MIS - Chapter 7-11 PDF

CHAPTER 7: ELECTRONIC BUSINESS SYSTEM Knowledge Management (KM) Enterprise Business Systems - Focuses on facilitating internal group collaboration and decision suppo...

CHAPTER 7: ELECTRONIC BUSINESS SYSTEM Knowledge Management (KM) Enterprise Business Systems - Focuses on facilitating internal group collaboration and decision support E-business means using the internet, other networks, and IT to support. Enterprise Application Integration - Electronic commerce EAI software connects cross-functional systems - Enterprise communications and Serves as middleware to provide: collaboration ▪ Data conversion - Web-enabled business processes ▪ Communication between systems E-commerce is the buying, selling and marketing ▪ Access to system interfaces of products, services and information over the internet and other networks. Cross-Functional Systems Cross the boundaries of traditional business How EAI Works functions - Used to reengineer and improve vital business processes all across the enterprise. Enterprise Application Architecture Transaction Processing Systems Cross-functional information systems that process data resulting from the occurrence of business Provides a conceptual framework transactions. - Helps visualize the basic components, processes, o Transactions include sales, purchases, deposits, and interfaces of major e-business applications withdrawals, refunds, and payments Focuses on accomplishing fundamental business o Online transaction processing (OLTP) is a real- processes in concert with: time system that captures transactions ▪ Customers immediately. ▪ Suppliers ▪ Partners ▪ Employees Enterprise Resource Planning (ERP) - Concentrates on the efficiency of internal production, distribution, and financial processes. Customer Relationship Management (CRM) - Focuses on acquiring and retaining profitable customers via marketing, sales, and services. Transaction Processing Cycle Partner Relationship Management (PRM) - Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services Supply Chain Management (SCM) - Focuses on developing the most efficient and effective sourcing and procurement processes Enterprise Collaboration Systems (ECS) Goal EC systems are cross-functional information systems o Profitably use networks to attract and keep that enhance team and workgroup. customers o Communication o Get customers to help create, purchase, and o Coordination improve products and services o Collaboration Targeted Marketing Systems may include o An advertising and promotion management concept o Networked PC workstations with five targeting components o Servers o Databases o Groupware and application packages ECS Tools Community: customized ads to appeal to specific virtual communities Content: ads placed on a variety of selected websites, aimed at a specific audience Context: ads placed on web pages that are relevant Functional Business Systems to a product or service A variety of types of information systems that Demographic/Psychographic: web marketing aimed support the business functions of at specific types or classes of people o Accounting Online behavior: promotions tailored to each visit to o Finance a site by an individual o Marketing Sales Force Automation o Operations management Outfit sales force with notebook computers, web o Human resource management browsers, and sales contact software Marketing Systems o Connect them to marketing websites and the are concerned with: company intranet o Planning, promotion, and sale of existing Goals products in existing markets o Increase personal productivity o Development of new products and new o Speed up capture and analysis of sales data markets o Gain strategic advantage o Better attracting and serving present and Manufacturing Information Systems potential customers Supports the production/operations functions Marketing Information Systems Includes all activities concerned with planning and control of the processes producing goods or services Computer-Integrated Manufacturing Interactive Marketing o A customer-focused marketing process o Uses the Internet, intranets, and extranets o Establishes two-way transactions between a business and its customers or potential customers CIM Objectives Employee Self-Service Simplify production processes, product designs, and Intranet applications can allow employees to: factory organization o View benefits Automate production processes and the business o Enter travel and expense reports functions that support them o Verify employment and salary information Integrate all production and support processes using o Access and update personal information o Networks o Enter time-sensitive data o Cross-functional business software Accounting Information Systems o Other information technologies The oldest and most widely used information CIM Systems system in business ▪ Computer-aided manufacturing (CAM): Automate o Records and reports business transactions and the production process economic events ▪ Manufacturing execution systems (MES): o Produces financial statements Performance monitoring information systems for o Forecasts future conditions factory floor operations Typically consists of..... ▪ Process control: Control ongoing physical o Order processing processes o Inventory control ▪ Machine control: Controls the actions of machines o Accounts receivable Human Resource Management (HRM) o Accounts payable Information systems designed to support: o Payroll o Planning to meet personnel needs o General ledger systems o Development of employees to their full potential o Control of all personnel policies and programs HRM Systems Financial Management Systems Supports business managers and professionals making decisions concerning... o The financing of a business o The allocation and control of financial HRM and the Internet resources within a business Recruiting employees using the corporate website Example and commercial recruiting services Posting messages in selected Internet newsgroups Communicating with job applicants via e-mail HRM and Corporate Intranets Corporate intranet uses.... o Process common HRM transactions o Allow around-the-clock HRM services o Disseminate information faster than through previous company channels o Collect information from employees online o Allow HRM tasks to be performed with little HRM department intervention o Training CHAPTER 8: ENTERPRISE BUSINESS SYSTEMS Customer Service and Support What is CRM? A CRM system gives service reps real-time access to Managing the full range of the customer the same database used by sales and marketing relationship involves o Requests for service are created, assigned, o Providing customer-facing employees with a and managed single, complete view of every customer at o Call center software routes calls to agents every touch point and across all channels o Help desk software provides service data and o Providing the customer with a single, complete suggestions for solving problems view of the company and its extended channels Web-based self-service enables customers to access CRM uses IT to create a cross-functional enterprise personalized support information system that integrates and automates many of the Retention and 4Loyalty Programs customer-serving processes It costs 6 times more to sell to a new customer Application Clusters in CRM An unhappy customer will tell 8-10 others Boosting customer retention by 5 percent can boost profits by 85 percent The odds of selling to an existing customer are 50 percent; a new one 15 percent About 70 percent of customers will do business with the company again if a problem is quickly taken care of. Enhancing and optimizing customer retention and loyalty is a primary objective of CRM Contact and Account Management o Identify, reward, and market to the most loyal CRM helps sales, marketing, and service and profitable customers professionals capture and track relevant data about o Evaluate targeted marketing and relationship o Every past and planned contact with prospects programs and customers The Three Phases of CRM o Other business and life cycle events of customers Data are captured through customer touchpoints o Telephone, fax, e-mail o Websites, retail stores, kiosks o Personal contact Sales A CRM system provides sales reps with the tools and data resources they need to o Support and manage their sales activities o Optimize cross- and up-selling CRM also provides the means to check on a customer’s account status and history before scheduling a sales call Benefits of CRM o Identify and target the best customers Marketing and Fulfillment o Real-time customization and personalization of CRM systems help with direct marketing products and services campaigns by automatic such tasks as o Track when and how a customer contacts the o Qualifying leads for targeted marketing company o Scheduling and tracking mailings o Provide a consistent customer experience o Capturing and managing responses o Provide superior service and support across all o Analyzing the business value of the campaign customer contact points o Fulfilling responses and requests CRM Failures What is ERP? Business benefits of CRM are not guaranteed Enterprise resource planning is a cross- functional o 50 percent of CRM projects did not produce enterprise system... promised results o An integrated suite of software modules o 20 percent damaged customer relationships o Supports basic internal business processes Reasons for failure o Facilitates business, supplier, and customer o Lack of understanding and preparation information flows o Not solving business process problems first ERP Application Components o No participation on part of business stakeholders involved Trends in CRM Operational CRM o Supports customer interaction with greater convenience through a variety of channels ERP Process and Information Flows o Synchronizes customer interactions consistently across all channels o Makes the company easier to do business with Analytical CRM o Extracts in-depth customer history, preferences, and profitability from databases o Allows prediction of customer value and behavior o Allows forecast of demand o Helps tailor information and offers to customer Benefits and Challenges of ERP needs ERP Business Benefits Collaborative CRM o Quality and efficiency o Easy collaboration with customers, suppliers, o Decreased costs and partners o Decision support o Improves efficiency and integration throughout o Enterprise agility supply chain ERP Costs o Greater responsiveness to customer needs o Risks and costs are considerable through outside sourcing of products and o Hardware and software are a small part of services total costs Portal-based CRM o Failure can cripple or kill a business o Provides users with tools and information that fit their needs Costs of Implementing a New ERP o Empowers employees to respond to customer demands more quickly