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developing operating maintaining facilitating the acquisition adaptation of software & hardware
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Responsible for: infrastructure- telecommunications networks, corporate data center corporate STANDARDS interacting with vendors to gain discounts & for scanning
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To be effective competitor:
resources- Money
The planning process provides support for business objects the planning process allocates resources based upon priorities in THEORY the MIS plan should be aligned with the Corporate business strategy
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corporate business plan states the informational needs the MIS plan refers to the requirements of the business plan the MIS plan is checked against the business plan non-MIS managers participate in the MIS planning process MIS managers participate in the business planning process Corporate and MIS calendars are in sink with each other
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The MIS plan is reviewed periodically The conceptual contents o the plan
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basic questions: Will it face increasing customer power? Are there fewer customer who are larger? Is the firm to pursue a differentiating strategy? Does the firm have a track record for innovation?
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STRATEGIES
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from text: Stakeholder: Customer Strategy: improve service Innovation: Confirm orders within one hour
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E. Approaches to Planning
look at assimilation of IT in organizations Some focus on defining informational needs Some discuss categorizing applications
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Systems Planning (BSP) Critical Success Factors (CSF) Investment strategy analysis Scenario approach Linkage analysis planning Creative problem solving Enterprise Analysis The Architecture approach The crystal Ball Approach
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Philosophy: Data is a corporate resource (Enterprise data) Goal: discover a stable information architecture that supports all processes of the business. Objective: to assure the data necessary to support the business plan are available and that a stable information system architecture is developed.
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Interviewing Executives
Developing Recommendations
Reporting Results
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BSP (cont)
of data (customers, employees, places, objects) determine data usage Example: Inventory record- SKU, Name, quantity on hand, lead time
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BSP (cont)
processes
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A method for defining executive information needs. They are key areas or activities that must work right in order for the organization to be successful. They are time dependent and therefore must be measured .
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Temporal:
areas of the organization which do not normally need concern, but are currently unacceptable (The open can of worms).
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Tasks
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Other Methods
A strategy based upon portfolio planning and investment analysis. Four major types of systems for the 1990's
1.
Institutional procedures- the processing of internal transactions, as represented by many of today's mainline systems 2. Professional support system- engineering support (CAD) Managerial decision-making support (DSS, GSS) 3. Physical automation
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Other Methods
Systems that serve users outside the company, i.e. customers and suppliers. EDI, Voice mail, 800 numbers, Fax 5. Basic infrastructure
4.
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Other Methods
Alpha
Company
1. Renovate existing manufacturing systems around data base technology 2. Invest heavily in increasing the productivity of engineers 3. Foster innovation among the professional staff 4. Invest heavily in CAD/CAM
Beta
Company
1. Create new systems only when old ones fail 2. BE A FOLLOWER 3. Invest only when IT has a bottom line impact
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Other Methods
The scenarios help identify problems and manage assumptions. They also provide flexibility in the plans and a means of escape if necessary.
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Other Methods
1. Elements of a scenario
the
business environment
the effects of deregulation shifting towards a service economy ; away from MASS production Mergers and acquisitions increased foreign competition National budget deficits Interest rates (not in 1992) Changes in the strength of the US dollar unemployment corporate down sizing
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Other Methods
Government &
society
information accuracy privacy (see Scientific American August, 1992) access to information property rights people changes ROI speed of change quick obsolescence
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Financial considerations
TECHNOLOGY
Other Methods
2. Creating Scenarios
a. b.
Lotus 123
Cross-impact analysis: a model of major events and trends. Data can come from Delphi studies.
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Other methods
fact finding 2. problem finding 3. idea finding 4. solution finding 5. acceptance finding
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Other Methods
divergence-convergence activities recursiveness (iterative) and non-linearity using creativity techniques in each phase
EBS alternative selection
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Other Methods
The blue print for the information technology infrastructure. 1. support communications flows
the
flow of formal authority - financial consolidations of profit and loss centers via a computer flows of regulated activities- online banking systems
informal communication flows- E-mail, voice mail work constellations- expert systems
ad
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Other Methods
executives rethink how the business should be what kind of structure is needed ?
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SUMMARY
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SUMMARY
Identify the firms INFORMATION needs 3. Rank the opportunities presented by information technology in terms of their relative importance and the relative VALUE added to the business.
2.
