1. MANAGING THE DIGITAL FIRM
Chapter 1
MANAGING THE
DIGITAL FIRM

2. How are information systems transforming organizations and management?
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
OBJECTIVES
What is the role of information systems in today’s competitive business environment?
What exactly is an information system? What do managers need to know about information systems?
How are information systems transforming organizations and management?

3. How has the Internet and Internet technology transformed business?
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
OBJECTIVES
How has the Internet and Internet technology transformed business?
What are the major management challenges to building and using information systems?

4. 1. Design competitive and effective systems
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
MANAGEMENT CHALLENGES
1. Design competitive and effective systems
2. Understand system requirements of global business environment
3. Create information architecture that supports organization’s goal

5. 4. Determine business value of information systems
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
MANAGEMENT CHALLENGES
4. Determine business value of information systems
5. Design systems people can control, understand and use in a socially, ethically responsible manner

6. Four powerful worldwide changes that
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
The Competitive Business Environment and the Emerging Digital Firm
Four powerful worldwide changes that
have altered the business environment:
Emergence of the Global Economy
Transformation of Industrial Economies
Transformation of the Business Enterprise
The Emerging Digital Firm

7. Emergence of the Global Economy
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
The Competitive Business Environment and the Emerging Digital Firm
Emergence of the Global Economy
Management and control in a global marketplace
Competition in world markets
Global work groups
Global delivery systems

8. Transformation of Industrial Economies
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
The Competitive Business Environment and the Emerging Digital Firm
Transformation of Industrial Economies
Knowledge- and information-based economies
Productivity
New products and services
Knowledge: a central productive and strategic asset

9. Transformation of Industrial Economies
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
The Competitive Business Environment and the Emerging Digital Firm
Transformation of Industrial Economies
Time-based competition
Shorter product life
Turbulent environment
Limited employee knowledge base

10. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Labor Force Composition
Figure 1-1

11. Transformation of the Business Enterprise
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
The Competitive Business Environment and the Emerging Digital Firm
Transformation of the Business Enterprise
Flattening
Decentralization
Flexibility
Location independence
Low transaction and coordination costs
Empowerment
Collaborative work and teamwork

12. Emergence of the Digital Firm
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
The Competitive Business Environment and the Emerging Digital Firm
Emergence of the Digital Firm
Digitally-enabled relationships with customers, suppliers, and employees
Core business processes accomplished via digital networks
Digital management of key corporate assets
Rapid sensing and responding to environmental changes

13. A set of interrelated components that collect
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
What Is an Information System?
A set of interrelated components that collect
(or retrieve), process, store, and distribute
information to support decision making and
control in an organization

14. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
What Is an Information System?
Data: Streams of raw facts representing events such as business transactions
Information: Clusters of facts that are meaningful and useful to human beings in the processes such as making decisions

15. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
What Is an Information System?
Figure 1-2
Data and Information

16. INPUT PROCESS OUTPUT FEEDBACK
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Activities in an Information System
INPUT
PROCESS
OUTPUT
FEEDBACK

17. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Functions of an Information System
Figure 1-3

18. Rely on computer hardware and software
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Computer-Based Information System (CBIS)
Rely on computer hardware and software
Processing and disseminating information

19. Fixed definitions of data, procedures
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Formal Systems
Fixed definitions of data, procedures
Collecting, storing, processing, disseminating, using data

20. An organizational and management solution
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
A Business Perspective on Information Systems
An organizational and management solution
Based on information technology
To a challenge posed by the environment

21. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Information Systems
ORGANIZATIONS
TECHNOLOGY
MANAGEMENT
INFORMATION
SYSTEMS
Figure 1-4

22. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
A Business Perspective on Information Systems
Information systems literacy: Broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems as well as technical knowledge about computers.
Computer literacy: Knowledge about information technology, focusing on under-standing how computer-based technologies work

23. Sales and marketing Manufacturing Finance Accounting Human resources
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Major Business Functions
Sales and marketing
Manufacturing
Finance
Accounting
Human resources

24. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Organizations
Key Elements:
People: Managers, knowledge workers, data workers, production or service workers
Structure: Organization chart , groups of specialists, products, geography

25. Politics: Power to persuade, get things done
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Organizations
Operating procedures: Standard operating procedures (SOP, rules for action)
Politics: Power to persuade, get things done
Culture: Customs of behavior

26. Middle managers: Carry out the programs and plans of senior management
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Management
Levels:
Senior managers: make long-range strategic decisions about products and services
Middle managers: Carry out the programs and plans of senior management
Operational managers: monitor the firm’s daily activities

27. Tools managers use to cope with change Hardware: Physical equipment
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Computer Technology
Tools managers use to cope with change
Hardware: Physical equipment
Software: Detailed preprogrammed instructions
Storage: Physical media for
storing data and the software

28. Networks: link computers to share data or resources
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
WHY INFORMATION SYSTEMS?
Computer Technology
Communications Technology: transfers data from one physical location to another
Networks: link computers to share data or resources

29. MIS TECHNICAL APPROACHES BEHAVIORAL APPROACHES
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
SOCIOLOGY
POLITICAL SCIENCE
PSYCHOLOGY
COMPUTER
SCIENCE
OPERATIONS
RESEARCH
MANAGEMENT
TECHNICAL APPROACHES
MIS
BEHAVIORAL APPROACHES
Figure 1-5

30. Optimize systems performance:
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Socio-Technical Systems
Optimize systems performance:
Technology and organization
Organizations mutually adjust to one another until fit is satisfactory

31. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Socio-technical Systems
SOURCE: Liker, et al, 1987
Figure 1-6

32. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
The Interdependence Between Organizations and Information Systems
Figure 1-7

33. Growing Importance 1950s: Technical changes
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
THE NETWORK REVOLUTION AND THE INTERNET
The Widening Scope of Information Systems
1950s: Technical changes
60s-70s: Managerial controls
80s-90s: Institutional core activities
Growing Importance

34. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
THE NETWORK REVOLUTION AND THE INTERNET
The Widening Scope of Information Systems
Figure 1-8

35. Communicate and collaborate Access information
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
What You Can Do on the Internet
Communicate and collaborate
Access information
Participate in discussions
Supply information
Find entertainment
Exchange business transactions

36. Flattening organizations Separating work from location
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
New Options for Organizational Design
Flattening organizations
Separating work from location
Reorganizing work-flows
Increasing flexibility
Redefining organizational boundaries

37. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
Flattening Organizations Information Systems
Figure 1-9

38. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
Redesigned Work Flow For Insurance Underwriting
Figure 1-10

39. Electronic commerce Electronic business
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
The Digital Firm
Electronic commerce
Electronic business
Electronic market: Information systems links, buyers and sellers to exchange information, products, services, payments

40. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
Figure 1-11

41. Internet links buyers, sellers Lower transaction costs
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
Electronic Commerce
Internet links buyers, sellers
Lower transaction costs
Goods and services advertised, bought, exchanged worldwide
Business-to-business transactions increasing

42. Internet: Business builds private, secure network
Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
Electronic Business
Internet: Business builds private, secure network
, Web documents, group software: Extends effective communication and control
Extranet: Extension of intranet to authorized external users

43. Essentials of Management Information Systems
Chapter 1 Managing the Digital Firm
TOWARD THE DIGITAL FIRM
Information Architecture and Information Technology Infrastructure
Figure 1-12

44. MANAGING THE DIGITAL FIRM
Chapter 1
MANAGING THE
DIGITAL FIRM

45. INFORMATION SYSTEMS IN THE ENTERPRISE
Chapter 2
INFORMATION
SYSTEMS IN THE
ENTERPRISE

46. How do information systems support the major business functions?
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
OBJECTIVES
What are the key system applications in a business? What role do they play?
How do information systems support the major business functions?
Why should managers pay attention to business processes?

47. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
OBJECTIVES
What are the business benefits of using collaborative commerce, private industrial networks and enterprise systems?
What types of information systems are used by companies that operate internationally?

48. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
MANAGEMENT CHALLENGES
Integration: Different systems serve variety of functions, connecting organizational levels difficult, costly
Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives

49. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Types of Information Systems
Figure 2-1

50. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Major Types of Systems
Executive Support Systems (ESS)
Decision Support Systems (DSS)
Management Information Systems (MIS)
Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Transaction Processing Systems (TPS)

51. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
TYPES OF INFORMATION SYSTEMS
Figure 2-2

52. Transaction Processing Systems (TPS):
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Transaction Processing Systems (TPS):
Basic business systems that serve the operational level
A computerized system that performs and records the daily routine transactions necessary to the conduct of the business

53. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Payroll TPS
Figure 2-3

54. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Types of TPS Systems
Figure 2-4

55. Knowledge Work Systems (KWS):
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Knowledge Work Systems (KWS):
Knowledge level
Inputs: Design specs
Processing: Modeling
Outputs: Designs, graphics
Users: Technical staff
Example: Engineering work station

56. Management Information System (MIS):
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Management Information System (MIS):
Management level
Inputs: High volume data
Processing: Simple models
Outputs: Summary reports
Users: Middle managers
Example: Annual budgeting

57. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Management Information System (MIS)
Figure 2-5

58. Structured and semi-structured decisions Report control oriented
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Management Information System (MIS)
Structured and semi-structured decisions
Report control oriented
Past and present data
Internal orientation
Lengthy design process

59. Decision Support System (DSS):
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Decision Support System (DSS):
Management level
Inputs: Low volume data
Processing: Interactive
Outputs: Decision analysis
Users: Professionals, staff
Example: Contract cost analysis

60. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Decision Support System (DSS)
Figure 2-6

61. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Decision Support System (DSS)
Figure 2-7

62. Executive Support System (ESS):
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Executive Support System (ESS):
Strategic level
Inputs: Aggregate data
Processing: Interactive
Outputs: Projections
Users: Senior managers
Example: 5-year operating plan

63. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Executive Support System (ESS)
Figure 2-8

64. Designed to the individual Ties CEO to all levels
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
KEY SYSTEM APPLICATIONS IN THE ORGANIZATION
Executive support system (ESS)
Top level management
Designed to the individual
Ties CEO to all levels
Very expensive to keep up
Extensive support staff

65. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTERRELATIONSHIPS AMONG SYSTEMS
Figure 2-9

66. Major functions of systems:
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems
Major functions of systems:
Sales management, market research, promotion, pricing, new products
Major application systems:
Sales order info system, market research system, pricing system

67. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Sales and Marketing Systems

68. Major functions of systems:
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Manufacturing and Production Systems
Major functions of systems:
Scheduling, purchasing, shipping, receiving, engineering, operations
Major application systems:
Materials resource planning systems, purchase order control systems, engineering systems, quality control systems

69. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Manufacturing and Production Systems

70. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Overview of Inventory Systems
Figure 2-10

71. Major functions of systems:
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Financing and Accounting Systems
Major functions of systems:
Budgeting, general ledger, billing, cost accounting
Major application systems:
General ledger, accounts receivable, accounts payable, budgeting, funds management systems

72. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Financing and Accounting Systems

73. Major functions of systems:
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems
Major functions of systems:
Personnel records, benefits, compensation, labor relations, training
Major application systems:
Payroll, employee records, benefit systems, career path systems, personnel training systems

74. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems

75. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
Human Resource Systems
Figure 2-11

76. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Business Processes and Information Systems
Business processes
Manner in which work is organized, coordinated, and focused to produce a valuable product or service
Concrete work flows of material, information, and knowledge—sets of activities

77. Unique ways to coordinate work, information, and knowledge
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Business Processes and Information Systems
Unique ways to coordinate work,
information, and knowledge
Ways in which management chooses
to coordinate work

78. Information systems help organizations
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Business Processes and Information Systems
Information systems help organizations
Achieve great efficiencies by automating parts of processes
Rethink and streamline processes

79. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Examples of Business Processes
Manufacturing and production: Assembling product, checking quality, producing bills of materials
Sales and marketing: Identifying customers, creating customer awareness, selling

80. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Examples of Business Processes
Finance and accounting: Paying creditors, creating financial statements, managing cash accounts
Human Resources: Hiring employees, evaluating performance, enrolling employees in benefits plans

81. Cross-Functional Business Processes
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Business Processes and Information Systems
Cross-Functional Business Processes
Transcend boundary between sales, marketing, manufacturing, and research and development
Group employees from different functional specialties to a complete piece of work
Example: Order Fulfillment Process

82. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
The Order Fulfillment Process
Figure 2-12

83. Customer Relationship Management (CRM)
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Customer Relationship Management (CRM)
Customer Relationship Management (CRM)
Manages all ways used by firms to deal with existing and potential new customers
Business and Technology discipline
Uses information system to coordinate entire business processes of a firm

84. Provides end-to-end customer care
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Customer Relationship Management (CRM)
Provides end-to-end customer care
Provides a unified view of customer across the company
Consolidates customer data from multiple sources and provides analytical tools for answering questions

85. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Customer Relationship Management (CRM)
Figure 2-13

86. Supply Chain Management (SCM)
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Supply Chain Management (SCM)
Close linkage and coordination of activities involved in buying, making, and moving a product
Integrates supplier, manufacturer, distributor, and customer logistics time
Reduces time, redundant effort, and inventory costs

87. Supply Chain Network of organizations and business processes
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Supply Chain
Network of organizations and business processes
Helps in procurement of materials, transformation of raw materials into intermediate and finished products