o Helps reps become truly customer-faced o Provides instant access to all internal and external customer information ERP: The Business Backbone Causes of ERP Failures ERP is a cross-functional enterprise backbone that Most common causes of ERP failure integrates and automates processes within: o Under-estimating the complexity of planning, o Manufacturing development, training o Logistics o Failure to involve affected employees in o Distribution planning and development o Accounting o Trying to do too much too fast o Finance o Insufficient training o Human resources o Insufficient data conversion and testing o Over-reliance on ERP vendor or consultants Trends in ERP Typical EDI Activities Supply Chain Management (SCM) Fundamentally, supply chain management helps a company Roles and Activities of SCM in Business o Get the right products o To the right place o At the right time o In the proper quantity o At an acceptable cost Goals of SCM The goal of SCM is to efficiently o Forecast demand o Control inventory o Enhance relationships with customers, suppliers, distributors, and others o Receive feedback on the status of every link in the supply chain Planning & Execution Functions of SCM What is a Supply Chain? Planning The interrelationships... o Supply chain design o With suppliers, customers, distributors, and o Collaborative demand and supply planning other businesses Execution o Needed to design, build, and sell a product o Materials management Each supply chain process should add value to the o Collaborative manufacturing products or services a company produces... o Collaborative fulfillment o Frequently called a value chain o Supply chain event management Supply Chain Life Cycle o Supply chain performance management Benefits and Challenges of SCM Key Benefits o Faster, more accurate order processing o Reductions in inventory levels o Quicker times to market o Lower transaction and materials costs o Strategic relationships with supplier Goals and Objectives of SCM Electronic Data Interchange One of the earliest uses of information technology for supply chain management The electronic exchange of business transaction documents between supply chain trading partners The almost complete automation of an e-commerce supply chain process Many transactions occur over the Internet, using secure virtual private networks  Key Challenges CHAPTER 9: ELECTRONIC COMMERCE SYSTEMS o Lack of demand planning knowledge, tools, Introduction to e-Commerce and guidelines Electronic commerce encompasses the entire online o Inaccurate data provided by other information process of... systems o Developing o Lack of collaboration among marketing, o Marketing production, and inventory management o Selling o SCM tools are immature, incomplete, and o Delivering hard to implement o Servicing Trends in SCM o Paying for products and services It relies on the Internet and other information technologies to support every step of the process The Scope of e-Commerce E-Commerce Technologies Categories of e-Commerce Business-to-Consumer o Virtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer support Business-to-Business o Electronic business marketplaces, direct links between businesses, auctions and exchanges Consumer-to-Consumer o Online auctions, posting to newspaper sites, personal websites, e-commerce portals Essential e-Commerce Architecture Access Control and Security o Authorization requirements E-commerce processes must establish mutual trust o Routing alternative and secure access between parties o Databases used o User names and passwords o Task sequences o Encryption key Example of Workflow Management o Digital certificates and signatures Restricted access areas o Other people’s accounts o Restricted company data o Webmaster administration areas Profiling and Personalizing Profiling gathers data on you and your website behavior and choices. Event Notification o User registration Most e-commerce applications are event driven o Cookie files and tracking software o Responds to such things as customer’s first o User feedback website visit and payments Profiling is used for... o Monitors all e-commerce processes o Personalized (one-to-one) marketing o Records all relevant events, including problem o Authenticating identity situations o Customer relationship management o Notifies all involved stakeholders o Marketing planning o Works in conjunction with user-profiling o Website management software Search Management Collaboration and Trading Search processes help customers find the specific Processes that support vital collaboration product or service they want arrangements and trading services o E-commerce software packages often include o Needed by customers, suppliers, and other a website search engine stakeholders o A customized search engine may be acquired Online communities of interest from companies like Google or Requisite o E-mail, chat, discussion groups Technology o Enhances customer service o Searches are often on content or by parameters o Builds loyalty Content and Catalog Management Electronic Payment Processes Content Management Software Complex processes o Helps develop, generate, deliver, update, and o Near-anonymous and electronic nature of archive text and multimedia information at e- transactions commerce websites o Many security issues Catalog Management Software o Wide variety of debit and credit alternatives o Helps generate and manage catalog content o