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strategic: IS activities critical to the current competitive strategy and to future strategic decisions. IS applications are part of new strategic direction Factory: IS applications are vital to the successful functioning of well-defined, well accepted activities. Not part of future strategic operations
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Support: IS applications are useful in supporting activities. not vital to critical operations and not included as part of future strategic direction. Turnaround: IS in transition- from support to strategic. Vital to strategic success.
How does this relate to the Daft Weick Model? What about Uncertainty/Equivocality?
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upper management from all divisions and functions Department management from all divisions and functions Technical management from all divisions and functions IS, IE, Eng
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"steer" direct, push, pull, etc. the Organization investments in the direction that benefits the company the most; the STRATEGIC direction. Information scanning
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1. Increases the attention of top management to computing 2. Users become more involved with the system 3. The system departments are more aware of user needs 4. There is better long range planning for IS
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Other approaches
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Cost-Benefit Analysis
A technique for estimating the payoff to be expected from an information system. A. Cost benefit Analysis
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Cost-Benefit Analysis
Identification of costs
fixed
Identify Benefits
Tangible $ cost
Cost-Benefit Analysis
Intangible not $
Table
Then PRAY
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Methods of Acquiring IS
1. Internal Development
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Methods of Acquiring IS
2. Purchase
5. A combination approach
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A. The Actors
The users are interested in system performance Yes/NO Management controls the resources Yes/no MIS implements a system that SATISFIES the users' needs as well as the constraints and objectives from MGT.
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D. Problems Encountered:
Actors have their own agendas Users generally do not KNOW what they want/need COMMUNICATION can be a problem
cognitive style
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Efficiency
improve processing speed Point of sale systems, Bar coding ability to handle increased volume PC vs. manual methods, more PC's, LAN faster retrieval of information Bigger, faster data storage, SQL-based DBMS Canned-software (Order entry, Manufacturing, etc.)
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Efficiency/Effectiveness
Improved accuracy and consistency automating the process to reduce human error Computer prompting, error detection, field value checks Provide better security Need to know screens Password protection
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Effectiveness
Enhance communication Credit card systems, brokerage systems, E-Mail Integration of business areas: Coordination CIM, LAN communication, Manufacturing systems (ACCOUNTING, MATERIALS MGMT & MANUFACTURING)
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Effectiveness
Monitor Costs Tracking cost through a system (manufacturing LEDCS) Reducing costs automatic calculation-retrieval systems PTOS
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Lock in customers by offering a better price by providing a unique service by presenting distinctive products Examples: American Hospital Supply, Eaasy Saber System, MAC Lock out competitors This happens when one locks in customers
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Improve arrangement with suppliers EDI, long term contracts, the Japanese way, JIT Quality programs, Shared Data Bases Form a basis for new products the value of information, commercial data bases on anything, mailing lists, Market Research, Shop Rite Price Plus, Prodigy, CompuServe. INNOVATION
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Improve control, Power Form processing systems, QC 2. Senior executives: Strategic, competitive advantage EIS, DSS, Market Research , E-Mail, Big systems 3. Systems analysts: Efficiency Speed accuracy, upgrades 4. Outside Groups: Regulatory Special accounting systems, OSA control
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classify impact of project can the project be redesigned to support multiple business functions or fewer ensure funding judge fit, function, form, recommend development strategy SDLC, SA, Prototyping ask 5 C's
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other organizations
Power Political Favored son Fear
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D. Integration
Application should
be integrated (yes & no) Horizontal- (marketing, Manufacturing, accounting) Vertical- upper level to lower level mgmt Distributed- separate system in different plants different hardware, software Integration- External-Internal EDI
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II The Project
A. Project request
WHAT
IS THE PROBLEM DETAILS of THE PROBLEM IMPACT OF THE PROBLEM (how significant is it) PROPOSED SOLUTION JUSTIFICATION (5 C's) BENEFITS (5 C's) Who else knows Intangibles
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B. Preliminary Investigation
(Fig 2.6, 75) by the team- SA, IE, Mgrs., etc 1. Scope of the study
Clarify and understand the project request Determine size Assess cost/benefits Determine feasibility - Technical, operational, economic Report findings with recommendations
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of information requirements in conjunction with a specific task or decision Querying a data base with special software HPAccess to lotus development of an application with a package
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Changing data
values in a Org DB Applications spanning several departments Applications requiring formal documentation Major long-term applications (the New Post office) Applications requiring formal spec's