Lecture 2: Global E-Business and Collaboration PDF

ICT (Information, Communication, and Technology) Lecture 2 BHMS4472 ICT in Business Global E-Business and Collaboration ICT (Information,...

ICT (Information, Communication, and Technology) Lecture 2 BHMS4472 ICT in Business Global E-Business and Collaboration ICT (Information, Communication, and Technology) Copyright © 2017, 2014, 2011 Pearson Education, Inc. All Rights Reserved. Smart Stores Smart Stores Reinvent the Retail Space Business Challenges – Mounting competition from online retailers – Take advantage of opportunities provided by new technology Solutions – Acrelec system helps stores manage curbside pickup – AWM Smart Shelf enables retailers to view and track products in real-time; helps shoppers locate products using mobile devices; personalizes shopper experiences – AWM Frictionless enables low-contact cashierless checkout Smart Stores Reinvent the Retail Space Illustrates how brick-and-mortar retail stores are using information technology to compete more effectively against online retailers Demonstrates IT’s role in driving business operations and management decisions Illustrates how deploying new technology requires companies to redesign jobs and procedures, changing how companies run their businesses How Information Systems Are Transforming Business Global spending on information technology (IT) and IT services: nearly $3.8 trillion in 2019; $160 billion spent on management consulting and services Organizational, management, and cultural changes are often required for firms to derive full business value from IT investments Information Technology Capital Investment What’s New in Management Information Systems IT Innovations – Cloud computing, big data, Internet of Things – Mobile digital platform – AI and machine learning – Use of social networks for business objectives New Business Models – Online streaming and downloadable video  Examples: Netflix, Apple TV Channels, Amazon What’s New in Management Information Systems E-commerce Expansion – E-commerce worldwide expands to nearly $3.6 trillion in 2019 – Growth in social commerce spurred by growth of mobile platform – Mobile retail e-commerce growing more than 20 percent a year, reaching almost $300 billion in 2020 Management Changes – Managers becoming more mobile – Managers use social networks, collaboration tools – Business intelligence applications accelerate What’s New in Management Information Systems 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 Globalization Challenges and Opportunities: A Flattened World Internet and global communications have greatly changed how and where business is done – Drastic reduction of costs of operating and transacting on global scale – Competition for jobs, markets, resources, ideas – Growing interdependence of global economies – Requires new understandings of skills, markets, opportunities The Emerging Digital Firm In a fully digital firm: – Significant business relationships are digitally enabled and mediated – Core business processes are accomplished through digital networks – Key corporate assets are managed digitally Digital firms offer greater flexibility in organization and management – Time shifting, space shifting Strategic Business Objectives of Information Systems Growing interdependence between: – Ability to use information technology – Ability to implement corporate strategies and achieve corporate goals The Interdependence Between Organizations and Information Systems Strategic Business Objectives of Information Systems Firms invest heavily in information systems to achieve six strategic business objectives: 1. Operational excellence 2. New products, services, and business models 3. Customer and supplier intimacy 4. Improved decision making 5. Competitive advantage 6. Survival Operational Excellence Improved efficiency results in higher profits Information systems and technologies help improve efficiency and productivity Example: Walmart – Power of combining information systems and best business practices to achieve operational efficiency— and over $524 billion in sales in 2019 – Most efficient retail store in world as result of digital links between suppliers and stores New Products, Services, and Business Models Information systems and technologies enable firms to create new products, services, and business models Business model: how a company produces, delivers, and sells its products and services Example: Apple – Transformed old model of music distribution with iTunes – Constant innovations—iPod, iPhone, iPad, etc. Customer and Supplier Intimacy Customers who are served well become repeat customers who purchase more – Example: Mandarin Oriental Hotel – Uses IT to foster an intimate relationship with its customers, keeping track of preferences, etc. Close relationships with suppliers result in lower costs – Examples: Mandarin Oriental Hotel and JC Penney (in text) – JC Penney uses IT to enhance relationship with supplier in Hong Kong Improved Decision Making Without accurate information, managers must use forecasts, best guesses, and luck, resulting in misallocation of resources, inventory, employees Real-time data improves ability of managers to make decisions – Example: Verizon’s web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, etc. Competitive Advantage Often results from achieving previous business objectives Advantages over competitors – Charging less for superior products, better performance, and better response to suppliers and customers – Examples: Apple, Walmart, UPS are industry leaders because they know how to use information systems for this purpose Survival Businesses may need to invest in information systems out of necessity; it is simply the cost of doing business Keeping up with competitors – Citibank’s introduction of ATMs Federal and state regulations and reporting requirements – Toxic Substances Control Act and the Sarbanes-Oxley Act What Is an Information System? Information technology: the hardware and software a business uses to achieve objectives Information system: 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 Data and Information What Is an Information System? Activities in an information system that produce information: – Input – Processing – Output – Feedback Sharp distinction between computer or computer program versus information system What is an Information System? Feedback – Output is returned to appropriate members of organization to help evaluate or correct input stage Computer/computer program vs. information system – Computers and software are technical foundation and tools, similar to the material and tools used to build a house Functions of an Information System Dimensions of Information Systems Organizations Management Technology Information Systems Are More Than Computers Dimensions of Information Systems: Organizations Hierarchy of authority, responsibility – Senior management – Middle management – Operational management – Knowledge workers – Data workers – Production or service workers Levels in a Firm Dimensions of Information Systems: Organizations Separation of business functions – Sales and marketing – Human resources – Finance and accounting – Manufacturing and production Unique business processes Unique business culture Organizational politics Dimensions of Information Systems: 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 Dimensions of Information Systems: Information Technology Computer hardware and software Data management technology Networking and telecommunications technology – Networks, the Internet, intranets and extranets, World Wide Web IT infrastructure: provides