Active Review

Active Review - Chapter 1

Q1 – Why is Introduction to MIS the most important class in the business school?

Moore’s Law was a statement made by Gordon Moore, cofounder of Intel Corporation. He stated “The number of transistors per square inch on an integrated chip doubles every 18 months.” This was mistakenly taken to mean that “the speed of a computer doubles every 18 months” even though it’s close to the actual meaning. The consequences of Moore’s Law are YouTube, the iPhone, Facebook, Second Life, HuLu, Twitter, and LinkedIn, which make the cost of data communication and data storage essentially zero, but require employees to think outside the box to make use of these applications.

Business professionals need to assess, evaluate, and apply emerging, or new, information technology to business.

The texts definition of job security is “a marketable skill and the courage to use it.” This course will help give me marketable skills by helping me learn abstract reasoning, systems thinking, collaboration, and the ability to experiment.

Q2 – What is MIS?

3 important phrases in the definition of MIS; 1)development and use, 2)information systems, 3)business goals and objectives.

The 5 components of an information system are: 1)Hardware, 2)Software, 3)Data, 4)Procedures, and 5)People.

End users need to be involved in the development of information systems because information systems are made for the end user to use. End users need to give information about system specifics, what we need this system to do to help us meet our business goals.

Q3 – How can you use the five-component model?

The five components are hardware – this makes the computer run, software – programs loaded onto computers that we use for our business needs, data – results we receive from the information we input, procedures – guidelines we follow in business, people – employees who use the information system.

The symmetry of the five-component model are as follows: hardware and software are on the computer side, procedures and people are on the human side. Hardware and people are the actors – they take actions, software and procedures are the instructions to the computer and people respectively, and data is the bridge between the computer side and the human side.

Automation moves work from the right side of the five-component model to the left. We take work that people are doing by following procedures and move it so that computers will do that work, following instructions in the computer software.

Q4 – What is information?

The four different definitions of information are: knowledge derived from data; data presented in a meaningful context; data processed by summing, ordering, averaging, grouping, comparing, or other similar operations; difference that makes a difference.

My favorite definition is knowledge derived from data because to me we learn from data. Knowledge is information, and therefore a very powerful tool in the workplace.

Information is subjective because “one person’s information is another person’s data.” Departments produce daily activity information which is the company’s data. The company’s data contains financial statement information which becomes an investor’s data.

Q6 – Why is the difference between information technology and information systems important?

Information technology refers to the products, methods, inventions, and standards that are used for the purpose of producing information – this pertains to the hardware, software, and data components of the five component model. Information system is an assembly of hardware, software, data, procedures, and people that produces information.

You can buy IT by buying or leasing hardware, license programs and databases, and you can obtain predesigned procedures. But it is your people who execute those procedures to employ that new IT.

You will train your employees to use the new IT, get them past the fear of change, and manage them as they use the new system – you cannot buy this like you can a new computer.

Active Review – Chapter 2

Q1 – What is collaboration?

Collaboration occurs when two or more people work together to achieve a common goal, result, or work product.

Communication is the ability to give and receive critical feedback. Coordination is determining who will work on which parts of a project. While collaboration takes communication and coordination, we collaborate when we work together giving feedback, whether negative or positive, and come up with a better solution or product as a result.

The three drivers of collaboration effectiveness are – communication, content management, and workflow control. Communication has two key elements. The first is the communication skills and abilities of the group members, and the second is the availability of effective communication systems. Content management is making sure conflict does not occur when multiple users are contributing and changing documents, schedules, task lists, assignments, and so forth; making sure on user’s work doesn’t interfere with another users. Workflow control is the process or procedure by which content is created, edited, used and disposed.

Q2 – What are the components of a collaboration information system?

The 5 components of an information system are Hardware, Software, Data, Procedures, and People.

Two types of hardware are Client hardware which consist of the computers and other communication devices that users employ to participate in collaboration activities, and Server hardware which consists of computers that are installed and operated by IT professionals that support the collaboration system.

Three collaboration programs are Google Docs & Spreadsheets which is free and requires users only to have a browser such as Internet Explorer or Firefox on their client computers, and Google maintains a complex array of computer programs on its servers to support this application; Microsoft Groove in which business users pay a fee to use, it must be installed on the client computers of all the users who are participating in a Groove collaboration system, or can be optionally installed on a server computer as well; Microsoft Sharepoint, which must be installed on a server computer, business users pay a fee to use this software on their servers, and that fee can be large.

Q3 – How can you use collaborations systems to improve team communication?

