Information Systems in Organizations 3. 1. 2 Information Systems in Organizations 3.1.2. Managing the business: decision-making 3.1.3. Growing the business: knowledge management, R&D, and social business

Learn IT Assignment #3 : SAP 3 options to perform: At a Temple lab where the software is installed On your computer by downloading the SAP software On any computer using the web version (not recommended but available) Refer to my email for your : System Name (a.k.a. SAPGUI – System ID), Client Number, UserID and initial password) READ & FOLLOW INSTRUCTIONS

How NBA Player Analytics Opened Up A Whole New Business For SAP SAP's work with the NBA taught them how to sell into businesses, a market they had previously never touched. Generally, businesses resist analytics. One of the first systems SAP built within the sports sphere was a _____________ for the San Francisco 49ers. Believing they are too small to benefit from , many modestly sized companies rely on instinct and tactile experience. mom-and-pop smaller drafting application Big data

What is Data Analytics? Just get students talking about Data Analytics

Trailer: Moneyball This is a great movie that gets people thinking about data driven decision making. Using Sabermetrics (data analytics driven from SABR), a team gears up for unprecedented wins. Instead of using traditional selection methods, players are selected only for their On-Base-Percentage (OBP). If a baseball team can do this and dramatically improve their standings, how can a business to do these sorts of things and dramatically improve their balance sheet?

The Decision-Making Process, Cliff Notes and are ongoing processes of evaluating situations or problems, considering alternatives, making choices, and following them up with the necessary actions. The most obviously troubling situations found in an organization can usually be identified as 00000 0 of underlying problems. Symptoms indicate that something is wrong with an organization, but they don't identify . Regardless of the method used, a manager needs to evaluate each in terms of its Feasibility, Effectiveness, and Consequences. The best alternative is the one that produces the most and the fewest serious disadvantages. Decision making problem solving symptoms root causes alternative advantages

What to do with all this Data? Information Knowledge Data analytics is the art and science of examining raw data for the purpose of gaining insight and drawing actionable conclusions about business problems (Alalouf). Big data analytics is the process of examining big data to uncover hidden patterns, unknown correlations and other useful information that can be used to make better decisions (SAS).

Structured and Unstructured Data Everything we have done in this course thus far User generated data Email Facebook posts ERD, organizational databases, ERP Tweets Comments on sites Clearly defined data entities, types, relationships, and hierarchies Images Videos Blogs Chaos!

…Analytics is the process of making sense of large data sets and unlocking patterns, often using data visualization, to enable better decision making.

Data Analytics Descriptive Analytics Predictive Analytics Track consumer behavior What will consumers buy? (Better yet, what do they want, but don’t know they want yet?) How do users interface with a web site? When will demand surge? Describes what is happening

Google Analytics Tracks web site metadata & user engagement # of sessions Average session duration Number of pages visited and duration at each Bounce rate Conversion Conversion is the most important metric for users of Google Analytics. It tracks how many users of a web site make a certain desirable action, for example, fill out a contact form, subscribe to a feed, or purchase an item.

Technology Consulting Paytronix Paytronix provides loyalty programs, CRM tools, and data insights to restaurants Why do we care about loyalty? What are CRM tools? How does Paytronix work? Sales Product Technology Consulting Engineering How does paytronix work – the operational organization is divided into functional departments: Product, Engineering, Technology Consultant, Sales. The product people are in charge of envisioning and launching new products, maintaining existing products for updates and improvements, and monitoring profitability issues of existing products. The engineers are the technology geeks of the organization and they spend all day writing and fixing code to maintain existing products and build new products. The technology consultants are the quintessential MIS guys – interfacing between consumers (in this case restaurants, like Panera), the product department, and the engineers. The sales department is in charge of generating and recording revenue. Etc.

Types of Decisions You Face Daily & Weekly regimented tasks Analytics can help solve big, complex problems and questions Business professionals need to make lots of different types of decisions. The more structured and more often the recur, the easier they are to make. The less structured they are and the less frequently they recur, the more difficulty they are to make. Decision Support Systems (DSS) can utilize Data Analytics to help improve your decision making when it comes to less structured, infrequently made decisions. Ask students for examples of the types of decisions that they make at work (probably more structured and recurring) as well as the decisions the senior leadership in their organization (probably less structured and less frequently recurring) make and plot them on this graphic. Structured, recurring: what to buy to replenish inventory (warehouse, purchasing clerk, sales clerk), what bills to pay, what reports to look at Structured, non-recurring: Implement ERP or financial system, create departments, create GL accounts, etc. Resolve one-time balance sheet discrepancies Unstructured, recurring: communicate with executive management about company performance. Create a marketing campaign. Design new material and collateral. Unstructured, non-recurring: identify a business opportunity and create a business model. Identify weak spots in company performance based on big data. Create a new product model. Identify a new product line you want to distribute.

Identify limiting factors. Define the problem. Identify limiting factors. Develop potential alternatives Analyze the alternatives Select the best alternative Implement the decision Establish a control and evaluation system Make sure you are defining the correct problem Make sure you are analyzing the alternatives accurately and not in a bubble – take in to consideration all factors, don’t let people be Critical right away – allow for people to make suggestions The best alternative is the one that produces the most advantages and the fewest serious disadvantages. Sometimes, the selection process can be fairly straightforward, such as the alternative with the most pros and fewest cons. Other times, the optimal solution is a combination of several alternatives. Sometimes, though, the best alternative may not be obvious. That's when a manager must decide which alternative is the most feasible and effective, coupled with which carries the lowest costs to the organization. 