Financial institutions may be part of the Catalog and content management software works process with profiling tools to personalize content Web Payment Processes o Includes product configuration and mass o Shopping cart process customization o Credit card payment process Workflow Management o Debit and other more complex processes E-business and e-commerce workflow management Electronic Funds Transfer (EFT) depends on a workflow software engine o Major payment system in banking, retail o Contains software model of business o Variety of information technologies capture processes and process money and credit card transfers Workflow models express predefined: o Most point-of-sale terminals in retail stores are o Sets of business rules networked to bank EFT systems o Roles of stakeholders  Example: Web Store Requirements Developing a Web Store Build a website o Choose or set up web hosting o Use simple design tools and templates o Include a shopping cart and payment support Securing Electronic Payments Market the website Network sniffers easily recognize credit card formats. o Include Web page and e-mail advertising and o Encrypt data between customer and promotions merchant o Exchange advertising with other Web stores o Encrypt data between customer and financial o Register with search engines and directories institution o Sign up for affiliate programs o Take sensitive information off-line Serving Your Customers E-Commerce Application Trends Convert visitors into loyal customers o Develop one-to-one relationship with customers o Create incentives to encourage registration o Use Web cookies to identify visitors o Use tracking services to record and analyze website behavior and customer preferences o Create an attractive, friendly, efficient store o Offer fast order processing and payment o Notify when orders are processed and shipped o Provide links to related websites E-Commerce Success Factors Managing a Web Store Some of the success factors in e-commerce Manage both the business and the website o Selection and value o Record and analyze traffic, inventory, sales o Performance and service o Use CRM features to help retain customers o Look and feel o Link sales, inventory data to accounting o Advertising and incentives systems o Personal attention (one-to-one marketing) Operate 24 hours a day, seven day a week o Community relationships Protect transactions and customer records o Security and reliability o Use security monitors and firewalls Differences in Marketing o Use redundant systems and power sources o Employ passwords and encryption o Offer 24-hour tech support B2B E-Commerce is the wholesale and supply side of the commercial process o Businesses buy, sell, or trade with other businesses  Relies on multiple electronic information Clicks and Bricks technologies Success will go to those who can integrate Internet o Catalog systems initiatives with traditional operations o Trading systems o Merging operations has trade-offs o Data interchange o Electronic funds transfers E-Commerce Marketplaces One to Many o Sell-side marketplaces o One supplier dictates product offerings and prices E-Commerce Integration Many to One The business case for merging e-commerce with o Buy-side marketplaces traditional business operations o Many suppliers bid for the business of a buyer o Move strategic capabilities in traditional Some to Many operations to the e-commerce business o Distribution marketplaces o Integrate e-commerce into the traditional o Unites suppliers who combine their product business catalogs to attract a larger audience ▪ Sharing of established brands Many to Some ▪ Sharing of key business information o Procurement marketplaces ▪ Joint buying power and distribution o Unites major buyers who combine purchasing efficiencies catalogs o Attracts more competition and thus lower Other Clicks and Bricks Strategies prices Partial e-commerce integration Many to Many o Joint ventures and strategic partnerships o Auction marketplaces Complete separation o Dynamically optimizes prices o Spin-off of an independent e-commerce company E-Commerce Portals Barnes and Noble’s experience B2B e-commerce portals offer multiple marketplaces o Spun off independent e-commerce company o Catalogs o Gained venture capital, entrepreneurial culture, o Exchanges and flexibility o Auctions o Attracted quality management Often developed and hosted by third-party market- o Accelerated decision making maker companies o Failed to gain market share o Infomediaries serve as intermediaries in e- E-Commerce Channel Choices business and e-commerce transactions An e-commerce channel is the marketing or sales channel created by a company for its e- commerce activities o There is no universal strategy or e-commerce channel choice o Both e-commerce integration and separation have major business benefits and shortcoming o Most businesses are implementing some measure of clicks and bricks integration  CHAPTER 10: DECISION SUPPORT SYSTEMS Decision Support Trends Decision Support in Business The emerging class of applications focuses on Companies are investing in data-driven decision o Personalized decision support support application frameworks to help them o Modeling respond to: o Information retrieval o Changing market conditions o Data warehousing o Customer needs o What-if scenarios This is accomplished by several types of... o Reporting o Management Information Business Intelligence Applications