Communication is important to student collaborations. If you are going to create work products, then encourage the team members to criticize those products, and then make revisions in accordance with the constructive criticism received from your peers. You also need to criticize their work as well. This will help to everyone to improve the product by communicating these critical comments constructively.

Synchronous communication occurs when all team members meet at the same time, such as conference calls or face-to-face meetings. Asynchronous communication occurs when team members do not meet at the same time because employees work different shifts, or work in different locations or time zones.

Two collaborations tools that can be used to help set up synchronous meetings are WebEx which is a commercial webinar application used in virtual presentations, and SharedView which is a Microsoft product for sharing a computer screen that you can download for free.

Q4 – How can you use collaboration systems to manage content?

Two ways that content is shared with no control are email attachments and to place the content on a shared file server. The problems with email are that there is always the possibility that the email was not received, it isn’t noticed in the inbox, or the attachments aren’t saved. The problems with a shared file server are that it’s possible for other team members to interfere with one another’s work, an no one will know who made the changes to a document or when.

When a user contributes a wiki entry, the system tracks who created the entry and the date of creation. As others modify the entry, the wiki software tracks the identity of the modifier, the date, and other data, and you have to give users permission to delete wiki entries. With Google Docs & Spreadsheets anyone who edits a document must have a Google account. In the background, Google will merge the users’ activities into a single document. You are notified that another user is editing a document at the same time as you are, and you can refresh the document to see their latest changes. Google tracks document revisions with brief summaries of changes made. With Groove, a user creates a workspace, then invites others to join by sending them an email. When a user changes a document, Groove automatically propagates that change to workspaces on other user’s computers. If two people are trying to make changes to the same document at the same time, then Groove will not allow one of the users to make changes until the other is finished.

Version management systems improve the tracking of shared content and potentially eliminate problems caused by same-time document access. Version control systems gives each team member an account with a set of permissions, therefore limiting the actions that can be taken by any particular user.

Q5 – How can you use collaboration systems to control workflow?

Content management keeps track of who makes changes to documents and when those changes are made, and facilitates communications among the team. Workflow control assists with the review process. For instance Sharepoint will manage the workflow once it’s defined, and send emails to the people who need to review the documents. Once they have completed their review, Sharepoint will send an email to the next person asking them to review the document, etc. until all of the reviewers have completed the task.

Sequential workflow is where the review is done by one person, then the next, and so on in a sequence. For instance, you have a document that needs to be sent out to your staff, but first must be signed off on by all upper management. You first send it to your supervisor, then once they have reviewed, and possibly made some revisions, then you send it to your manager. They sign off, and it then would go to your director, then possibly to the vice-present of the company. There is a sequence of events that the workflow must follow – the chain of command.

Managing workflow manually can become cumbersome. You will email your document to the

person who needs to complete the first review. You have to keep track of the amount of time they are taking to do the review, send follow-up emails in case they missed the first email, making sure they respond timely, and it can be very complicated making it an administrative nightmare.

Active Review – Chapter 3

Q1 – How does organizational strategy determine information systems structure?

Industry Stucture Competitive Strategy Value Chains Business Processes Information Systems. Organizations examine the structure of their industry and determine a competitive strategy. That strategy determines value chains, which, in turn, determine business processes. The structure of business processes determines the design of supporting information systems.

Industry Structure – businesses use hardware, software, data, procedures, and people to develop their Competitive Structure. They then collaborate to determine Value Chains, and Business Processes. This helps create our Information Systems which we as end users help to build based on our business needs.

Q3 – How does analysis of industry structure determine competitive strategy?

Firms can focus on being the cost leader, or it can focus on differentiating its products from those of the competition. The firm can employ the cost or differentiation strategy across the industry, or it can focus its strategy on a certain industry segment.

Wal-Mart focuses on being the cost leader industry wide. Apple focuses on differentiating its products from those of the competition across the industry. Flex-time, as stated in the book, has chosen to focus on a differentiation strategy within an industry segment. Acer brand computers seem to have focused on being the lowest cost computer within an industry segment.

Q4 – How does competitive strategy determine value chain structure?

Value is the amount of money that a customer is willing to pay for a resource, product, or service. Margin is the difference between the value that an activity generates and the cost of the activity. Value chain is a network of value-creating activities.

A business that selects differentiation strategy will add cost to an activity only as long as the activity has a positive margin. The value of a product should be enough to make a profit after the cost of the product is determined.

Linkages are interactions across value activities. Linkages are used to reduce inventory costs. This system uses sales forecasts to plan production; then uses the production plan to determine which raw materials needs, and then used the material needs to schedule purchases. The result of this method is just-in-time inventory, which reduces inventory sizes and costs.

