system connects stores and vendors in real time - replenishment systems. New products, services and business models: - Business model: describes how the company produces, sells and delivers a product or service in order to create wealth. - Technology and information systems are the best tools for creating new products, services and business models. Examples: Microsoft, Amazon, Spotify, and iPhone, Netflix, NOS, MEO, etc… Close contact with customers and suppliers (intimacy): - Serving customers well leads to customer satisfaction and feedback, which increases revenues and profits. Example: The Hilton’s IS collects the preferences of their customers and use them to monitor and customize offers. - Close relationship with suppliers provides vital inputs to reduce costs, improve supply and increase quality. Example: The ZARA’s IS connect sales to designers and manufacturers around the world. To improve the decision making: Without viable information: Managers have to rely on forecasts, feelings, opinions, luck. Which end up with: Over or under production of goods and services, misallocation of resources, poor response times… This implies increased costs and loss of customers. 8  - Example: NOS's web dashboard gives managers real-time information about customer preferences, complaints, network performance, interruptions in lines, etc. Seek competitive advantage: - Better performance. - Charge less for better products and services. - Responding to customers and suppliers in real time. - Offer the best product or service. - Post sales higher assistance. Example: IS production of Toyota has an upper edge over the competition - uses the well-known JIT (Just-In-Time) which together with the TQM (Total Quality management) provides all the above advantages. Survival/maintain position in the market: - Technology and Information Systems as a basic business need. Examples: Alternative ways traditional models, the introduction of the SIBS system (Multibanco - ATMs). What was a competitive advantage is now a matter of keeping in the forefront (offers beyond the notes and transfers the corner); - Governmental regulations: SNC, IVA, Courts, etc. Information Systems are important because of the need to increase capital management, increase productivity by virtue of its use, the strategic opportunities and advantages they offer, and because they are becoming the main function of doing business today. 1.3. Perspectives of Information Systems Information system - the activity that produce the necessary information to the organizations: - Input: raw data capture of the organization or the external environment. - Processing: It converts the raw data into meaning. - Output: Transfer the meaning of data (information) to people or activities that use. - Feedback: This is the evaluation of the output / output on the quality of data entered in the system. 9 Functions of an IS: - An information system contains information about an organization and its surrounding environment. - Three basic activities – input, processing, and output – produce the information organizations need. - Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input. Environmental actors, such as customers, suppliers, competitors, stockholders, and regulatory agencies, interact with the organization and its information systems. Dimensions of IS: - Organizations; - Management; - Technology. ORGANIZATIONS: Hierarchy of authority, responsibility: - Senior management - Middle management - Operational management - Knowledge workers - Data workers - Production or service workers Separation of business functions: - Sales and marketing - Human resources - Finance and accounting - Manufacturing and production - Unique business processes - Unique business culture - Organizational politics 10 MANAGEMENT: - Managers set organizational strategy for responding to business challenges - In addition, managers must act creatively - Creation of new products and services - Occasionally re-creating the organization TECHNOLOGY: - Computer hardware and software - Data management technology - Networking and telecommunications technology. Example: Networks, the Internet, intranets and extranets, World Wide Web - IT infrastructure: provides the platform that system is built on. Some other concepts- resources of an IS: An SI has a set of related resources as follows: Hardware: computers and peripherals such as printers, processors, monitors, keyboards, external reading devices, etc. Together, they accept data and information, process them and allow viewing. Software: is a set of programs that enables the hardware to process data. Examples: operating system; applications (set of programs that perform processing functions of the input / output). 1.1 Features and components of an IS People: Individuals who work with the system or use its output. Data: is a collection of files, tables and other interrelated data that store data and their respective associations. Networks: is an attachment system that allows the sharing of resources among multiple computers 11 LEARNING UNIT 2.1 INFORMATION SYSTEMS IN ORGANIZATIONS AND THEIR FUNCTIONS 2.1. Business Processes and Information Systems Process: how we do the work physical flows and information flows: the software asks us to another activity customize it, how we want the work to be done ★ Order to cash: it's cross functional. designing all the flows activities until we receive that money. complex, since the customer asks for the product until we receive the money. ★ Procure to pay: dealing with suppliers. Which is the best supplier in the market? ★ Plan to produce: manufactures. We need to have raw materials