o Decision support 1. Decision Support Systems o Other information systems Decision support systems use the following to Levels of Managerial Decision Making support the making of semi-structured business decisions o Analytical models o Specialized databases o A decision-maker’s own insights and judgments o An interactive, computer-based modeling process DSS systems are designed to be ad hoc, quick- response systems that are initiated and controlled by decision makers Information Quality DSS Components Information products made more valuable by their attributes, characteristics or qualities. o Information that is outdated, inaccurate, or hard to understand has much less value. Information has three dimensions: o Time o Content o Form Decision Structure Structured (Operational) o The procedures to follow when decision is needed can be specified in advance. Unstructured (Strategic) o It is not possible to specify in advance most of DSS Model Base the decision procedures to follow. Model Base Semi-structured (Tactical) o A software component that consists of models o Decision procedures can be pre-specified, but used in computational and analytical routines not enough to lead to the correct decision. that mathematically express relations among variables Spreadsheet Examples o Linear programming o Multiple regression forecasting o Capital budgeting present value Applications of Statistics and Modeling Supply Chain: simulate and optimize supply chain flows, reduce inventory, reduce stock- outs  Pricing: identify the price that maximizes yield or Often used with Global Positioning Systems (GPS) profit devices Product and Service Quality: detect quality Data Visualization Systems problems early in order to minimize them Represents complex data using interactive, three- Research and Development: improve quality, dimensional graphical forms (charts, graphs, maps) efficacy, and safety of products and services Helps users interactively sort, subdivide, combine, 2. Management Information Systems and organize data while it is in its graphical form The original type of information system that Using Decision Support Systems supported managerial decision making Using a decision support system involves an o Produces information products that interactive analytical modeling process support many day-to-day decision-making o Decision makers are not demanding pre- needs specified information o Produces reports, display, and responses o They are exploring possible alternatives o Satisfies needs of operational and tactical What-If Analysis decision makers who face structured o Observing how changes to selected variables decisions affect other variables Management Reporting Alternatives Sensitivity Analysis Periodic Scheduled Reports o Observing how repeated changes to a single o Prespecified format on a regular basis variable affect other variables Exception Reports Goal-seeking Analysis o Reports about exceptional conditions o Making repeated changes to selected o May be produced regularly or when an variables until a chosen variable reaches a exception occurs target value Demand Reports and Responses Optimization Analysis o Information is available on demand o Finding an optimum value for selected Push Reporting variables, given certain constraints o Information is pushed to a networked computer 4. Data Mining 3. Online Analytical Processing (OLAP) Provides decision support through knowledge Enables managers and analysts to examine and discovery manipulate large amounts of detailed and o Analyzes vast stores of historical business consolidated data from many perspectives data Done interactively, in real time, with rapid o Looks for patterns, trends, and response to queries correlations Online Analytical Operations o Goal is to improve business performance Consolidation Types of analysis o Aggregation of data o Regression o Example: data about sales offices rolled up to the o Decision tree district level o Neural network Drill-Down o Cluster detection o Display underlying detail data o Market basket analysis o Example: sales figures by individual product Market basket analysis Slicing and Dicing One of the most common uses for data mining. o Viewing database from different viewpoints o Determines what products customers o Often performed along a time axis purchase together with other products Geographic Information Systems Results affect how companies: DSS uses geographic databases to construct and o Market products display maps and other graphic displays o Place merchandise in the store Supports decisions affecting the geographic o Lay out catalogs and order forms distribution of people and other resources o Determine what new products to offer o Customize solicitation phone calls Executive Information Systems Artificial Intelligence (AI) Combines many features of MIS and DSS AI is a field of science and technology based on: Provide top executives with immediate and easy o Computer science access to information o Biology Identify factors that are critical to accomplishing o Psychology strategic objectives (critical success factors) o Linguistics So popular that it has been expanded to managers, o Mathematics analysis, and other knowledge workers o Engineering The goal is to develop computers than can simulate Features of an EIS the ability to think Information presented in forms tailored to the o And see, hear, walk, talk, and feel as well preferences of the executives using