Q5 – How do business processes generate value?

Business process is a network of activities that generate value by transforming inputs into outputs. Cost is the cost of the inputs plus the cost of the activities. Margin is the value of the outputs minus the cost.

The purpose of an activity is to transform input resources into output resources. Three types of facilities are facilities that store physical items, hold data – such as databases, bank accounts are the facility of cash at rest.

The materials ordering process transforms cash into a raw materials inventory (input and output resources). The manufacturing process (flow) transforms raw materials into finished goods (activity). The sales process transforms finished goods into cash (facilities).

Q7 – How do information systems provide competitive advantages?

Organizations gain a competitive advantage by 1)creating a new product or service, 2)enhancing products or services (making them better), and 3)differentiating products or services. 4)Lock in customers and buyers (making it difficult or expensive for customers or buyers to switch to another product); 5)Lock in suppliers (making your organization easy to connect and work with); 6)Raise barriers to market entry (make it difficult and expensive for new competition to enter the market); 7)Establish alliances (establish standards, promote product awareness, among other benefits); 8)Reduce costs (usually can translate into lower prices, or increases profitability).

Our college bookstore is using most of the principles of competitive advantage. Since Barnes and Noble owns the bookstore, they are now offering textbooks for the Nook, and also by offering to rent out textbooks as opposed to selling them. They have enhanced their services over the years by offering more for the buyback of books that will be used the next semester. I’m not sure how they differentiate their products since they are the only bookstore at the college, however it’s sometimes easier to go to them rather than finding used copies of books elsewhere such as online. The process implementations are harder to consider since I do not work there, and being one of the people who have paid the ridiculous prices for textbooks. They have a lock on customers and buyers because they are the only bookstore offered to our school. They lock in suppliers because textbooks probably aren’t distributed by that many different suppliers, although I could be wrong about this. Raising barriers to market entry – text books are too expensive already, and apparently to make a profit you have to charge those prices. Reduce costs – hire students to work, use textbooks for longer periods of time so that used book sales go up.

I think I answered this part as part of the first subpart. I’m not really sure what they mean by application of each of the eight principles, unless it is as I answered above.

Active Review – Part 1

Q1 – Why is the Global Economy Important Today?

Today, thanks to the optical fiber that circles the world many times over is used for data and telecommunications, the internet is all over the world and available to most people. This helps people in the US to sell their products easily over the internet, as well as other countries in the world selling to us.

It used to be that if someone from another part of the world wanted to sell their product or service in America, then they would have to move here and leave their home. That is no longer the case because not only can they sell anything from anywhere, they no longer have to leave home to do it. It has been estimated that 300 million people have been added to the world economy in the last 15 years.

Q2 – How does the Global Economy change the competitive environment?

Suppliers have to reach a wider range of customers, and sustomers have to consider a wider range of vendors. Because of the information on the Internet, customers can more learn about substitutions more easily, and the Internet has made it easier for new market entrants. The global economy has intensified rivalry by increasing product and vendor choices and by accelerating the flow of information about price, product, availability, and service.

Organizations now need to think big, and determine if their product can be marketed and sold in other parts of the world, and what will that entail. You have to think of the language barrier first and foremost. Organizations need to consider the cost of developing a product for another area. If it’s not a computer or something technological that requires that language, can you provide instructions to your product in that customers language.

Q3 – How does the Global Economy change competitive strategy?

The size and complexity of the global economy means that any organization that chooses a strategy to compete industry-wide is taking on a very big, demanding, and expensive challenge. A company will need to be able to compete in other countries that have those types of products locally will not have the cost involved that you will.

The size of the world economy and the Internet has enabled unprecedented product differentiation. The Internet allows customers looking for your product to find you and you able to find them.

Q4 – How does the Global Economy change value chains and business processes?

Every primary activity for this airplane has an international component. Companies all over the world produce its parts and subassemblies. Major components of the airplane are constructed in worldwide locations and shipped for final assembly to Boeing’s plan in Everett, Washington. Boeing’s Outbound Logistics doesn’t just deliver the airplane, but also the delivery of spare parts and supporting maintenance equipment. All of those items are produced worldwide and delivered to customers worldwide.

Q5 – How does the Global Economy change information systems?

Computer hardware is sold worldwide, and most vendors provide documentation in at least the major languages. Most computer software is English based, but not all. An information system may require a localized programming language. In the data component, decisions need to be made what language or languages the information needs to be in, especially if you produce parts worldwide. Procedures and people are also affected by language and culture, therefore information systems procedures need to reflect local cultural vales and norms.