to assemble them. ★ Design to deploy: Innovation. usually studies the market and comes up with new ideas. ★ Forecast to plan: Management level - prever (forecast) para planear a produção. Connected to manufacture, marketing. ★ Inspect to quality: connected to manufactory. assure that everything is working well ★ In-to-Outbound: raw materials and final products. receive raw materials. all the materials' flows for the company. inbounds- raw materials outbounds- final products ★ Acquire to Retire: assets that the company has. It means that we have to control all assets we buy for the company. asset- car, computer, building, etc work flow to control the assets ★ Account to Report: u have to carry out in order to extract financial economical information. The financials have to produce reports. information for internal consumption for those who take decisions 12 What are Business Processes? Business processes are: - Tasks and behaviors that organizations develop over time to produce good results - organization and coordination of activities. - Workflows of materials, data, information and knowledge; - They have a high impact on company’s performance; - IS has everything to do with the improvement of business processes. - Many of these processes can be simply applied to a specific area. - While other more comprehensive - covering different Example of a business process covering different functional areas: Processing a Sales Order Satisfy a customer order can involve a complex set of steps/tasks that require coordination between sales, accounting and production functions. 13 How do information systems improve business processes today? Example of an insurance company: 14 2.2. TYPES OF INFORMATION SYSTEMS 2.2.1 Systems in a functional perspective Identifying systems in accordance with the major business functions. 2.2.2 Systems in an organizational perspective Identify systems in accordance with the key organizational groups they serve. 2.2.1. SYSTEMS IN A FUNCTIONAL PERSPECTIVE transation processes systems: parts that deal with transactions outuput- invoice, which represents a sale what we have in a warehouse 1 in bound- raw materials out bound- final product TPS. regardless the production part all financial and economical transactions where we apply the money, where the money comes from people that work in the company, information about the workers of the company most common output: receipt of the salary of the employees (example of TPS) 2 2.2.2 SYSTEMS IN AN ORGANIZATIONAL PERSPECTIVE - Transaction Processing Systems (TPS) - Management Information systems (MIS) - Decision Support Systems (DSS) - Executive Support Systems (ESS) Transaction Processing System (TPS) - Performs and records the daily tasks in conducting the business process. Examples: Registration of orders, payments, shipping. (order to cash, eg.g) - Allow managers to monitor the status of operations and relations with outside of the business unit. - Serves operational levels. Management Information Systems (MIS) - Serves middle management. - Supports routine character decisions - It provides reports on the current state of the company's performance, based on data from the TPS. TPS PRODUCE RAW MATERIAL FOR OTHER SYSTEMS - Provides answers / indicators in real time on the business process. - Typically with weak analytical capacity 3 Decision Support Systems (DSS) - Also serves middle management - Supports infrequent decisions (what is the impact on production planning if sales duplicate in December?) - In addition to information from TPS and MIS, generally uses other external sources of information. - serve middle management and executive - they have a certain level of intelligence - they are rarely wrong - statistics models that help to predict the future - decisions should be taken on data - the output is suggestions how to decide/act based on data Executive Support Systems (ESS) - Serves senior management - Also supports infrequent decisions, but more strategic character (make to order or to stock?) - It incorporates data on the external environment (new laws, policies, manufacturing, competition) and systematizes the information generated by MIS and DSS. - they need to combine data from the company - they take decisions - position of company in the market, produce dahsboards for ESS, MIS and TPS 4 In short the systems in an organizational perspective: - Transaction Processing Systems (TPS) – support workers - Management Information systems (MIS) – support low-middle mgrs - Decision Support Systems (DSS) – support middle-upper mgrs 2.3. SYSTEMS THAT EXTEND ENTERPRISE Enterprise applications: - Changes the paradigm of "Integration vs silos" - Extend the functional areas. - Run the business process of the company. - It includes all levels. - integrated systems- has all of that - enterprise- integration SW-ERPs The main systems: - Enterprise systems - enterprise resource planning (ERP) - Supply chain management systems (srm- sales, marketing) - Customer relationship management systems (aren't as big as ERPs) - Knowledge management systems (kms- how people work together) - E-business systems (information for the company to be able to sell products in the web) Enterprise Systems - enterprise resource planning (ERP) - Plans and manages the company's resources. Generate management processes, collecting and recording data. 5  - Integra as much as possible the various business management functions. - Are an unique platform for decision-making activities performed in real time. - Objective: To maximize management control. Supply Chain Management - Plans and manages the installed capacity, and the relationship with