Week 2 Tutorial - Solutions PDF

Wk2 Tutorial IAB305 Enterprise systems Lifecycle Science Faculty: School of Information Systems Tutor: CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  ACKNOWLEDGEMEN...

Wk2 Tutorial IAB305 Enterprise systems Lifecycle Science Faculty: School of Information Systems Tutor: CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  ACKNOWLEDGEMENT OF TRADITIONAL OWNERS QUT acknowledges the Turrbal and Yugara, as the First Nations owners of the lands where QUT now stands. We pay respect to their Elders, lores, customs and creation spirits. We recognise that these lands have always been places of teaching, research and learning. ​ QUT acknowledges the important role Aboriginal and Torres Strait Islander people play within the QUT community.​ CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Welcome! In IAB305 we will examine some of the Information system (IS) problems facing business organisations. How they identify why they need new systems What factors they must consider How they decide what type of system they need What factors influence the method to source them How they can implement & integrate them into their organisation What Challenges and Risks they may face Tip: This is essential knowledge for IS consultants! CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Welcome! This Unit covers in broad terms: Business Structures Information system applications Analysis of Business Scenarios Project Management Change Management Solution identification/sourcing Solution Implementation Presenting Solution Proposals Writing a Solution Plan CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Your Tutor: ______________ Photo Tutor Bio: XXXX XXXX XXXX Tutor Email: CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Our Weekly Tutorial Schedule Lecture Review We will summarise the previous weeks lecture Case Study(s) Examination We will examine Case Studies and work on answers in your groups Case Study(s) Class Discussion We will discuss your answers as a class CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Group Work Q & A 1. Both Assignments are Group Work. 2. Students are responsible for finding group members to work with. 3. We will provide a communication platform for you to find classmates to work with. 4. Find a group this week! (Recommend all members sign a social contract) 5. Group size, 5 (min 4) 6. You can work with students from other classes or online, (note: there is a video presentation assessment) 7. Enrol in a group on Canvas as directed by your Tutor. 8. Ass 2b, Peer review permits anonymous marking of your group members! CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Our Text Book Recommended Reading: Management Information Systems Managing the Digital Firm Fifteenth Edition KC Laudon, JP Laudon CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  General Business Structures Customer segments: specific groups of people in society that organisations support, or sell to, with their products/services E.g. School kids, adults, business workers, retired people - are different customer segments for companies selling bicycles and accessories Customer channels: outlets where organisations provide access for their products/services. These outlets may be part of the organisation that provides the products/services or part of another organisation. E.g. retail outlets, eCommerce web site, mobile app – for company selling bicycles and accessories Product/service suppliers: organisations that supply product/services to organisations for use in: internally running a business; supporting the creation of a business; combining with other products/services for sale to the market; or directly on-selling to the market E.g. Manufacturers buy the raw materials and fabricated components to produce finished bike products, from diverse network of suppliers. Supply businesses: similar to product/service suppliers but the distinction is that these involve organisations whose business generates business for another organisation E.g. governments, community or sporting associations holding events involving bike riding No.00213J CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Typical Business Structure of a Bank Traditional channels: Web site, branches, postal agencies. ATMs New channels: Specialised web sites for different markets, mobile apps, social media, mortgage broker (a sales agent for bank products) Core business around products/services in banking, insurance and investment areas: Savings accounts, loans, debit cards, credit cards, loans (personal, home etc.) Other core business: Accounting, Human Resources Management, Assets Management, investment management … and much more Demand business: Real-estate, car sales, travel, personal living needs quick ‘cash’ Supply business: business areas that generate money used by banks, government bond sector Suppliers: banking, insurance and investment share products, property valuation, Regulators: Federal and state government agencies, ASX, Banking bodies (Australian Banking Association) No.00213J CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  General Business Structure Outputs Inputs Inputs Controls No.00213J CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Business Systems Why do Businesses need IS systems? Operations Management Communication Sales and Marketing Decision-Making Customer and Supplier intimacy Create Competitive advantage CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Information Systems Types TPS (Transaction Processing System) A TPS collects, modifies and retrieves all transaction data. Often used for financial transaction processing MIS (Management Information System) Used for monitoring and reporting daily or weekly sales & inventory data, payroll etc. DSS (Decision Support system) Used by middle management to generate reports and aid decision making EIS (Executive Information System) Used by executives to generate reports for strategic decision making No.00213J CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Information System Theory 5 Primary Components of an information system: 1. Hardware: Physical computer hardware Input/output interfaces Communication & Storage Devices 2. Software: Computer Programs that enable the hardware to perform it’s functions 3. Data: Information required by the organisation to perform its functions 4. Policies & processes: Govern system operation 5. People: Users Support personnel No.00213J CRICOS No.00213J https://en.wikipedia.org/wiki/Information_system IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  System Theory A system can be defined as a collection of interrelated components that work together toward a collective goal Input Process Output BUT this system is static, Much better is an adaptive system Control Feedback Input Process Output No.00213J CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Hierarchy vs Decision making DECISION CHARACTERISTICS Type Timescale Org Impact Frequency Unstructured Long Large Infrequent Our area of interest Senior Strategic Decisions Management Middle Management Managers and knowledge workers Structured Short Small Frequent Operational Management Production and service workers Data workers CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Organisational Perspectives Four Business Perspectives: Financial Perspective: Profit/loss Customer perspective: The Customer experience Internal business: Efficiency Improvements Continuous Learning & Growth: Improvement Staff Training CRICOS No.00213J New/upgraded systems IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  How does IS Help Business? SCM & CRM Systems Web sites & social Computer-aided technology Customer service system manufacturing system Inbound Operation Outbound Sales & Service Logistics s Logistics Marketing Administration Employee Human Resources Management R&D, Technology, Systems Development Procurement Employee self- Computer-aided Financial decision service portal design system CRICOS No.00213J support system IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  What are Strategic Decisions? Long term decisions. (5+ years) Sometimes based on what your competitors are doing Looking to see if the market environment has changed Considering changes in technology, what’s new or more efficient? CRICOS No.00213J https://www.intology.co.uk/insight-what-is-strategy IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Why Change? Change is often forced upon an organisation due to: Changes in Market conditions Disruptive Technological advancements Stakeholder Influence Regulatory/Legal changes Unforeseen circumstances (Natural Disaster) People (Rapid changes in expectations) Economic changes (Pandemic) CRICOS No.00213J https://www.intology.co.uk/insight-what-is-strategy IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  What if we don’t change? Strategic Failure indicators Collapse of Share Price (for listed Companies) Loss of Market Share Reduced Revenues Mass Resignations Unhappy customers Loss of Customers Business Collapse! CRICOS No.00213J https://www.intology.co.uk/insight-what-is-strategy IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Strategic Failure, Does it really Happen? Blackberry was a company that produced smart phones. In 2008 it’s share price was $144, by 2013 it had dropped to $6.50. Blackberry’s market was corporate, large enterprise organisations. Corporate loved them because it had great security and no distracting games! But, users wanted iPhones or Android instead. Eventually IT Departments caved in and stopped buying Blackberry Blackberry failed to recognise that their market was users, not corporate. CRICOS No.00213J https://www.cascade.app/blog/5-worst-business-strategies-ive-ever-seen IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  How can we avoid Strategic Failure? We can establish and follow a Strategic Plan! Document what the business situation is Define where you want the business to be But consider its: Mission Vision Strategies Policies CRICOS No.00213J https://sba.thehartford.com/business-management/strategic-planning/ IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Mission, Vision, Goals & Values Mission Defines the current state or purpose of an organization Explains why an organization exists: WHAT it does, WHO it does it for and HOW it does what it does Vision Defines the optimal desired future state; what an organization wants to achieve or accomplish in the medium and long-term future Intended to serves as a clear guide for choosing current and future courses of action. Goals Strategic objectives established by a company to indicate expected future outcomes and guide employees' efforts Values Operating philosophies or principles that guide an organization's internal conduct as well as its relationship with related external parties (customers, partners, shareholders, competitors) CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Examples of Mission Statements To organize the world’s information and make it universally accessible and useful To build a place where people can come to find and discover anything they might want to buy online We deliver outstanding automotive products and services to our customers, and enrich our community, partners and environment. CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Examples of Vision Statements We are the embodiment of the energy and events of our times, inspiring people with a pioneering spirit. To create a better everyday life for the many people. A world in which every child attains the right to survival, protection, development and participation. At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2025. We will be the best place to work for people who share our passion. Together we will deliver superior value for our customers and shareholders CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  The Strategic Planning Process Organisational Mission, Vision, Goals & Values Guides Objectives Internal environment Input Input External environment Strategic Analysis analysis analysis Strategic Objectives are the continuous improvement activities that we must do to Create a Strategic plan implement strategy. Break down the more abstract concepts like mission, vision, and strategy into actionable steps. Strategy implementation Actions that your organization take should be helping you achieve your strategic objectives e.g., Increase Revenue, Improve the Customer or Stakeholder Experience, or Improve the Strategy monitoring and Cost-Effectiveness of your Programs. CRICOS No.00213J review IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  What Analysis tools can we use? Porter’s Five Forces Model Analyses the various external competitive forces that impact an organisation and how information can be used to counter them Porter’s Generic Strategies Assesses how external competitive forces can be harnessed Nolan’s Stage Model Assesses the current development of information systems within an organisation McFarlan’s Strategic Grid Assessing the current and future applications portfolio within an organisation Porter’s Value Chain Analysis Analyses the value-adding of information within an organisation CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Porters Five Forces Analysis Model Threat of substitute products or services The power of customers to purchase alternatives Supplier power Rivalry between Buyer power The power of suppliers Existing Competitors The power of customers to drive up prices of The power of competitors to drive prices down materials Threat of new entrants The power of competitors to enter a market CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Successful