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Samenvatting - Information Systems for Managers: Text and Cases, 2nd Edition Text and Cases
1 Information Systems and the role of functional and general managers
What are end-users?End users are those individuals who have direct contact with software applications as they use them to carry out specific tasks
What does an effective manager need to know about IT?
- How to identify opportunities? (chapter 4,5, 9)
- How to plan the use of IS resources? (funding, systematic IS planning ,etc)
- How to manage design, selection and implementation (chap 11/12)
2 Information Systems defined
What are information systems?Information systems are formal, sociotechnical, organizational systems designed to collect, process, store and distribute information
What is the tehcnical subsystem?The portion of the IS that does not include human elements
What is the social subsystem?composed of people and people in relation to another. represenents the hman elemant of an IS
What is a systemic effect?It indicates that changes in one component affect al other components of th esystems and, if not properly managed, its outputs
Organizations build IS to fullfill its information processing needs
Introducing IS is an effor to improve efficency and effectiveness
What are the different levels of Is and organizational change?
- First order change: automate (of exisisting tasks). Only affects the technical subsystem
- Second order change; informate. Affects the people component.Process, people and technology are involved.
- Third order change; transform. Affects organizational structures, and also affects people, process and technology. Objective is to transform how the organization operates.
What is culture?Culture is the unwritten rules of social game that are shared by the members of some group.
What are implications of culture and iS?
- IT should not be the start of your IS design process
- Never forget systemic effects (people, process, technology etc)
- Is systems evolve over time. design of IS should be an iterative process. Optimize the Is a a whole, not the components individually.
3 Organzational Information systems and their impact
What is the hierarchical perspective?The hierarchical perspective recognizes that decision making and activities in organizations occur at different levels (operational, tactical, strategic)
- Strategic > Long term, general and functional management, externally focused, ad hoc and highly unstructured
- Tactical > Mid term, middle management with charasteristics like repeatable, recurrent task which are sem-structured
- Operational > Short term with front-line employees, transaction focused and highly structured
What is the operational level and which IT to they need?Operational personnel are focused on performing the day-to-day activities that deliver the firm's value proposition.
They need support from IS on base of transaction processing systems. The TPS systems are used for automate recurring activities, structure operations with speeds, accuracy and as pre-described by the procedures
What is the tactical (managerial) level and what IT do they need?The managerial level is mostly concerned with mid-term decision making and a functional focus. Example is a store manager who decides which inventory he wants to have and needs data about the profitability of each product.
IS they need are called Decision support systems that provide information needed in tactical decision making. Objective is to produce recurring reports (daily profit for ex.) and exception reports (items running low on stock). Data for DSC are coming from the Transaction processing systems.
What is the strategic (executive) level and what IT do they need?Executives are concerned with high-level, long range decisions. Decision making is highly unstructured and reliant on internal and external data sources. Objective is to predict future by evaluating trends, using data and scenario analysis.
IS we call executive information systems. An example is executive dashboards which consists of aggregated organizational and trend data with drill down features to view detailed information
What are functional systems?Functional systems are expressly designed to support the specific needs of individuals in the same functional area (like product planning systems) .Functional systems worked well until the upcoming of ERP systems.
What are limitations of functional and hierarchical systems?Their lack of integration and considerable redundancy of data
What is Business process re-engineering?BPR is a managerial approach that employs a process view of organizational activities. BPR is a method to seek internal business integration with performance improvements, looking for duplication of efforts accros separate functions and eliminate them.
What are the risks of BPR?BPR requires third order change (see chapter 2) and leads to down-sizing and lay-offs (resistance). Because of the high degree of change, BPR is also very expensive to implement
What is integration?Integration is the proces of unifying, or joining together, some tangible of intable assets. In terms of IT; Assets represent physical posessions like computers, where intangable assets representat data, knowledge or business processes.
The goal of integration is to organize, streamline and simplify a process or an application
What are the dimension of integration?Object and Locus. Locus can either be internal (inside the companies boundaries) or external (outside). Object means; what assets the firm is looking to unify or combine. This can be differentiated into business integration and system integration.