suppliers. - Provides information on orders, production, stock, logistics, etc. - Objective: To satisfy the demand with a certain quantity of products at a lower cost and on time. Customer Relationship Management Systems - Plans and manages sales, and customer relationships. - Provides information to coordinate the start of every process, from a marketing campaign, to sales, to after-sales service. - Objective: To optimize revenue, satisfy customers and their loyalty. Knowledge Management Systems - It supports the process of acquiring, creating, storing, distribution, application and integration of knowledge. - Gathers internal knowledge and relates it to the external knowledge: Business Analytics, Business Intelligence and Competitive Intelligence E-business - Uses information communication technologies (internet and extranet) to execute the company's business processes. - It includes e-commerce, e-government... E-procurement 2.4. ORGANIZATION OF THE FUNCTION OF INFORMATION SYSTEMS The information systems department - An organizational unit responsible for the services of information technologies. Includes programmers, systems analysts, project managers, system administrators, etc. - It is usually a department with autonomy headed by a chief information officer (CIO). - CDO -> Chief data officer responsible to provide the data governance of the company, and comply with data rules (international/national/company). 6  1 LEARNING UNIT 3 THE STRATEGY, BENEFITS AND VALUE OF INFORMATION SYSTEMS 3.1 Organizations and Information Systems 3.2 The impact of Information Systems in Organizations and Business 3.3 Using Information Systems to gain Competitive Advantages 3.4 Project Management in Information Systems PROJECT MANAGEMENT IN INFORMATION SYSTEMS -​ u have to lead, control, plan and organize; -​ managing a project: has a beginning and an end -​ company: has a beginning and hopes it doesn't end -​ project: specific time to start and to stop -​ complies the analysis of the context where we apply the systems -​ understand business processes of the company, main softwares in the market -​ prepare people in the company and then we finish the project -​ project owners- good analysis of the situation of the company -​ try to understand what kind of systems the company needs -​ main steps and considerations to deal successfully with project -​ customer will get along with your project -​ it starts with a goal THE BASIC 12 STEPS: Project management is mostly about planning.  2 1.​ DEFINE THE PROJECT: a)​ Which one is the key driver? -​ defining the scope; -​ what problems are u going to solve -​ quality: functionalities of the system. Basically, everything you are going to suggest to the company is according to its needs. -​ you can only define the cost when you have the quality b) Meetings are also pretty important! Kickoff Meeting 1: -​ what do u want? what the customer wants. Kickoff Meeting 2: -​ this is the plan -​ what do u think? -​ get sign-off -​ bring the plan and the customer agrees or not Also: 1.​ find out what they want 2.​ get agreement on the plan. c) get the project scope in writing -​ customers never stop asking -​ what can the company solve- written in the plan -​ u cannot answer to all the customer asks after signing up the contract Problems to Solve: -​ customer adds more tasks (scope creep); -​ disagreement on deliverables. Also: -​ don’t be tempted to say “maybe I’ll do it” or “I’ll try” -​ Say either “yes” or “no” -​ Do you have everything in writing? 2. LIST THE TASKS -​ u have to plan: list all the tasks u have to do -​ u have to understand what you're going to propose The methods: -​ Right-brain method: have a brainstorm to list all the tasks a) -​ Left-brain method: write out a work breakdown structure (WBS) b) -​ time, people, hardware, software, sites, telecommunication, etc…  3 -​ Someone Else’s Brain: ask other people c) -​ c) needs b) and b) needs a. -​ Experts, consultants, researchers, practitioners, among others. -​ benchmarking- look for similar companies in the market and see their features RACI- technique which u have to cross people and activities -​ there are no lines with no accountables a=who decides and monitors in each line (gets the entire decision power) i= who u need to inform r= responsible c= consult 3.ESTIMATE TIME AND COSTS FOR EACH TASK Costs and benefits of information systems Assign costs to each task time: -​ How long is the project going to take? -​ Have you included enough contingency time? 4. ADD UP TIME AND COST -​ It’s all about having an accurate plan. 5. SHORTEN YOUR PROJECT PLAN Look into the critical path Three options: a.​ spend more b.​ reduce the quality c.​ overlap tasks it roots to the key drivers 6. DRAW A GANTT CHART -​ The project calendar -​ the amount of time we need to perform each task The three main benefits are: a.​ communicate b.​ forecast resource requirements c.​ monitor progress Information Systems, 24/25 4. IS planning, development and operation for management 4.1. Management IS 4.2. IS Planning (before software) 4.3. IS Development (developing) 4.4. IS Operation How can we build the right capabilities for a super management information systems? -​ by learning the phases and the correct settings/definitions MIS can be conceptualized through three different activities or components: -​ ISP: Information System Planning; -​ ISD: Information System Development; -​ ISO: Information System Operation. -​ MIS is the set of activities that an organization is required to manage information, IS and the adoption of IT to support it. ISP: INFORMATION SYSTEMS PLANNING -​ Planning IS activities; -​ The ISP is essentially the management task that deals with the IS integration aspects in the organization's planning process, providing a direct link between this process and the ISD operational management, particularly through the IT acquisition and development, operation and maintenance of applications among others. 