MS60Q_M1_Organizational_Systems_2_Student.pdf

Course Outline Learning Objectives...

Course Outline Learning Objectives M2. M3. MISY6110 (MS60Q) IT Infrastructure, Architecture IT-enabled Innovations Students should be able to: Identify and distinguish the main categories of organizational M1 – Organizational Systems & M6. systems the Digital Divide Comparison of IS Production Describe different types of systems and how they serve Methods different levels of an organization M4. M1. IT Management Discuss the need for integrated information systems Organizational Systems (Governance & Explain how ERP systems work and some of the problems Policy) with them Explain why CRM is important to organizations (Customer Relations Management) M5. Information Systems Delivery & Evolution Explain the impact of the digital divide Delroy A. Chevers, PhD Discuss ethics in an information society Outline Breadth of Support of Business Processes and Information Information Systems [Classification can be somewhat fuzzy, grey] Systems Within a department Information technology enhances business Functional area information systems (FAISs) Accounting and finance systems, Sales automation, processes by: Human resources information systems, etc. Increasing efficiency of existing processes 🡪 Support Entire organization Enterprise resource planning (ERP) systems Automating steps that were manual Coordinate and share data across multiple FAISs Enabling entirely new processes 🡪 Shape Transaction processing systems (TPSs) Change flow of information Monitor, collect, store, and process data from the organization’s basic transactions that generate data Replace sequential steps with parallel steps Inter-organizational information systems (IOSs) Eliminate delays in decision making Customer relationship management (CRM) system Support new business models Supply chain management (SCM) system EDI Laudon and Laudon, Essentials of Management Information Systems 4 5  IS Among Multiple There is not a Definitive List of Source: Laudon & Laudon, 2015 Organizations the Classes of Information Systems!!! 8 Divisions within an Scenario 1: Based on Types Scenario 2: Based on Type of Organization of Decision Knowledge There are several ways to divide/categorize groups within an organization. This may be done by: ⚫Department – e.g. Sales, Investment, Purchasing, Marketing, Accounting, etc. ⚫Employee Level – e.g. Line Staff vs Management ⚫Project – e.g. multi-disciplinary teams around completion of a specific objective Scenario 3: Based on Types of I.S. at Different Org. Examples of Information Systems Organizational Level Levels Supporting Functional Areas [Source: Laudon & Laudon, 2015] 15 Find an Operational Decision and Transaction Processing Roll it up the Organizational Systems Structure to Discuss the Potential Types of Information Captures, processes and stores data generated during an Root Systems organization’s day-to-day transactions. Open Discussion – Use bank decision to stop A transaction refers to any event or activity that affects accept cash deposits the organization. Depending on the organization’s business, transactions may differ from one organization to another In a manufacturing unit, for example, transactions include order entry, receipt of goods, shipping, etc., while in a bank, transactions include deposits and withdrawals, cashing of cheques etc.  SAMPLE TPS ARCHITECTURE Was it a Good Idea for JUTC to TPS cont. go Completely Cashless in ⚫ Controlled operating environment with strict rules 2012? ⚫ Internal focus 5-minute group presentation ⚫ High level of detail, typically to capture all information needed by the organization ⚫ Requires large storage capacity & high speed ⚫ Regular data processing cycles - batch, online, real-time Management Information Management Information System (MIS) Systems MIS cont. [Which city is performing the best?; Who is the lowest performer?] Converts TPS data into information for ⚫ Supports managerial work Converts TPS data into information for monitoring performance and monitoring performance and ⚫ Emphasis on measures of managing an organization; provides readily accessible information for performance problem-solving and decision making managing an organization; provides ⚫ Generates details, summary and Supports managerial Work Emphasis on measures of readily accessible information for exceptions performance Generates details, summary, problem-solving and decision making ⚫ Uses standard reporting formats and exceptions Uses standard reporting ⚫ With TPS, “work horses” of formats organizational computing With TPS, “workhorses”of organizational computing Functional Systems  Flex Chart – Planners Decision Support Systems DSS components Helps people make decisions by providing a ⚫ User combination of information, models, and ⚫ Someone who makes analytical tools decisions Decision support systems are designed for every ⚫ Could be you manager to execute a specific managerial task or ⚫ Data problem ⚫ Internal & external Generally, they help managers to make ⚫ Decision models semi-structured decisions, the solution to which 25 can be arrived at logically Executive Support Executive Support System Systems An executive support system (ESS) – an ⚫ Customized to support executive work Enterprise Systems extension of MIS – is a computer based information system that helps in decision ⚫ Combines external & internal Systems that span the functional areas of making at the top-level of an organization information the organization ⚫ User friendly interface The decisions taken with the help of ⚫ Graphical, tabular executive support system are non-routine ⚫ Summarized with capability to decisions that affect the entire organization “drill down” and, thus, require judgement and insight ⚫ Frequently refreshed  By and large Departments Material Resource Production Forecast –Year #1 Operate in Silos Planning Each using One of the their own first software disciplines to solutions push this intra-organiza tional approach. 