1. Information Systems in Organizations 3.2 Systems Management

2. Administrivia Learn IT #2 Grades are Posted – Grades are closed at midnight tonight Learn IT #3: All information in the gradebook – Due via email next Wednesday Exam #2 – Next Wednesday – Multiple choice format

3. Where are We?

4. Agenda Systems Development Lifecycle and the make vs buy decision Disruptions caused by the information age Opportunities that have come along

5. Build Your Own Study Guide Wikipedia: Systems Development Lifecycle Wikipedia: Systems Development Lifecycle What are the key points from this reading? Is it a sequential or iterative cycle? What are the key steps? Students will be called upon at random

6. Build Your Own Study Guide Build vs. Buy: How to Know When You Should Build Custom Software Over Canned Solutions Build vs. Buy: How to Know When You Should Build Custom Software Over Canned Solutions What are the key points from this reading? What is better, to buy solutions off the shelf or build your own solution? How does the decision impact the SDLC? Students will be called upon at random

8. ? What is the Systems Development Life Cycle (SDLC)? Waterfall Agile Requirements Analysis Design Coding Testing Training Go Live Maintenance Buy vs. Build

10. We Begin at the Beginning Preliminary Analysis – big ideas, discuss alternative solutions, {leave as is, go new, iterate} Make vs Buy Decision – About competitive advantage and cost – COTS packages are rigid – Custom packages are expensive

11. The {Make, Buy, Leave As Is} decision is based on the value of IT projects Often intangible and difficult to measure Main objectives are to reduce labor costs or gain new business – ROI using NPV calculation

12. Analysis and Design Systems Analysis – Requirements gathering (what must the system do) – This should ring bells to the business analyst conversation Systems Design – Detailed Mock of the system – Includes pseudocode, layouts, rules – Recall the systems analyst

13. Analysis and Design Development Integration and Testing Acceptance and Deployment Maintenance [Evaluation and Disposal]

14. There’s more than one way to skin a cat

15. Now that we know how to react to a problem. What are the types of exogenous shocks that the firm might have to respond to?

16. Build Your Own Study Guide What We Know, Now, About the Internet’s Disruptive Power What We Know, Now, About the Internet’s Disruptive Power What are the key points from this reading? Students will be called upon at random

17. The disruptive Power of the Internet How has the internet changed the way business operates? – How we market products and services Direct Marketing – How we process payment Payment through escrow and direct credit – How we discover new prospects / competitors The world is flat – New opportunities for crime Size and scope / methodologies

18. How has photography been disrupted?

20. Compliance Considerations Sarbanes-Oxley HIPAA HITECH FDA CMS Safe Harbor Agreement

21. Sarbanes-Oxley (2002) Enacted in response to major accounting scandals involving Enron and WorldCom Designed to prevent accounting fraud, increase corporate transparency, eliminate conflicts of interest, and protect whistle-blowers Has major impact on ERP systems and business software

22. Sarbanes-Oxley (2002) Public Company Accounting Oversight Board (PCAOB) Auditor Independence Corporate Responsibility Enhanced Financial Disclosures Analyst Conflicts of Interest Studies and Reports Corporate and Criminal Fraud Accountability White Collar Crime Penalty Enhancement Corporate Tax Returns (CEO) Corporate Fraud Accountability

23. HIPAA (1996) Title I: Health Care Access, Portability, and Renewability Title II: Preventing Health Care Fraud and Abuse; Administrative Simplification; Medical Liability Reform HIPAA Privacy Rule (2003) Transactions and Code Sets Rule Security Rule Unique Identifiers Rule (National Provider Identifier) Enforcement Rule

24. HITECH Act (2009) Health Information Technology for Economic and Clinical Health Act "the most important piece of health care legislation to be passed in the last 20 to 30 years” "foundation for health care reform” Electronic Health Record (EHR)

25. Effects of the Internet Increase in competition – Decrease in margins Increase in rate of change Digitization of goods – Marginal Cost  0 – Infinite shelf space

26. Build Your Own Study Guide CEA’s 5 Tech Trends for 2015: From Big Entertainment to Small Business CEA’s 5 Tech Trends for 2015: From Big Entertainment to Small Business What are the key points from this reading? Students will be called upon at random

27. In addition to regulatory action, there are shifts in opportunity creation Big Data Robotics Digital Health Entertainment Business Models

28. Big Data

29. Insurance underwriting based on monitoring Credit rating based on indicators Purchase habits iBeacon – shopping behavior How we talk it (plain English, please!) Unstructured data So many sources

30. Big Data: Analytics ^ Click image to watch video

31. Big Data: Analytics If Muhammed will not go to the mountain, the mountain will go to Muhammed. Bring the processors to the data instead of bringing the data to the processors.

32. Big Data: Analytics Parallel Processing ETL (Extract, Load, Transform) Evolution of data generation MapReduce Employees, Companies Consumers, Web 2.0 Machine- generated ? Social Mobile Weblog Sensors Monitors Satellite

33. Robotics Autonomous cars Drones Cleaning robots (Roomba) MobileEye Automated pet care Lawn and garden robots Robots for child care? Roads? Where we’re going, we don’t need roads.

34. Digital Health & Self Monitoring FitBit Apple Watch Insulin pump Seizure-monitoring app

35. Entertainment, Gaming, & Immersion D-Box entertainment theatres simulate motion & feel Guitammer Company and ESPN2 broadcast in 4D – Simulate feel, look, sound, and vibration of the experience – Experience the game from the player’s perspective Kinect Wii Project Holodeck Oculus Rift virtual reality ^ Click image to view link

36. Business Models

37. Build Your Own Study Guide Leagues see real benefits in daily fantasy sports Leagues see real benefits in daily fantasy sports What are 3 key points from this reading? What are 3 important details from this reading? Students will be called upon at random

38. Fantasy Sports Great for: Live viewership Advertising Content Providers Real money in imaginary games

39. Business Innovation Scalability Lower barriers of entry Lower switching costs Network effect Increasing returns to scale Shift to services – Think of SaaS – Software > hardware Multi-sided platforms – Uber – App Dev Big companies need to think about how they innovate – Alphabet as an example – Open Innovation as a model

40. GATHERING SYSTEM REQUIREMENTS In-Class Activity…March 11

41. LETS TAKE A BREAK

42. Build Your Own Study Guide Hidden in the long tail Hidden in the long tail What are the key points from this reading? Students will be called upon at random

43. Normal Distribution J. C. F. Gauss Central Limit Theorem Symmetry around μ μ is the confluence of the mean, median, and mode of the data μ splits the data in half

44. Implications of a Digital Economy Marginal Cost  0 What happens to shelf space? Why does this matter?

45. Long Tail Distribution Variety > bestsellers – Netflix – Amazon – iTunes There’s money in the tail – Advertising products Google Yahoo Bing – Travel bookings How does a company “fatten the tail?”

46. Netflix Long Tail “…gets most of its profits from a large number of infrequently requested movies rather than from few large and profitable movies.”

47. THE LONG TAIL In-Class Activity… March 14 http://www.boxofficemojo.com/yearly/chart/?page=1&view=releasedate&view2=domestic&yr=2011&p=.htm