1 Information Systems, 24/25 Three main components: 1.​ Strategic Analysis; 2.​ Strategic Definition; 3.​ Strategic Implementation. Seeks to answer, respectively and in a logical sequence, three questions: -​ "What is the current situation?“ -​ "What do we want for the future?“ -​ "What do we have to do to get it?" 2 Information Systems, 24/25 ISD: INFORMATION SYSTEMS DEVELOPMENT Five main components: 1. Systems analysis 2. System design 3. System building 4. System implementation 5. System maintenance The ISD is essentially the set of tasks involved in the IS production that adequately support the organization, not only in helping their processes, but also in creating competitive advantage. (actually do the code of the system) ISD Methodologies: -​ PRINCE 2- PRojects IN Controlled Environments: all the public projects needs to have it -​ ITIL- Information Technology Infrastructure Library -​ Six Sigma -​ BPM- Business Process Management -​ RUP- Rational Unified Process -​ PMBOK/PMI- Project Management Institute -​ SCRUM- Agile Methodology -​ Kanban -​ COBIT IT Governance Framework -​ SSM- Soft System Methodology ITIL- Information Technology Infrastructure Library -​ “ITIL is the most widely accepted approach to IT service management in the world. ITIL provides a cohesive set of best practice, drawn from the public and private sectors internationally.” (APMG, 2013) -​ describes carefully the components of the system 3 Information Systems, 24/25 SIX SIGMA -​ Method of improving business efficiency and effectiveness; -​ Key principles of Lean Six Sigma; -​ You don't have to wait until the end of the project to check if everything is working well. -​ Focus on the customer -​ Identify and understand how the work gets done -​ Manage, improve and smooth the process flow -​ Remove Non-Value-Added steps and waste -​ Manage by fact and reduce variation -​ Involve and equip the people in the process -​ Undertake improvement activity in a systematic way BPM- BUSINESS PROCESS MANAGEMENT -​ BPM allows organizations to abstract business processes from technology infrastructure, it goes far beyond automating business processes. -​ Analyzing all about the project in order to optimize it. -​ “Business process management (BPM) is a discipline that uses various methods to discover, model, analyze, measure, improve and optimize business processes. -​ A business process coordinates the behavior of people, systems, information and things to produce business outcomes in support of a business strategy. Processes can be structured and repeatable, or unstructured and variable. -​ Though not required, technologies are often used with BPM. BPM is key to align IT/OT investments to business strategy.” (Gartner, 2019) RUP- Rational Unified Process -​ Developed by Kroll & Royce @ IBM in the 80’s 4 Information Systems, 24/25 SCRUM- Agile Methodology -​ In Scrum, projects are divided into succinct work cadences, known as sprints, (one week, two weeks, or three weeks). -​ At the end of each sprint, stakeholders and team members meet to assess the progress of a project and plan its next steps. This allows a project’s direction to be adjusted or reoriented based on completed work ISO- INFORMATION SYSTEMS OPERATION Four main components: 1.​ Operating systems; 2.​ IT administration; 3.​ Special projects; 4.​ HR administration ⇔ ISGovernance (who does what). -​ The ISO is essentially the set of tasks involved in the operation of IS resources, taking into account that the responsible for the planning and the development will be the ISP and ISD, respectively 5.​Enterprise applications: ERP, SCM, CRM and E-Commerce. 5.1 Enterprise Systems (ERP) 5.2 Supply Chain Management Systems (SCM) 5.3 Customer Relationship Management Systems (CRM) 5.4 E-Commerce ERP- enterprise resource planning 5 Information Systems, 24/25 An enterprise systems includes: much more than planning -​ computer software -​ system software -​ enterprise system understand the reality of the company take decisions on the functional areas mrp -> erp 5.1 Enterprise Systems (Historical Evolution) -​ ICS- Inventory Control Systems l -​ MRP – Material Requirement Planning l -​ MRP II – Manufacturing Resource Planning II l -​ ERP – Enterprise Resource Planning l -​ ERP II- Enterprise Resource Planning II iERP (Intelligent ERP) utilizes cloud deployment because of the demanding infrastructure requirements to manage massive, heterogeneous data sets accessible in time to support decisions. i-ERP systems use machine learning and predictive analytics, are capable of learning from exceptions and adapting business rules, allowing users to discover insights, better predict and plan for outcomes, recommend next best steps, and automate processes. ERP BENEFITS: -​ Reduced IT maintenance costs; -​ Reduce operating/labor costs; -​ Improved interaction with customers; 6 Information Systems, 24/25 -​ Controls for compliance; -​ Improved lead time and inventory levels; -​ Improved interaction with suppliers; -​ Better informed decision-making; -​ Less duplication of effort; -​ Improved data reliability; -​ Improved productivity and efficiency; -​ Increased interaction/integration. Business value of enterprise systems -​ improved operational efficiency. -​ It provides information for decision making. -​ Provides quick answers to customers about products, services or other specifications and information. -​ It includes analytical tools to evaluate the performance of the company. Typically, enterprise systems contain a set of modules and a single database that is shared by several processes and functions of the enterprise. 