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Managing Information Technology

& With CEO, CIO & Managers

Lecture 1
ICT applications in Business and
Management
nvthoan@ftu.edu.vn
http://web.ftu.edu.vn/thoan

MIS 8.2011 – 6.2012 – 2013 – 10.2014 – 3.2016 – 8.2016


Before we start!
• We are going to study how to manage ICT
applications in business and management, please:
• Bring your laptop, and smart phone
• Get connected to Internet (Wifi, 3G, even use your
smart phone)
• Remember your E-learning account & pass
• Contribute to class is most important
• Use email for class practice and assignments
• Enjoy and Have fun!
CEO & CIO
What are the TWO key benefits which CEO and
other Cs (CFO, CHR, COO, CMO, CIO) consider
most important in ICT application Projects?
Benefit 1: …… ……. (2 words)
Benefit 2: …… ……. (2 words)
Others if any!

The first rule of any technology used in a business is that


automation applied to an efficient operation will magnify the
efficiency. The second is that automation applied to an
inefficient operation will magnify the inefficiency. Bill Gates
Managing IT in an E-World
MIS = Make It Simple
Management Information Systems
Q1. Is it easy to apply ICT in Business
and Management?

Great things in business are never done by one person.


They're done by a team of people.
Steve Jobs
Managing IT in an E-World
MISPREDICTIONS BY IT INDUSTRY LEADERS
This “telephone” has too many shortcomings to be seriously considered as a means of
communication. The device is inherently of no value to us.
-Western Union internal memo, 1876
I think there is a world market for maybe five computers.
-Thomas Watson, chairman of IBM, 1943
But what [is a microchip] good for?
-Engineer at the Advanced Computing Systems Division of IBM, 1968

There is no reason anyone would want a computer in their home.


-Ken Olson, president, chairman, and founder of Digital Equipment Corp., 1977

640K ought to be enough for anybody.


-Attributed to Bill Gates, chairman of Microsoft, 1981

Dell has a great business model, but that dog won’t scale.
-John Shoemaker, head of Sun’s server division, 2000

What would I do? I'd shut [Apple] down and give the money back to the shareholders.
--Michael Dell, chief executive officer and founder of Dell Computer, 1997
Managing IT in an E-World
Q2. How many percent of Annual
Investment is spent for ICT, MIS and
Ecommerce in businesses and
organizations?

Productivity is grounded in the PC. Where does the computing power


come from? How would you run 'USA Today' without PCs? Run a
hospital without PCs? People don't want products, they want solutions.
Michael Dell
Managing IT in an E-World
• IT investments are important strategic
decisions for many organizations

By the year 2000, more than half


of capital expenditures by
businesses in developed
countries were for IT purchases
Managing IT in an E-World
Q3. Why business leaders now can
apply MIS much more easily than 10
years before? (2016 vs. 2000)

Management is doing things right;


leadership is doing the right things.
Peter Drucker
RECENT INFORMATION TECHNOLOGY
TRENDS
• Computer Hardware: Faster, Cheaper, Mobile
– Computers have become smaller and faster
– Hardware prices have dropped
– Trend over time is for more mobile computers

Personal Digital Laptop Touch screen cell


IBM Personal
Microcomputers Assistants [PDAs] Computers phones
Computer
(1970’s) introduced outsell desktops introduced
(1981)
(early 1990s) (2005) (2007)
Managing IT in an E-World
Q4. How can MIS and ICT help increasing
business competitiveness and
production capabilities?

One strategy: "We've had three big ideas


at Amazon that we've stuck with for 18
years, and they're the reason we're
successful: Put the customer first. Invent.
And be patient."
New Ways of Competition
• ICT helps form new business models
• Support all three ways in competition (Porter, 1980)

• Compete by being a low-cost producer of a good or


Cost service

• Compete by offering products or services customers


Differentiation prefer due to superiority with innovativeness, image,
quality, or customer service

• Simultaneously focusing on low-cost and differentiation


Both often within a specific market niche
Managing IT in an E-World
Q5. Not all businesses have the same
demands for ICT application.
How many levels of urgencies in ICT
applications? Give examples?
Put the companies in order of ICT
application demands?
Bank, Airlines, Hospital, Super markets,
Tax, Customs, Schools, Street Shops
Four levels of ICT applications
• Companies have different demands for ICT
applications
– The Denis et al. (2004) scheme:

Highly Desired /
Absolute Must Wanted Nice to Have
Business-Critical
• A mandate due to • Includes short-term • Valuable, but with • Projects with good
security, legal, projects with good longer time periods returns, but with
regulatory, or end- financial returns for returns on lower potential
of-life-cycle IT and portions of investment (more business
issues very large projects than a 12-month
already in progress period)

MIS - 2016. Publishing as Prentice Hall 13


Managing IT in an E-World
6. What and How to manage ICT in
business and organizations?
WHAT
HOW
WHO
What and How to manage ICT Apps?