Guides

Chapter 2 – Egocentric Versus Empathetic Thinking1) Egocentric thinking is where the person thinks they are always right. Their ideas are the only

valid ones, and every one doesn’t know what they are doing. Empathetic thinkers think of the whole picture and consider each idea individually based on the merits of the idea. They are more broadminded.

2) You should go the meetings organizer, and apologize for missing the meeting and ask if you can get a copy of the meeting minutes. You could also ask what you missed, but you should never ask if you missed anything important. If it wasn’t important, there wouldn’t have been a meeting in the first place.

6) Empathetic thinking in business is smart because you are making the effort to understand the needs of those you are doing business with. You look at the issue from both sides to try to minimize any problems that come up.

Chapter 3 – Yikes! Bikes

1) While I don’t think their actions are illegal, I do think that they are immoral. Getting rid of staff based on the amount of their salary and how much time they take taking care of the customers’ needs is not good business. These people bring lots of experience with them.

2) Unethical, probably not, although it was definitely untruthful. If you tell your employees what your plans are right away, you will create a panic among the staff and might set yourself up for some sort of sabotage. People get angry or think that they are being treated unfairly, and they may retaliate, although that’s not right either. Also, while she feels the direction of the company will be the one she stated, plans could change, and she may have just lost the complete trust of her knowledgeable staff.

3) Unless the founder put stipulations in the acquisition contract for his employees to guarantee their jobs, there is nothing he can do. Even then, I have never heard of this happening. Parks will probably tell him that she will take this information under advisement and take his concerns to Major Capital, but that since he has not retained a position in the company, it is no longer his concern. There is nothing illegal in this position, but again, more immoral than unethical.

Case Studies

Case Study 1 – Requirements Creep at the IRS

1) The Oversight Board placed leadership on the business units because they are the ones that use the system, and they use them for different things. Each unit has different tasks, different requirements, and therefore different ways of utilizing the system. ITS cannot know all of the aspects of how individual units conduct their part of the business. In my experience, ITS can load software, and work out system bugs, but do not have experience when it comes to the utilization of that software or systems. They do not do that type of work, so they would have no clue of the needs of those units.

2) The BSM team did not work for the IRS every day, so they had no knowledge of what the scope should be for each unit. As I said above, different units have different business needs, and requirements vary. This would apply to ITS and Computer Sciences Corporation as well. Only those people who work on the system every day, would know how the system should be designed to fit their needs.

3) You can create the environment of trust, confidence, and teamwork by holding each business unit accountable for the system, and the scope that they need the system to be designed. People are uncomfortable with change, but most of the time, these days, these system upgrades and overhauls make a person’s job easier in the long run. Sometimes people are afraid that new technology will cost them their job. Even if the new technology will allow for a reduction in staff, a lot of big businesses will cut jobs through attrition. They will not replace the staff that retires or quit. If the company hired to update the information system does not work with the staff to get input on what expectations they have, or their needs for the system, then everyone is frustrated because the system doesn’t work.

4) I think I answered this in question 3.5) Just because a system currently works doesn’t mean it works well. For the IRS, a new system will

get the tax returns completed faster, assist the various units in getting their tasks completed more timely, and therefore possibly taking on more tasks which will help when the IRS decides not to replace people, or make additions to staff, therefore saving money. Working on an outdated system does not make a person’s job better or more secure. Especially with the IRS where the number of tax return’s received grows every year. On an outdated system the job would take longer, not the same amount of time. In today’s business world, businesses expect their employees to take on more tasks for the same money. Sometimes it’s frustrating for the employees, but eventually it all evens out in the end.

Case Study 3 – Bosu Balance Trainer

1) The types of competitive advantage Bosu has used to defeat copycat products are: They created a new product; Enhanced their product; Differentiated their product; Locked in customers and buyers; Raised the barriers to market entry; Established alliances.

2) They locked in customers and buyers using an information system, a database with trainer information. They used this database to help their marketing strategies. They also worked hard to make sure the trainers succeeded with the Bosu, which established alliances.

3) FitnessQuest could set up a forum online for customers to rate their product. They could also keep a customer database where they can email newsletters, new workouts associated with their product, and new product information.

4) FitnessQuest won the competition because they worked with the people who actually used the product. The advertising that the trainers gave their product was invaluable. The trainers gave exact and practical reasons as to why the Bosu was the better product than to the cheaper imitation. The trainer database FitnessQuest created is a great tool to keep their company and products in the forefront of the trainers minds.

