Review Summary

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Management Information Systems Managing the Digital Firm

Week	Contents	Tasks/Activities
1	Business Information System in your Career ·  Fundamental roles of information systems ·  Trends in information systems ·  To be continued…
2	·  Four step method for problem solving ·  Types of information systems
3	E-Business: How Business Use Information System ·  Competitive strategic concepts ·  Strategic uses of information technology ·  To be continued…	Assignment 1
4	·  Building a customer focused IT business ·  Using information technology for strategic advantage	Quiz 1
5	Achieving Competitive Advantage with Information System ·  Porter’s competitive forces model ·  To be continued…
6	·  Value chain and value model ·  Role of business process reengineering	Assignment 2
7	IT Infrastructure: Computer Hardware and Software ·  Types of hardware and software ·  Application of hardware software for end users ·  To be continued…	Quiz 2
8	·  Business application of hardware and software
9	Mid Term	Mid Term
10	Foundation of Business Intelligence: Database and Information management ·  Database management ·  To be continued…
11	·  Database structures ·  Managing data resources	Assignment 3
12	Telecommunication, the internet and wireless technology ·  Telecommunication and Network ·  To be continued…	Quiz 3
13	·  Trends in telecommunication ·  Wireless Revolution
14	E-commerce business systems ·  Features of e-commerce ·  Changes in technology ·  Role of e-commerce in business	Assignment 4
15	Improving Decision Making and Managing Knowledge ·  Different types of decisions ·  Decision making process ·  Benefits for the business	Quiz 4
16	Ethical and social issues in information systems ·  Ethical, social and political issues ·  Principles for ethical decision ·  Affects of information systems on everyday life	Project-Presentation
17	Final Term

1.  How are information systems transforming business and what is their relationship to globalization?

Ans:-  Wireless communications, including computers and mobile hand-held computing devices, are Keeping managers, employees, customers, suppliers, and business partners connected in every

Way possible. Email, online conferencing, the Web, and the Internet, are providing new and

Diverse lines of communication for all businesses, large and small. Through increased Communication channels and decreased costs of the communications, customers are demanding

More of businesses in terms of service and product, at lower costs. E-commerce is changing the

Way businesses must attract and respond to customers.

2. Why are information systems so essential for running and managing a business today?

Ans:- Six reasons why information systems are so important for business today include:

(1) Operational excellence

(2) New products, services, and business models

(3) Customer and supplier intimacy

(4) Improved decision making

(5) Competitive advantage

(6) Survival

Information systems are the foundation for conducting business today. In many industries, survival

And even existence without extensive use of IT is inconceivable, and IT plays a critical role in

Increasing productivity. Although information technology has become more of a commodity, when

Coupled with complementary changes in organization and management, it can provide the

Foundation for new products, services, and ways of conducting business that provide firms with a

Strategic advantage.

3. What exactly is an information system? How does it work? What are its management,

organization and technology components?

Ans: - An information system is a set of interrelated components that work together to collect, process,

Store, and disseminate information to support decision making, coordination, control, analysis, and

Visualization in an organization. In addition to supporting decision making, information systems

May also help managers and workers analyze problems, visualize complex subjects, and create

New products. n information system as a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products..

From the internet information system is a combination of people, hardware, software, communication devices,

4 how will a four step method for business problem solving help you solve information system?

Ans) 1.Problem Identification.

The business must agree that there is a problem. Then they need to decide what the problem is, what is causing it, and then they discuss how to tackle the problem.

2.Solution Design.

This is when solutions are designed to tackle the problem. At this point it is best to consider all the solutions to a problem. Usually the best solution is a mix of the three dimensions.

3.Solution evaluation.

This is when you pick the best solution. This will involve balancing a few factors like cost, feasibility, and time.

5  How will information systems affect business careers and what information system skills and knowledge are essential ?

Ans) each of the major business fields requires an understanding of information systems1 counting' accountants need to understand future changes in hardware, software, and network security essential for protecting the integrity of accounting systems along with new technologies for reporting in online and wireless business environments1(finance' (financial people need to understand future I" changes, financial database systems, and online trading systems for managing investments and cash1 marketing' marketing personnel require an understanding of marketing database systems and systems for customer relationship management as well as Web-based systems for online sales1&perations management' "hose individuals need knowledge of changing hardware, software, and database technologies used in production and services management and an in-depth understanding of how enterprise-wide information systems for production

management, supplier management, sales force management, and customer relationship management achieve efficient operations1%areers in information systems' "he individuals clearly need to understand the central role databases play in managing information resources of the firm and how new hardware and software technologies can enhance business performance1 "hey also need skills for leading the design and implementation of new management systems, working with other business  professionals to ensure systems meet business objectives, and working with software  packages providing new system solutions1

Question 1: what exactly is an information system? How does it work? What are its people, organization and technology componets?