5.2. Supply chain management systems It involves logistics 7 Information Systems, 24/25 What is a Supply Chain? Network of organizations and processes to: -​ Search (Buy) raw materials -​ Transforms them into products -​ Distribute Products Upstream supply chain: -​ Direct company's suppliers, suppliers of the company's suppliers, and processes to manage the relationship with them. Downstream supply chain: -​ Organizations and processes responsible for delivering the products to customers Nike’s supply chain: Downstream- customers Upstream- Suppliers The supply chain and information flow upstream and downstream to coordinate the activities of purchasing, manufacturing, shipping and returns. Intranet and Extranet in the supply chain: 8 Information Systems, 24/25 Most common Supply Chain models: Push-based model (build-to-stock) -​ The schedule of activities are based on forecasts on demand. -​ The customer is pushed by the upstream -​ forces who sells -> who buys Pull-based model (demand-driven) -​ Customer orders trigger activities in the supply chain. -​ The communication level is different -​ who buys-> who sells 5.3 Customer relationship management systems What is a Customer Relationship Management System (CRM)? -​ Know the customer ​ often many customers interact with the company -​ The CRM system: ​ Capture and integrate customer data from across the organization. ​ Consolidates and analyzes data. ​ Distributes customer information across the company and contact points with the customer. ​ It provides a unique insight into customers. -​ Contact points: ​ Example: telephone, e-mail, customer service, Mail, Web site or shop counter 9 Information Systems, 24/25 -​ Relationship Management Applications: ​ Customer relationship management (CRM) ​ Partner relationship management (PRM) ​ Employee relationship management (ERM) Most CRM applications are software modules for: -​ Sales Force Automation; prospects, contact information and quotations, etc. -​ Customer service; self-service features, etc. -​ Marketing; data capture on prospects and customers, mailing followup / direct marketing emails, etc. How does a CRM system support a marketing activity CRM provides a single point of contact to manage and evaluate marketing campaigns carried out by various channels CRM functionalities Most CRM software support business processes such as; sales, service, marketing and customer information integration of different sources. It includes both analytical and operational aspects of the relationship management process with customers. Customer Loyalty Management Process Map This process map shows how a best practice for promoting customer loyalty through customer service would be modeled by customer relationship management software. The CRM software helps firms identify high-value customers for preferential treatment. 10 Information Systems, 24/25 Operational and Analytical CRM -​ Operational CRM Applications used in customer contact, such as sales force automation tools, call centers and customer support services and marketing automation. Examples: Campaign Management, account and contact management, e-marketing, telemarketing, telesales, e-sales. -​ Analytical CRM Applications that analyze customer data generated by operational CRM applications to provide information to improve business performance. Examples: Strategy and segmentation of customers, customers returns / products, standards identification, leads generation leads. Customer Lifetime Value (CLV): the ratio between the revenue generated by a particular customer and costs incurred in acquiring and retaining that customer and the expected duration of the relationship between that customer and the company. Collaborative and Social CRM -​ Collaborative CRM Applications used in customer contact which supports open innovation with the customers. Examples: crowdsourcing innovation systems -​ Social CRM Applications that capture customers information in social media and support its analysis. Examples: Systems for sentiment analysis using social network information. 5.4 E-COMMERCE Key concepts of e-commerce: Digital products: -​ Products / services that can be delivered in a digital platform: -​ Example: Music, video, software, newspapers, magazines, books. -​ The cost of producing the first unit is largely the total cost of all the consequent production: this is the second unit is zero (marginal cost). -​ Delivery costs through the Internet are very low. Digital markets reduce: -​ Information asymmetry -​ Procurement costs -​ Transaction costs Digital markets allow: -​ Price discrimination -​ Dynamic pricing -​ Disintermediation 11 Information Systems, 24/25 Types of business models: -​ Pure-play It exists only in the virtual world of the Internet -​ Clicks-and-mortar They exist in the virtual world of the Internet and the physical world. -​ Bricks-and-mortar They exist in the virtual world of the Internet and the physical world. Business models on the Internet: -​ Virtual shop: Sells physical products directly to consumers and businesses Examples: fnac.pt; Amazon.com -​ Information broker: Provides information on products, prices, availability, etc. to individuals and businesses. Example: Edmunds.com -​ Transaction broker: Saves time and money for users through online transaction processing, charging a fee each time a transaction occurs. Example: E * trade.com; Expedia.com. ; www.kiwi.com -​ Online marketplace: It provides a digital environment where sellers and buyers can meet, look for products, display products and set prices for those products. Can offer online auctions. Can serve end customers or B2B e-commerce, generating revenues based on fees on transactions Example: OLX.pt; eBay.com -​ Content supplier: Creates revenue by providing digital content, such as news, music, photos, videos, etc. over the Web. Customers pay for access to content or the revenue may come from the sale of advertising space. Example: iTunes.com; Games.com; Audiable; Spotify -​ Online Service Provider: Provides online services for individuals and businesses. Generates revenues from subscription service or fees on transactions, advertising or collecting information about users to support marketing strategies. Example: Streamload.com; Salesforce.com... MEO -​ Virtual communities: It provides points of online meeting place where people with similar interests can communicate, share and find useful information Example: YouTube.com; Facebook.com; Meetup; -​ Portal: Provides a web gateway in parallel with specialized content and other services Example: Yahoo.com; MSN.com 12 Information Systems, 24/25 E-Commerce Categories -​ Business-to-customer (B2C): Retail of products and services directly to individual customers (Continente.pt) -​ Business-to-business (B2B): Sale of goods and services between companies (idc.com; aws.amazon.com) -​ Consumer-to-consumer (C2C): Individuals use the Web to direct selling and exchanging goods (eBay.com; olx, etc,) -​ Mobile commerce (m-commerce) Users request products/services entirely through mobile devices (smartphones) -​ Social e-Commerce -​ AR-Commerce -​ V-Commerce Services and applications for m-Commerce -​ Content and location-based services Transportation schedules, cinema directories and its films in theaters, restaurant guides and tourist spots, pharmacies open, purchase tickets, etc. -​ Banking and financial services Manage bank accounts, make payments and perform operations, etc. -​ Advertising Wireless Operators that give access to the service take the opportunity to include advertising messages -​ Games and entertainment Play individually or in a network form as well as receive television broadcasts. 13 Information Systems Learning Unit 7 Information Systems in knowledge management, business intelligence & analytics, ethics, and crime. 7.1. Organization, storage and database management File organization concepts Computer system organizes data in a hierarchy Field: Group of characters as word(s) or number ü Record: Group of related fields File: Group of records of same type Database: Group of related files Record: Describes an entity Entity: Person, place, thing on which we store information Attribute: Each characteristic, or quality, describing entity – E.g., Attributes Date or Grade belong to entity COURSE The Data Hierarchy A computer system organizes data in a hierarchy. Related records can be collected to form a file, and related files can be organized into a database. Example: A student database Traditional File Processing The use of a traditional approach to file processing encourages each functional area in a corporation to develop specialized applications and files. Each application requires a unique data file that is likely to be a subset of the master file. These subsets of the master 1 Information Systems file lead to data redundancy and inconsistency, processing inflexibility, and wasted storage resources. Database: Collection of data organized to serve many applications by centralizing data and controlling redundant data. Database management systems (database management systems – DBMS) - Interfaces between application programs and physical data files - Separates logical and physical views of data - Solves problems of traditional file environment Controls redundancy Eliminates inconsistency Uncouples programs and data Enables organization to central manage data and data security Database with Multiple Views (Example of Human Resources) A single human resources database provides many different views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the company’s payroll department. Capabilities of database management systems: - Querying and reporting Relational DBMS: - Represent data as two-dimensional tables called relations or files - Each table contains data on entity and attributes Table: grid of columns and rows - Rows (tuples): Records for different entities - Fields (columns): Represents attribute for entity - Key field: Field used to uniquely identify each record - Primary key: Field in table used for key field 2 Information Systems Some examples: A relational database organizes data in the form of two-dimensional tables. Illustrated here are tables for the entities SUPPLIER and PART showing how they represent each entity and its attributes. Supplier_Number is a primary key for the SUPPLIER table and a foreign key for the PART table. Designing databases: - Conceptual (logical) design: abstract model from business perspective - Physical design: How database is arranged on direct-access storage devices Design process identifies: - Relationships among data elements, redundant database elements - Most efficient way to group data elements to meet business requirements, needs of application programs Normalization: - Streamlining complex groupings of data to minimize redundant data elements and awkward many-to-many relationships Distributing databases: Two main methods of distributing a database: - Partitioned: Separate locations store different parts of database - Replicated: Central database duplicated in entirety at different locations Advantages: - Reduced vulnerability; - Increased responsiveness. 