Msys Modules 3&4 PDF

MODULE 3: Information Systems for Strategic Advantage IT and Business Strategy Dimensions of IS Technology ○ Hardware ○ Software ○ Data Management ○ Network Management ○ Efficiency ○ Effectiveness ○ Challenges ○ Decision-making...

MODULE 3: Information Systems for Strategic Advantage IT and Business Strategy Dimensions of IS Technology ○ Hardware ○ Software ○ Data Management ○ Network Management ○ Efficiency ○ Effectiveness ○ Challenges ○ Decision-making ○ Strategy Organization ○ Culture ○ Business ○ Processes ○ Routines ○ Politics Definitions of an Organization THE TECHNICAL MICROECONOMIC DEFINITION OF THE ORGANIZATION ○ A stable, formal social structure that takes resources from the environment and processes them to produce outputs THE BEHAVIORAL VIEW OF ORGANIZATIONS ○ "Collection of rights, privileges, obligations, and responsibilities, delicately balanced over a period of time through conflict resolution." The Organization as a System Features of an Organization Routines ○ standard operating procedures ○ the unique manner in which business processes are organized and coordinated Organizational Structure ○ how people are grouped and given responsibilities to fulfill the organization's objectives ○ different types of organizations have different types of structure Organizational Politics ○ different positions, specialties, concerns, and perspectives ○ conflict, struggle for resources, competition with organizations Organizational Environment ○ Environment changes faster than organization ○ Ability to respond to changes in social and physical environment ○ Strategies formulated must deal with the realities of the industry and business environment  Culture ○ fundamental set of assumptions, values, and ways of doing things that have been accepted by most of the organization members ○ Aspirations: Mission, Vision, Values ○ Strategy: Integrated set of choices that positions the business in its industry so as to achieve its objectives Organizational Goals and Strategies To perform better, organizations need to set goals and define strategies to achieve the goals. Goals represent ASPIRATIONS of the organization Aspirations define the purpose and directions of the organization Form of Aspiration and Definition ○ Mission: Why we exist ○ Vision: What future we want to create ○ Values: What is important to us Benefits of Well-crafted Organizational Aspirations ○ Establish boundary conditions for strategy decisions ○ Motivate  ○ Provide a stable purpose to guide organization through changing times ○ Help with coordination ○ Communicate to stakeholders The contribution to society that the firm aspires to make A picture of an intended future What is important to the organization How it conducts itself Behaviors that are rewarded Hierarchy of Strategy Statements Aspiration and Strategy Process An organization with specific aspirations needs a strategy that is consistent with the aspiration and deals with the realities of the industry and business environment. Examples Frameworks for Strategic Planning SWOT Analysis Externalities The external analysis examines opportunities and threats which focus on the company's environment. ○ Customers ○ Pricing constraints ○ Competitors ○ Distribution Issues ○ Technology ○ Macroeconomy ○ Regulation ○ Workstyle trends ○ Major uncertainties ○ Suppliers ○ Potential partners Internal The internal analysis examines strengths and weaknesses which focus on the company's resources. ○ Current performance ○ Brand power ○ Cost structure ○ Product portfolio ○ R&D pipeline ○ Technical mastery ○ Employee skills  ○ Company culture Think of main elements such as time, resources, and quality; and supplementary activities like training and development Bottom-up approach Examples Become Agile - Michael Porter’s 5 Forces A competitive strategy By Michael Porter (1998) Identifies 5 competitive forces that affect how long a business can remain competitive and profitable. ○ Threat of new entrants ○ Threat of substitutes ○ Bargaining power of buyers ○ Bargaining power of suppliers ○ Rivalry of existing competitors If barrier to entry is high, new entrants are low If bargaining power of buyer is high, profit is low Substitute: same purpose, different product If threat of substitute is high, bargaining power of buyer is high If bargaining power of supplier is high, profit is low Example: Airline Industry Value Chain Analysis Internal Primary activities: direct influence  Support activities: do not have direct effect Sample Value Chain How to Use the Value Chain 1. Use the value chain to analyze the competitive advantage of the company. a. What do they do well (strengths)? b. What are their improvement areas (weaknesses)? c. Breakdown activities into primary and support 2. Compare the organization's value chain versus that of competitors a. Highlight the activities that it does differently from its competitors b. Include what it does not do that its competitors might be doing 3. Consider possible strategic alliances  Do SWOT analysis (bottom-up approach) for each Frameworks to Implement Strategies  There is a growing interdependence between a firm's ability to use IT and its ability to formulate & implement strategies in order to achieve organization goals. How to Use the Value Chain in IT Strategic Planning  The value chain model highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact. This model identifies specific, critical leverage points where a firm can use information technology most effectively to enhance its competitive position "How can