Technology • Computer and communications


infrastructure that enables information
Asset sharing over standard IT platforms

Relationship • Established partnering relationships for


joint IT-business decision-making
Asset

• Pool of IT people talent for needed mix


Human Asset of technology and business skills
Managing IT in an E-World
Q7. Who should be appointed as CIO?
Who should be appointed as CIO?
• IT Leadership Roles
Chief Information Officer (CIO)

• A firm’s high-level general IT manager with both technology


and business leadership experience. Together with the
organization’s executive management team the CIO ensures the
alignment of IT resources with business goals and plans for
integration of IT for strategic advantage
Managing IT in Organizations
• CIO position in Organization!

CEO

Business Unit Business Unit Business Unit


#1 #2 #3 CIO

VP (IT) Corporate
VP (IT) Enterprise Planning and Systems
Retirement VP (IT) Group Applications /
Individual Architecture Finance Operations
Services Payroll / HR
CIO - VN
• Who used to be
the Top Leader of
ICT applications
in Vietnam?
CIO - VN
• How many
percentage of
Vietnam
companies and
businesses has
CIO or PIC of ICT
application?

Nguồn:
http://vietnamnet.vn/vn/cong-nghe-thong-tin-vien-thong/183048/tap-trung-phat-trien-manh-cntt-theo-4-tru-cot.html
26/06/2014
Top 100 CIOs

Nguồn:
http://www.cio.co.uk/cio100/2014/top-100/
26/06/2014
From PC to Super Computer
Q8. Make a proposal for a computer room
using for internal training in your
company, 100 PCs and related
equipment.
- How much?
- List key equipments
- List key configurations for PC
From PC to Super Computer
A8. BIDDING FOR PCS ROOM
1. 1.500.000.000 VND
2. 2.000.000.000 VND
3. 1.000.000.000 VND
4. 1.800.000.000 VND
5. 1.200.000.000 VND
6. 1.470.000.000 -----
7. 1.150.000.000 -----
8. 1.400.000.000 VND
9. XXXXXXXXXXXXX
10. 1.100.000.000
Types of Computers

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LAN and Internet
Q9. When you check mail on your
smart phone, how information runs
in the networks?
Or
When you withdraw money from
ATM manchine, how information
runs and how you receive the SMS
in your smart phone?
How information is transmitted ?
• OSI Model
– Developed by the International Organization for
Standardization (ISO)to outline a standard set of
protocols for telecommunications

Figure 4.14

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Two key MIS in businesses

10. What are the two key Information


Systems in businesses?
- You have PC, Servers
- You have Networks
- You have Software
What flows through the systems? Information? Data? How
to use that to create Value for leaders, managers and
employees?
Intra-Organizational systems
Intraorganizational systems

Enterprise Systems

• Systems that support all or most of the organization

Managerial Support Systems

• Systems that support a specific manager or group of


managers

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APPLICATION AREAS
Intraorganizational systems (cont’d)

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Managing IT in an E-World
11. What does this stand for?
SCM
ERP
CRM
ERP SYSTEMS
Today’s vendors offer modules
beyond the “back-office” modules

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ERP
12. Which companies are key vendors or
providers of ERP, SCM and CRM
solutions?
ERP market shares
• Choosing the right software is important
– From one vendor or multiple vendors (“best of breed”)
• Implementing multiple modules at once is difficult
– Requires large investment of money and people
resources

Source: Gartner Dataquest

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CRM
Q13. Why do we need customers
database, why do we need CRM
systems?

