Management Information Systems: Solving Business Problems with Information Technology Part Four: Organizing Businesses and Systems Chapter Eleven: Electronic Business and Entrepreneurship Prof. Gerald V. Post Prof. David L. Anderson

Definition and Impact of Database Management on Management Information Systems

The Advantages of Applying Database Management Concepts to Management Information Systems 1. Financing Ability 2. Business Knowledge 3. Planning Expertise 4. Strategic Integration between Technology and Business

Business Models

Eight Examples of Business Models l Merchant model: l Subscription or Metered usage l Infomediary l Advertising l Brokerage l Affiliates l Manufacturers l Communities and Communication

Business Model Examples l Merchant model: –Virtual only or Catalog, Travelocity, Expedia –Bricks & Clicks –Bits-only. l Subscription or Metered usage –Glassbook, Wall Street Journal, FatBrain, Consumer Reports -- BUT: NYT, Slate, MP3, etc... l Infomediary –Portals, registration requests –MyMealPlan, When, Evite, Versity, WebMD –Iowa electronic, Hollywood, Cheathouse, Dr. Koop

Business Model Examples l Advertising models –freebies: BlueMountain, Freemerchant –Specialized, personalized portals: Yahoo, Excite, Lycos l Brokerage models –Aggregate buyers (Accompany) –Fulfill: Kozmo, E-trade, Carsdirect –B2B bartering: MetalSite, ChemConnect –Search agent/bot: MySimon, CareerCentral bottomdollar,

Business Model Examples l Manufacturers –Intel, Apple, Virtual Vineyards l Communities –VerticalNet, iVillage, ICQ, Firefly –HumanClick, PeopleSupport –ThirdVoice, Ubique, iMarkup, uToK –“Viral Marketing”

Business Models for Electronic Commerce: Paul Timmers

Business Models for Electronic Commerce: Paul Timmers (2)

Dimensions of IT Business Value AutomationalInformationalTransformational Business Processes Operational Management Labor Cost Inventory Cost Administrative Expense Utilization Responsiveness Accuracy Decision Quality Resource Usage EfficiencyEffectiveness Adaptability Cycle Time Customer Relationships Competitive Flexibility Organizational Form Information Systems Metrics Doing things betterDoing better thingsDoing different things

Unbundling the Organization Product Innovation Management Customer Relationship Management Infrastructure Management Scale Scope Speed Electronic commerce has low interaction cost, it is natural for web-based businesses to focus on a single core process. (Hagel and Singer, 1999)

Systems Project Proposals l Telecommunications l Transmission of Voice/Data/Graphics l Innovative Applications – Electronic Data Interchange

Systems Planning Approach/Feasibility l Technical – Availability of existing technology l Economic – Commit Sufficient Funds to Develop and Implement the System l Legal – Compliance with the Law l Operational – Efficacy and Functionality of Systems Project Proposal l Schedule – Proposed Timetable

Efforts to Categorize the Unknown Complexity Instability Uncertainty

Decision Trees Decision Point Probability

Project Management l Set of Principles, Methods, Tools, Techniques l For the Effective Management of Results- Oriented Work l Utilized in the Context of a Specific and Unique Organizational Environment

Variables Cost Risk Time

Goals l Critical Path/PERT Charting l Progress Presentation Reports – Clients and Management l Dependencies/Prerequisites/Linkages l Variance Analysis l Resource Assignments

Project Management Skills l Planning –States what should be done –Estimates how long it will take –Estimates what it will cost l Leading –Adapts to dynamics of enterprise and deals with setbacks –Guides and induces people to perform at maximum abilities l Controlling –Monitors Progress Reports and Documented Deliverables –Compares Plans with Actuals l Organizing –Staffs a Systems Project Team –Brings together users, managers, and team members

Project Management l Gantt Chart l Pert Chart

Gantt Chart l Compares Planned Performance against actual performance to determine whether the project is ahead of, behind, or on schedule l Schedule a complete systems project by phases

PERT Chart l Four Steps –Identify Tasks –Determine Proper Sequence of Tasks –Estimate the Time Required to Perform each Task –Prepare Time-Scaled Chart of Tasks and Events to Determine the Critical Path