88. Helps in distribution of the finished products to customers
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Helps in distribution of the finished products to customers
Includes reverse logistics - returned items flow in the reverse direction from the buyer back to the seller

89. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management
Figure 2-14

90. Decide when, what to produce, store, move Rapidly communicate orders
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
How Information Systems Facilitate Supply Chain Management
Decide when, what to produce, store, move
Rapidly communicate orders
Communicate orders, track order status
Check inventory availability, monitor levels
Track shipments
Plan production based on actual demand
Rapidly communicate product design change
Provide product specifications
Share information about defect rates, returns

91. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Limitations:
Inefficiencies can waste as much as 25% of company’s operating costs
Bullwhip Effect: Information about the demand for the product gets distorted as it passes from one entity to next

92. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Supply Chain Management (SCM)
Supply chain planning system: Enables firm to generate forecasts for a product and to develop sourcing and a manufacturing plan for the product
Supply chain execution system: Manages flow of products through distribution centers and warehouses

93. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Collaborative Commerce
Uses digital technologies to enable multiple organizations to collaboratively design, develop, build, move, and manage products
Increases efficiencies in reducing product design life cycles, minimizing excess inventory, forecasting demand, and keeping partners and customers informed

94. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Collaborative Commerce
Figure 2-15

95. Private Industrial Networks
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Industrial Networks
Private Industrial Networks
Web-enabled networks
Link systems of multiple firms in an industry
Coordinate transorganizational business processes

96. Outside the organization’s boundaries: There are customers and vendors
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Traditional View of the Systems
Within the business: There are functions, each having its uses of information systems
Outside the organization’s boundaries: There are customers and vendors
Functions tend to work in isolation

97. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Traditional View of the Systems
Figure 2-16

98. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Enterprise Systems
Figure 2-17

99. Firm structure and organization: One organization
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Benefits of Enterprise Systems
Firm structure and organization: One organization
Management: Firm-wide knowledge-based management processes
Technology: Unified platform
Business: More efficient operations and customer-driven business processes

100. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES
Challenges of Enterprise Systems
Difficult to build: Require fundamental changes in the way the business operates
Technology: Require complex pieces of software and large investments of time, money, and expertise
Centralized organizational coordination and decision making: Not the best way for the firms to operate

101. Four main ways of organizing businesses internationally:
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTERNATIONAL INFORMATION SYSTEMS
Forms of Global Business Organization
Four main ways of organizing businesses
internationally:
Domestic Exporter: Heavy centralization of corporate activities in the home country of origin
Multinational: Financial management and control out of a central home base, production, sales and marketing operations decentralized

102. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTERNATIONAL INFORMATION SYSTEMS
Forms of Global Business Organization
Franchiser: Product created, designed, financed, and produced in the home country, relies on foreign personnel for production, marketing and human resources
Transnational: No national headquarters; value-added activities managed from a global perspective, no reference to national borders, sources of supply and demand and local competitive advantage optimized

103. Four types of system configuration:
Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTERNATIONAL INFORMATION SYSTEMS
Global System Configuration
Four types of system configuration:
Centralized Systems
Duplicated Systems
Decentralized Systems
Networked Systems

104. Essentials of Management Information Systems
Chapter 2 Information Systems in the Enterprise
INTERNATIONAL INFORMATION SYSYTEMS
Global System Configuration
Figure 2-18

105. INFORMATION SYSTEMS IN THE ENTERPRISE
Chapter 2
INFORMATION
SYSTEMS IN THE
ENTERPRISE

106. INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY
Chapter 3
INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY

107. What impact do information systems have on organizations?
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
OBJECTIVES
What do managers need to know about organizations in order to build and use information systems successfully?
What impact do information systems have on organizations?
How do information systems support the activities of managers in organizations?

108. How can businesses use information systems for competitive advantage?
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
OBJECTIVES
How can businesses use information systems for competitive advantage?
Why is it so difficult to build successful information systems, including systems that promote competitive advantage?

109. Sustainability of competitive advantage
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGEMENT CHALLENGES
Sustainability of competitive advantage
2. Fitting technology to the organization (or vice-versa)

110. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
The Two-Way Relationship Between Organizations and Information Technology
MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance
ORGANIZATIONS
INFORMATION TECHNOLOGY
Figure 3-1

111. Organization: Stable, formal structure
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Organization:
Stable, formal structure
Takes resources from environment and processes them to produce outputs

112. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Technical Microeconomic Definition of the Organization
Figure 3-2

113. Behavioral definition of Organization:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Behavioral definition of Organization:
Collection of rights, privileges, obligations, responsibilities
Delicately balanced
Conflict resolution

114. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
COMMON FEATURES OF ORGANIZATIONS
The Behavioral View of Organizations
Figure 3-3

115. Organizations are bureaucracies that have certain structural features
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Common Features of Organizations
Organizations are bureaucracies that have certain structural features

116. Structural Characteristics of Organizations:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Common Features of Organizations
Structural Characteristics of Organizations:
Clear division of labor
Hierarchy
Explicit rules and procedures
Impartial judgments

117. Structural Characteristics of Organizations (cont.):
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Common Features of Organizations
Structural Characteristics of Organizations (cont.):
Technical qualifications
Maximum organizational efficiency

118. Standard Operating Procedures:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Common Features of Organizations
Standard Operating Procedures:
Precise rules, procedures, and practices
Enable organizations to cope with all expected situations

119. Organizational Politics:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Common Features of Organizations
Organizational Politics:
Divergent viewpoints leads to political struggle, competition, and conflict
Hamper organizational change

120. Organizational Culture: a set of fundamental assumptions about:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Common Features of Organizations
Organizational Culture: a set of
fundamental assumptions about:
What products the organization should produce
How and where it should produce them
For whom they should be produced

121. All organizations have different:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS & INFORMATION SYSTEMS
Unique Features of Organizations
All organizations have different:
Structures/Organizational types
Goals
Constituencies
Leadership Styles, Tasks
Surrounding Environment

122. Entrepreneurial: Start up business
Essentials of Management Information Systems
Chapter 3 Information Systems , organizations, Management, and Strategy
ORGANIZATIONS & INFORMATION SYSTEMS
Organizational Structures
Entrepreneurial: Start up business
Machine bureaucracy: Midsize manufacturing firm
Divisionalized bureaucracy: Fortune 500
Professional bureaucracy: Law firms, hospitals, school systems
Adhocracy: Consulting firm

123. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS & INFORMATION SYSTEMS
Organization and Its Environment
Figure 3-4

124. Different groups and constituencies Nature of leadership
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
Other Differences Among Organizations
Ultimate goal
Different groups and constituencies
Nature of leadership
Tasks and technology

125. Information systems department:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Information Technology Infrastructure and Information Technology Services
Information systems department:
Formal organizational unit
Responsible for information systems in the organization

126. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Information Technology Services
Figure 3-5

127. Includes specialists: Programmers: Highly trained, write software
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Information Technology Infrastructure and Information Technology Services
Includes specialists:
Programmers: Highly trained, write software
Systems analysts: Translate business problems into solutions, act as liaisons between the information systems department and rest of the organization

128. Information system managers: Leaders of various specialists
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Information Technology Infrastructure and Information Technology Services
Specialists (cont.):
Information system managers: Leaders of various specialists
Chief information officer (CIO): Senior manager in charge of information systems function in the firm
End users: Department representatives outside the information system department for whom applications are developed

129. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
How Information Systems Affect Organizations
Economic theories
Information technology is a factor of production, like capital and labor

130. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
How Information Systems Affect Organizations
Transaction cost theory: Firms can conduct marketplace transactions internally more cheaply to grow larger

131. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Transaction Cost Theory
Figure 3-6

132. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
How Information Systems Affect Organizations
Agency theory: Firm is nexus of contracts among self-interested parties requiring supervision

133. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Agency Cost Theory
Figure 3-7

134. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
How Information Systems Affect Organizations
Behavioral theories:
Information technology could change hierarchy of decision making
Lower cost of information acquisition
Broadens the distribution of information

135. Virtual organization:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
How Information Systems Affect Organizations
Virtual organization:
Task force networked organizations
Uses networks to link people, assets, and ideas to create and distribute products and services without being limited to physical locations

136. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS
Implementing Change and Organizational Resistance
Figure 3-8

137. Classical model of management:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
The Role of Managers in Organizations
Classical model of management:
Traditional description of management
Focuses on formal functions: plan, organize, coordinate, decide, control
Behavioral model of management:
Describes management based on observations of managers on the job

138. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
The Role of Managers in Organizations
Managerial roles
Expectation of activities that managers should perform in an organization

139. Interpersonal: Managers act as figureheads and leaders
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
The Role of Managers in Organizations
Categories
Interpersonal: Managers act as figureheads and leaders
Informational: Managers receive and disseminate critical information, nerve centers
Decisional: Managers initiate activities, allocate resources, and negotiate conflicts

140. Process of Decision Making
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Managers and Decision Making
Process of Decision Making
Strategic Decision Making: Determines long-term objectives, resources, and policies
Management Control: Monitors effective or efficient usage of resources and performance of operational units

141. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Managers and Decision Making
Operational control: Determines how to perform specific tasks set by strategic and middle-management decision makers
Knowledge-level decision making: Evaluates new ideas for products, services, ways to communicate new knowledge, ways to distribute information

142. Decisions are classified as:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Managers and Decision Making
Decisions are classified as:
Unstructured: Non routine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making
Structured: Repetitive, routine, handled using a definite procedure

143. TPS MIS OAS DSS ESS KWS Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Different Kinds of Information Systems
TPS
OAS
MIS
KWS
DSS
ESS
Organizational Level
TYPE OF
DECISION
OPERATIONAL
KNOWLEDGE
MANAGEMENT
STRATEGIC
STRUCTURED
ACCOUNTS
RECEIVABLE
ELECTRONIC
PRODUCTION
SCHEDULING
COST OVERRUNS
SEMI-
BUDGET
PREPARATION
PROJECT
FACILITY
LOCATION
UNSTRUCTURED
PRODUCT DESIGN
NEW PRODUCTS
NEW MARKETS
Figure 3-9

144. Intelligence: Collect information, identify problem
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Stages of Decision Making
Intelligence: Collect information, identify problem
Design: Conceive alternative solution to a problem
Choice: Select among the alternative solutions
Implementation: Put decision into effect and provide report on the progress of solution

145. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Decision-Making Process
Figure 3-10

146. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Models of Decision Making
Rational: People, organizations, and nations engage in consistent, value-maximizing calculations or adaptations within certain constraints
Cognitive style: Underlying personality dispositions toward the treatment of information, selection of alternatives, and evaluation of consequences

147. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Models of Decision Making
Systematic decision makers: Cognitive style, describes people who approach a problem by structuring it in terms of some formal method
Intuitive: Cognitive style, describes people approaching a problem with multiple methods in an unstructured manner

148. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Models of Decision Making
Organizational models of decision making: Consider structural and political characteristics of an organization

149. Factors to consider while planning a new system:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Implications for the Design and Understanding of Information Systems
Factors to consider while planning a
new system:
Organizational environment
Organizational structure, hierarchy, specialization, standard operating procedures

150. Culture and politics of the organization
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Implications for the Design and Understanding of Information Systems
Culture and politics of the organization
Type of organization and its style of leadership

151. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Implications for the Design and Understanding of Information Systems
Groups affected by the system and the attitudes of workers who will be using the system
Kinds of tasks, decisions, and business processes, information system is designed to assist

152. Characteristics to be kept in mind while designing systems:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Implications for the Design and Understanding of Information Systems
Characteristics to be kept in mind
while designing systems:
Flexibility and multiple options for handling data and evaluating information
Capability to support a variety of styles, skills, and knowledge

153. Capability to keep track of many alternatives and consequences
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
Implications for the Design and Understanding of Information Systems
Capability to keep track of many alternatives and consequences
Sensitivity to the organization’s bureaucratic and political requirements

154. Computer system at any level of an organization
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
What is Strategic Information System
Computer system at any level of an organization
Changes goals, operations, products, services, or environmental relationships
Helps organization gain a competitive advantage

155. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model
Digital firms
Manage the supply chain by building efficient customer “sense and response” systems
Participate in “value webs” to deliver new products and services

156. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model
Value Chain Model:
Highlights the primary or support activities adding a margin of value to products or services
Helps achieve a competitive advantage

157. Primary Activities: Support Activities:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model
Primary Activities:
Directly related to the production and distribution of a firm’s products or services
Support Activities:
Make the delivery of primary activities possible
Consist of the organization’s infrastructure, human resources, technology, and procurement

158. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Firm Value Chain
Figure 3-11

159. Value Web: Customer-driven network of independent firms
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model
Value Web:
Customer-driven network of independent firms
Uses information technology to coordinate value chains for collectively producing a product or service

160. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
The Value Web
Figure 3-12

161. Product Differentiation:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model
Product Differentiation:
Competitive strategy
Creates brand loyalty by developing new and unique products and services
Products and services not easily duplicated by competitors

162. Focused Differentiation:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model
Focused Differentiation:
Competitive strategy
Enables development of new market niches for specialized products or services
Helps businesses compete better than competitors in the target areas

163. Efficient Customer Response System:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Supply Chain Management and Efficient Customer Response System
Efficient Customer Response System:
Directly links consumer behavior back to distribution, production, and supply chains

164. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Supply Chain Management and Efficient Customer Response System
Switching costs:
Expense incurred by a customer or company in terms of time and expenditure of resources when changing from one supplier or system to another

165. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Stockless Inventory Compared to Traditional and Just-in-time Supply Methods
Figure 3-13

166. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Enhancing Core Competencies
Figure 3-14

167. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Firm-Level Strategy and Information Technology
Core Competency:
Activity at which a firm excels as a world-class leader
Information system encouraging the sharing of knowledge across business units enhances competency

168. Information partnership:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Industry-Level Strategy and Information Systems
Information partnership:
Cooperative alliance formed between two or more corporations for sharing information to gain strategic advantage
Help firms gain access to new customers, creating new opportunities for cross-selling and targeting products

169. The competitive forces model:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Industry-Level Strategy and Information Systems
The competitive forces model:
Describes the interaction of external influences, specifically threats and opportunities, affecting an organization’s strategy and ability to compete

170. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Porter’s Competitive Forces Model
Figure 3-15

171. Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
New Competitive Forces Model
Figure 3-16

172. Network Economics: Model of strategic systems at the industry level
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Industry-Level Strategy and Information Systems
Network Economics:
Model of strategic systems at the industry level
Based on the concept of a network
Adding another participant entails zero marginal costs but can create much larger marginal gain

173. Managing strategic transitions:
Essentials of Management Information Systems
Chapter 3 Information Systems , Organizations, Management, and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Using Systems for Competitive Advantage: Management Issues
Managing strategic transitions:
Movement from one level of sociotechnical system to another
Required when adopting strategic systems demanding changes in the social and technical elements of an organization

174. INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY
Chapter 3
INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY

175. THE DIGITAL FIRM: ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS
Chapter 4
THE DIGITAL FIRM: ELECTRONIC COMMERCE AND ELECTRONIC BUSINESS

176. What are the principal payment systems for electronic commerce?
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
OBJECTIVES
How has Internet technology changed value propositions and business models?
What is electronic commerce? How has electronic commerce changed consumer retailing and business-to-business transactions?
What are the principal payment systems for electronic commerce?

177. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
OBJECTIVES
How can Internet technology support electronic business and supply chain management?
What are the major managerial and organizational challenges posed by electronic commerce and electronic business?

178. Challenges and opportunities
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
MANAGEMENT CHALLENGES
Emerging digital firm
Electronic commerce
Electronic business
Challenges and opportunities

179. Electronic commerce and electronic business require new mind set
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
MANAGEMENT CHALLENGES
Electronic commerce and electronic business require new mind set
Finding a successful Internet business model

180. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Technology and The Digital Firm
Information technology infrastructure: Provides a universal and easy-to-use set of technologies and technology standards that can be adopted by all organizations
Direct communication between trading partners: Disintermediation removes intermediate layers, streamlines process

181. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Technology and the Digital Firm
Round-the-clock service: Web sites available to consumers 24 hours a day
Extended distribution channels: Outlets created for attracting customers who otherwise would not patronize
Reduced transaction costs: Costs of searching for buyers, sellers, etc. reduced

182. Business Model: Defines an enterprise
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
New Business Models and Value Propositions
Business Model:
Defines an enterprise
Describes how the enterprise delivers a product or service
Shows how the enterprise creates wealth

183. Increases richness: Depth and detail of information
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
The Changing Economies of Information
Information asymmetry: One party in a transaction has more information than the other
Increases richness: Depth and detail of information
Increases reach: Number of people contacted

184. New levels of richness and reach attainable
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
The Changing Economics of Information
Richness
New levels of richness and reach attainable
Reach
ENABLERS
Explosion of connectivity
Dissemination of standards
Figure 4-1

185. Virtual storefront: Sells goods, services on-line
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Business Models
Virtual storefront: Sells goods, services on-line
Information broker: Provide info on products, pricing, etc.
Transaction broker: Buyers view rates, terms from various sources

186. Online Marketplace: Concentrates information from several providers
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Business Models
Online Marketplace: Concentrates information from several providers
Content provider: Creates revenue through providing client for a fee, and advertising

187. Virtual community: Chat room, on-line meeting place
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Business Models
On-line service provider: Provides service, support for hardware, software products
Virtual community: Chat room, on-line meeting place

188. Portal: Initial point of entry to Web, specialized content, services
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Business Models
Portal: Initial point of entry to Web, specialized content, services
Syndicator: Aggregate information from several sources sold to other companies
Auction: Electronic clearinghouse products, prices, change in response to demand

189. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE, ELECTRONIC BUSINESS, AND THE EMERGING DIGITAL FIRM
Internet Business Models
Dynamic pricing: real-time interactions between buyers and sellers determine worth of items
Banner ad: Graphic display used for advertising, linked to the advertiser’s Web site

190. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Categories of Electronic Commerce
Business-to-customer (B2C): Retailing of products and services directly to individual customers
Business-to-business (B2B): Sales of goods and services among businesses
Consumer-to-consumer (C2C): Individuals use Web for private sales or exchange

191. Web sites: Provide information on products, services, prices, orders
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Business-To-Consumer
Customer-centered retailing: Closer, yet more cost-effective relationship with customers
Web sites: Provide information on products, services, prices, orders

192. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Business-To-Consumer
Disintermediation: The removal of organizations or business process layers responsible for certain intermediary steps in a value chain
Reintermediation: The shifting of the intermediary role in a value chain to a new source

193. Manufacturer Distributor Customer Retailer
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Benefits of Disintermediation to the Consumer
Cost/
Sweater
$48.50
$40.34
$20.45
Manufacturer
Distributor
Customer
Retailer
Figure 4-2

194. Web personalization: Benefits of using individual sales people
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Interactive Marketing and Personalization
Web personalization:
Benefits of using individual sales people
Dramatically lower costs

195. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Web Site Personalization

196. Mobile commerce (m-commerce):
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
M-Commerce and Next Generation Marketing
Mobile commerce (m-commerce):
Wireless devices used to conduct both business-to-consumer and business-to-business e-commerce transactions over the Internet
Extend personalization by delivering new value-added services directly to customers at any time and place

197. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Customer Personalization
Figure 4-4

198. Automation of purchase, sale transactions from business to business
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Business-To-Business Electronic Commerce
Automation of purchase, sale transactions
from business to business
Private industrial networks: Coordination between companies for efficient supply chain management and collaborative activities
Electronic hubs: On-line marketplaces, point-to-point connections, integrated information
Ritu, plz check the content

199. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
A Private Industrial Network
Figure 4-5

200. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
A Net Marketplace
Figure 4-6

201. Exchanges: Third-party net marketplace Primarily transaction oriented
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Exchanges: Third-party net marketplace
Primarily transaction oriented
Connects buyers and suppliers for spot purchasing

202. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Electronic Commerce Payment Systems

203. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC COMMERCE
Electronic Commerce Information Flows
Figure 4-7

204. Functional applications Supply chain management
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
How Intranets Support Electronic Business
Benefits
Functional applications
Supply chain management

205. Connectivity: accessible from most computing platforms
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Benefits of Intranets
Connectivity: accessible from most computing platforms
Can be tied to internal corporate systems and core transaction databases
Can create interactive applications
Scalable to larger or smaller computing platforms

206. Easy-to-use, universal Web interface Low start-up costs
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Benefits of Intranets
Easy-to-use, universal Web interface
Low start-up costs
Richer, more responsive information environment
Reduced information distribution costs

207. Finance and accounting Human resources Sales and marketing
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Functional Applications of Intranet
Finance and accounting
Human resources
Sales and marketing
Manufacturing and production

208. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Functional Applications of Intranets
Figure 4-8

209. General ledger reporting Project costing Annual reports Budgeting
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Finance and Accounting
General ledger reporting
Project costing
Annual reports
Budgeting

210. Company Employees On-line publishing of corporate policy
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Human Resources
Company
On-line publishing of corporate policy
Job postings and internal job transfers
Company telephone directories, and training
Employees
Healthcare
Employee savings
Competency tests

211. Promotional campaigns Sales presentations Sales contracts
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Sales and Marketing
Competitor analysis
Price updates
Promotional campaigns
Sales presentations
Sales contracts

212. Maintenance schedules Design specifications Machine outputs
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Manufacturing and Production
Quality measurements
Maintenance schedules
Design specifications
Machine outputs
Order tracking

213. Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
The Future Internet-Driven Supply Chain
Figure 4-9

214. Unproven business models Business process change requirements
Essentials of Management Information Systems
Chapter 4 Electronic Commerce & Electronic Business
MANGEMENT CHALLENGES & OPPORTUNITIES
Unproven business models
Business process change requirements
Channel conflicts
Legal issues
Security and privacy

215. ELECTRONIC COMMERCE & ELECTRONIC BUSINESS
Chapter 4
ELECTRONIC COMMERCE & ELECTRONIC BUSINESS

216. Chapter 5
ETHICAL AND
SOCIAL ISSUES
IN THE DIGITAL
FIRM

217. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
OBJECTIVES
What ethical, social, and political issues are raised by information systems?
Are there specific principles for conduct that can be used to guide decisions about ethical dilemmas?
Why does contemporary information systems technology pose challenges to the protection of individual privacy and intellectual property?

218. How have information systems affected everyday life?
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
OBJECTIVES
How have information systems affected everyday life?
How can organizations develop corporate policies for ethical conduct?

219. Understanding the moral risks of new technology
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
MANAGEMENT CHALLENGES
Understanding the moral risks of new technology
Establishing corporate ethics policies that include information systems issues

220. Principles of right and wrong
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS
Ethics
Principles of right and wrong
Can be used by individuals acting as free moral agents to make choices to guide their behavior

221. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS
A Model for Thinking about Ethical, Social, and Political Issues
Illustrates the dynamics connecting ethical, social, and political issues
Identifies the moral dimensions of the “information society,” across individual, social, and political levels of action

222. Information rights and obligations Property rights
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS
Moral Dimensions of the Information Age
Information rights and obligations
Property rights
Accountability and control
System quality
Quality of life

223. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS
The Relationship between Ethical, Social, and Political Issues in an Information Society
Figure 5-1

224. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS
Key Technology Trends that Raise Ethical Issues
Computing power doubles every 18 months: Dependence on computer systems
Rapidly declining data storage costs: Easy maintenance of individual database

225. Datamining advances: Analysis of vast quantities of data
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS
Key Technology Trends that Raise Ethical Issues
Datamining advances: Analysis of vast quantities of data
Networking advances and the Internet: Remotely accessing personal data

226. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Basic Concepts: Responsibility, Accountability, and Liability
Responsibility: Accepting the potential costs, duties, and obligations for decisions
Accountability: Assessing responsibility for decisions made and actions taken

227. Liability: Permits individuals to recover damages
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Basic Concepts: Responsibility, Accountability, and Liability
Liability: Permits individuals to recover damages
Due process: Laws are well-known and understood, with an ability to appeal to higher authorities

228. Golden rule: Do unto others as you would have them do unto you
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Candidate Ethical Principles
Golden rule: Do unto others as you would have them do unto you
Immanuel Kant’s categorical imperative: If an action is not right for everyone to take, then it is not right for anyone

229. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Candidate Ethical Principles
Descartes’ rule of change: If an action cannot be taken repeatedly, then it is not right to be taken at any time
Utilitarian principle: Put values in rank order and understand consequences of various courses of action

230. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Candidate Ethical Principles
Risk aversion principle: Take the action that produces the least harm or incurs the least cost
Ethical “no free lunch” rule: All tangible and intangible objects are owned by creator who wants compensation for the work

231. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Professional Codes of Conduct
Promises by professions to regulate themselves in the general interest of society
Promulgated by associations such as the American Medical Association (AMA) and the American Bar Association (ABA)

232. Information system being used by organizations to:
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
ETHICS IN AN INFORMATION SOCIETY
Some Real-World Ethical Dilemmas
Information system being used by
organizations to:
Minimize drains on productivity
Prevent wastage of resources for non-business activities

233. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Information Rights: Privacy and Freedom in the Internet Age
Privacy: Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or the state
Fair information practices: Set of principles governing the collection and use of information on the basis of U.S. and European privacy laws

234. General Federal Privacy Laws
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
U.S. Federal Privacy Laws
General Federal Privacy Laws
Freedom of Information Act, 1968
Privacy Act of 1974
Electronic Communications Privacy Act of 1986
Computer Matching and Privacy Protection Act of 1988
Computer Security Act of 1987
Federal Managers Financial Integrity Act of 1982

235. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
The European Directive on Data Protection
Informed consent
Consent given with knowledge of all facts needed to make a rational decision

236. Cookies Tiny files deposited on a hard drive
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Internet Challenges to Privacy
Cookies
Tiny files deposited on a hard drive
Used to identify the visitor and track visits to the Web site

237. Web bugs Tiny graphic files embedded in e-mail messages and Web pages
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Internet Challenges to Privacy
Web bugs
Tiny graphic files embedded in messages and Web pages
Designed to monitor on-line Internet user behavior

238. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Internet Challenges to Privacy
Opt-out model
Informed consent permitting the collection of personal information
Consumer specifically requests for the data not to be collected

239. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Internet Challenges to Privacy
Opt-in model
Informed consent prohibiting an organization from collecting any personal information
Individual has to approve information collection and use

240. P3P Platform for Privacy Preferences Project
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Technical Solutions
P3P
Platform for Privacy Preferences Project
Industry standard designed to give users more control over personal information

241. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Technical Solutions

242. Under what conditions should the privacy of others be invaded?
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Ethical Issues
Under what conditions should the privacy of others be invaded?
What legitimaizes intruding into others’ lives through unobtrusive surveillance, through market research, or by whatever means?