we use information systems to improve operational efficiency and improve customer and supplier intimacy?" Once you have analyzed the various stages in the value chain at your business, you can come up with candidate technologies of information systems Multinational Dairy Cooperative Global Headquarters Strategy Cascade Purpose is also the objective Ambition  To reach their ambition, they need the right mindset and behavior (values) Philippines’ Role  Shows the measurable targets set SWOT Analysis Porter’s Five Forces Model Value Chain Analysis Philippines’ 5x5 Ambition from 2018 to 2023 Ambition into Action 5-Year Strategy (2018-2023) Strategic Priorities Excellent Processes IT Key Initiatives for 2018 PROJECT MAYON  ○ Process Transformation (Inbound, Operations, Outbound, Finance, Procurement) ○ Business Process Management ○ SAP Re-implementation ONE FORCE ○ Marketing & Sales Process Transformation ○ Implementation of Costing and Profitability Analysis (SAP-COPA) ○ Business Intelligence implementation using Tableau Dashboards Balance Scorecard Project Mayon Operational Plan Process Stages Project Mayon Performance Management Regular Reporting and Target Measurement Business Processes  A series of task to accomplish to achieve a goal for a business The way work is organized, coordinated, and focused to produce a valuable product/service The better the process, the more effective the business Can be a strategy for achieving competitive advantage A process that eliminates costs can allow a company lower its prices or retain more profit Example: Ordering food via Grab Example: Importation Process (DTI) Business Process View Example Business Processes for a Consumer Goods Manufacturing Company Inbound Logistics Goods Receiving Operations Manufacturing of a Product Outbound Logistics Warehousing and Delivery Marketing and Sales Creating a Marketing Plan Service Resolving Customer Inquiry Finance and Accounting Creating a Budget Human Resource Posting of Job Vacancy Business Processes and Information Systems Information Systems automate many steps in business processes that were formerly performed manually. IT-enabled processes can be redesigned, for example: ○ Data can be shared with more people ○ Sequential steps may be done in parallel  ○ Decision making can be done quickly with faster instantaneous generation of reports Business Process Management BPM provides a variety of tools and methodologies to analyze existing processes, design new processes, and optimize those processes BPM is never concluded because process improvement requires continual change Companies practicing business process management go through the following steps: 1. Identify processes for change 2. Analyze existing processes 3. Design the new process 4. Implement the new process 5. Continuous measurement Information Systems for Strategic Advantage Enterprise as an Organization Large Organization ○ Multinational Corporations, University, Hospital, Govt Organization, etc. Organized in a Hierarchy ○ Complicated org structure compared to smaller companies Complex Computing Solutions ○ Requires special computing solutions due to its business size and complexity The Role of Enterprise Systems in Organizations What is an ERP? An Enterprise Resource Planning (ERP) is an Enterprise System with a centralized database that integrates business processes to run an entire organization. Optimizes information, materials, money Main Strength: good finance and accounting system  Information that was previously fragmented in many different systems is stored in a single comprehensive data repository where it can be used by different parts of the business. Example: Sales Representative wants to place a huge order for a Key Account customer ○ Finance: Check if customer has available credit ○ Sales & Marketing: Records order of customer and determine applicable discount ○ Manufacturing and Production: Check if there is available stock to fulfill orders Order To Cash (OTC) Process in ERP Case Study: Benefits of Global ERP Implementation ERP Industry Leaders ERP Example: SAP S / 4 HANA SUPPLY CHAIN is a network of organizations and business processes for procuring raw materials, transforming these into intermediate and finished products, and distributing the finished products to customers. Supply Chain Management Objectives Business Value Goals ○ Rapid Demand Fulfillment ○ Collaborative Supply Chain Planning and Execution Customer Value Goals ○ Give customers what they want, when and how they want it, at the lowest cost Supply Chain Management Flow The Bullwhip Effect Describes how small fluctuations in demand can cause progressively larger fluctuations upstream Can be managed by collaborative supply chain planning Supply Chain Management Activities Two main activities: supply chain planning and supply chain execution Supply Chain Planning Systems enable the firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans. Some capabilities: ○ Demand Planning - determines how much product a business needs to make to satisfy all its customers demands  ○ Materials Resource Planning - determines how much materials are needed to produce in order to meet planned demand Supply Chain Execution Systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner. Some capabilities: ○ Inventory Management - manages stocks of merchandise on a quantity and value basis and plan, enter and provide evidence of all goods movements ○ Warehouse Management - tracks and controls the flow of finished goods within a complex of warehouses ○ Transportation Management - manages all transportation or fleet-related movements to reduce transportation complexity Raw materials - Inbound Logistics - Warehouse - Outbound Logistics  Customer Relationship Management (CRM) is a cross-functional enterprise system that integrates and automates customer-serving processes in Sales, Marketing & Customer Service. CRM Objectives and Capabilities Analytical CRM  Analyzes customer data generated from operational CRM systems to provide more information for improving business performance. CRM Example: Salesforce Business Intelligence Data-Driven Decision Making Refers to the practice of basing decisions on the analysis of data, rather than purely on intuition Simon (1960)s Decision Making Process  ○ Intelligence: discovering, identifying. and understanding the problems occurring in the organization - why a problem exists, where, and what effects it is having on the firm ○ Design: identifying and exploring various solutions to the problem ○ Choice: choosing among solution alternatives ○ Implementation: making the chosen alternative work and continuing to monitor how well the solution is working Knowledge Management (KM)  Refers to the set of business processes developed in an organization to create, store. transfer, and apply knowledge Knowledge Management Value Chain ○ Knowledge Acquisition: acquire existing knowledge from databases reports or other knowledge experts or new knowledge from patterns discovered through machine learning and artificial intelligence ○ Knowledge Storage: store, catalog, and maintain knowledge within the organization ○ Knowledge Dissemination: sharing of knowledge through portals, search engines/wiki or through reports and dashboards ○ Knowledge Application: incorporating knowledge into key application systems or DSS Knowledge Discovery in Databases (KDD) Refers to the overall process of discovering useful knowledge from data Data Analytics and Data Science Business Intelligence (BI) refers to the infrastructure (connected technologies) for data warehousing, integration, reporting, and analyzing data coming from the business environment  Data Analytics refers to examining large data sets to identify trends, develop charts, and create visual presentations to help businesses make more strategic decisions Data Science involves principles, processes, and techniques for understanding phenomena and helping solve complex problems via prototypes, algorithms, predictive models, and custom analysis From Transactional Data to Knowledge Common BI Capabilities  Production (Standard) Reporting: predefined reports based on industry-specific requirements (eg. inventory report, class list) Parameterized (Dynamic) Reporting: reports with buit-in parameters (or filters) for end users to get a different view of the data (eg class schedule in AISIS, sales report) Ad Hoc Reporting: reports created by the end users based on their own queries and searches Scorecards and Dashboarding: visualization tools for presenting performance data Forecasting and What If Analysis: ability to estimate future values and produce multiple scenarios based on different variable changes (what-if) Importance of Data Visualization and Storytelling Data Visualization conveys information through visual representation of data Data Storytelling is the ability to effectively communicate insights from a dataset using narratives and visualizations. It can be used to put data insights into context for and inspire action from your audience Sample Case: Addressing a Business Problem Business Problem: Delivery defects and late deliveries are driving manufacturing costs up. How can this cost be avoided? Looking at the dashboard, how can an action plan be made? Identify suppliers driving defects and late deliveries: ○ Defects: Supplier 2 and Supplier 6 ○ Late Deliveries: Supplier 3 Targeted action plan can be made for these suppliers. Summary  MODULE 4: Information Systems, People, Organizations, and Society The People in Information Systems Creators Systems Analyst ○ Identifies business requirements and has a good understanding of the business ○ Analyzes specific details of an existing system or a system that needs to be built ○ Identifies the different stakeholders in the system and able to communicate with them well ○ Able to document processes well Developer / Programmer ○ Fulfills the design specifications given to them by the systems analyst by translating them into code ○ Able to understand complex processes and knowledgeable in one or more programming languages ○ Able to do technical documentation well Quality Assurance Tester ○ Systems Analysts, Technicians or Engineers who check software products to see if they're up to industry standards and free of any issues.  ○ Conducts unit and integration testing of developed software or configured systems and reports it to the developer for fixing Computer Engineer ○ Designs and decides on the computing devices that will be used to execute the system ○ Designs, implements, and maintains the IT Infrastructure of a company (Hardware, Network, Database, Security, Software, Systems) Data Analyst ○ Gather and interpret data to solve a specific business problems ○ Tasks include data gathering, data cleaning, building data models, interpreting data, presentation of findings Data Scientist ○ Combines skills in mathematics, statistics, computer science, and domain knowledge to solve complex problems ○ Analyzes and organizes data to determine trends that can influence business decisions ○ Involves the use of advanced analytics techniques, such as machine learning and predictive modeling Operations and Administration Computer Operator ○ Oversees the mainframe computers and data centers in organizations ○ Outdated Database Administrator ○ Designs and manages databases for an organization Help Desk / Support ○ Information technology help desk that serves as the first line of support for users in the company Trainer ○ Conducts classes to teach people specific computer skills or a new implemented system Management  IT Project Manager ○ Responsible for keeping projects on time and on budget ○ Works with stakeholders and keeps the team organized, communicates the status and progress of the project to management BI Manager ○ Responsible for managing the design, development and maintenance business intelligence infrastructure data models and front-end software ○ Usually in software side Functional Manager ○ Reports to the CIO and manages the employees of their function ○ Usually in software side ERP Manager ○ Deals with ERP systems of an organization and manages them Chief Information Officer ○ Head of the information systems function ○ Aligns the plans and operations of the information systems with the strategic goals of the organization Chief IS Officer ○ Sets information security policies for an organization and oversees their implementation ○ A system must always be secure from both internal and external threats Chief Data Officer / DPO ○ Reports to the CIO and create procedures for collecting and storing data securely. ○ Writes data privacy policies, managing technical teams Chief Technology Officer ○ Deals with management decisions related to IT infrastructure ○ Design plans for technological advancements ○ Counterpart of functional manager Information Systems Development SDLC: Systems Development Life Cycle Oldest and most traditional method for building an information system "Waterfall" Structured approach where each phase happens before the next 1. Planning: identification of the problem 2. Systems Analysis: identification of business requirements 3. Systems Design: identification of technical requirements 4. Programming / Development: initial working program that meets the business requirements using the technical requirements 5. Testing: resolution of errors and user acceptance 6. Implementation: deployment and training 7. Maintenance: system updates and backups Planning Roles involved ○ Project Manager ○ Systems Analyst ○ Client Stakeholders from different business areas ○ Client Project Sponsor Outcomes ○ Feasibility and business proposal document ○ Project plan  ○ Project initiation document Systems Analysis Roles involved ○ Project Manager ○ Systems Analyst ○ Solution Architect ○ Client Stakeholders from different business areas Outcomes ○ Business requirements document ○ Functional requirements document ○ Mock-ups and functional specification ○ To-be Process Systems Design Roles involved ○ Systems Analyst ○ Solution Architect ○ Development Team Lead Outcomes ○ Architecture design ○ Design document ○ Hardware and software requirements ○ Low level design Development Roles involved ○ Developer ○ Systems Analyst Outcomes ○ Validated low-level design ○ Working program ○ Test environment Testing Roles involved ○ Quality Assurance Tester ○ Systems Analyst ○ Developer - bug fixing ○ Client key users Outcomes ○ Test results document ○ Working system Implementation Roles involved ○ Developers ○ Database Administrators ○ Systems Analyst ○ Client Operations Team Outcomes ○ Implementation Checklist ○ User Manual Maintenance Roles involved ○ Client Operations Team ○ Helpdesk/ Support ○ Database Administrators - backups Outcomes ○ Normal system operations ○ System improvements and upgrades Use and Benefits When to Use ○ For building large, complex systems that require rigorous, and formal requirements analysis and documentation ○ For systems that have pre-defined specifications, and tight controls over the development/building process Advantages and Disadvantages ○ Encourages documentation per phase and formal specifications ○ Ensures a stage is completed and successful before another stage is started ○ Costly, time consuming, inflexible, and rigid Rapid Application Development (RAD) Focuses on quickly building a working model of the software, getting feedback from users, using the feedback to update the working model  Components of RAD: high user involvement, Joint Application Design (JAD), prototyping When to Use ○ Suited for smaller projects that are less resource-intensive ○ For projects that need to be developed quickly Advantages and Disadvantages ○ Focuses on user participation and feedback ○ Less documentation than SDLC Agile Iterative development and incremental changes with a focus on quality and attention to detail Emphasize small batch sizes of work to deliver quickly in specific periods of time (sprints) Constant evaluation by both developers and customers for continuous improvement Approach Iterative approach to software development Development in smaller cycles called sprints Manifesto for Agile Software Development Team and Roles  A Scrum Team is Cross-functional, Self-managing, Focused on one objective at a time, and Small. A team is not a Scrum Team if any of these is absent There are three roles within a Scrum These describe the key responsibilities within a team. They aren't job titles. This means that any job title, even your existing ones, can perform one of the roles. When to Use ○ Useful when end-users have a clear prioritization of requirements Advantages and Disadvantages ○ Encourages end-user involvement