What is business integration?Bussiness integration is unification or the creation of tight linkages among the diverse, but connected business activities carried out by individuals, groups or departments within in organization. Business must:
- Provide "one face" to the customer > services based on customers needs
- Providing coordinated solutions > provide solutions, not only services or product
- Achieving global inventory visibility > Customers want to make modification on your products of service and they want their question be answered quick
- Provide "one face" to the customer > services based on customers needs
What is system integration?First: Business integration can not work without system integration because we need the linked infrastructure.
System integration refers to the unification of tight linkage of IT-enabled information systems and databases. Goal; IS underpinning the technology component of business integration strategies. Outcome = connect compatible systems that regurarly exchange information.
Application integration is connection between different software programs.
Database integration is between several databases.
What are he integration trade-offs?Benefits; reduction of duplication and redunancy
Acces to info, speed and response time
Increased coordination costs
Reduced local flexibility
What is an enterprise system?a modular integrated software application that spans (all) organizational functions and relies on one database at the core
What are the principal characteristics of an enterprise system?Modularity; which functionaliteits do you want to use and which not
application integration; native integration
Data integration; one database
Configurability; parameterized, setting parameters for each organization
What are the advantages and disadvantages of ERP?ADV:
- knowledge infusion
- standardization and flexibility
- Is the best practice from the ERP perspective really the best?
- Strategic clash: What if unique business proces, you see as competitive differation, will not be supported?
- High costs and risks
What is knowledge management?Main objective: consciously compile and use knowledge.
Activities and processes used to create, codify, gather and disseminate knowledge within the organization
Create: generate new information, novel solutions to handle existing problems, new explanation for recurrent events. very valuable for other inside the organization to solve similar problems
capturing and storing: codification of new knowledge and maintenance of an organizational memory
Disseminating knowledge: Transmission and access of knowledge. Fase off which the investements pay of because people really use the knowledge.
How can we categorize knowledge, with respect to its object?
- Knowing what (MBO); ability to collect, categorize and assimilate information
- Knowing how (HBO); ability to recognize or create the sequence of steps that are needed to complete a task or carry out an activity
- knowing why (UNI); understanding the cause-effect relationships and the laws that govern an give phenomen.
How can we categorize knowledge, with respect to its type?
- Explicit knowledge; can be articulated, codified and transfered with relative ease. > Training manual
- Tactical knowledge; individuals posess this knowledge but find it difficult to articulate, codify and transfer. (instinct).
Firms find it easer to handle explicit knowledge than tactical knowledge.
What is BI (business intelligence)?Intelligence; the ability to gather and make sense of information about your business
BI encompasses a set of techniques, processes and technologies designed to enable managers to gain superior insights and understandig.
Goal of bi: designed to enable better decisions
What is BI infrastructure?the set of applications and technologies designed to create, manage, and analyse large repositories of data in an effort to extract value from them.
Can consists of:
- Data warehouse > collect and consolidates data from different source systems
- Data mart > scaled down version of data warehouse that focuses on specific audiances. Disadvantages: potentially data redundancy and lack of data consilidation
- online analytical processing > Enables a knowledge worke rto easily and selectively extract and view data from an analytical database
- Data mining > automatically discover non-obvious relationships in large databases
What is CRM?A strategic orientation that calls for iterative processes designed to turn customer data into customer relationships through active use of , and learning from, the information collected.
- a strategic initiative, not a technology!
- relies on customer data
- Helps firm draw inferences about: customer behaviour, needs and their value to increase its customer profitability
What are the limitations of CRM?
- Firm centric: only relies on transactionals and bahavioral customer data it owns
- Limited predictive ability; crm relies on historical data, where only the customer knows about future plans
What is the best-of-breed approach while looking at IS systems?Best-of-breed approach is designed to enable the firm to retain a high degree of flexibility with respect to the applications it decides to adopt, while stile being able to achieve tight integration between them. It comes with the term enterprise application integration by which systems are linked with interfaces. This approach allow the firm to implement the module or application that best suits its information processing needs.
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