the system o Customizable graphical user interfaces Attributes of Intelligent Behavior o Exception reports Some of the attributes of intelligent behavior o Trend analysis o Think and reason o Drill down capability o Use reason to solve problems o Learn or understand from experience Enterprise Information Portals o Acquire and apply knowledge An EIP is a Web-based interface and integration of MIS, o Exhibit creativity and imagination DSS, EIS, and other technologies o Deal with complex or perplexing situations o Available to all intranet users and select o Respond quickly and successfully to new extranet users situations o Provides access to a variety of internal and o Recognize the relative importance of elements external business applications and services in a situation o Typically tailored or personalized to the user o Handle ambiguous, incomplete, or erroneous or groups of users information o Often has a digital dashboard o Also called enterprise knowledge portals Domains of Artificial Intelligence Components Cognitive Science Applications in the cognitive science of AI o Expert systems o Knowledge-based systems o Adaptive learning systems o Fuzzy logic systems Enterprise Knowledge Portal o Neural networks o Genetic algorithm software o Intelligent agents Focuses on how the human brain works and how humans think and learn Robotics AI, engineering, and physiology are the basic disciplines of robotics o Produces robot machines with computer intelligence and humanlike physical capabilities  This area include applications designed to give o User interface programs communicate with robots the powers of... the end user o Sight or visual perception o Explanation programs explain the reasoning o Touch process to the end user o Dexterity Methods of Knowledge Representation o Locomotion Case-Based o Navigation o Knowledge organized in the form of cases Natural Interfaces o Cases are examples of past performance, Major thrusts in the area of AI and the development of occurrences, and experiences natural interfaces Frame-Based o Natural languages o Knowledge organized in a hierarchy or network o Speech recognition of frames o Virtual reality o A frame is a collection of knowledge about an Involves research and development in... entity, consisting of a complex package of data o Linguistics values describing its attributes o Psychology Object-Based o Computer science o Knowledge represented as a network of o Other disciplines objects Latest Commercial Applications of AI o An object is a data element that includes both Decision Support data and the methods or processes that act on o Helps capture the why as well as the what of those data engineered design and decision making Rule-Based Information Retrieval o Knowledge represented in the form of rules o Distills tidal waves of information into simple and statements of fact presentations o Rules are statements that typically take the o Natural language technology form of a premise and a conclusion (If, Then) o Database mining Expert System Application Categories Virtual Reality Decision Management o X-ray-like vision enabled by enhanced-reality o Loan portfolio analysis visualization helps surgeons o Employee performance evaluation o Automated animation and haptic interfaces o Insurance underwriting allow users to interact with virtual objects Diagnostic/Troubleshooting Robotics o Equipment calibration o Machine-vision inspections systems o Help desk operations o Cutting-edge robotics systems o Medical diagnosis o From micro robots and hands and legs to o Software debugging cognitive and trainable modular vision systems Design/Configuration Expert Systems o Computer option installation o Manufacturability studies A knowledge-based information system o Communications networks Contain knowledge about a specific, complex Selection/Classification application area o Material selection Acts as an expert consultant to end users o Delinquent account identification Components o Information classification Knowledge Base o Suspect identification o Facts about a specific subject area Process Monitoring/Control o Heuristics that express the reasoning o Machine control (including robotics) procedures of an expert (rules of thumb) o Inventory control Software Resources o Production monitoring o An inference engine processes the knowledge o Chemical testing and recommends a course of action Benefits of Expert Systems Neural Networks Captures the expertise of an expert or group of Computing systems modeled after the brain’s mesh- experts in a computer-based information system like network of interconnected processing elements o Faster and more consistent than an expert (neurons) o Can contain knowledge of multiple experts o Interconnected processors operate in parallel o Does not get tired or distracted and interact with each other o Cannot be overworked or stressed o Allows the network to learn from the data it o Helps preserve and reproduce the knowledge processes of human experts Fuzzy logic Limitations of Expert Systems Resembles human reasoning The major limitations of expert systems Allows for approximate values and inferences and o Limited focus incomplete or ambiguous data o Inability to learn Uses terms such as “very high” instead of precise o Maintenance problems measures o Development cost Used more often in Japan than in the U.S. o Can only solve specific types of problems in a Used in fuzzy process controllers used in