through early and regular testing (per sprint) ○ Collaborative, and flexible  ○ Heavily reliant on timely end-user feedback ○ Difficult for very large teams and large projects Lean Methodology Minimum Viable Product (MVP): working software application with just enough functionality to demonstrate the idea behind the project Focuses on optimizing the production process while minimizing risk and eliminating waste When to Use ○ Works best in an entrepreneurial environment where a company is interested in determining if their idea for a program is worth developing (value) Advantages and Disadvantages ○ Lower costs ○ Working with minimal resources (low margin of error) Good to Know: Important Project Management Principles PM Triangle Programming Languages Build vs Buy Implementation Methodologies  Change Management Design Thinking a human-centered approach to problem solving ○ serves to understand the human needs involved, reframe the problem in human-centric ways extremely useful when used to tackle complex problems that are ill-defined or unknown ○ we know the desired outcome but have little to no knowledge on the factors to achieve this. ○ Hence, the need to create numerous ideas in and adopt a hands-on approach to prototyping and testing it is a non-linear, iterative process ○ can have anywhere from three to seven phases, and we can jump from one phase to another depending on the need. With design thinking, we continuously improve the product/project by restarting the phases vs Common Phases Globalization and the Digital Divide Globalization is the "integration of goods, services, and culture" among the nations of the world Telecommunications and transportation technologies accelerated globalization The Globalization Eras Opportunities Ability to locate expertise and labor around the world Ability to operate 24 hours a day Larger markets for their products Responsibilities Infrastructure differences Labor laws and regulations Legal restrictions Language, customs, and preferences International shipping Digital Divide A separation between those who have access to this global network and those who do not Low-income households, senior citizens, minorities, undereducated There is a growing inequality in peoples access to Internet services In a fair society, all individuals would have equal opportunity to participate in, or benefit from, the use of computer resources Economic Divide Some people can afford to have a computer and Internet access while others cannot  The price of hardware has continued to drop Usability Divide Low technological literacy users We know how to help users, but we are not doing it because there is little profit in doing so Empowerment Divide Very few users contribute content to the Internet, use advanced search, or can even distinguish paid search ads from organic search results Many people will limit what they can do online by accepting the basic, default settings of their computer and not work to understand how they can be truly empowered This is smaller today Refining the Digital Divide Social Mobility Democracy Economic Growth Ethical and Legal Implications Ethics is "a set of moral principles" or "the principles of conduct governing an individual or a group" Ex: atomic bomb, piracy, disregard for value of human beings in the production process Code of Ethics Outlines a set of acceptable behaviors for a professional or social group Advantages and Disadvantages Clarifies the acceptable standards of behavior for a professional group Provides clarity and consistency Does not have legal authority  Always a chance that important issues will arise that are not specifically addressed in the code May not entirely reflect the ethics or morals of every member of the group Intellectual Property Copyright ○ "Authored" works: songs, computer programs, books ○ Copyright decides: who makes copies, who can make derivative works, who can perform the work publicly, who can distribute the work ○ Obtained by the simple act of creating the original work in tangible form (but must be registered in order to bring legal action) ○ Self-owned: life of the og author + 70 years ○ 3P: 95 years from original creation date Patent ○ New inventions of products or processes ○ A patent application submitted to a government patent office ○ 20 yrs ○ Must be original, non-obvious, useful Trademark ○ Word, phrase, logo that identifies a source of goods or services ○ To protect the consumer ○ Must not be: merely descriptive, geographic term, surname, ornamental Privacy  The ability to maintain our privacy has eroded substantially in the past decades due to information systems and information technology Personal Identifiable Information (PI) Organizations that collect PI are responsible to protect it Republic Act No. 10173, also known as the Data Privacy Act of 2012 (DPA), aims to protect personal data in information and communications systems both in the government and the private sector. AI Ethics and Responsibility Key Issues in AI Legal ○ Copyright Chatgpt case - no entitlement to use material o Data Scraping ○ Data Scraping Ingesting garbage creates more garbage ○ Product Liability Who is responsible for decisions made by Al? ○ Data Privacy Inputs to AI is stored Ethical ○ Bias Al has inherent bias ○ Transparency Cannot explain how it gets to its answers ○ Labor Issues Some jobs are impacted while other jobs are created IBM 5 Pillars of Trust Explainability Fairness Robustness Transparency Privacy These core values help ensure that consumers retain trust in products supported by Al