5) Reviews of the product by the trainers; product support for the trainers; the same for customers who have purchased the product; have trainers post videos of some of their classes utilizing the products along with what the “students” think of the workout and the product.

6) The Bosu product is a smaller device, and fewer parts, therefore less expensive to manufacture. The Bosu product is also less expensive to purchase by the consumer. The IndoRow product is a machine that will cost a bit more to manufacture, and takes up more space in the gym, and home. The use of the IndoRow product in the gym in a competitive class setting will make it more appealing than other rowing machines already on the market. The IndoRow product will be a more expensive product for the general public.

7) They will need to differentiate their product from the others out there – why is it a better product, why should people pay more for their product than the others out there. The trainer database would work wonders on this product as it has with the Bosu product. They can get information out to the trainers along with suggested workouts, and routines for the competitive classes the gym will have.

Multiple Choice Qs

Chapter 1

1) The cost of data communications and data storage is essentially zero because ofa) YouTubeb) Facebookc) Twitterd) Moore’s Lawe) None of the aboveAnswer: d

2) Future business professionals need to be able toa) know how to create a Facebook pageb) follow tweetsc) assess, evaluate, and apply emerging information technology to businessd) quote their MIS textbooke) none of the aboveAnswer: c

3) How can a person attain job security?

a) have a marketable skillb) the courage to use that marketable skillc) there is no such thing as job securityd) both a and be) none of the aboveAnswer: d

4) Abstract reasoning isa) the ability to make and manipulate modelsb) the inability to make and manipulate modelsc) the ability to experiment with your businessd) all of the abovee) none of the aboveAnswer: a

5) These are components of the Five-Component modela) hardwareb) softwarec) datad) procedures and peoplee) all of the aboveAnswer: e

6) Which two parts of the Five Components are considered to be the Instructions?a) Hardware and Peopleb) Data and Proceduresc) Hardware and Softwared) People and Procedurese) Software and ProcedureAnswer: e

7) What is the most important component?a)hardwareb) softwarec) datad) proceduree) people which includes youAnswer: e

8) Which is not a definition of Information?a) information is powerb) information is knowledge derived from datac) information is data presented in a meaningful contextd) information is processed datae) information is a difference that makes a differenceAnswer: a

9) What makes some information better than other information?a) that it’s accurateb) that it’s timelyc) that it’s relevantd) that it’s worth its coste) all of the aboveAnswer: e

10) What refers to the products, methods, inventions, and standards that are used for the purpose of producing information?a) Information systemsb) Computers –in-a-productc) Information technologyd) 5 component modele) none of the aboveAnswer: c

Chapter 2

1) The effectiveness of a collaborative effort is driven by what 3 factors?a) communication, content management, and workflow controlb) hardware, software, and datac) communication, permission, and workflow controld) none of the abovee) all of the aboveAnswer: a

2) What are the components of a collaboration information systema) hardware, software, data, procedures, communicationb) hardware, software, data, procedures, peoplec) server, software, data, procedures, peopled) hardware, workflow, data, procedures, peoplee) none of the aboveAnswer: b

3) Which program is used in a collaboration information system?a) Google Docs & Spreadsheetsb) Sharepointc) Microsoft Grooved) All of the abovee) None of the aboveAnswer: d

4) How many procedures are important for collaboration?a) 1b) 2c) 3d) 4e) 0Answer: b

5) This occurs when all team members meet at the same time, such as with conference calls, or face-to-face meetingsa) Synchronous communicationb) Asynchronous communicationc) Virtual meetingsd) Videoconferencinge) Conference callsAnswer: a

6) Which is an alternative for sharing content?a) no controlb) version managementc) version control

d) Google Docs & Spreadsheetse) A, b, & cAnswer: e

7) Which are systems that provide version management?a) wikisb) Google Docs & Spreadsheetsc) Microsoft Grooved) All of the abovee) None of the aboveAnswer: d

8) Which is a version control application?a) wikisb) Google Docs & Spreadsheetsc) Microsoft Grooved) Microsoft Sharepointe) None of the aboveAnswer: d

9) This is a perceived difference between what is and what ought to be.a) collaborationb) communicationc) problemd) all of the abovee) none of the aboveAnswer: c

10) Decisions occur at what levels in the organization?a) Operational, managerial, and strategicb) Supervisor, manager, and directorc) On the steps on the first and second floord) Vice President, Senior Vice Present, and Presidente) B and DAnswer: a

Chapter 3

1)