platform that system is built on The Business Information Value Chain Contemporary Approaches to Information Systems Technical Approach Emphasizes mathematically based models Computer science, management science, operations research Behavioral Approach Behavioral issues (strategic business integration, implementation, etc.) Psychology, economics, sociology Business Processes Business processes – Flows of material, information, knowledge – Logically related set of tasks that define how specific business tasks are performed – May be tied to functional area or be cross-functional Businesses: Can be seen as collection of business processes Business processes may be assets or liabilities Business Processes Examples of functional business processes – Manufacturing and production  Assembling the product – Sales and marketing  Identifying customers – Finance and accounting  Creating financial statements – Human resources  Hiring employees How Information Technology Improves Business Processes Increasing efficiency of existing processes – Automating steps that were manual Enabling entirely new processes – Changing flow of information – Replacing sequential steps with parallel steps – Eliminating delays in decision making – Supporting new business models Systems for Different Management Groups Transaction processing systems – Serve operational managers and staff – Perform and record daily routine transactions necessary to conduct business  Examples: sales order entry, payroll, shipping – Allow managers to monitor status of operations and relations with external environment – Serve predefined, structured goals and decision making A Payroll TPS (Transaction Processing System) Systems for Different Management Groups Systems for business intelligence – Data and software tools for organizing and analyzing data – Used to help managers and users make improved decisions Management information systems Decision support systems Executive support systems Management Information Systems Serve middle management Provide reports on firm’s current performance, based on data from TPS Provide answers to routine questions with predefined procedure for answering them Typically have little analytic capability How Management Information Systems Obtain Their Data from the Organization’s TPS Sample MIS Report Consolidated Consumer Products Corporation Sales by Product and Sales Region: 2020 Decision Support Systems Serve middle management Support nonroutine decision making – Example: What is the impact on production schedule if December sales doubled? May use external information as well as TPS / MIS data Model driven DSS – Voyage-estimating systems Data driven DSS – Intrawest’s marketing analysis systems Voyage-Estimating Decision-Support System Executive Support Systems Support senior management Address nonroutine decisions – Requiring judgment, evaluation, and insight Incorporate data about external events (e.g., new tax laws or competitors) as well as summarized information from internal MIS and DSS Example: Digital dashboard with real-time view of firm’s financial performance Enterprise Applications Systems for linking the enterprise Span functional areas Execute business processes across the firm Include all levels of management Four major applications – Enterprise systems – Supply chain management systems – Customer relationship management systems – Knowledge management systems Enterprise Application Architecture Enterprise Systems Also called enterprise resource planning (ERP) systems Integrate data from key business processes into single system Speed communication of information throughout firm Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment Enable managers to assemble overall view of operations Supply Chain Management (SCM) Systems Manage relationships with suppliers, purchasing firms, distributors, and logistics companies Manage shared information about orders, production, inventory levels, and so on Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost Type of interorganizational system: Automating flow of information across organizational boundaries Customer Relationship Management (CRM) Systems Help manage relationship with customers Coordinate business processes that deal with customers in sales, marketing, and customer service Goals: – Optimize revenue – Improve customer satisfaction – Increase customer retention – Identify and retain most profitable customers – Increase sales Knowledge Management Systems (KMS) Manage processes for capturing and applying knowledge and expertise Collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions Link firm to external sources of knowledge Intranets and Extranets Technology platforms that increase integration and expedite the flow of information Intranets: – Internal networks based on Internet standards – Often are private access area in company’s website Extranets: – Company websites accessible only to authorized vendors and suppliers – Facilitate collaboration E-business, E-commerce, and E-government E-business – Use of digital technology and Internet to drive major business processes E-commerce – Subset of e-business – Buying and selling goods and services through Internet E-government – Using Internet technology to deliver information and services to citizens, employees, and businesses What is Collaboration? Collaboration – Short lived or long term – Informal or formal (teams) Growing importance of collaboration – Changing nature of work – Growth of professional work—“interaction jobs” – Changing organization of the firm – Changing scope of the firm – Emphasis on innovation – Changing culture of work What is Social Business? Social business – Use of social networking platforms (internal and external) to engage employees, customers, and suppliers Aims to deepen interactions and expedite information sharing “Conversations” to strengthen bonds with customers Requires information transparency Seen as way to drive operational efficiency, spur innovation, accelerate decision making Business Benefits of Collaboration and Teamwork Investment in collaboration technology can return large rewards, especially in sales and marketing, research and development Productivity: Sharing knowledge and resolving problems Quality: Faster resolution of quality issues Innovation: More ideas for products and services Customer service: Complaints handled more rapidly Financial performance: Generated by improvements in factors above Requirements for Collaboration Building a Collaborative Culture and Business Processes “Command and control” organizations – No value placed on teamwork or lower-level participation in decisions Collaborative business culture – Senior managers rely on teams of employees – Policies, products, designs, processes, and systems rely on teams – The managers purpose is to build teams Tools and Technologies for Collaboration and Social Business E-mail and instant messaging (IM) Wikis Virtual worlds Collaboration and social business platforms – Virtual meeting systems: videoconferencing, telepresence) – Cloud collaboration services (Google Drive, Google Docs, etc.) – Microsoft SharePoint and IBM Notes – Enterprise social networking tools Checklist for Managers: Evaluating and Selecting Collaboration and Social Software Tools Time/space matrix Six steps in evaluating software tools – Identify your firm’s collaboration challenges – Identify what kinds of solutions are available – Analyze available products’ cost and benefits – Evaluate security risks – Consult users for implementation and training issues – Evaluate product vendors The Time/Space Collaboration and Social Tool Matrix  67 THANK YOU 68