Strategy Netflix began in April 1998, physically mailing out individual dvd’s to a customers house. A year later, in 1999 they changed their “pay to use” business model to a subscription service and gained 239,000 subscribers. By 2009 they had embraced new streaming technology and began offering a streaming service. By 2022 they have over 221.64 Million customers. (https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-worldwide/) Netflix continually revise their strategic plans and are looking five years into the future They examine their business from the customers perspective They use their open source algorithm to guide procurement and investment in productions Their Value proposition: Affordable price (every fourth household in the US has a Netflix subscription, that’s why they can sell so cheap) Accessibility (on all devices, when and where you want) Original content (invest in own shows, based on the analysis of their own customer data) Large amount of high quality content in many different genres CRICOS No.00213J https://www.businessmodelsinc.com/exponential-business-model/netflix/ IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 1: Starbucks Case Study: For years Starbucks has been successfully maintaining its dominant position in the coffee shop market despite the market becoming highly competitive with many players offering similar product and service offering of Starbucks. There has also been a rise in strong competition from fast food chains such as McDonalds and Dunkin Donuts that now offer premium coffee, which is threatening the market share of established players. In order to hold onto its competitive advantage and create new value proposition for its customers Starbucks has started to focus on the use of information technology, mobility and particularly social media. One such innovative value proposition by Starbucks is the Mobile Payments Application. Starbucks launched its mobile card app in 16 stores in early 2009 and after customer’s adoption increased, Starbucks expanded it countrywide in United States. The main feature of the App allows customers to generate a 2D barcode on their mobile device to be scanned and used as payment in stores. The App is an extension of Starbucks’ existing, tangible, pre-paid reward card for loyal customers. The App is marketed based on its benefits in saving time and making purchases more convenient for the customer. Starbucks refers to the App as “the fastest way to pay.” With this App customers can check their balance, reload card with any major credit card or PayPal, view transactions and conveniently track their Stars in the MSR (My Starbucks Rewards) program. The advantages for consumers are speed and one less card in their wallets. Using the app customers can also locate a mobile payment Starbucks near their location. Author: Abey Francis Question: List the data types stored in the information system used by Starbucks and explain what information the system provides. CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 1: Starbucks Group/Class Discussion: CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 1: Starbucks Suggested Answers: Types of data: Information the system provides: Purchase amounts Financial numbers ($) Balance remaining Dates Purchase dates Standalone numbers Credit reload dates Product names Purchase transactions GPS coordinates Loyalty stars Location of nearest mobile payment Starbucks CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 2: Restaurant ABC Case Study: Restaurant ABC was a small family-owned restaurant near to a ski resort in Tasmania. The restaurant was recently acquired to be a part of the ski resort. The new owners would like to make major improvement in the restaurant. The manager of the ski resort, while hardworking and enthusiastic, has very little experience in the restaurant business. Shortly after taking over the restaurant, management of the ski resort held a day-long meeting with all the employees of the restaurant to discuss the future of the ski resort and the new strategic plans for it. At the end of this meeting, management and employees agreed that they need to improve customers’ satisfaction and improve weekly sales. Previously, all orders, payments, reservations etc. were manually done and the menu was very limited. Therefore, the average time to take an order and the average time to prepare an order were too long. They agreed that they should improve them and increase number of menu items. The managers realised that they may need to implement a new restaurant operating system to be able to achieve those objectives. Besides a new system, managers also decided to improve their kitchen staffs’ cooking skills and the hospitality skills of dining room staffs by sending those staffs to a basic cooking course and a basic hospitality course. Question: Identify Objectives and explain to which of the four Perspectives each objective belongs CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 2: Restaurant ABC Group/Class Discussion: CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 2: Restaurant ABC Suggested Answers: Learning & Growth objectives: new restaurant operating system, improve kitchen staffs’ cooking skills, improve hospitality skills of dining room staffs, automate/ digitize the orders taking, payments, reservations Internal business objectives: Improve the average time to take an order, improve the average time to prepare an order, and increase number of menu items, Customer perspective objectives: Improve customers’ satisfaction Financial Perspective objectives: Improve weekly sales, increase in overall revenue CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 3: Nike Read the case study: “Smart Products, Smart Companies” on pg130 from the textbook, "Management Information System: managing the digital firm" 15th ed. Discuss with your group and answer the following questions 1. Use Porter’s Five Forces model to conduct Strategic analysis. 2. Discuss what competitive strategies Nike pursued in this case? CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 3: Nike Group/Class Discussion: Strategic Analysis: Porters Five Forces: 1. Competitive Rivalry. 2. Supplier Power. 3. Buyer Power. 4. Threat of Substitution. 5. Threat of New Entry. CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Exercise 3: Nike Suggested Answers: Strategy: Build Customer Loyalty Product Differentiation: Products offer better and more features than competitors Focus on Market Niches: Focus product features on athletes who require extensive data. Leveraging Technology: Interconnecting products makes it expensive to switch brands CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems  Thank you for attending! See you next time! CRICOS No.00213J IAB305 Enterprise Systems Lifecycle Science Faculty: School of Information Systems