3 Information Systems Drawbacks: - Departures from using standard definitions - Security problems There are alternative ways of distributing a database. The central database can be partitioned (a) so that each remote processor has the necessary data to serve its own local needs. The central database also can be replicated (b) at all remote locations. Databases on the Web - Many companies use Web to make some internal databases available to customers or partners Typical configuration includes: - Web server - Application server/middleware/CGI scripts - Database server (hosting DBM) Advantages of using Web for database access: - Ease of use of browser software - Web interface requires few or no changes to database - Inexpensive to add Web interface to system Linking Internal Databases to the Web 4 Information Systems Users access an organization’s internal database through the Web using their desktop PCs and Web browser software. SECURITY, PRIVACY, DATA PROTECTION AND ETHICS What is Trust? Background - There are many things that make companies successful. Some are tangible, like products, buildings, and people. Others are intangible, like reputation and trust. - These intangible assets are hard to measure, but they are essential to the future of information and communications technology (ICT) firms. Ensuring the privacy of customer information is a key driver of trust. - Customers' trust is win by making sure that their information is collected, used, and stored with the utmost care and respect. - As more and more ICTs firms are evolving from a purely focus on software and communications to services providers, customer data protection is a critical factors in winning customer trust. Basic concepts - applied to IS - information management - Security is about protecting that data from loss, misuse, unauthorized access, disclosure, alteration, or destruction. - Privacy is about respecting individuals' rights to control their personal data. - Data protection is about handling customers’ data, safeguarding individuals’ fundamental right to privacy. It is not possible to have privacy without security, and it is not possible to have security without data protection. There are norms around the protection of customer data such as ISO 27001, the EU model clauses and HIPAA. 5 Information Systems However, how you (ICT) should effectively take into consideration to protect customer data? General Data Protection Regulation (GDPR) The General Data Protection Regulation (GDPR) is the European regulation on personal data protection that started on 25 May 2018. Data protection by design means that companies and organizations should take privacy into account when designing, implementing and operating any technology which processes personal data. The GDPR privacy by design and by default principle requires that privacy standards are built into the technology and offered to the user by default. The GDPR shifts the burden of implementing privacy protecting measures from the user on to the company or organization. Recommendations R 1 - Data classification, is the first step that ICTs must take to ensure security and so forth privacy by categorizing customer data accordingly. R 2 - Encryption, is one of the most important steps that ICTs personal are taking when protecting customer’s data. ICT personal must use encryption security tools such as BitLocker, TrueCrypt or Seagate’s. R 3 - Passwords. Always follow password protection best practices. Accordingly with all interviewed experts ICT personal must always protect passwords. R 4 - Approved tools. Use only ICT services-approved tools for the collection and storage of customer data that certifies with ISO 27001. Never store any customer data on tools such as DropBox, OneDrive or GoogleDrive. R 5 - Access controls. Define the appropriate controls to have when accessing customer data. Site, file, application or tool owners must set appropriate permissions on the sites they control. 6 Information Systems R 6 - How many access to customer data. Define how many people can be accessing customer data. R 7 - Testing customer data. When testing customer data services and support personal must use ICT´s firm labs and only use production data in a test environment with customer approval and only for the purpose of troubleshooting R 8 - Geographic rules. Consider geographic location when transferring data – data should not be sent between countries without checking with the customer and legal representatives R 9 - Data retention. ICT personal must always consider data retention timelines when storing data. For HBI data, delete after 90 days. For MBI data, delete after 120 days. For LBI data, delete after 18 months. R 10 - Data minimization. Only collect the customer data that is strictly needed to complete the task. R 11 - Escalating issues, ICT personal when face customers that query about the access, collect, or manage customers’ personal information. The issue/call is been escalated. R 12 - Readiness and training. Avoid using the name of a customer, customer data, or any information that could identify the customer in a presentation, readiness or training sessions. Ethics: Information property - Deals with who owns information about individuals and how information can be sold and exchanged. Information accuracy - Deals with authentication and fidelity of information. Information accessibility - Deals with what information a person has the right to obtain about others and how the information can be used. Information privacy – Deals with collecting, storing and disseminating information about individuals (ISPs). 