Ans: from a technical persepective, an information system collects, stores and disseminates information from an organizations environment and internal operations to support organizational functions and decision making, communication, coordination, control analysis and visualization. Information systems transform raw data into useful information through three basic activities:  input, processing and output. From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of people, organization and technology elements.

The people dimension of information system involves issues suchbas training, job, attitudes and management behavior.

The technology dimensions consist of computer hardware, software, data management technology and networking/telecommunications technology, including the internet.

The organization dimension of information system involves issues suchbas organizatios hierarchy, functional specialist, business process, culture and political interest group.

Problem solving requires critical thinking in which one suspends judgment to consider multiple perspective and alternative.

Question 2:  what are major software trends?

Ans:       open source software:

       Open source software is software with souce code that anyone can inspect, modify and enhance.

     “source code” is the part of software that most computer users don’t ever see, it’s the code computer programmers can manipulate to change how a piece of software-a “program” or “applicarion”- work. Programmers who have access to a computer programs source code can improve that program by adding feature to it or fixing parts that don’t always work correctly.

New software development is a game of balance, when trying to determine if an idea has legs in the marketplace. Innovators need to weigh the cost of developing proprietary technology against the value of quickely validating a product feature using an open source tool. Using APIS to accomplish certain tasks, rather than creating custom, properitary tools allows product mangers to dertermine what works in a product and then set a path toward developing a custom tool down the road.  

Cloud Computing

Cloud computing is the the use of various services, such as software development platforms, servers, storage and software, over the internet, often referred to as the "cloud."

In general, there are three cloud computing characteristics that are common among all cloud-computing vendors:

The back-end of the application (especially hardware) is completely managed by a cloud vendor.

A user only pays for services used (memory, processing time and bandwidth, etc.).

Services are scalable

Many cloud computing advancements are closely related to virtualization. The ability to pay on demand and scale quickly is largely a result of cloud computing vendors being able to pool resources that may be divided among multiple clients.

It is common to categorize cloud computing services as infrastructure as a service (IaaS), platform as a service (PaaS) or software as a service (SaaS).

mash-up

The term mash-up refers to a new breed of Web-based applications created by hackersand programmers (typically on a volunteer basis) to mix at least two different services from disparate, and even competing, Web sites. A mash-up, for example, could overlay traffic data from one source on the Internet over maps from Yahoo, Microsoft, Google or any content provider. The term mash-up comes from the hip-hop music practice of mixing two or more songs.

This capability to mix and match data and applications from multiple sources into one dynamic entity is considered by many to represent the promise of the Web servicestandard (also referred to as on-demand computing).

Widget 

Widget is a broad term that can refer to either any GUI (graphical user interface) element or a tiny application that can display information and/or interact with the user. A widget can be as rudimentary as a button, scroll bar, label, dialog box or check box; or it can be something slightly more sophisticated like a search box, tiny map, clock, visitor counter or unit converter.

Blockchain – Best known as the foundation for the digital currency Bitcoin, it’s easy to dismiss blockchain as a hacker technology. Yet, as the technology matures, it’s clear it offers great promise, and potential challenges, for the enterprise – some have called it the second coming of the Internet. That may seem hyperbolic for a technology in its infancy, but blockchain may offer new efficiencies for everything from healthcare records to voting to retail supply chain management.

Similar to how microservices distributes applications, a blockchain creates a distributed database, or ledger, which allows for security and transparency across an entire data ecosystem. A secure, private blockchain makes it far easier to manage transactions and interactions across massive systems and datasets. Recently, Walmart and IBM announced a blockchain initiative to manage its global supply chain of pork to avoid potential outbreaks of tainted food. The project ties the entirety of the commercial network together, providing full transparency,  from producer to packaging plant to retail store,all within a single system.

While blockchain is still in its early days, it’s a technology that innovators and executives cannot afford to ignore for long. Take a look at how blockchain may revolutionize the way we share and interact with data transactions, and how the first iteration of the technology – Bitcoin – is only the tip

 of the iceberg.

Question 3: what is porter’s value chain analysis?

Ans: The value chain also known as Porter’s Value Chain Analysis is a business management concept that was developed by Michael Porter. In his book Competitive Advantage (1985), Michael Porter explains Value Chain Analysis; that a value chain is a collection of activities that are performed by a company to create value for its customers. Value Creation creates added value which leads to competitive advantage. Ultimately, added value also creates a higher profitability for an organization.