PERT Chart l Estimate, Schedule, and Control a network of interdependent tasks l Shown by arrows, nodes, or circles l Determine minimum time needed to complete a project, phase, or task l Critical Path –Minimum time needed to complete a project or phase l Program, Evaluation and Renew Technique –Total of the most time-consuming chain of events

CASE l Computer-Aided Systems and Software Engineering l Increase Productivity of Systems Professionals l Improve the Quality of Systems Produced l Improve Software Maintenance Issue

CASE l Includes: –workstations –central repository –numerous modeling tools –project management –Systems Development Life Cycle Support –Prototyping Applications –Software Design Features

MSProject Program Linkages l Suite: Lotus/Microsoft/WordPerfect – Spreadsheet – Presentation – word processing – Database – Notes – Flowcharting (AllClear or ABC) – Risk Analysis Tool

Project Management Issues l Learning Curve Requires Understandable Training Program l Drown in Data Entry l Loose Perspective in Extent of Project Captured l Management Commitment l Critical Mass l Required Rollups l Discipline in Monitoring/Using Plan

Project Management Terms l Schedule From: – Project Start Date – Project Finish Date l Duration Type: – Resource Driven – Fixed Duration l Constrain Task – Date

Project Management Terms l Priority – High – Medium – Low l Risk – High – Medium – Low

Project Management Terms l Relationship with Predecessor: – Finish-to-Start (FS) – Start-to-Start (SS) – Finish-to-Finish (FF) – Start-to-Finish (SF)

Project Management Terms l Tasks: – Noncritical – Critical – Milestone – Summary – Project Summary

Project Schedule Report l Identifies Systems Project and Estimated Completion Date

Planned Systems Project Load Resources Line Planning Cycle Resources Requirements Matrix

Cyclical Nature Identify Classes and Objects Identify Class and Object Semantics Specify Class and Object Interfaces and Implementation Identify Class and Object Relationships

Risk Management by Phase Inception: Bracket Project Risk by Building Proof of Concept Elaboration Common Understanding of System Scope Establish System Architecture Design Common Mechanisms Construction: Refine the Architecture Risk- Driven Iterations Continuous Integration Transition: Facilitate User Acceptance Measure User Satisfaction

Project Risks Resource Risks: People Organization Funding Time Technical Risks: Requirements Size and Scope Technology External Dependencies Reuse Success Criteria

Risk Prevention and Control l Creeping User Requirements l Schedule Pressure, Long Schedules, and Excessive Time to Market l Cost Overruns l Low Quality and Error-Prone Modules l High Maintenance Costs

Risk Factors Resistant to Control l Excessive Paperwork l Inadequate User Documentation l Low User Satisfaction l Friction Between Clients and Contractors l Legal Issues and Litigation Expense

Serious Software Risks l Inadequate Metrics l Inadequate Measurement l Excessive Schedule Pressure l Management Malpractice l Inaccurate Cost Estimating l Silver Bullet Syndrome l Creeping User Requirements l Low Quality l Low Productivity l Canceled Projects

Risk Factors to Define l Definition l Severity l Frequency l Occurrence l Susceptibility and Resistance l Root Causes l Associated Problems

Risk Factors to Define l Cost Impact l Methods of Prevention l Methods of Control l Product Support l Consulting Support l Education Support l Publication Support

Risk Factors to Define l Periodical Support l Standards Support

Address Data Risk through Reuse Architecture Design Code Requirements Data Human Interface Estimates Project Plans Test Plans Documentation

Objectives of Data Reuse Architecture Patterns and Frameworks Payoff Time

Scenarios Logical View Development View Process View Physical View The logical view to provide a static picture of the primary abstractions and their relationships the development view to show how the code is organized into subsystems and libraries and the use of commercial off-the-shelf (COTS) software the process view to show the processes and tasks the physical view to show the processors, devices, and links in the operational environment Finally, a scenario view explains how the other four views work together

Summary of the Five Views ViewChunkOrganizationRelations LogicalClassCategoryUsage, containment... ProcessTaskProcessInvocation, messages... DevelopmentModuleSubsystem, LayerVisibility, inclusion PhysicalProcessorAssignmentConnection ScenariosScriptsUse CaseExtends, uses