subway limited domain of knowledge trains, elevators, and cars Developing Expert Systems Example of Fuzzy Logic Rules and Query Suitability Criteria for Expert Systems o Domain: the domain or subject area of the problem is small and well-defined o Expertise: a body of knowledge, techniques, and intuition is needed that only a few people possess Genetic algorithm o Complexity: solving the problem is a complex Uses Darwinian, randomizing, and other task that requires logical inference processing mathematical functions o Structure: the solution process must be able Simulates an evolutionary process, yielding to cope with ill-structured, uncertain, missing, increasingly better solutions to a problem and conflicting data and a changing problem Being uses to model a variety of scientific, technical, situation and business processes o Availability: an expert exists who is articulate, Especially useful for situations in which thousands of cooperative, and supported by the solutions are possible management and end users involved in the Virtual Reality (VR) development process is a computer-simulated reality Development Tool Fast-growing area of artificial intelligence Expert System Shell Originated from efforts to build natural, realistic, o The easiest way to develop an expert system multi-sensory human-computer interfaces o A software package consisting of an expert Relies on multi-sensory input/output devices system without its knowledge base Creates a three-dimensional world through sight, o Has an inference engine and user interface sound, and touch programs Also called telepresence Knowledge Engineering Typical VR Applications Works with experts to capture the knowledge (facts Current applications of virtual reality and rules of thumb) they possess o Computer-aided design Builds the knowledge base, and if necessary, the rest o Medical diagnostics and treatment of the expert system o Scientific experimentation Performs a role similar to that of systems analysts in o Flight simulation conventional information systems development o Product demonstrations o Employee training o Entertainment Intelligent Agents CHAPTER 11: A software surrogate for an end user or a process that DEVELOPING BUSINESS/IT STRATEGIES fulfills a stated need or activity Planning Fundamentals o Uses built-in and learned knowledge base to Information technology has created a seismic shift make decisions and accomplish tasks in a way in the way companies do business that fulfills the intentions of a user o Just knowing the importance and structure of e- o Also call software robots or bots business is not enough User Interface Agents o You must create and implement an action plan Interface Tutors – observe user computer operations, that allows you to make the transition from an correct user mistakes, provide hints/advice on old business design to a new e-business design efficient software use Components of Organizational Planning Presentation Agents – show information in a variety of forms/media based on user preferences Network Navigation Agents – discover paths to information, provide ways to view it based on user preferences Role-Playing – play what-if games and other roles to help users understand information and make better decisions Information Management Agents Search Agents – help users find files and databases, Planning search for information, and suggest and find new Strategic Planning types of information products, media, resources o Deals with the development of an Information Brokers – provide commercial organization’s mission, goals, strategies, and services to discover and develop information policies resources that fit business or personal needs o Begins with strategic visioning questions Information Filters – Receive, find, filter, discard, Tactical Planning save, forward, and notify users about products o The setting of objectives and the development received or desired, including e-mail, voice mail, and of procedures, rules, schedules, and budgets other information media Operational Planning o Done on a short-term basis to implement and control day-to-day operations Strategic Visioning Questions The Scenario Approach Gaining in popularity as a less formal, but more realistic, strategic planning methodology o Teams of managers and planners participate in microworld or virtual world exercises o Business scenarios are created and evaluated o Alternative scenarios are then created Trends that Affect Strategic Planning Business Models as Planning Tools A business model forces rigorously and systematic thinking about the value and viability of business initiatives o The strategic planning process is then used to develop unique business strategies that capitalize on a business model o The goal is to gain a competitive advantage in an industry or marketplace The Business/IT Planning Process Planning for Competitive Advantage Strategic business/IT planning o Involves evaluating the potential benefits and risks of using IT-based strategies and technologies for competitive advantage The following models can help generate ideas for the strategic use of IT to support initiatives The business/IT planning process has three major o Competitive forces components: o Competitive strategies o Strategic development o Value chain o Resource management Strategic Opportunities Matrix o Technology architecture Information Technology Architecture The IT architecture is a conceptual design that includes