Porter’s Value Chain Analysis

The strength of the Porter’s Value Chain Analysis is its approach. The Porter’s Value Chain Analysis focuses on the systems and activities with customers as the central principle rather than on departments and accounting expense categories. This system links systems and activities to each other and demonstrates what effect this has on costs and profit. Consequently, it (Value Chain Analysis) makes clear where the sources of value and loss amounts can be found in the organization.

The Value Chain activities

Porter’s Value Chain Analysis consists of a number of activities, namely primary activities and support activities. Primary activities have an immediate effect on the production, maintenance, sales and support of the products or services to be supplied. These activities consist of the following elements:

Inbound Logistics

These are all processes that are involved in the receiving, storing, and internal distribution of the raw materials or basic ingredients of a product or service. The relationship with the suppliers is essential to the creation of value in this matter.

Production

These are all the activities (for example production floor or production line) that convert inputs of products or services into semi-finished or finished products. Operational systems are the guiding principle for the creation of value.

Outbound logistics

These are all activities that are related to delivering the products and services to the customer. These include, for instance, storage, distribution (systems) and transport.

Marketing and Sales

These are all processes related to putting the products and services in the markets including managing and generating customer relationships. The guiding principles are setting oneself apart from the competition and creating advantages for the customer.

Service

This includes all activities that maintain the value of the products or service to customers as soon as a relationship has developed based on the procurement of services and products. The Service Profit Chain Model is an alternative model, specific designed for service management and organizational growth.

Support activities of the Value Chain Analysis

Support activities within the Porter’s Value Chain Analysis assist the primary activities and they form the basis of any organization. In the figure dotted lines represent linkages between a support activity and a primary activity. A support activity such as human resource management for example is of importance within the primary activity operation but also supports other activities such as service and outbound logistics.

Firm infrastructure

This concerns the support activities within the organization that enable the organization to maintain its daily operations. Line management, administrative handling, financial management are examples of activities that create value for the organization.

Human resource management

This includes the support activities in which the development of the workforce within an organization is the key element. Examples of activities are recruiting staff, training and coaching of staff and compensating and retaining staff.

Technology development

These activities relate to the development of the products and services of the organization, both internally and externally. Examples are IT, technological innovations and improvements and the development of new products based on new technologies. These activities create value using innovation and optimization.

Procurement

These are all the support activities related to procurement to service the customer from the organization. Examples of activities are entering into and managing relationships with suppliers, negotiating to arrive at the best prices, making product purchase agreements with suppliers and outsourcing agreements. Organizations use primary and support activities as building blocks to create valuable products, services and distinctiveness.

Question 4: what are six major types of value analysis?

Six Major Types of Information Systems

A typical organization has six of information systems with each supporting a specific organizational level. These systems include transaction processing systems (TPS) at the operational level, office automation systems (OAS) and knowledge work systems (KWS) at the knowledge level, management information systems (MIS) and decision support Systems (DSS) at the management level, and the executive support systems (ESS)at the strategic level.

Transaction Processing Systems

Every firm needs to process transactions in order to perform their daily business operations. A transaction refers to any event or activity that affects the organization. Depending on the organization’s business, transactions may differ from one organization to another. In a manufacturing unit, for example, transactions include order entry, receipt of goods, shipping, etc., while in a bank, transactions include deposits and withdrawals, cashing of cheques etc.

However, some transactions, including placing orders, billing customers, hiring employees, employee record keeping, etc., are common to all organizations. To support the processing of business transactions, the transaction processing systems (TPS) are used in the organizations.

There are Five Stages of Transaction Processing

1. Data Entry
2. Processing
3. Database Maintenance
4. Document And Report Generation
5. Inquiry Processing

Transaction Processing System

Office Automation Systems

An office automation system (OAS) is a collection of communication technology, computers and persons to perform official tasks. It executes office transactions and supports official activities at every organizational level. These activities can be divided into clerical and managerial activities.

Clerical activities performed with the help of office automation system include preparing written communication, typesetting, printing, mailing, scheduling meetings, calendar keeping.etc. Under managerial activities, office automation system helps in conferencing, creating reports and messages, and controlling performance of organization. Many applications like word processing, electronic filing and e-mail are integrated in office automation system.

Word Processing

Word processing is used for the preparation of documents like letters, reports, memos, or any type of printable material by electronic means. The text is entered by keyboard and displayed on the computer’s display unit. This text can be edited, stored, and reproduced with the help of commands present in the word processor. Word processors have facilities for spell checking, grammar checking, counting (character,lines, pages, etc.), automatic page numbering, index creation, header and footer,etc.