243. Do we have to inform people that we are eavesdropping?
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Ethical Issues
Do we have to inform people that we are eavesdropping?
Do we have to inform people that we are using credit history information for employment screening purposes?

244. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Social Issues
Concerns the development of “expectations of privacy” or privacy norms, as well as public attitudes

245. Concern the development of statutes
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Political Issues
Concern the development of statutes
Govern the relations between record keepers and individuals

246. Intellectual property: Intangible creations protected by law
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Property Rights: Intellectual Property
Intellectual property: Intangible creations protected by law
Trade secret: Intellectual work or product belonging to business, not in public domain

247. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Property Rights: Intellectual Property
Copyright: Statutory grant protecting intellectual property from getting copied for 28 years
Patents: Legal document granting the owner an exclusive monopoly on the ideas behind an invention for 20 years

248. Ethical issues: Production of intellectual property
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Challenges to Intellectual Property Rights
Ethical issues: Production of intellectual property
Social issues: Current intellectual property laws breaking down
Political issues: Creation of new property protection measures

249. Ethical issues: Who is morally responsible for consequences of use?
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Accountability, Liability and Control
Ethical issues: Who is morally responsible for consequences of use?
Social issues: What should society expect and allow?
Political issues: To what extent should government intervene, protect?

250. Political Issues: Laws of responsibility and accountability
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
System Quality: Data Quality and System Errors
Ethical issues: At what point to release the software/services for consumption?
Social issues: Should people be encouraged to believe systems are infallible?
Political Issues: Laws of responsibility and accountability

251. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Quality of Life: Equity, Access, and Boundaries
Balancing power center versus periphery: Key policy decisions centralized as in the past
Rapidity of change- Reduced response time to competition: Reduced normal social buffers

252. Dependence and vulnerability: No regulatory or standard-setting forces
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Quality of Life: Equity, Access, and Boundaries
Maintaining boundaries: Family, work, and leisure: “Do anything anywhere” environment blurring boundaries between work and family time
Dependence and vulnerability: No regulatory or standard-setting forces

253. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Quality of Life: Equity, Access, and Boundaries
Computer crime: Commission of illegal acts through the use of a computer or against a computer system
Computer abuse: Commission of acts involving a computer that may not be illegal but are considered unethical

254. Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Quality of Life: Equity, Access, and Boundaries
Employment- Trickle-down technology and reengineering job loss: Causes millions of middle-level managers and clerical workers to lose their jobs
Equity and access- Increasing racial and social class cleavages: Society of computer literate and skilled, versus computer illiterate and unskilled

255. Repetitive stress injury (RSI)
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Health Risks: RSI, CVS, and Technostress
Repetitive stress injury (RSI)
Occupational disease
Muscle groups are forced through repetitive actions with high-impact loads or thousands of repetitions with low impact loads

256. Carpal tunnel syndrome (CTS)
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Health Risks: RSI, CVS, and Technostress
Carpal tunnel syndrome (CTS)
Type of RSI
Pressure on the median nerve through the wrist’s bony carpal tunnel structure produces pain

257. Computer vision syndrome (CVS)
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Health Risks: RSI, CVS, and Technostress
Computer vision syndrome (CVS)
Eyestrain condition
Related to computer display screen usage
Symptoms include headaches, blurred vision, and dry and irritated eyes

258. Technostress Stress induced by computer use
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Health Risks: RSI, CVS, and Technostress
Technostress
Stress induced by computer use
Symptoms include aggravation, hostility toward humans, impatience, and enervation

259. Information rights and obligations Property rights and obligations
Essentials of Management Information Systems
Chapter 5 Ethical and Social Issues in the Digital Firm
THE MORAL DIMENSIONS OF INFORMATION SYSTEMS
Management Actions: A Corporate Code of Ethics
Information rights and obligations
Property rights and obligations
Accountability and control
System quality
Quality of life

260. Chapter 5
ETHICAL AND
SOCIAL ISSUES
IN THE DIGITAL
FIRM

261. MANAGING HARDWARE AND SOFTWARE ASSETS
Chapter 6
MANAGING
HARDWARE AND
SOFTWARE
ASSETS

262. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
OBJECTIVES
What computer processing and storage capability does our organization need to handle its information and business transactions?
What arrangement of computers and computer processing would best benefit our organization?
What kinds of software and software tools do we need to run our business? What criteria should we use to select our software technology?
Nidhi-Too congested! Can we shorten it ?

263. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
OBJECTIVES
Of what new software technologies should we be aware? How would they benefit our organization?
How should we acquire and manage the firm’s hardware and software assets?

264. The centralization versus decentralization debate
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
MANAGEMENT CHALLENGES
The centralization versus decentralization debate
The application backlog

265. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Hardware Components of a Computer System
Figure 6-1

266. Represents smallest unit of data in the form of either 0 or 1
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
The Computer System
bit
Binary digit
Represents smallest unit of data in the form of either 0 or 1
byte
String of bits, usually eight
Stores one number or character

267. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Bits and Bytes
Figure 6-2

268. Central Processing Unit (CPU)
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
The CPU and Primary Storage
Central Processing Unit (CPU)
Manipulates symbols, numbers, and letters
Controls other parts of the computer system

269. Temporarily stores program instructions
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
The CPU and Primary Storage
Primary Storage
Temporarily stores program instructions
Data being used by the instructions

270. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
The CPU and Primary Storage
Figure 6-3

271. Software program being executed Operating system programs
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Primary Storage
Stores
Software program being executed
Operating system programs
Data being used by program

272. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Primary Storage
Arithmetic-logic unit (ALU): performs the computer’s principal logic and arithmetic operations
Control Unit: coordinates and controls the other parts of the computer system

273. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Primary Storage
RAM: Directly accesses any randomly chosen location in the same amount of time
ROM: Semiconductor memory chips with program instructions, cannot be written to

274. Microprocessors and Processing Power
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Computer Processing
Microprocessors and Processing Power
Integrated circuit technology
Integrates the computer’s memory, logic, and control on a single chip

275. Parallel Processing Problem broken down into smaller parts
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Computer Processing
Parallel Processing
Problem broken down into smaller parts
Multiple instructions processed simultaneously with multiple processors

276. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
COMPUTER HARDWARE AND INFORMATION TECHNOLOGY INFRASTRUCTURE
Sequential and Parallel Processing
Figure 6-4

277. Magnetic disk: Floppy disk, Hard disk Optical disks: CD-ROM, DVDs
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
Secondary Storage Technology
Magnetic disk: Floppy disk, Hard disk
Optical disks: CD-ROM, DVDs
Magnetic tape: Inexpensive, older secondary-storage medium
New storage alternatives: Storage Area Networks (SANs)

278. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
A Storage Area Network (SAN)
Figure 6-5

279. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
Input and Output Devices

280. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
Input and Output Devices

281. Batch processing On-line processing
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
Batch and On-Line Input and Processing
Batch processing
Transactions accumulated and stored until processing
On-line processing
Transactions are entered directly into computer and processed immediately

282. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
A Comparison of Batch and On-line Processing
Figure 6-6

283. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
STORAGE, INPUT AND OUTPUT TECHNOLOGY
Interactive Multimedia
Integrates two or more types of media into a computer-based application

284. Mainframes: Largest computer, massive memory, rapid processing power
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Classifying Computers
Mainframes: Largest computer, massive memory, rapid processing power
Midrange computers: Less powerful, less expensive, and smaller than a mainframe
Server: Provides software and other resources to computers over a network

285. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Classifying Computers
Minicomputers: Middle-range computer, used in universities, factories, or research laboratories
Server Farm: Large group of servers maintained by a commercial vendor, available for electronic commerce and other activities

286. Personal Computer (PC): Small desktop or portable computer
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Classifying Computers
Personal Computer (PC): Small desktop or portable computer
Workstation: Desktop computer with powerful graphics and mathematical capabilities
Supercomputer: Highly sophisticated and powerful, performs complex computations

287. Centralized processing: Accomplished by one large central computer
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Computer Networks and Client/Server Computing
Distributed processing: Distribution of processing work among multiple computers
Centralized processing: Accomplished by one large central computer
Client/server computing: Splits processing between “clients” and “servers” on network

288. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Client/Server Computing
Figure 6-7

289. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Types of Client/Server Computing
Figure 6-8

290. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CATEGORIES OF COMPUTERS AND COMPUTER SYSTEMS
Network Computers and Peer-to-Peer Computing
Network computer (NC): Simplified desktop computer, does not store data permanently
Peer-to-peer computing: Distributed processing that links computers through Internet or private networks

291. Software program: Series of statements or instructions to the computer
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Software program: Series of statements or instructions to the computer
System software: Generalized programs, manages computer’s resources
Application software: Programs written to perform functions specified by end users

292. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
The Major Types of Software
Figure 6-9

293. Operating system System software Manages and controls computer
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
System Software and PC Operating Systems
Operating system
System software
Manages and controls computer

294. Functions of the operating system
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
System Software and PC Operating Systems
Functions of the operating system
Allocates and assigns system resources
Schedules use of computer resources
Monitors computer system activities
Provides locations in primary memory for data and programs
Controls the input and output devices

295. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
System Software and PC Operating Systems
Multiprogramming
Executes two or more programs concurrently using the same computer
CPU executes only one program but services the input/output needs of others

296. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Single-Program Execution Versus Multiprogramming
Figure 6-10

297. Multitasking Virtual Storage
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
System Software and PC Operating Systems
Multitasking
Multiprogramming capability of single-user operating systems
Virtual Storage
Handles programs more efficiently by dividing the programs into small fixed or variable length

298. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Virtual Storage
Figure 6-11

299. Time Sharing Multiprocessing
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
System Software and PC Operating Systems
Time Sharing
Sharing of computer resources by many users simultaneously
Multiprocessing
Executing two or more instructions simultaneously in a single computer using multiple central processing units

300. Language translation and utility software
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
System Software and PC Operating Systems
Language translation and utility
software
Translates high-level language programs into machine language

301. Windows Millennium Edition (Windows Me) Windows 2000
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
PC Operating Systems and Graphical User Interfaces
GUI
Microsoft’s Windows 98
Windows Millennium Edition (Windows Me)
Windows 2000

302. Windows XP UNIX Linux Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
PC Operating Systems and Graphical User Interfaces
Windows XP
UNIX
Linux

303. Programming languages: Consists of 1s and 0s of binary code
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Application Software and Programming Languages
Programming languages: Consists of 1s and 0s of binary code
Assembly language: Resembles machine language, substitutes mnemonics for numeric codes
Third-generation languages: FORTRAN, COBOL, BASIC, Pascal, and C

304. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Assembly language
Figure 6-12

305. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
FORTRAN
Figure 6-13

306. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
COBOL
Figure 6-14

307. Fourth-generation language: Employed directly by end users
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Fourth-Generation Languages and PC Software Tools
Fourth-generation language: Employed directly by end users
Natural languages: Close to human language

308. Query languages: Provides immediate on-line answers to requests
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Fourth-Generation Languages and PC Software Tools
Query languages: Provides immediate on-line answers to requests
Application software packages and PC software tools: Word Processing Software, Spreadsheets, Data Management Software

309. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Spreadsheet Software
Figure 6-16

310. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Data Management Software
Figure 6-17

311. Enterprise software Set of integrated modules
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Software for Enterprise Integration: Enterprise Software and Middleware
Enterprise software
Set of integrated modules
Allows data to be used by multiple functions and business processes

312. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Software for Enterprise Integration: Enterprise Software and Middleware
Middleware
Allows two disparate applications to communicate to exchange data
Web server
Manages requests for Web pages on the computer where they are stored

313. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Middleware
Figure 6-18

314. Enterprise application integration software
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
TYPES OF SOFTWARE
Software for Enterprise Integration: Enterprise Software and Middleware
Enterprise application integration
software
Ties together multiple applications to support enterprise integration

315. Object-oriented programming Visual programming
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CONTEMPORARY TOOLS FOR SOFTWARE DEVELOPMENT
Object-Oriented Programming
Object-oriented programming
Approach to software development that combines data and procedures into a single object
Visual programming
Construction of software programs by selecting and arranging programming objects

316. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CONTEMPORARY TOOLS FOR SOFTWARE DEVELOPMENT
Class, subclasses, and overriding
Figure 6-19

317. Delivers the software functionality needed for a particular task
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CONTEMPORARY TOOLS FOR SOFTWARE DEVELOPMENT
Java
Programming language
Delivers the software functionality needed for a particular task
Runs on any computer and operating system

318. Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
CONTEMPORARY TOOLS FOR SOFTWARE DEVELOPMENT
Hypertext Markup Language (HTML) and XML
Hypertext Markup Language (HTML): Page description language, creates Web pages and other hypermedia documents
XML (eXtensible Markup Language): General-purpose language, supports links to multiple documents, used for both Web and non-Web applications

319. Capacity planning: Process of predicting the computing power
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
HARDWARE TECHNOLOGY REQUIREMENTS
Hardware Technology Requirements for Electronic Commerce and Digital Firm
Capacity planning: Process of predicting the computing power
Scalability: Ability of a computer, product, or system to expand and to serve without breaking down

320. Designates the total cost of owning technology resources
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
HARDWARE TECHNOLOGY REQUIREMENTS
Total Cost of Ownership (TCO) of Technology Assets
Designates the total cost of owning technology resources
Includes initial purchase costs, cost of hardware and software upgrades, maintenance, technical support, and training

321. On-Line storage service providers
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
HARDWARE TECHNOLOGY REQUIREMENTS
Rent or Build Decisions: Using Technology Service Providers
On-Line storage service providers
Third-party provider
Rent out storage space to subscribers over the Web
Allow customers to store and access data

322. Application Service Providers (ASPs)
Essentials of Management Information Systems
Chapter 6 Managing Hardware and Software Assets
HARDWARE TECHNOLOGY REQUIREMENTS
Rent or Build Decisions: Using Technology Service Providers
Application Service Providers (ASPs)
Provide software that can be rented by other companies
Other Types of Service Providers
Provide additional resources for helping organizations manage their technology assets

323. MANAGING HARDWARE AND SOFTWARE ASSETS
Chapter 6
MANAGING
HARDWARE AND
SOFTWARE
ASSETS

324. Chapter 7
MANAGING
DATA
RESOURCES

325. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
OBJECTIVES
Why do businesses have trouble finding the information they need in their information systems?
How does a database management system help businesses improve the organization of their information?

326. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
OBJECTIVES
How do the principal types of database models affect the way businesses can access and use information?
What are the managerial and organizational requirements of a data-base environment?
What new tools and technologies can make databases more accessible and useful?

327. Organizational obstacles to a database environment
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
MANAGEMENT CHALLENGES
Organizational obstacles to a database environment
Cost/benefit considerations

328. Byte: Group of bits that represents a single character
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
File Organization Terms and Concepts
Bit: Smallest unit of data; binary digit (0,1)
Byte: Group of bits that represents a single character
Field: Group of words or a complete number

329. Record: Group of related fields File: Group of records of same type
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
File Organization Terms and Concepts
Record: Group of related fields
File: Group of records of same type
Database: Group of related files

330. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
Data Hierarchy in a Computer System
Figure 7-1

331. Attribute: Description of a particular entity
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
File Organization Terms and Concepts
Entity: Person, place, thing, event about which information is maintained
Attribute: Description of a particular entity
Key field: Identifier field used to retrieve, update, sort a record

332. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
Entitities and Attributes
Figure 7-2

333. Program-Data dependence Lack of flexibility Poor security
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
Problems with the Traditional File Environment
Data redundancy
Program-Data dependence
Lack of flexibility
Poor security
Lack of data-sharing and availability

334. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT
Traditional File Processing
Figure 7-3

335. Creates and maintains databases
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Database Management System (DBMS)
Creates and maintains databases
Eliminates requirement for data definition statements
Acts as interface between application programs and physical data files
Separates logical and design views of data

336. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
The Contemporary Database Environment
Figure 7-4

337. Data manipulation language: Manipulates data in a database
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Components of DBMS
Data definition language: Specifies content and structure of database and defines each data element
Data manipulation language:
Manipulates data in a database
Data dictionary: Stores definitions of data elements, and data characteristics

338. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Sample Data Dictionary Report
Figure 7-5

339. Hierarchical and Network DBMS Object-Oriented Databases
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Types of Databases
Relational DBMS
Hierarchical and Network DBMS
Object-Oriented Databases

340. Represents data as two-dimensional tables called relations
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Relational DBMS
Represents data as two-dimensional tables called relations
Relates data across tables based on common data element
Examples: DB2, Oracle, MS SQL Server

341. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Relational Data Model
Figure 7-6

342. Select: Creates subset of rows that meet specific criteria
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Three Basic Operations in a Relational Database
Select: Creates subset of rows that meet specific criteria
Join: Combines relational tables to provide users with information
Project: Enables users to create new tables containing only relevant information

343. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Three Basic Operations in a Relational Database
Figure 7-7

344. Hierarchical DBMS Organizes data in a tree-like structure
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Hierarchical and Network DBMS
Hierarchical DBMS
Organizes data in a tree-like structure
Supports one-to-many parent-child relationships
Prevalent in large legacy systems

345. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Hierarchical DBMS
Figure 7-8

346. Network DBMS Depicts data logically as many-to-many relationships
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Hierarchical and Network DBMS
Network DBMS
Depicts data logically as many-to-many relationships

347. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Network DBMS
Figure 7-9

348. Disadvantages Outdated Less flexible compared to RDBMS
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Hierarchical and Network DBMS
Disadvantages
Outdated
Less flexible compared to RDBMS
Lack support for ad-hoc and English language-like queries

349. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
THE DATABASE APPROACH TO DATA MANAGEMENT
Object-Oriented databases
Object-oriented DBMS: Stores data and procedures as objects that can be retrieved and shared automatically
Object-relational DBMS: Provides capabilities of both object-oriented and relational DBMS

350. Physical design: Detailed description of business information needs
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Designing Databases
Conceptual design: Abstract model of database from a business perspective
Physical design: Detailed description of business information needs

351. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Designing Databases
Entity-relationship diagram: Methodology for documenting databases illustrating relationships between database entities
Normalization: Process of creating small stable data structures from complex groups of data

352. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
An Entity-Relationship Diagram
Figure 7-10

353. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
An Unnormalized Relation of ORDER
Figure 7-11

354. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
An Normalized Relation of ORDER
Figure 7-12

355. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Distributing Databases
Centralized database
Used by single central processor or multiple processors in client/server network

356. Distributed database Stored in more than one physical location
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Distributing Databases
Distributed database
Stored in more than one physical location
Partitioned database
Duplicated database

357. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Distributed Databases
Figure 7-13

358. Key elements in a database environment:
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Management Requirements for Database Systems
Key elements in a database environment:
Data Administration
Data Planning and Modeling Methodology
Database Technology and Management
Users

359. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
CREATING A DATABASE ENVIRONMENT
Management Requirements for Database Systems
Figure 7-14

360. On-line analytical processing (OLAP)
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Multidimensional Data Analysis
On-line analytical processing (OLAP)
Multidimensional data analysis
Supports manipulation and analysis of large volumes of data from multiple dimensions/perspectives

361. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Multidimensional Data Model
Figure 7-15

362. Data warehouse Supports reporting and query tools
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Data Warehousing and Datamining
Data warehouse
Supports reporting and query tools
Stores current and historical data
Consolidates data for management analysis and decision making

363. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Components of a Data Warehouse
Figure 7-16

364. Data mart Subset of data warehouse
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Data Warehousing and Datamining
Data mart
Subset of data warehouse
Contains summarized or highly focused portion of data for a specified function or group of users

365. Datamining Tools for analyzing large pools of data
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Data Warehousing and Datamining
Datamining
Tools for analyzing large pools of data
Find hidden patterns and infer rules to predict trends

366. Improved and easy accessibility to information
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Benefits of Data Warehouses
Improved and easy accessibility to information
Ability to model and remodel the data

367. The Web and Hypermedia database
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Databases and the Web
The Web and Hypermedia database
Organizes data as network of nodes
Links nodes in pattern specified by user
Supports text, graphic, sound, video and executable programs

368. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
A Hypermedia Database
Figure 7-17

369. Database server Application server
Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Databases and the Web
Database server
Computer in a client/server environment runs a DBMS to process SQL statements and perform database management tasks
Application server
Software handling all application operations

370. Essentials of Management Information Systems
Chapter 7 Managing Data Resources
DATABASE TRENDS
Linking Internal Databases to the Web
Figure 7-18

371. Chapter 7
MANAGING
DATA
RESOURCES

372. Chapter 8
TELECOMMUNICATIONS
AND
NETWORKS

373. What technologies are used in telecommunications systems?
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
OBJECTIVES
What technologies are used in telecommunications systems?
What telecommunications transmission media should our organization use?
How should our organization design its networks?

374. What alternative network services are available to our organization?
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
OBJECTIVES
What alternative network services are available to our organization?
What telecommunications applications can be used for electronic commerce and electronic business?

375. Managing LANs Managing bandwidth
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
MANAGEMENT CHALLENGES
Managing LANs
Managing bandwidth

376. Telecommunications: Communication of information by electronic means
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
THE TELECOMMUNICATIONS REVOLUTION
Telecommunications: Communication of information by electronic means
The marriage of computers and communications: The 1996 Telecommunications Deregulation and Reform Act
The Information Superhighway: High-speed digital telecommunications networks, accessible by the general public

377. Computers to process information
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Telecommunications System Components
Computers to process information
Terminals or any input/output devices that send or receive data
Communications processors
Communications software

378. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Components of a Telecommunications System
Figure 8-1

379. Establish interface between sender and the receiver
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Functions of Telecommunications Systems
Transmit information
Establish interface between sender and the receiver
Route messages along most efficient paths

380. Perform elementary processing of information
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Functions of Telecommunications Systems
Perform elementary processing of information
Perform editorial tasks on data
Convert message speed or format
Control flow of information

381. Analog signal Continuous waveform Passes through communications medium
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Types of Signals: Analog and Digital
Analog signal
Continuous waveform
Passes through communications medium
Used for voice communications

382. Digital signal Modem Discrete waveform
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Types of Signals: Analog and Digital
Digital signal
Discrete waveform
Transmits data coded into two discrete states as 1-bits and 0-bits
Used for data communications
Modem
Translates computer’s digital signals into analog and vice versa

383. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Functions of the Modem
Figure 8-2

384. Twisted wire: Telephone systems Coaxial cable: Cable television
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Communications Channels
Twisted wire: Telephone systems
Coaxial cable: Cable television
Fiber optics and optical networks: Dense wave division multiplexing (DWDM)

385. Transmission: Baud, bandwidth
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Communications Channels
Wireless transmission: Microwave, Satellites, Paging systems, Cellular telephones, Personal communication Services, Personal digital assistants, Mobile data networks
Transmission: Baud, bandwidth

386. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Frequency Ranges for Communications Media and Devices
Figure 8-3

387. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Amoco’s Satellite Transmission System
Figure 8-4

388. Front-end processor: Manages communications for the host computer
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMPONENTS AND FUNCTIONS OF A TELECOMMUNICATIONS SYSTEM
Communications Processors and Software
Front-end processor: Manages communications for the host computer
Concentrator: Collects and temporarily stores messages
Controller: Supervises communication traffic
Multiplexer: Enables single communication channel to carry data transmissions

389. Bus Network: Links a number of computers by a single circuit
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Network Topologies
Star Network: All computers and other devices are connected to a central host computer
Bus Network: Links a number of computers by a single circuit
Ring Network: All computers are linked by a closed loop

390. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
A Star Network Topology
Figure 8-5

391. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
A Bus Network Topology
Figure 8-6

392. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
A Ring Network Topology
Figure 8-7

393. Private Branch Exchanges
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Private Branch Exchanges, Local Area Networks (LANs), and Wide Area Networks (WANs)
Private Branch Exchanges
Central switching system
Handle firm’s voice and digital communications

394. Local Area Networks Telecommunication network
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Private Branch Exchanges, Local Area Networks (LANs), and Wide Area Networks (WANs)
Local Area Networks
Telecommunication network
Require its own dedicated channels
Encompass a limited distance
Gateway, router, Network Operating System (NOS), peer-to-peer

395. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
A Local Area Network (LAN)
Figure 8-8

396. Wide Area Networks (WANs)
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Private Branch Exchanges, Local Area Networks (LANs), and Wide Area Networks (WANs)
Wide Area Networks (WANs)
Telecommunication network
Span large geographical distance
Consist of variety of cable, satellite, and microwave technologies
Switched lines, dedicated lines

397. Value-Added Networks (VANs)
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Network Services and Broadband Technologies
Value-Added Networks (VANs)
Private, multipath, data-only, third-party-managed network
Other Network Services
Packet switching, Frame Relay, Asynchronous transfer mode (ATM)
Integrated Services Digital Network (ISDN), Digital subscriber line (DSL), Cable modems, T1 line, Broadband

398. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Packed-Switched Networks and Packet Communications
Figure 8-9

399. Converged network Unified messaging Network with technology
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Network Convergence
Converged network
Network with technology
Enables voice and data to run over a single network
Unified messaging
System combining voice messages, , and fax

400. Electronic Mail and Groupware
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Electronic Commerce and Electronic Business Technologies
Electronic Mail and Groupware
Eliminates telephone tag and costly long-distance telephone charges
Groupware: Enables work groups at different locations to participate in discussion forums and work on shared documents and projects

401. Fax: Digitizes and transmits documents over telephone lines
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Electronic Commerce and Electronic Business Technologies
Voice Mail and Fax
Voice mail: Digitizes spoken message and transmits it over a network
Fax: Digitizes and transmits documents over telephone lines

402. Teleconferencing, data conferencing, and videoconferencing
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Electronic Commerce and Electronic Business Technologies
Teleconferencing, data conferencing,
and videoconferencing
Teleconferencing: Ability to confer with a group of people simultaneously
Data conferencing: Two or more users can edit and modify data files simultaneously
Videoconferencing: Participants are able to see each other over video screens

403. Digital information services, distance learning and E-Learning
Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Electronic Commerce and Electronic Business Technologies
Digital information services, distance
learning and E-Learning
Distance learning: Education or training delivered over a distance to individuals in one or more locations
E-learning: Instruction delivered online using the Internet or private networks

404. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Electronic Data Interchange
Direct computer-to-computer exchange between two organizations of standard business transaction documents

405. Essentials of Management Information Systems
Chapter 8 Telecommunications and Networks
COMMUNICATIONS NETWORKS
Electronic Data Interchange (EDI)
Figure 8-10

406. Chapter 8
TELECOMMUNICATIONS
AND
NETWORKS

407. 9 THE INTERNET AND THE NEW INFORMATION TECHNOLOGY INFRASTRUCTURE
Chapter 9
THE INTERNET AND THE
NEW INFORMATION
TECHNOLOGY
INFRASTRUCTURE

408. How does the Internet work? What are its major capabilities?
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
OBJECTIVES
What is the new information technology (IT) infrastructure for business? Why is connectivity so important in this infrastructure?
How does the Internet work? What are its major capabilities?
How can organizations benefit from the Internet?

409. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
OBJECTIVES
What are the principal technologies for supporting electronic commerce and electronic business?
What management problems are raised by the new information technology (IT) infrastructure? How can businesses solve these problems?

410. Taking a broader perspective on infrastructure development
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
MANAGEMENT CHALLENGES
Taking a broader perspective on infrastructure development
Selecting technologies for the new information technology (IT) infrastructure

411. Enterprise Networking
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The New Information Technology (IT) Infrastructure for the Digital Firm
Enterprise Networking and Internetworking
Enterprise Networking
Arrangement of organization’s hardware, software, network, and data resources
Creates a company-wide network linking many smaller networks
Internetworking
Links separate networks into an interconnected network

412. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The New Information Technology (IT) Infrastructure for the Digital Firm
The New Information Technology (IT) Infrastructure
Figure 9-1

413. Connectivity Open System
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The New Information Technology (IT) Infrastructure for the Digital Firm
Standards and Connectivity for Digital Integration
Connectivity
Measures how well computers and computer-based devices communicate
Open System
Software systems
Operate on different hardware platforms

414. Models of Connectivity for Networks
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The New Information Technology (IT) Infrastructure for the Digital Firm
Standards and Connectivity for Digital Integration
Models of Connectivity for Networks
Transmission Control Protocol/Internet Protocol (TCP/IP)
Open Systems Interconnect (OSI)
802.11b
Bluetooth

415. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The New Information Technology (IT) Infrastructure for the Digital Firm
(TCP/IP) Reference Model
Figure 9-2

416. Internet Service Provider (ISP)
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
What is the Internet?
Internet Service Provider (ISP)
Commercial organization with a permanent connection to Internet
Sells temporary connections to subscribers

417. Information appliance
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
Internet Technology and Services
Information appliance
Device customized to perform few specialized computing tasks with minimal user effort

418. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
Client/Server Computing on the Internet
Figure 9-3

419. Electronic Mail (E-Mail)
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
Internet Tools for Communication
Electronic Mail ( )
Connects people worldwide
Creates productivity gain
LISTSERV
On-line discussion groups
Uses broadcast from mailing list servers

420. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
Analysis of an Internet Address
Figure 9-4

421. Chatting Instant messaging
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
Internet Tools for Communication
Chatting
Live, interactive conversations over public network
Instant messaging
Chat service
Allows participants to create their own private chat channels

422. File Transfer Protocol (FTP)
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
Internet Tools for Communication
Telnet
Network tool
Allows users to log on to one computer system while working on another
File Transfer Protocol (FTP)
Tool for retrieving and transferring files from a remote computer

423. Internet2 Research network with new protocols and transmission speeds
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The Internet: Information Technology Infrastructure for the Digital Firm
The Next Generation Internet and Internet 2
Internet2
Research network with new protocols and transmission speeds
Provides an infrastructure for supporting high bandwidth Internet applications

424. Combines text, hypermedia, graphics, and sound
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Overview
Based on a standard hypertext language called hypertext markup language (HTML)
Combines text, hypermedia, graphics, and sound
Handles all types of digital communication
Uses graphical user interfaces for easy viewing

425. Search Engine Shopping Bot
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Searching for Information on the Web
Search Engine
Locates specific sites or information on Internet
Shopping Bot
Software with varying levels of built-in intelligence
Helps electronic commerce shoppers locate and evaluate products or services

426. “Push” technology Multicasting
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Searching for Information on the Web
“Push” technology
Obtains relevant information on networks
Multicasting
Transmission of data to a selected group of recipients

427. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Intranets and Extranets
Firewall
Hardware or software placed between an organization’s internal network and external network
Prevents outsiders from invading private networks
Extranets
Private intranets extended to authorized users outside company

428. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Model of an Extranet
Figure 9-5

429. Web-based applications
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
The Wireless Web
Web-based applications
Enables users to access digital information from the Internet
Wireless Web Standards:
Wireless Application Protocol (WAP)
WML (Wireless Markup Language)
Microbrowser
I-mode
M-Commerce Challenges
Voice portals

430. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Figure 9-6

431. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
WAP Versus I-Mode
Figure 9-7

432. Keyboards and screens of cell phones tiny and awkward to use
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
M-Commerce Challenges
Keyboards and screens of cell phones tiny and awkward to use
Very slow data transfer speeds
Minimal memory and limited power supplies in Internet-enabled phones
Web content primarily in text with very little graphics
Incompatible technologies

433. Connectivity and global reach Reduced communication costs
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
The World Wide Web
Organizational Benefits of Internet and Web Technology
Connectivity and global reach
Reduced communication costs
Lower transaction costs
Reduced agency costs
Interactivity, flexibility, and customization
Accelerated distribution of knowledge

434. Electronic commerce server software
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Support Technology for Electronic Commerce and Electronic Business
Web Servers and Electronic Commerce Servers
Hit
Entry into Web server’s log file
Generated by each request to the server for a file
Electronic commerce server software
Provides functions essential for running
e-commerce Web sites

435. Collecting and storing data Combining data with already stored data
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Support Technology for Electronic Commerce and Electronic Business
Customer Tracking and Personalization Tools
Collecting and storing data
Combining data with already stored data
Analyzing the data
Identifying customer preferences and trends

436. Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Support Technology for Electronic Commerce and Electronic Business
Web Content Management Tool
Software to facilitate collection, assembly, and management of content on Web site, intranet, or extranet

437. Monitors time taken for downloading Web pages
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Support Technology for Electronic Commerce and Electronic Business
Web Site Performance Monitoring Tool
Monitors time taken for downloading Web pages
Identifies broken links between Web pages, Web site problems, and bottlenecks

438. Company with large Web server computers
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Support Technology for Electronic Commerce and Electronic Business
Web Hosting Services
Company with large Web server computers
Maintain Web sites of fee-paying subscribers

439. Loss of management control
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Management Issues and Decisions
The Challenge of Managing the New Information Technology Infrastructure
Loss of management control
Connectivity and application integration challenges
Organizational change requirements
Hidden costs of enterprise computing
Scalability, reliability, and security
downtime

440. Education and training Data administration disciplines
Essentials of Management Information Systems
Chapter 9 The Internet and the New information Technology Infrastructure
Management Issues and Decisions
Some Solutions
Change management
Education and training
Data administration disciplines
Planning for connectivity and application integration

441. 9 THE INTERNET AND THE NEW INFORMATION TECHNOLOGY INFRASTRUCTURE
Chapter 9
THE INTERNET AND THE
NEW INFORMATION
TECHNOLOGY
INFRASTRUCTURE

442. Chapter 10
MANAGING
KNOWLEDGE FOR
THE DIGITAL
FIRM

443. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OBJECTIVES
Why do businesses today need knowledge management programs and systems for knowledge management?
Which information system applications are most useful for distributing, creating, and sharing knowledge in the firm?
What are the business benefits of using artificial intelligence technology for knowledge management?

444. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OBJECTIVES
How can businesses use expert systems and case-based reasoning to capture knowledge?
How can organizations benefit from using use neural networks and other intelligent techniques?

445. Creating robust expert systems
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
MANAGEMENT CHALLENGES
Designing knowledge systems that genuinely enhance organizational performance
Creating robust expert systems

446. Organizational learning
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Organizational Learning and Knowledge Management
Organizational learning
Creation of new standard operating procedures and business processes
Knowledge management
Set of processes
Creates, gathers, stores, maintains, and disseminates knowledge

447. Chief Knowledge Officer (CKO)
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Organizational Learning and Knowledge Management
Chief Knowledge Officer (CKO)
Senior executive in charge of organization’s knowledge management program

448. Tacit Knowledge Best Practices
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Systems and Infrastructure for Knowledge Management
Tacit Knowledge
Expertise and experience not formally documented
Best Practices
Successful solutions or problem-solving methods developed by specific organization or industry

449. Organizational Memory
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Systems and Infrastructure for Knowledge Management
Organizational Memory
Stored learning from organization’s history
Used for decision making and other purposes

450. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
IT Infrastructure for Knowledge Management
Figure 10-1

451. Consists of creating or processing information
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Information Work
Consists of creating or processing information
Divided into knowledge workers and data workers

452. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Distributing Knowledge: Office and Document Management Systems
Office systems
Manage and coordinate work of data and knowledge workers
Connect work of local information workers with all levels and functions of organization
Connect organization to external world
Example: Word processing, voice mail, and imaging

453. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
The Three Major Roles of Offices
Figure 10-2

454. Document imaging systems
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Typical Office Systems
Document imaging systems
Convert documents and images into digital form
Can be stored and accessed by the computer
Jukebox
Device for storing and retrieving many optical disks

455. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Components of an Imaging System
Figure 10-3

456. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Web Publishing and Document Management
Figure 10-4

457. Knowledge Work Systems (KWS)
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Creating Knowledge: Knowledge Work Systems
Knowledge Work Systems (KWS)
Information system
Aid knowledge workers in creation and integration of new knowledge

458. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Changes in the Construction Project Management Process
Figure 10-5

459. User-friendly interface
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Requirements of Knowledge Work Systems
Specialized tools
User-friendly interface

460. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Requirements of Knowledge Work Systems
Figure 10-6

461. Computer-aided design (CAD) Virtual reality systems
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Examples of Knowledge Work Systems
Computer-aided design (CAD)
Virtual reality systems
Virtual Reality Modeling Language (VRML)
Investment workstations

462. Intranets and Enterprise Knowledge Environments
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Sharing Knowledge: Group Collaboration Systems and Enterprise Knowledge Environments
Groupware
Intranets and Enterprise Knowledge Environments
Enterprise information portals
Teamware

463. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
An Enterprise Information Portal
Figure 10-7

464. Effort to develop computer-based systems that behave as humans
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
What is Artificial Intelligence?
Effort to develop computer-based systems that behave as humans

465. Artificial Intelligence:
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Why Business is Interested in Artificial Intelligence
Artificial Intelligence:
Stores information in active form
Creates mechanism not subjected to human feelings
Eliminates routine and unsatisfying jobs
Enhances organization’s knowledge base
Generates solution to specific problems

466. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
The Artificial Intelligence Family
Figure 10-8

467. Rule-based Expert System Rule Base Knowledge Frames
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Capturing Knowledge: Expert Systems
Knowledge Base
Rule-based Expert System
Rule Base
Knowledge Frames

468. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Rules in an AI Program
Figure 10-9

469. AI shell Inference Engine Forward Chaining Backward Chaining
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Capturing Knowledge: Expert Systems
AI shell
Inference Engine
Forward Chaining
Backward Chaining

470. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Frames to Model Knowledge
Figure 10-10

471. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Inference Engines in Expert Systems
Figure 10-11

472. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Building an Expert System
Knowledge engineer
Specialist eliciting information and expertise from other professionals
Translates information into set of rules, or frames, for an expert system

473. BlueCross BlueShield of North Carolina Countrywide Funding Corp.
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Examples of Successful Expert System
BlueCross BlueShield of North Carolina
Countrywide Funding Corp.

474. Case-based Reasoning (CBR)
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Organizational Intelligence: Case Based Reasoning
Case-based Reasoning (CBR)
Artificial intelligence technology
Represents knowledge as database of cases and solutions

475. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
How Case-Based Reasoning Works
Figure 10-12

476. Hardware or software emulating processing patterns of biological brain
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Neural Networks
Hardware or software emulating processing patterns of biological brain
Put intelligence into hardware in form of a generalized capability to learn

477. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Biological Neurons of a Leech
Figure 10-13

478. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Artificial Neural Network with Two Neurons
Figure 10-14

479. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
A Neural Network
Figure 10-15

480. Tolerates imprecision
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Fuzzy Logic
Rule-based AI
Tolerates imprecision
Uses nonspecific terms called membership functions to solve problems

481. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Implementing Fuzzy Logic Rules in Hardware
Figure 10-16

482. Problem-solving methods
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Genetic Algorithms
Problem-solving methods
Promote evolution of solutions to specified problems
Use a model of living organisms adapting to their environment

483. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
The Components of a Genetic Algorithm
Figure 10-17

484. Integration of multiple AI technologies into a single application
Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Hybrid AI Systems
Integration of multiple AI technologies into a single application
Takes advantage of best features of technologies

485. Essentials of Management Information Systems
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Intelligent Agents
Software programs
Use built-in or learned knowledge base to carry out specific, repetitive, and predictable tasks

486. Chapter 10
MANAGING
KNOWLEDGE FOR
THE DIGITAL
FIRM

487. ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM
Chapter 11
ENHANCING
MANAGEMENT
DECISION-MAKING
FOR THE DIGITAL
FIRM

488. Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
OBJECTIVES
How can information systems help individual managers make better decisions when the problems are non-routine and constantly changing?
How can information systems help people working in a group make decisions more efficiently?

489. Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
OBJECTIVES
Are there any special systems that can facilitate decision-making among senior managers? Exactly what can these systems do to help high-level management?
What benefits can systems that support management decision-making provide for the organization as a whole?