these major components o Technology platform o Data resources o Application architecture o IT organization Identifying Business/IT Strategies the most valuable Internet applications allow companies to... SWOT Analysis o Transcend communication barriers Strengths: a company’s core competencies and o Establish connections that enhance resources productivity Weaknesses: areas of substandard business o Stimulate innovative development performance compared to others o Improve customer relations Opportunities: potential for new business markets or Strategic Positioning Matrix innovative breakthroughs that might expand current markets Threats: anything that has the potential for business and market losses Business Models and Planning Business model answers vital questions about the fundamental components of a business o Who are our customers? o What do our customers value? o How much will it cost to deliver that value? o How do we make money in this business? Strategic Matrix Comparing Planning Approaches Cost and Efficiency Improvements o Use the Internet as a fast, low-cost way to communicate and interact with others o Use of e-mail, chat systems, discussion groups, and company websites Performance Improvement in Effectiveness o Major improvements in business effectiveness recommended o Increase use of Internet-based technologies, such as intranets and extranets Strategic Strategies E-Business Architecture Planning Global Market Penetration o Capitalize on a high degree of customer and competitor connectivity and use of IT o Use e-commerce websites with value-added information services and extensive online customer support Product and Service Transformation o Develop and deploy new Internet-based products and services that strategically reposition it in the marketplace E-Business Strategy Examples Implementation Market Creator: be among the first to market and Many companies plan changes very well remain ahead of the competition by continuously o Few manage to convert a plan into action innovating o This is true even if senior management Channel Reconfiguration: use the Internet as a new consistently identifies e-business as an area of channel to directly access customers, make sales, great opportunity and fulfill orders Transaction Intermediary: Use the Internet to Implementing Information Technology process purchases Many businesses have undergone multiple major Infomediary: use the Internet to reduce the search reorganization since the early 1980s cost; offer a unified process for collecting the o Business process reengineering information needed to make a large purchase o Installation and upgrades of an ERP system Self-Service Innovator: provide a comprehensive o Upgrading legacy systems to be Y2K compliant o Creating shared service centers suite of services that the customer’s employees can o Just-in-time manufacturing use directly o Sales force automation Supply Chain Innovator: use the Internet to o Contract manufacturing streamline supply chain interactions o The introduction of euro currency Channel Mastery: use the Internet as a sales and E-business is the latest organizational change service channel Impact and Scope of Implementing IT Business Application Planning Process Intranet Enterprise Portal Challenges Change Management Security, security, security People factors have the highest level of difficulty and Defining the scope and purpose of the portal the longest time to resolve of any dimension of Finding the time and the money change management Ensuring consistent data quality Key Dimensions of Change Management Getting employees to use it Organizing the data Finding technical expertise Integrating the pieces Making it easy to use Providing all users with access Enterprise Resource Planning Challenges Getting end user buy-in Implementing a new e-business application may Scheduling/planning involve: Integrating legacy systems/data o Developing an action plan Getting management buy-in o Assigning managers as change sponsors Multiple/international sites and partners o Developing employee change teams Changing culture and mind-sets o Encouraging open communications and IT training feedback about organizational changes Getting, keeping IT staff Key tactics recommended by change experts Moving to a new platform o Involve as many people as possible in e- Performance/system upgrades business planning and application development End User Resistance and Involvement o Make constant change an expected part of the Any way of doing things generates some resistance culture from the people affected o Tell everyone as much as possible about CRM projects have a history of failure: everything, as often as possible, in person o Up to 75 percent of CRM projects fail to meet o Make liberal use of financial incentives and their objectives recognition o This is often due to sales force automation o Work within the company culture, not around it problems and unaddressed cultural issues o Sales staffs are often resistant to, or fearful of, A Change Management Process using CRM systems Keys to Solving End User Resistance Keys to solving end user resistance problems o Education and training o End-user involvement in organizational changes and system development o Requiring involvement and commitment of top management and all stakeholders Systems that inconvenience or frustrate users cannot be effective, no matter how technically elegant or efficient Obstacles to KM Systems