week 2: managing in a digital world
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Week 2: Managing in a Digital World. MIS5001: Management Information Systems David S. McGettigan Adapted from material by Arnold Kurtz, David Schuff , and Paul Weinberg. Agenda. Group Term Paper Prior Lecture Recap Decision Making in the Enterprise Types of Information Systems - PowerPoint PPT PresentationTRANSCRIPT
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Week 2: Managing in a Digital World
MIS5001: Management Information SystemsDavid S. McGettigan
Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg
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Agenda Group Term Paper
Prior Lecture Recap
Decision Making in the Enterprise
Types of Information Systems
Business Process Management
Google Case Discussion
Next Week
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Group Term Paper
Assignment of Groups
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Term Paper - Topic Analysis of a technology that would create significant
competitive advantage for a company
Term paper should simulate an internal project approval document (while still including citations as required in academia)
Examples of components: Solution description Impact to the company and/or competitive advantage Business case Vendor(s) analysis Implementation approach and timing
See syllabus for grading criteria and timing
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Prior Lecture Recap
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Recap Fundamentals
Components of an Information System
Data, Information and Intelligence
Gaining Competitive Advantage from IT Barriers to Entry Distribution Channels Switching Costs
Innovation in Marketing, Manufacturing and Customer Service
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Decision Making in the Enterprise
No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.
Isaac Asimov (1920 - 1992)
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Decision Making Process Four phases of decision making
Intelligence – find or recognize a problem, need, or opportunity.
Design – consider ways to solve the problem, fill the need, or take advantage of an opportunity.
Choice – examine the merits of each solution, estimate the consequences of each, and choose the best one.
Implementation – carry out the chosen solution, monitor the results, and make adjustments as necessary.
Source; Management Information Systems for the Information Age (Fourth Edition)
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Decision Types Structured decision - processes a certain kind of
information in a specified way so that you will always get the right answer.
Nonstructured decision - one for which there may be several “right” answers, and there is no precise way to get a right answer.
Recurring decision - one that happens repeatedly, and often periodically.
Nonrecurring decision - one that you make infrequently.
Source; Management Information Systems for the Information Age (Fourth Edition)
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Decision Levels
Competitive advantageMarket leader
Long term
Improve operationswithout restructuring
Day-to-day actionskeep company running
New productsthat changethe industry
External events,rivals, sales, costs
quality, trends.Strategies
Tactics
Operations
New tools tocut costs or imp-rove efficiency
Schedulingemployees,
placing orders.
Expenses,schedules, salesmodels, forecast
Transactions,accounting,
HRM, inventory
Decision Level Description Example Type of Information
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Types of Information Systems
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Systems Overview Transaction Processing Systems
Collect data Management Information Systems
Aggregate and collect data Decision Support Systems
Analyze and warehouse data Executive Support Systems
Provide higher level analysis Executive Information Systems
Highest level summary of information
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Decision Levels & Application Systems
Strategic Management
Tactical Management
Business Operations
Define the trends in terms of type, level, and decision maker as you move up the pyramid…
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Processing Time: Batch Typical in transaction processing systems Data is entered over a period of time and is
processed at a fixed interval daily, weekly, etc.
Terminals
Mainframe
For Example:
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Processing Time: Batch Works well for repetitive, routine transaction
processing Payroll, check processing, bill processing
Doesn’t work well for high-interaction operations such as Airline Reservation System
Prone to errors: No immediate data validation Separation of user from data
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Processing Time: Real Time Terminals attached to a central mainframe Transactions are handled “live” and are
processed as they are received Changes can be live Sources:
Point of Sale Process Control Electronic Data Interchange Electronic Commerce
“Blackboard” uses both:• Updates to the course
materials are real-time
• Beginning of semester “auto-enrollment” is done in batch
Why do you think this is the case?
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Management Issues Price of data validation
“Pay now or pay later” Performance Requirements:
Response time (fit with business model) Batch windows (time)
Scalability Do you plan for average volume or peak volume?