490. Create meaningful reporting and management decision-making processes
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
MANAGEMENT CHALLENGES
Building information systems that can actually fulfill executive information requirements
Create meaningful reporting and management decision-making processes

491. Computer system at the management level of an organization
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Computer system at the management level of an organization
Combines data, analytical tools, and models
Supports semi-structured and unstructured decision-making

492. MIS Provides reports based on routine flow of data
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
MIS and DSS
MIS
Provides reports based on routine flow of data
Assists in general control of the organization

493. Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
MIS and DSS
DSS
Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc queries, and display graphics

494. Model-driven DSS Primarily stand-alone
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Types of Decision-Support Systems
Model-driven DSS
Primarily stand-alone
Uses model to perform “what-if” and other kinds of analysis

495. Data-driven DSS Datamining
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Types of Decision-Support Systems
Data-driven DSS
Allows users to extract and analyze useful information from previous databases
Datamining
Finds hidden patterns and relationships in large databases to infer rules

496. Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Overview of a Decision-Support System (DSS)
Figure 11-1

497. DSS database DSS software system
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Components of Decision-Support Systems
DSS database
Collection of current or historical data
DSS software system
Collection of software tools/mathematical and analytical models

498. Model Sensitivity analysis
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Components of Decision-Support Systems
Model
Abstract representation illustrating components or relationships
Sensitivity analysis
Asks “what-if” questions repeatedly to determine the impact of change

499. Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Sensitivity Analysis
Figure 11-2

500. Bank of America: Customer profiles
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
General Accident Insurance: Customer buying patterns and fraud detection
Bank of America: Customer profiles
Frito-Lay, Inc.: Price, advertising, and promotion selection

501. Burlington Coat Factory: Store location and inventory mix
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
Burlington Coat Factory: Store location and inventory mix
Keycorp: Targeting direct mail marketing customers
National Gypsum: Corporate planning and forecasting

502. Southern Railway: Train dispatching and routing
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
Southern Railway: Train dispatching and routing
Texas Oil and Gas Corporation: Evaluation of potential drilling sites
United Airlines: Flight scheduling, passenger demand forecasting

503. U.S. Department of Defense: Defense contract analysis
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
U.S. Department of Defense: Defense contract analysis

504. Comprehensive examination of supply management chain
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Supply Chain Management
Comprehensive examination of supply management chain
Searches for most efficient and cost-effective combination
Reduces overall costs
Increases speed and accuracy of filling customer orders

505. Uses data mining to guide decisions
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Customer Relationship Management
Uses data mining to guide decisions
Consolidates customer information into massive data warehouses
Uses various analytical tools to slice information into small segments

506. Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Customer Analysis and Segmentation
Figure 11-3

507. Geographic Information Systems (GIS)
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Simulating Business Scenarios
Geographic Information Systems (GIS)
Software for analyzing and displaying data using digitized maps
Enhances planning and decision-making

508. Customer Decision-Support Systems (CDSS)
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
DECISION-SUPPORT SYSTEMS (DSS)
Web-Based Customer Decision-Support Systems
Customer Decision-Support Systems (CDSS)
Support decision-making process of an existing or potential customer

509. Interactive computer-based system
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
What Is a GDSS?
Interactive computer-based system
Facilitates solution to unstructured problems
Set of decision makers working together as a group

510. Hardware: Conference facility, electronic hardware
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Characteristics of GDSS
Hardware: Conference facility, electronic hardware
Software tools: Tools for organizing ideas, gathering information, and ranking and seeking priorities
People: Participants, trained facilitator, staff supporting hardware and software

511. Electronic questionnaires Electronic brainstorming tools
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
GDSS Software Tools
Electronic questionnaires
Electronic brainstorming tools
Idea organizers
Questionnaire tools

512. Tools for voting or setting priorities
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
GDSS Software Tools
Tools for voting or setting priorities
Stakeholder identification and analysis tools

513. Electronic Meeting System (EMS):
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Overview of a GDSS Meeting
Electronic Meeting System (EMS):
Collaborative GDSS
Makes group meetings more productive
Supports meetings
Facilitates communication and decision-making

514. Increased participation Open, collaborative meeting atmosphere
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
How GDSS can Enhance Group Decision-Making
Improved preplanning
Increased participation
Open, collaborative meeting atmosphere
Criticism-free idea generation
Evaluation objectivity

515. Idea organization and evaluation
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
How GDSS can Enhance Group Decision-Making
Idea organization and evaluation
Setting priorities and making decisions
Documentation of meetings
Access to external information
Preservation of “organizational memory”

516. Executive Support Systems (ESS):
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
EXECUTIVE SUPPORT IN THE ENTERPRISE
Executive Support Systems (ESS):
Information system at strategic level of an organization
Addresses unstructured decision-making through advanced graphics and communications

517. Brings together data from the entire organization
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
The Role of Executive Support Systems in the Organization
Brings together data from the entire organization
Allows managers to select, access, and tailor data
Enables executive and any subordinates to look at the same data in the same way

518. Facility for environmental scanning
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
The Role of Executive Support Systems in the Organization
Developing ESS:
Ease of use
Facility for environmental scanning
External and internal sources of information to be used for environmental scanning

519. Analyzes, compares, and highlights trends
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Benefits of Executive Support Systems
Analyzes, compares, and highlights trends
Provides greater clarity and insight into data
Speeds up decision-making

520. Improves management performance Increases management’s span of control
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Benefits of Executive Support Systems
Improves management performance
Increases management’s span of control
Better monitoring of activities

521. ESS for business intelligence: Identifies changing market conditions
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Executive Support Systems and the Digital Firm
ESS for business intelligence:
Identifies changing market conditions
Formulates responses
Tracks implementation efforts
Learns from feedback

522. Monitoring corporate performance: balanced scorecard systems
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Executive Support Systems and the Digital Firm
Monitoring corporate performance:
balanced scorecard systems
Model for analyzing firm performance
Supplements traditional financial measures with measurements from additional business perspectives

523. Strategic performance management tools for enterprise systems
Essentials of Management Information Systems
Chapter 11 Enhancing Management Decision-Making for the Digital Firm
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Enterprise Wide Reporting and Analysis
Strategic performance management tools
for enterprise systems
SAP: Web-enabled mySAP.com™, Management Cockpit
PeopleSoft: Web-enabled Enterprise Performance Management (EPM)
Oracle: Strategic Enterprise Management

524. ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM
Chapter 11
ENHANCING
MANAGEMENT
DECISION-MAKING
FOR THE DIGITAL
FIRM

525. Chapter 12
REDESIGNING THE
ORGANIZATION
WITH
INFORMATION
SYSTEMS

526. How could building a new system change the way an organization works?
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
OBJECTIVES
How could building a new system change the way an organization works?
How can a company make sure that the new information systems it builds fit its business plan?
What are the steps required to build a new information system?

527. e-commerce and e-business applications more rapidly?
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
OBJECTIVES
What alternative methods for building information systems are available?
Are there any techniques or system-building approaches to help us build
e-commerce and e-business applications more rapidly?

528. Major risks and uncertainties in systems development
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
MANAGEMENT CHALLENGES
Major risks and uncertainties in systems development
Controlling information systems development outside the information systems department

529. Information systems plan
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Linking Information Systems to the Business Plan
Information systems plan
Road map indicating direction of systems development

530. Enterprise Analysis (Business Systems Planning)
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Establishing Organizational Information Requirements
Enterprise Analysis (Business Systems
Planning)
Analysis of organization-wide information requirements
Identifies key entities and attributes

531. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Process/Data Class Matrix
Figure 12-1

532. Strategic Analysis or Critical Success Factors
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Establishing Organizational Information Requirements
Strategic Analysis or Critical Success
Factors
Small number of easily identifiable operational goals
Shaped by industry, firm, manager, and broader environment
Used to determine information requirements of organization

533. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Using CSFs to Develop Systems
Figure 12-2

534. Automation: Speeding up performance
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Systems Development and Organizational Change
Automation: Speeding up performance
Rationalization of procedures: Streamlining of operating procedures
Business process reengineering: Radical design of business processes
Paradigm shift: Radical reconceptualization

535. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE
Organizational Change Carries Risks and Rewards
Figure 12-3

536. Work Flow Management Process of streamlining business procedures
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Business Process Reengineering
Work Flow Management
Process of streamlining business procedures
Documents can be moved easily and efficiently from one location to another

537. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Redesigning Mortgage Processing in the United States
Figure 12-4a

538. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Redesigning Mortgage Processing in the United States
Figure 12-4b

539. Senior management needs to develop broad strategic vision
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Steps in Effective Reengineering
Senior management needs to develop broad strategic vision
Management must understand and measure performance of existing processes as baseline
Information technology should be allowed to influence process design from start
IT infrastructure should be able to support business process changes

540. How information systems contribute to Total Quality Management
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Process Improvement and Total Quality Management (TQM)
How information systems contribute
to Total Quality Management
Simplify product or production process
Enable benchmarking
Use customer demands as guide to improve products and services
Reduce cycle time

541. Systems development Systems analysis
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
OVERVIEW OF SYSTEMS DEVELOPMENT
Overview
Systems development
Activities that go into producing information systems solution
Systems analysis
Analysis of problems that organization aims to resolve using information systems

542. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
The Systems Development Process
Figure 12-5

543. Establishing information requirements
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
OVERVIEW OF SYSTEMS DEVELOPMENT
Overview
Feasibility study
Determining achievability of solution
Establishing information requirements
Stating information needs that new system must satisfy
Identifying who, when, where and how components of information

544. Increases users’ understanding and acceptance of the system
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Systems Design
Details how system will meet information requirements as determined by systems analysis
Increases users’ understanding and acceptance of the system
Reduces problems caused by power transfers, intergroup conflict, and unfamiliarity with the new system

545. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Completing the Systems Development Process
Programming
Process of translating system specifications into program code
Testing
Checks whether the system produces desired results under known conditions
Unit testing, system testing, acceptance testing, test plan

546. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
A Sample Test Plan to Test a Record Change
Figure 12-6

547. Conversion Process of changing from old system to new system
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Completing the Systems Development Process
Conversion
Process of changing from old system to new system
Strategies:
Parallel
Direct cutover
Pilot study
Phased approach
Documentation

548. Production and maintenance
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM)
Completing the Systems Development Process
Production and maintenance
Production is stage after new system is installed and the conversion is complete
Maintenance is changes in hardware, software, documentation, or procedures of production system to correct errors

549. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Traditional Systems Lifecycle
Systems lifecycle
Traditional methodology for developing information system
Partitions systems development process into formal stages that must be completed sequentially

550. Prototyping Prototype
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Prototyping
Prototyping
Process of building experimental system quickly and inexpensively for demonstration and evaluation
Prototype
Preliminary working version of information system for demonstration and evaluation

551. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Prototyping
Iterative
A process of repeating over and over again the steps to build system

552. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
The Prototyping Processes
Figure 12-7

553. Identifying user’s basic requirements Developing initial prototype
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Steps in Prototyping
Identifying user’s basic requirements
Developing initial prototype
Using prototype
Revising and enhancing prototype

554. Advantage Disadvantage
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Advantages and Disadvantages of Prototyping
Advantage
Useful in designing information system’s end-user interface
Disadvantage
Rapid prototyping can gloss over essential steps in systems development

555. Application software packages
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Application Software Packages
Application software packages
Set of prewritten, precoded application software programs commercially available for sale or lease
Customization
Modification of software package to meet organization’s unique requirements without destroying the software’s integrity

556. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
The Effects of Customizing a Software Package on Total Implementation Costs
Figure 12-8

557. Request for Proposal (RFP)
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Application Software Packages
Request for Proposal (RFP)
Detailed list of questions submitted to vendors of software or other services
Determines how well vendor’s product can meet organization’s specific requirements

558. Allows users to specify their own business needs
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
End-User Development
Development of information systems by end users with little or no formal assistance from technical specialists
Allows users to specify their own business needs

559. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
End-User Versus System Lifecycle Development
Figure 12-9

560. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
End-User Development
Improves requirements gathering leading to higher level of user involvement and satisfaction
Cannot easily handle processing of large numbers of transactions or applications

561. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
ALTERNATIVE SYSTEM-BUILDING APPROACHES
Outsourcing
Practice of contracting computer center operations, telecommunications networks, or applications development to external vendors

562. Approach for software development De-emphasizes procedures
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Object-Oriented Software Development
Approach for software development
De-emphasizes procedures
Shifts focus from modeling business processes and data to combining data and procedures to create objects

563. Process for developing systems in short time period
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Rapid Application Development (RAD)
Process for developing systems in short time period
Uses prototyping, fourth-generation tools, and close teamwork

564. Software components deliverable over Internet
Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Web Services
Software components deliverable over Internet
Enable one application to communicate with another with no translation required

565. Essentials of Management Information Systems
Chapter 12 Redesigning the Organization With information Systems
APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM
Looking Beyond the Organization
E-commerce and e-business require systems planning and systems analysis based on a broader view of organization

566. Chapter 12
REDESIGNING THE
ORGANIZATION
WITH
INFORMATION
SYSTEMS

567. UNDERSTANDING THE BUSINESS VALUE OF SYSTEMS AND MANAGING CHANGE
Chapter 13
UNDERSTANDING
THE BUSINESS
VALUE OF SYSTEMS
AND MANAGING
CHANGE

568. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
OBJECTIVES
How can our company measure the business benefits of our information systems? What models should be used to measure that business value?
Why do so many system projects fail? What are the principal reasons for system failures?
How should the organizational change surrounding a new system be managed to ensure success?

569. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
OBJECTIVES
Are there any special challenges in implementing international information systems?
What strategies can our organization use to manage the system implementation process more effectively?

570. Essentials of Management Information Systems MANAGEMENT CHALLENGES
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGEMENT CHALLENGES
Determining benefits of a system when they are largely intangible
Dealing with the complexity of large-scale systems projects

571. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Traditional Capital Budgeting Models
Capital budgeting
Process of analyzing and selecting various proposals for capital expenditures

572. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Limitations of Financial Models
Do not express the risks and uncertainty of own cost and benefits estimates

573. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Case Example: Primrose, Mendelson, and Hansen
The Problem
No automated way of tracking billable hours
No secure method for communication
No client database
No system to track costs

574. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Case Example: Primrose, Mendelson, and Hansen
The Solution
Local area network
Lotus Notes to handle client accounting, document management, group collaboration, and

575. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Costs and Benefits of the Legal Information System
Figure 13-1

576. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Financial Models
Figure 13-2

577. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Case Example: Primrose, Mendelson, and Hansen
The Payback Method
Measure of time required to pay back the initial investment on a project
Accounting Rate of Return on Investment
(ROI)
Approximates the accounting income earned by the investment

578. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Case Example: Primrose, Mendelson, and Hansen
Present value
Value of a payment or stream of payments to be received in dollars
Net present value
Amount of money an investment is worth

579. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Case Example: Primrose, Mendelson, and Hansen
Cost-benefit ratio
Calculates returns from capital expenditure
Profitability index
Compares profitability of alternative investments by dividing the present value of total cash inflow by initial cost

580. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Case Example: Primrose, Mendelson, and Hansen
Internal Rate of Return (IRR)
Rate of return or profit an investment is expected to earn
Results of the Capital Budgeting
Analysis
Cash flow positive over the time period and returns more benefits than it costs

581. Essentials of Management Information Systems Strategic Considerations
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Strategic Considerations
Portfolio Analysis
Analysis of portfolio of potential applications within a firm
Determines risks and benefits
Selects among alternatives for information systems

582. Essentials of Management Information Systems Strategic Considerations
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Strategic Considerations
Scoring Models
Method for deciding among alternative systems based on a system of ratings
Real Options Pricing Models
Models for evaluating information technology investments with uncertain returns

583. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
A System Portfolio
Figure 13-3

584. Essentials of Management Information Systems Strategic Considerations
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Strategic Considerations
Knowledge Value–Added Approach
Focuses on knowledge input into a business process
Determines costs and benefits of changes in business processes from new information systems

585. Information Technology
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS
Information Technology Investments and Productivity
Productivity
Measure of firm’s efficiency in converting inputs to outputs
Information Technology
Reduces cost
Increases quality of products and services

586. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Information System Problem Areas
System failure
Information system does not perform as expected, is not operational at a specified time
Poor design, inaccurate data, excessive expenditure, breakdown in operations

587. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
THE IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Information System Problem Areas
Figure 13-4

588. Implementation Change agent
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Change Management and the Concept of Implementation
Implementation
Organizational activities working towards adoption, management, and routinization of innovation
Change agent
Individual acting as catalyst to ensure successful organizational adaptation to a new system or innovation

589. Role of users in implementation process
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Causes of Implementation Success and Failure
Role of users in implementation process
Degree of management support for implementation effort
Level of complexity and risk of implementation project
Quality of management of implementation process

590. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Factors in Information System Success or Failure
Figure 13-5

591. User–designer communications gap
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
User Involvement and Influence
User–designer communications gap
Different backgrounds, interests, and priorities
Impedes communication and problem solving among end users and information systems specialists

592. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Management Support and Commitment
Project requires backing and commitment of management at various levels
Perceived positively by both users and technical information services staff

593. Project size: Larger project has greater risk
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Level of Complexity and Risk
Project size: Larger project has greater risk
Project structure: Clear and straightforward requirements help define outputs and processes
Experience with technology: Project risk rises if project team and information system staff lack required technical expertise

594. Improper management leads to:
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Management of the Implementation Process
Improper management leads to:
Cost overruns
Unexpected time slippage
Technical shortfalls
Failure to obtain anticipated benefits

595. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Consequences of Poor Project Management
Figure 13-6

596. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
Change Management Challenges for Enterprise Applications, Business Process Reengineering (BPR), and Mergers and Acquisitions
System Challenges of Mergers and
Acquisitions
Integrating systems
Organizational characteristics
Information technology infrastructures

597. Disparate Information Requirements and Business Processes
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
The Challenge of Implementing Global Systems
Disparate Information Requirements
and Business Processes
Transborder data flow: Movement of information across international boundaries in any form
Technology Hurdles: Lack of standards and connectivity in hardware, software, and telecommunications

598. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE
The Challenge of Implementing Global Systems
Local User Resistance to Global Systems: Difficult to convince local managers to change their business processes

599. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Controlling Risk Factors
Managing Technical Complexity: Usage of internal integration tools to ensure operation of implementation team
Formal Planning and Control Tools: Structures and sequences tasks, monitors progress towards fulfillment of goals

600. Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Controlling Risk Factors
Increasing User Involvement and Overcoming User Resistance: Linking work of implementation team to that of users at all organizational levels

601. Essentials of Management Information Systems MANAGING IMPLEMENTATION
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Formal planning and control tools help to manage information systems projects successfully
Figure 13-7

602. Allowing for the Human Factor
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Designing for the Organization
Allowing for the Human Factor
Interaction of people and machines in work environment
Sociotechnical Design
Produces information system blending technical efficiency with sensitivity to organizational and human needs

603. Implementation Tactics: Cooptation
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Managing Global Implementations
Core systems
Support functions absolutely critical to organization
Implementation Tactics: Cooptation
Bringing opposition into process of designing and implementing a solution

604. Essentials of Management Information Systems MANAGING IMPLEMENTATION
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Figure 13-8

605. Creating a Global Technology Infrastructure
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Managing Global Implementations
Creating a Global Technology
Infrastructure
Build international private network
Rely on value added network service
Use Internet technology
Build global intranets
Use Virtual Private Networks

606. Project planning is an enterprise-wide focus
Essentials of Management Information Systems
Chapter 13 Understanding the Business Value of Systems and Managing Change
MANAGING IMPLEMENTATION
Fourth-Generation Project Management
Project planning is an enterprise-wide focus
Managers focus on solving problems and meeting challenges

607. UNDERSTANDING THE BUSINESS VALUE OF SYSTEMS AND MANAGING CHANGE
Chapter 13
UNDERSTANDING
THE BUSINESS
VALUE OF SYSTEMS
AND MANAGING
CHANGE

608. Chapter 14
INFORMATION
SYSTEMS
SECURITY AND
CONTROL

609. What types of controls are available for information systems?
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
OBJECTIVES
Why are information systems so vulnerable to destruction, error, abuse, and system quality problems?
What types of controls are available for information systems?
What special measures must be taken to ensure the reliability, availability and security of electronic commerce and digital business processes?

610. What are the most important software quality assurance techniques?
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
OBJECTIVES
What are the most important software quality assurance techniques?
Why are auditing information systems and safeguarding data quality so important?

611. Applying quality assurance standards in large systems projects
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
MANAGEMENT CHALLENGES
Designing systems that are neither over-controlled nor under-controlled
Applying quality assurance standards in large systems projects

612. Advances in telecommunications and computer software
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
Why Systems are Vulnerable
Advances in telecommunications and computer software
Unauthorized access, abuse, or fraud
Hackers
Denial of service attack
Computer virus

613. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
Telecommunication Network Vulnerabilities
Figure 14-1

614. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
Concerns for System Builders and Users
Disaster
Destroys computer hardware, programs, data files, and other equipment
Security
Prevents unauthorized access, alteration, theft, or physical damage

615. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
Concerns for System Builders and Users
Errors
Cause computers to disrupt or destroy organization’s record-keeping and operations

616. Maintenance Nightmare
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
System Quality Problems: Software and Data
Bugs
Program code defects or errors
Maintenance Nightmare
Maintenance costs high due to organizational change, software complexity, and faulty system analysis and design

617. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
Points in the Processing Cycle where Errors can Occur
Figure 14-2

618. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
System Quality Problems: Software and Data
Data Quality Problems
Caused due to errors during data input or faulty information system and database design

619. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
SYSTEM VULNERABILITY AND ABUSE
The Cost of Errors over the Systems Development Cycle
Figure 14-3

620. Controls Methods, policies, and procedures
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Overview
Controls
Methods, policies, and procedures
Ensures protection of organization’s assets
Ensures accuracy and reliability of records, and operational adherence to management standards

621. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
General Controls and Application Controls
General controls
Establish framework for controlling design, security, and use of computer programs
Include software, hardware, computer operations, data security, implementation, and administrative controls

622. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Security Profiles for a Personnel System
Figure 14-4

623. Application controls Unique to each computerized application
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
General Controls and Application Controls
Application controls
Unique to each computerized application
Include input, processing, and output controls

624. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Protecting the Digital Firm
On-line transaction processing: Transactions entered online are immediately processed by computer
Fault-tolerant computer systems: Contain extra hardware, software, and power supply components

625. Disaster recovery plan: Runs business in event of computer outage
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Protecting the Digital Firm
High-availability computing: Tools and technologies enabling system to recover from a crash
Disaster recovery plan: Runs business in event of computer outage
Load balancing: Distributes large number of requests for access among multiple servers

626. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Protecting the Digital Firm
Mirroring: Duplicating all processes and transactions of server on backup server to prevent any interruption
Clustering: Linking two computers together so that a second computer can act as a backup to the primary computer or speed up processing

627. Intrusion Detection System
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Internet Security Challenges
Firewalls
Prevent unauthorized users from accessing private networks
Two types: proxies and stateful inspection
Intrusion Detection System
Monitors vulnerable points in network to detect and deter unauthorized intruders

628. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Internet Security Challenges
Figure 14-5

629. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Security and Electronic Commerce
Encryption: Coding and scrambling of messages to prevent their access without authorization
Authentication: Ability of each party in a transaction to ascertain identity of other party
Message integrity: Ability to ascertain that transmitted message has not been copied or altered

630. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Security and Electronic Commerce
Digital signature: Digital code attached to electronically transmitted message to uniquely identify contents and sender
Digital certificate: Attachment to electronic message to verify the sender and to provide receiver with means to encode reply

631. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Security and Electronic Commerce
Secure Electronic Transaction (SET): Standard for securing credit card transactions over Internet and other networks

632. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Public Key Encryption
Figure 14-6

633. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Digital Certificates
Figure 14-7

634. Criteria for determining control structure
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
Developing a Control Structure: Costs and Benefits
Criteria for determining control
structure
Importance of data
Efficiency, complexity, and expense of each control technique
Level of risk if a specific activity or process is not properly controlled

635. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
CREATING A CONTROL ENVIRONMENT
The Role of Auditing in the Control Process
MIS audit
Identifies all controls that govern individual information systems and assesses their effectiveness

636. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Sample Auditor’s List of Control Weaknesses
Figure 14-8

637. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Software Quality Assurance Methodologies and Tools
Development methodology: Collection of methods, for every activity within every phase of development project
Structured: Refers to fact that techniques are carefully drawn up, step-by-step, with each step building on a previous one

638. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Software Quality Assurance Methodologies and Tools
Structured analysis: Method for defining system inputs, processes, and outputs, for partitioning systems into subsystems or modules
Data Flow Diagram (DFD): Graphically illustrates system’s component processes and flow of data

639. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Data Flow Diagram for Mail-in University Registration System
Figure 14-9

640. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Software Quality Assurance Methodologies and Tools
Structured design: Encompasses set of design rules and techniques for designing systems
Structured programming: Organizing and coding programs that simplify control paths
System flowchart: Graphic design tool depicting physical media and sequence of processing steps

641. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
High-Level Structure Chart For a Payroll System
Figure 14-10

642. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Basic Program Control Constructs
Figure 14-11

643. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
System Flow-Chart for a Payroll System
Figure 14-12

644. Inflexible Time-consuming Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Limitation of Traditional Methods
Inflexible
Time-consuming

645. Reduces repetitive work
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Computer-Aided Software Engineering (CASE)
Automation of step-by-step methodologies for software and systems development
Reduces repetitive work
Enforces standard development methodology and design discipline
Improves communication between users and technical specialists

646. Organizes and correlates design components
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Computer-Aided Software Engineering (CASE)
Organizes and correlates design components
Automates tedious and error-prone portion of analysis and design, code generation, testing, and control rollout

647. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Resource Allocation During Systems Development
Resource allocation
Determines how costs, time, and personnel are assigned to different phases of systems development project

648. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Software Metrics
Objective assessment of software used in the system in form of quantified measurements

649. Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Testing
Walkthrough: Review of specification or design document by small group of people
Debugging: Process of discovering and eliminating errors and defects in program code

650. Data quality audit Data cleansing Survey and/or sample of files
Essentials of Management Information Systems
Chapter 14 Information Systems Security and Control
ENSURING SYSTEM QUALITY
Data Quality Audit and Data Cleansing
Data quality audit
Survey and/or sample of files
Determines accuracy and completeness of data
Data cleansing
Correcting errors and inconsistencies in data to increase accuracy

651. Chapter 14
INFORMATION
SYSTEMS
SECURITY AND
CONTROL