33 Material Requirement Plan Material Requirement Plan – Year Production Planning #1 (MRP) – Year #1 ⚫ Define -The raw materials and ingredients needed to meet production ⚫ Bottles E1/2/3 ⚫ Actual requirement = 1,519,560 ⚫ Buffer stock @ 6% = 1.06 ⚫ Plan purchase = 1,610,734 ⚫ Estimated Cost per unit = $3.50 ⚫ Extended Cost = $5,637,567.60 34 35 36  Enterprise Resource Planning Variance Report – Year #3 (ERP) Benefits of ERP [Overall: $2,184,365 / $35,027,147 x 100 = 6.24%] ⚫ Inventory reduction Brings all ⚫ Personnel reduction functional areas within ⚫ Productivity improvement a single solution ⚫ Order management improvement ⚫ Financial-close cycle improvements ⚫ IT cost reduction ⚫ Procurement cost reduction ⚫ Cash management improvements ⚫ Revenue/profit increases ⚫ Transportation logistics cost reduction ⚫ Maintenance reduction 37 ⚫ On-time delivery improvement Enterprise Application Hidden Costs of ERP Integration ⚫ Enterprise Application Integration Many types of business software such as supply chain ⚫ Training ⚫ Enterprise application integration is management applications, ERP systems, the process of linking such CRM applications for managing customers, business ⚫ Integration and testing intelligence applications, payroll and human applications within a single resources systems typically cannot communicate with ⚫ Data analysis organization together in order to one another in order to share data or business rules ⚫ Data conversion simplify and automate business ⚫ For this reason, such applications are sometimes referred to as islands of automation or information silos ⚫ Consultants ad infinitum (continue processes to the greatest extent ⚫ This lack of communication leads to inefficiencies, forever, without limit) possible wherein identical data are stored in multiple locations, or ⚫ While at the same time avoiding straightforward processes are unable to be automated ⚫ Loss of skills – best and brightest ⚫ Applications can be linked either at the back-end via having to make sweeping changes to ⚫ Extended warranty period Application programming interface (APIs) or (seldomly) the existing applications or data the front-end, Graphical user interface (GUI) structures  Inter-Organizational Supply Chain Management (oz, Inter-Organizational Systems 2006) Systems Simply put, these are systems that span across organizations on different levels of the value chain Source: Laudon & Laudon, 2015 Electronic Data Interchange Online Supply Chain Management (EDI) In order for different organizations to communicate effectively, a structured format needs to exist for how information will be stored and disseminated, that meets the needs of all involved  E.D.I. cont. We have a Budding Industry… Order Electronic Data Interchange ⚫ Computer-to-computer - EDI replaces postal mail, fax and email. While email is also an electronic approach, the Delivery documents exchanged via email must still be handled by Electronic Data Interchange people rather than computers. Having people involved Where in the slows down the processing of the documents and also supply chain (EDI) is the introduces errors. Instead, EDI documents can flow straight through to the appropriate application on the receiver’s are they? computer-to-computer computer (e.g., the Order Management System) and processing can begin immediately. What systems exchange of business ⚫ Business Documents - These are any of the documents would you that are typically exchanged between businesses. The most need to have documents in a standard common documents exchanged via EDI are purchase in place to orders, invoices and advance ship notices. electronic format between ⚫ Standard Format - Because EDI documents must be maximize the business partners. processed by computers rather than humans, a standard efficiency of format must be used so that the computer will be able to read and understand the documents. A standard format the space? describes what each piece of information is and in what What are the format https://www.edibasics.com/what-is-edi/ challenges Other Types of Information Office Automation Systems Examples of OAS Systems An office automation system (OAS) is a ⚫ Word Processors – e.g. collection of communication technology, computers and persons to perform official tasks Microsoft Word ⚫ Email It executes office transactions and supports official activities at every organizational level These activities can be divided into clerical and managerial activities http://www.managementstudyhq.com/six-major-types-of-information-systems.ht ml  Geographic Info Systems (GIS) Knowledge Work Systems Examples of KWS ⚫ The common ground between information processing and the many fields using spatial analysis A knowledge work system ⚫ Computer-aided Design