Email

E-mail or electronic mail facilitates the transfer of messages or documents with the help of computer and communication lines. This helps in speedy delivery of mails and also reduces time and cost of sending a paper mail. E-mail supports not only the transfer of text messages but it also has options for sending images,audio, video, and many other types of data.

Voice Mail

Voice mail, an important call service, allows recording and storing of telephone messages into the computer’s memory. The intended person can retrieve these messages any time.

Knowledge Work Systems

A knowledge work system (KWS) is a specialized system built to promote the creation of knowledge and to make sure that knowledge and technical skills are proper integrated into  business. It helps the knowledge workers in creating and propagating new information and knowledge by providing them the graphics, analytical, communications, and document management tools.

The knowledge workers also need to search for knowledge outside the organization. Thus, knowledge work system must give easy access to external databases. In addition, knowledge work systems should have user-friendly interface to help users to get the required information quickly and easily.

Some examples of knowledge work systems are computer-aided design (CAD)systems, virtual reality systems, and financial workstations.

Computer-aided design (CAD) systems: These systems are used for automating the creation and revision of designs using computers and graphics software. The CAD software has the capability to provide design specifications for tooling and manufacturing process. This saves much time and money while making a manufacturing process.

Virtual Reality System: These systems have more capabilities than CAD systems for visualization, rendering and simulation. They make use of interactive graphics software to build computer-generated simulations which almost look like real. They can be used in educational, scientific and business work.

Financial Workstations: They are used to combine a wide range of data from internal as well as external sources. This data includes contact management data, market data and research reports. Financial workstations help in analyzing trading situations and large amount of financial data within no time. It is also used for portfolio management.

Management Information Systems

Management information systems are especially developed to support planning, controlling, and decision-making functions of middle managers. A management information system (MIS) extracts transaction data from underlying TPSs, compiles them, and produces information products in the form of reports, displays or responses.

These information products provide information that conforms to decision-making needs of managers and supervisors. Management information systems use simple routines like summaries and comparisons which enable managers to take decisions for which the procedure of reaching at a solution has been specified in advance.

Generally, the format of reports produced by MIS is pre-specified. A typical MIS report is a summary report, such as a report on the quarterly sales made by each sales representative of the organization. Another type of management information system report is an; for example, exception report that specifies the exception conditions the sales made by some sales representative is far below than expected.

Usually, management information systems are used to produce reports on monthly, quarterly, or yearly basis. However, if managers want to view the daily or hourly data, MIS enables them to do so. In addition, they provide managers online access to the current performance as well as past records of the organization.

Decision Support Systems

A decision support system (DSS) is an interactive computer-based information system that, like MIS, also serves at the management level of an organization. However, in contrast to MIS, it processes information to support the decision making process of managers. It provides middle managers with the information that enables them to make intelligent decisions. A decision support system in a bank, for example, enable a manager to analyze the changing trends in deposits and loans in order to ascertain the yearly targets.

Decision support systems are designed for every manager to execute a specific managerial task or problem. Generally, they help managers to make semi-structured decisions, the solution to which can be arrived at logically. However, sometimes, they can also help in taking complex decisions. To support such decisions, they use information generated by OASs and TPSs.

Decision support systems have more analytical power as compared to other information systems. They employ a wide variety of decision models to analyze data or summarize vast amount of data into a form (usually form of tables or charts) that make the comparison and analysis of data easier for managers. They provide interactive environment so that the users could work with them directly, add or change data as per their requirements, and ask new questions.

Executive Support Systems

An executive support system (ESS) – an extension of MIS – is a computer based information system that helps ind decision making at the top-level of an organization. The decisions taken with the help of executive support system are non-routine decisions that effect the entire organization and, thus, require judgement and sight.

As compared to DSSs, ESSs offer more general computing capabilities, better telecommunications and efficient display options. They use the advanced graphics software to display the critical information in the form of charts or graphs that help senior executives to solve a wide range of problems. To make effective decisions, they use summarized internal data from MIS and DSS as well as data from external sources about events like new tax laws, new competitors, etc. They filter, compress, and track data of high importance and make it available to the strategic-level managers.

Review Summary:

QUESTION 1

What are the unique feature of e-commerce, digital markets, and digital goods?

            E-commerce digitally enabled commercial transection between and among organization and individuals. Unique features of e-commerce technology include ubiquity, global reach, universal technology standards, richness, interactivity, information density, capabilities for personalization and customization and social technology.