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Business Process Management
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Business Process Management Business Processes
The functions an organization performs to add value to the business
Can be broken up into discrete steps Example: Sales order process
The procedure that a company goes through to complete a sale to a customer
Business Process Management Governance: oversight of key functions performed by the
organization Linkage to IS: an information system uses technology to
perform a business process Opportunities: corrective actions, standardization and/or
continuous improvement
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BPM: Linkage to IS Recognize inefficiencies
Multiple people filling out the same form Trace and correct errors
Lost orders Incorporate new functions
Acquisition of a new business Identify opportunities for automation through
technology Self-checkout at grocery stores ATMs
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Process Mapping Forces thought on every component of the
process Help get consensus on process, boundaries,
scope, responsibilities Provides a foundation for other Analysis
User Requirements Process Improvement / Reengineering Organization Design Infrastructure Planning SOP Writing
Source; Joseph Wootten, BPM Process Mapping Course
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Process Mapping: Symbols
Process Start / End Internal
Process / Activity
Decision Connectors
External Process / Activity
On-page Connector
Off-page Connector
Source; Joseph Wootten, BPM Process Mapping Course
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Process Mapping: Approach
Add Decis. Points
etc
Connect Activities
List as Many
Activities as
Possible
Cluster Common Activities
Name the
Clusters
Place Clusters in Order
Indi
vidu
alS
mal
l G
roup
sW
hole
Gro
up
Further Consoli-
dateActivities
Consoli-date
Activities
ADeeper
Analysis Required?
NoYes
Repeat Process
A
Process Map Needed
Session Compete
Source; Joseph Wootten, BPM Process Mapping Course
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Process Mapping: Example
Process
Sub-Processes
Activities
Tasks
• Confirm Strategy with Executive Users
• Define Project Scope
• Define Organization
• Build Business Case
• Confirm Sub-Processes/ Activities with Users
• Define Automated/ Manual Activities
• Define Application Scope
• Define Jobs/roles• Define Benefit
Areas
• Confirm Activities/ Tasks with Users
• Define User Requirements
• Define Information Needs
• Define Skills• Define Procedures
Process Maps can be developed to varying levels of detail to serve a variety of design needs
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Process Mapping: Example Level 0
donors
zoo boostermembers
1donor and
public relations
2produce
managementreports
3managehuman
resources
4animalcare
5manage
zoofacilities
public/zoo visitors
management
certificationagencies
employees
other zoos& breeders
PR data, receipts, etc.
money and requests
receipts/accounting
reports
management reports
usage reports
Pay data, requests employee
schedule
specialist request
specialist request
employee schedule
animal status hours and
benefits
public requests
needs and budgets
animal requests and health
research
animal requests & and health research
Maintenance and building requestsMaintenance
schedule
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Process Mapping: Example Level 1public/zoo visitors
1.1produce PR& outreachprograms
1.5produce
accounting &reports
1.2handledonor
requests
1.3org. boosterservices &meetings
1.4track needsand donorprograms
donors zoo boostermembers
“Adopt an animal” database
PR data, receipts,
etc.
money and requests PR data,
receipts, etc.
money and requests PR data,
receipts, etc.money and requests
2produce
managementreports
receipts/accounting
reports
money, data, and
visitor statistics
donor lists needs
and plans donor
requests
needs and
plans
booster requests
expenses and budget
animal needs public requests
needs and budgets
public requests
4animalcare
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Process Mapping: Checklist Have we covered the core processes?
Have we mapped for the most common steps first, then managed exceptions later?
Have we covered the interfaces and handoffs?
Have we covered decision points and management process interfaces?
Do we have sufficient detail? Have we involved the right people? Do we have a consensus?Source; Joseph Wootten, BPM Process Mapping Course
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Process Mapping: Next Steps After defining the “To Be” process, be sure to
record the following: What are the Organization Implications of the new
model? Change in Jobs Reorganization
What technology / tools will be needed to support the process?
What metrics will be used to measure the process?
Will any new infrastructure be needed?
Note where “technology” enters the process here.
Source; Joseph Wootten, BPM Process Mapping Course
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Value Chain Analysis
29 Source: http://en.wikipedia.org/wiki/Value_chain
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Google Case Discussion
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Google Discussion Questions The case describes several of Google’s “products” (their search
engine, Gmail, Google Earth, etc.). What do they have in common? How would you describe the line of business Google is in?
What is Google’s revenue model (how do they make money)? Who are its customers? With this in mind, what is Google’s real product?
Based on the material in the case, how would you describe Google’s strategy? Do they have one?
The last section of the case is titled “What Should Google Do?” What do you think Google should do (it doesn’t have to be one of the options described in the case)? Make sure you explain why you chose that course of action.
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Porter’s Five Forces
32Source: http://en.wikipedia.org/wiki/File:Porters_five_forces.PNG
Evaluate Google based upon this framework…
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Next Week
Systems Thinking and Managing Complexity