Scenario – Warehouse Manager You know you have too much cash tied up in inventory. You want to reduce inventory levels. You get a lot of heat when orders are placed and you can’t fill the order from inventory. What information do you need, how would you like to see it and how do you make decisions about adjusting inventory levels? Are these structured or unstructured decisions? LogsPlus Implementation: $200 million tied up in inventory Spend $1 million on new system to safely reduce inventory levels 10% New system would actually be a better job at reducing “stock outs” Use that $20 million to put more salespeople out in the field. What could your organization do with that $20 million?

Databases & Data Warehouses Talk about the world of OLTP and Operational Databases and how they feed our Data Warehouses, the realm of OLAP, DSS and Data Analytics. What would this look like in an ERP world?

OLTP Online transaction processing, or OLTP, is a class of information systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing. OLTP is characterized by a large number of short on-line transactions (INSERT, UPDATE, DELETE). The main emphasis for OLTP systems is put on very fast query processing, maintaining data integrity in multi-access environments and an effectiveness measured by number of transactions per second. In OLTP database there is detailed and current data, and schema used to store transactional databases is the entity model. 

OLAP OLAP is an acronym for online analytical processing, which is a computer-based technique of analyzing data to look for insights. The term cube here refers to a multi-dimensional dataset, which is also sometimes called a hypercube if the number of dimensions is greater than 3. OLAP is characterized by relatively low volume of transactions. Queries are often very complex and involve aggregations. For OLAP systems a response time is an effectiveness measure. OLAP applications are widely used by Data Mining techniques. In OLAP database there is aggregated, historical data, stored in multi-dimensional schemas. 

Source: http://datawarehouse4u.info/OLTP-vs-OLAP.html

What Is a Hypercube? Multi-dimensional “cubes” of information that summarize transactional data across a variety of dimensions.

Data Marts

The Real Reason Organizations Resist Analytics The more organizations gather from more sources and algorithmically analyze, the more individuals, managers and executives become accountable for any unpleasant surprises and/or inefficiencies that emerge. Transforming the culture and practice of analytics inherently transforms your culture and practice of . Enterprise politics and culture suggest analytics’ impact is less about measuring existing . ______________ than creating new accountability. Many organizations have invested more thought into acquiring capabilities than confronting the accountability crises they may create. data accountability performance analytic

Short Clip: Big Data Revolution Just a quick video to get students thinking that they need to leverage big data.

TED Talk: The Beauty of Data Visualization Taken from informationisbeautiful.net

Filling in the Income Statement In-Class Activity… Filling in the Income Statement

Information Technology What is KM? Knowledge Management Explained Knowledge management is a discipline that promotes an integrated approach to identifying, capturing, evaluating, retrieving, and sharing all of an enterprise's assets. Describe knowledge as explicit, implicit, and . Perhaps the most central thrust in KM is to capture and make available the information and knowledge that is in as it were, and that has never been explicitly set down. Management, sometimes known as Enterprise Content Management, is the most immediate and obvious part of KM. The Stages of Development of KM: 1) . . 2) HR and Corporate Culture 3) Taxonomy and Content Management information tacit people’s heads Content Information Technology

Everything You Need to Know About Open Innovation For business, open innovation is a more way to innovate. Open innovation is conceptually a more distributed, more participatory, more . _____________ approach to innovation. Useful knowledge today is widely distributed, and no company, no matter how capable or how big, could effectively on its own. There are two facets to open innovation: 1) “ ” aspect 2) “inside out” aspect profitable decentralized innovate outside in

? What is “Knowledge Management”? Knowledge management (KM) is the process of capturing, developing, sharing, and effectively using organizational knowledge. It refers to a multi-disciplinary approach to achieving organizational objectives by making the best use of knowledge.

Question What is a “Baby Boomer” and how many of them are in the workforce today? How many will be in the workforce 10 years from now? What is “Tacit Knowledge”? Why is this keeping CEOs awake at night? Is there technology that we can use to help with this?

Talk about all of the important information that is stored in the heads of people and ask how the organization can leverage these assets when they are stored in people’s heads.

What are the benefits of Knowledge Management? Talk about knowledge management. The goal is to capture, organize and leverage knowledge (our most important asset) with technology. Ask the students to list some of the benefits of doing this? Ask students to list some of the challenges? Employee buy-in Knowledge overload Information obsolesce Being enamored by the technology and forgetting the goal What are the challenges of Knowledge Management?

Community of Practice Domain Community Practice  knowledge is a critical asset that needs to be managed strategically. Initial efforts at managing knowledge had focused on information systems with disappointing results. Communities of practice provided a new approach, which focused on people and on the social structures that enable them to learn with and from each other. Communities of practice enable practitioners to take collective responsibility for managing the knowledge they need, recognizing that, given the proper structure, they are in the best position to do this. Communities among practitioners create a direct link between learning and performance, because the same people participate in communities of practice and in teams and business units. Practitioners can address the tacit and dynamic aspects of knowledge creation and sharing, as well as the more explicit aspects. Communities are not limited by formal structures: they create connections among people across organizational and geographic boundaries.

Decision Making with Neural Networks In-Class Activity… Decision Making with Neural Networks