            Digital markets are said to be more transparent then traditional market with reduced information asymmetry search cost transection costs and menu costs along with the ability to change prices dynamically based on market condition. Digital goods such as music, video, software and books can be delivered over digital network. Once a digital product has been produced the cost of delivering that product digitally is extremely low.

QUESTION 2

How has internet technology changed business models?

            The internet can help companies add extra value to existing products and services or create new products and services. Many different business models for electronics commerce on the internet have emerged including virtual soft fronts, information brokers transection brokers online marketplace, content providers, social networks, service providers and portals. Business models that take advantage of the internet capabilities for commercial community building and digital goods distribution have become especially prominent.

QUESTION 3

What are the various type of e-commerce and how have e-commerce changed consumer retailing and business to business transection?

            The three type of electronic commerce are business to consumer (B2C) , business to business (B2B) and consumer to consumer (C2C). Mobile commerce or m-commerce is the product of goods ans services using handheld wireless devices.

            The internet create new channel for marketing sales and customer support and to eliminate intermediates in buy and sell transection. Interactive capabilities on yje net can be used to build closer relationship with costumer in marketing ans costumer support web personalization technologies deliver Web pages with content geared to the specific interest of each user. Web sites and e-mail reduce transection cost for placing orders and customer service.

            B2B e-commerce generate efficiencies by enabling companies to locate suppliers solicit bids place orders and trash shipments in transit electronically. Net marketplaces a single digital marketplaces for many buyers and sellers and other strategic business to develop hihjly efficient and responsive supply chain.

QUESTION 4

What is the role of m-commerce in business and what are the most important application of m-commerce?

            M-commerce is especially well suited for location based application such finding local hotel and restaurants monitoring local traffic and weather and providing personalized location based marketing. Mobiles phones and handhelds are being used for mobile bill payments, banking, securities trading transportation schedule updates and downloads of digital content, such as music games and video games. M-commerce require wireless portals and special digital payments system that can handle micropayments.

QUESTION 5

What are the principal payment system for electronic commerce?

            The principal of e-commerce payment are digital credit card payment system, digital wallets, accumulated balance digital payment systems stored value payment systems, Digital checking and electronics billing presentment and payment system.

1)   What are the major features of a business that are important for understanding the role of information systems?

A business is a formal complex organization producing products or services for a profit. Businesses have specialized functions, such as finance and accounting, human resources, manufacturing and production, and sales and marketing. Business organizations are arranged hierarchically into levels of management. A business process is a logically related set of activities that defines how specific business tasks are performed. Business firms must monitor and respond to their surrounding environments.

2)   How do information systems support the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources?

Sales and marketing systems help the firm identify customers for the firm’s products or services, develop products and services to meet customers’ needs, promote the products and services, sell the products and services, and provide ongoing customers support. Manufacturing and production system deal with the planning, development, and production of products and services, and control the flow of production. Finance and accounting systems keep track of the firm’s financial assets and fund flows. Human resources systems maintain employee records; track employee skill, job performance, and training: and support planning for employee compensation and career development.

3)   How do systems serve the various levels of management in a business and how are these systems related?

Systems serving operational management are transaction process systems (TPS), such as payroll order processing, that track the flow of the daily routine transactions necessary to conduct business. Management information system (MIS) and decision-support systems (DSS) support middle management. Most MIS reports condense information from TPS and are not highly analytical. DSS support management decisions that are unique and rapidly changing, using advanced analytical models and data analysis capabilities. Executive support system (ESS) support senior management by providing data that are often in the form of graphs and charts delivered via portals using many sources of internal and external information.

4)   How do enterprise applications, collaboration and communication systems, and intranets improve organization performance?

Enterprise applications (enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems) are designed to coordinate multiple functions and business processes. Enterprise systems integrate the key internal business processes of a firm in to a single software system to improve coordination, efficiency, and decision making. Supply chain management systems helps the firm manage its relationship with the suppliers to optimize the planning, sourcing, manufacturing, and delivery of products and services. Customer relationship management uses information systems to coordinate all of the business processes surrounding the firm’s interaction with its customers to optimize firm revenue and customer satisfaction. Knowledge management systems enable firms to optimize the creation, sharing and distribution of knowledge. Jobs where interaction is the primary value-adding activity benefit from collaboration and communication systems. Intranets and extranets use internet technology and standards to assemble information from disparate systems and present it to the user in a Web page format. Extranets make portions of private corporate intranets available to outsiders.

What is the role of information systems function in a business?

The information systems department is the formal organizational unit responsible for information technology services. It is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm’s IT infrastructure. The department consists of specialists, such as programmers, systems analysts, project leaders, and information systems managers, and is often headed by a CIO.