techniques. (Tomlinson, 1972) (KWS) is a specialized system Software ⚫ A powerful set of tools for collecting, storing, retrieving, transforming, and displaying spatial data ⚫ Virtual Reality built to promote the creation, ⚫An interactive from the real world. (Burroughs, 1986) ⚫ A computerized database management system for computer-generated experience processing and integration of the capture, storage, retrieval, analysis and display taking place within a simulated of spatial (‘locationally’ defined) data. (NCGIA, 1987) domain-specific expertise environment ⚫ A decision support system involving the integration ⚫It incorporates mainly auditory of spatially referenced data in a problem solving within the business and visual sensory feedback environment. (Cowen, 1988) http://www.managementstudyhq.com/six-major-types-of-infor mation-systems.html Geographic Information Customer Relationship Management Systems (CRM) Systems Intelligent Systems Objectives: ⚫ A map with a database behind it. ⚫ Maximize customer’s moment of value (those ⚫ A virtual representation of the real world ⚫ Artificial Intelligence (IBM’s which deliver highest impact on and its infrastructure. customer loyalty and engagement) ⚫ A consistent “as-built” of the real world, Watson) ⚫One-to-one relationship natural and manmade ⚫ Natural Language Processing Which is: Methodology: ⚫ queried to support on-going operations (Siri, Alexa) ⚫Capture ALL Customer data at ALL touch points ⚫ summarized to support strategic decision ⚫Integrate existing customer-friendly approaches making and policy formulation ⚫ Neural Networks ⚫Lead management systems ⚫ analyzed to support scientific inquiry ⚫ Expert Systems – ⚫Interactive voice response (IVR) Sales force ⚫ www.Zillow.com automation Extend target marketing ⚫ http://projects.monagis.com/jampro/home.php predominantly used in medicine and agriculture  Source: Laudon & Laudon, 2015 CRM CONT. Digital Divide Research indicates ⚫ 20% of the time customers talk about price or features ⚫ 80% of the time they talk about: Gap between those who have access to/use computers and the internet “They are easy to do business with” and those who do not “They are responsive or proactive” “A service and a value tailored for me” Includes access to both resources and skills for usage “Consistent Performance over time” “They ask me questions” Gender, age, education, income “Great expertise” Domestic vs. global digital divide ……ALL Relationship based issues 63 Network Readiness Index 2012 The evolved Network [Maximum score = 7.0] Global Digital Divide Readiness Index Structure ⚫ Readiness Index ⚫ The degree of a society’s Networked Readiness Index preparation to make use of an affordable ICT Measures the performance of 148 countries infrastructure (Source: WEF/INSEAD, 2012) in leveraging information and ⚫ Measures the propensity for countries to exploit the communications technologies to boost opportunities offered by ICT (World Economic Forum, 2012) competitiveness and well-being. ⚫ A composite of 4 components (1) Environment for ICT, (2) Readiness of stakeholders, (3) Usage of ICT, and (4) Impact 64  Networked Readiness Index - Global Digital Divide – Networked Jamaica Jamaica’s Technology Readiness Index Readiness Year Position 2007 45 Barbados 39 2008 46 Puerto Rico 44 2009 53 2010 66 Trinidad and Tobago 70 2011 73 Jamaica 82 2012 74 2013 85 Guyana 93 2014 86 2015 82 Haiti 137 67 68 69 Jamaica’s Technology Summary Source: Laudon & Laudon, 2015 Readiness Technology can help businesses operate more efficiently Domestic divide exists in developed countries Domestic Divide exists in Jamaica Constraints and limitations associated with the use of technology Males vs. Females Age Jamaica as a developing country experiences both a global and a Rural vs. Urban domestic divide Development of Technical Capabilities Access to technology does not translate into its Technology is a tool that is necessary to compete globally use What role do you play? 70 71  Ethics Terms Terms Source: Laudon & Laudon, 2015 ⚫ Privacy ⚫ It is a concern of humans who have ⚫ Responsibility ⚫ The claim of individuals to be left alone, free freedom of choice ⚫ Accepting the potential costs, duties and from surveillance or interference from other obligations for the decisions one makes individuals, organizations or the state ⚫ It is about individual choice ⚫ Accountability ⚫ Fair information practices ⚫ Ethical choices are decisions made ⚫ The mechanisms for assessing responsibility for ⚫ A set of principles originally set forth in 1973 that by individuals who are responsible decisions made and actions taken governs the collection and use of information for the consequences of their actions ⚫ Liability about individuals and forms the basis of most ⚫ The existence of laws that permit individuals to U.S. and European privacy laws ⚫ Responsibility recover the damages done to them by other ⚫ The Internet and its challenge to privacy ⚫ Accountability actors, systems or organizations ⚫ Due process ⚫ Property rights: Intellectual property ⚫ Liability ⚫ A process in which laws are well-known and ⚫ Trade secrets ⚫ Due process understood and there is an ability to appeal to ⚫ Copyright higher authorities to ensure that laws are applied ⚫ Patents correctly NEXT LECTURE: IT Infrastructure & Architecture D. Anthony Chevers [email protected] u.jm MSBM, Room #28 76