"If you never want to be criticized, for


goodness' sake don't do anything new."
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

CRM systems
• A new way to compete using IT:
service-based differentiation
– Single-face-to-the-customer, no matter which channel
customer uses
Traditional Channels New Electronic Channels
• Call centers • E-mail
• Field reps • Web sites for consumers and
partners
• Retail dealer networks/ • Communications via wireless
business partners devices

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CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

Types of purchased CRM systems

CRM
e-CRM
Suites

Ex. Siebel, Clarify Ex. NetPerceptions


(automated customer interactions)

ERP
Extensions

Ex. mySAP, PeopleSoft/Vantive

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Personal ICT Applications
Q14. List 10 applications you often use
on your PC, laptop every day

List 10 most used applications in your


smart phone?

"In the old world, you devoted 30% of your


time to building a great service and 70% of
your time to shouting about it. In the new
world, that inverts."
Office sharing and collaboration
• A set of office-related applications that might or
might not be integrated into a single system

Most Common Office Applications


• Word processing • Desktop publishing
• Electronic mail • Electronic calendaring
• Telephony • Document imaging
• Voice mail • Document preparation,
storage, and sharing
• Copying

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Managing IT in an E-World
Q15. List at least 5 ICT application in
business which helps leaders, managers
and staff collaborate and communicate in
business everyday?
1.
2.
3.
4.
5.
GROUPWARE
Common Groupware Features
• Electronic mail • Meeting support systems
• Electronic bulletin boards • Workflow routing
• Computer conferencing • Electronic forms
• Electronic calendaring • Internet telephony
• Group scheduling • Sharing documents
• Desktop • Learning management
videoconferencing systems
• Electronic whiteboards • Instant messaging
• Shared workspace

MIS - 2016. Publishing as Prentice Hall 40


GROUPWARE
Groupware Products
• Microsoft Exchange • EMC Documentum eRoom
• Lotus Notes • Microsoft Office Groove
• Oracle Collaboration Suite • Microsoft SharePoint Server
• Novell GroupWise • Thruport Technologies HotOffice
• Microsoft Office Communications • IBM Workplace Collaboration
Server Services
• Web Crossing

MIS - 2016. Publishing as Prentice Hall 41


SCM – Supply Chain Management
Q15. Find in Youtube.com a video clip
about car manufacturing processes?

Or other product production processes


List the key suppliers for this factory?
Why do we need SCM?
SUPPLY CHAIN
MANAGEMENT (SCM) SYSTEMS
• Designed to deal with the procurement of
components needed to make a product or service
and movement and distribution of finished
products through the supply chain
• Five basic components of SCM system:
1. Plan: developing strategy for managing resources
2. Source: choosing suppliers
3. Make: manufacturing the product
4. Deliver: logistics of getting product to the customer
5. Return: procedure for handling defective products

MIS - 2016. Publishing as Prentice Hall 43


Automation of production and
services
Q16. Find a video clip in Youtube.com
which show the applications of ICT in:
- Hospital
- Factories (car, PC, phone, foods…)
- Bank
- Supermarket
- Everyday life activities

Send links to Class email and also: nvthoan@ftu.edu.vn


FACTORY AUTOMATION
Factory operations
• Computer-aided manufacturing (CAM) – use
of computers to control manufacturing
processes
– Series of programs to control automated
equipment on shop floor
– Includes guiding vehicles to move raw materials
and finished products
– Requires a lot of input from other systems

MIS - 2016. Publishing as Prentice Hall 45


Managing IT in an E-World
Q17. Data mining
How can banks use customer database?
How can super-markets use customer
database?

PRACTICE: Create a Google Form to get


customer information?
Data mining
• Data mining software:
– Oracle 10g Data Mining
(http://www.oracle.com/technology/products/bi/odm/index.html)
– SAS Enterprise Miner
(http://www.sas.com/technologies/analytics/datamining/miner/)
– XLMiner
(http://www.xlminer.com/)
– IBM Intelligent Miner Modeling
(http://www-306.ibm.com/software/data/iminer/)
– Angoss Software’s KnowledgeSEEKER,
KnowledgeSTUDIO, and StrategyBUILDER
(http://www.angoss.com/analytics_software/)

MIS - 2016. Publishing as Prentice Hall 47


DATA MINING

Cross Selling

Losing customer

Retention

Direct Marketing

Fraud Detection

MIS - 2016. Publishing as Prentice Hall 48


DATA MINING
Interactive

Analysis

Segmentation

Payment

Trends

MIS - 2016. Publishing as Prentice Hall 49


End of part 1
• Summary
• How fast can you type in English?
• List 10 key components of a PC?

MIS - 2016. Publishing as Prentice Hall 50