7 Information Systems ICTs need for a code of ethical conduct to avoid crime – but before need to know what is crime. Computer crime / Cybercrimes applied to IS (excluding software attacks) Hacking and Cracking Hacker – one who gains unauthorized computer access, but without doing damage. Cracker – one who breaks into computer systems for the purpose of doing damage. Most common types of data crime Data diddling: modifying data Salami slicing: skimming small amounts of money Phreaking: making free long distance calls Cloning: cellular phone fraud using scanners Carding: stealing credit card numbers online Piggybacking: stealing credit card numbers by spying Social engineering: tricking employees to gain access Dumpster diving: finding private info in garbage cans Spoofing: stealing passwords through false login page Software Attacks Malicious software (malware) designed to damage, destroy, or denyservice to the targeted systems. 8 Information Systems So, what are the difficulties ahead? Many ethical dilemmas are not easy to decide, between doing what it is right or wrong. Conflicts between: Fundamental rights Convictions and moral Costs & risks What to ponder? Ethics “Every society forms a set of rules that establishes the boundaries of generally accepted behavior. These rules are often expressed in statements about how people should behave, and the individual rules fit together to form the moral code by which a society lives.” Ethics is a set of beliefs about right and wrong behavior within a society. Ethical behavior conforms to generally accepted norms— many of which are almost universal. - A person who acts with integrity acts in accordance with a personal code of principles. - Morals are one’s personal beliefs about right and wrong; - Ethics describes standards or codes of behavior expected of an individual by a group (nation, organization, profession) to which an individual belongs; - Law is a system of rules that tells us what we can and cannot do. Laws are enforced by a set of institutions. 9 Information Systems Main Ethics Theories Ethics in virtue (Aristotles) Vicius & Virtues define the personal system of values Utilitarism (Bentham) Acting in a way that we could produce the maxim amount of wellbeing Categorigal Imperatif (Kant) “Act so as to treat people always as ends in themselves never as mere means.” (Kant) “Plagiarism is the act of stealing someone’s ideas or words and passing them off as one’s own. The explosion of electronic content and the growth of the Web have made it easy to cut and paste paragraphs into term papers and other documents without proper citation or quotation marks.” The Code of ACM 1. GENERAL ETHICAL PRINCIPLES. A computing professional should... 1.1 Contribute to society and to human well-being, acknowledging that all people are stakeholders in computing. 1.2 Avoid harm. 1.3 Be honest and trustworthy. 1.4 Be fair and take action not to discriminate. 1.5 Respect the work required to produce new ideas, inventions, creative works, and computing artifacts. 1.6 Respect privacy. 1.7 Honor confidentiality. 10 Information Systems 2. PROFESSIONAL RESPONSIBILITIES. A computing professional should... 2.1 Strive to achieve high quality in both the processes and products of professional work. 2.2 Maintain high standards of professional competence, conduct, and ethical practice. 2.3 Know and respect existing rules pertaining to professional work. 2.4 Accept and provide appropriate professional review. 2.5 Give comprehensive and thorough evaluations of computer systems and their impacts, including analysis of possible risks. 2.6 Perform work only in areas of competence. 2.7 Foster public awareness and understanding of computing, related technologies, and their consequences. 2.8 Design and implement systems that are robustly and usably secure. 4. COMPLIANCE WITH THE CODE. A computing professional should... 4.1 Uphold, promote, and respect the principles of the Code. 4.2 Treat violations of the Code as inconsistent with membership in the ACM. Ethical Aligned Design The IEEE Global Initiative on Ethics of Autonomous and Intelligent Systems: 1. Human Rights–A/IS shall be created and operated to respect, promote, and protect internationally recognized human rights. 2. Well-being–A/IS creators shall adopt increased human well-being as a primary success criterion for development. 3. Data Agency–A/IS creators shall empower individuals with the ability to access and securely share their data, to maintain people’s capacity to have control over their identity. 11 Information Systems 4. Effectiveness–A/IS creators and operators shall provide evidence of the effectiveness and fitness for purpose of A/IS. 5. Transparency–The basis of a particular A/IS decision should always be discoverable. 6. Accountability–A/IS shall be created and operated to provide an unambiguous rationale for all decisions made. 7. Awareness of Misuse–A/IS creators shall guard against all potential misuses and risks of A/IS in operation. 8. Competence–A/IS creators shall specify and operators shall adhere to the knowledge and skill required for safe and effective operation. Ethics of Artificial Intelligence: Challenges AI help individuals in decision making in several areas, there have been referred in literature: - Banking - Autonomous driving - Education - Job position and recruitment - & many more When to use GenAI? 12 Information Systems Challenges and ethical implications of GenAI Academic integrity Privacy concerns Cognitive bias Gender and diversity Accessibility Commercialization 13