Every organization has different levels (strategic, management, operational) and with those levels are different decision making requirements. Decisions can be structured, semi-structured and unstructured. Structured decisions are usually at the operational level and unstructured are usually at the strategic level. Decision making can be made by individual employees or by teams or groups. Intelligence, design, choice and implementation are the four levels of decision making. Despite their intent systems to support decision making don't always have better outcomes because of problems with information quality, management filters an organizational culture.
Classic models of managerial activities stressed the functions of organizing, planing, coordinating, controlling and deciding. More modern research looks at the behavior of managers has found that the real daily activities of a manager are fragmented, brief in duration and variegated; and that is why many managers tend to avoid making grand game changing decisions. IT provides new tools for managers to carry out their daily activities. They are able to plan, forecast, monitor with better accuracy and speed than ever before. IS is great for helping mangers disseminate information and allocate information but there is still some opportunity around supporting unstructured decisions.
Business intelligence and analytics guarantee accurate, almost real-time information for decision making. A BI environment consists of information from the business environment, the BI infrastructure, a BA tool set, managerial users and methods and the user interface. There are six analytic functionalities that BI systems deliver to achieve these ends: pre-defined production reports, parametrized reports, dashboards and scorecards, ad hoc queries and searches, the ability to drill down and the ability to model scenarios and create forecasts.
Business within organizations uses BI for monitoring the performance of their company. Most of the decisions are somewhat structured and Management information systems are used to support the decision making. For making unstructured decisions decision support systems are used, which include powerful analytics and modeling tools. Group decision support systems (GDSS) help employees working together make decisions more efficiently. GDSS feature special conference room facilities where people can contribute ideas, suggestions and solutions using networked computers and software tools for organizing ideas, making and setting priorities, gathering information and documenting meeting sessions.
Monday, November 21, 2011
Chapter 11 - Managing Knowledge
Knowledge management is a set of processes to store, create, transfer and apply knowledge in the organization. A large part of a companies value is dependent on the ability to manage and create knowledge. There are three different types of knowledge management systems. They are enterprise wide knowledge management systems, knowledge work systems and intelligent techniques.
The types of systems used for enterprise-wide knowledge systems are used company wide to collect, store, distribute and apply digital content and knowledge. Enterprise content management systems provide tools for organizing as well as databases and tools for organizing semi-structured knowledge, like email or rich media. Knowledge network systems give directories and other tools for locating employees. Enterprise wide knowledge systems usually provide significant information if they are designed well and give employees the ability to share, locate and use knowledge more efficiently.
Knowledge work systems (KWS) back up the creation of new knowledge and integrate it into the organization. KWS need east access to an external knowledge base, computer hardware that can support software with graphics, document management, analysis, communications and a user friendly interface. Computer-aided design (CAD) systems, virtual reality systems and augmented reality applications create interactive simulations that act and look just like the real world.
There are many important business advantages to using intelligent techniques for knowledge management. Artificial intelligence is just as it sounds, so it lacks the breadth, flexibility, and general human intelligence; but it can be used to extend organizational knowledge, codify and capture. The expert systems capture tacit information from a limited domain of human expertise and express knowledge in the form of rules. Expert systems are best for problems of classification or diagnosis. Case-based reasoning models organizational knowledge that can be consistently updated and refined. Fuzzy logic is a software technology that expresses knowledge in the form of rules that use approximate or subjective values. Neural networks consist of hardware and software that try to mimic the thought processes of the actual human brain. They are great for their ability to learn without programming and recognize patterns that can't be easily described by humans. Thy are currently used in science, business and medicine to discern complicated patterns. Genetic algorithms create solutions using genetically based processed like fitness, mutation and crossover. Thy are typically used for process optimization, product design and monitoring industrial systems. Intelligent agents are software programs with built in or learned knowledge bases that carry out repetitive, specific and predictable tasks for users, business processes and software applications. Intelligent agents can be used to navigate through data to find important, useful information for the user.
The types of systems used for enterprise-wide knowledge systems are used company wide to collect, store, distribute and apply digital content and knowledge. Enterprise content management systems provide tools for organizing as well as databases and tools for organizing semi-structured knowledge, like email or rich media. Knowledge network systems give directories and other tools for locating employees. Enterprise wide knowledge systems usually provide significant information if they are designed well and give employees the ability to share, locate and use knowledge more efficiently.
Knowledge work systems (KWS) back up the creation of new knowledge and integrate it into the organization. KWS need east access to an external knowledge base, computer hardware that can support software with graphics, document management, analysis, communications and a user friendly interface. Computer-aided design (CAD) systems, virtual reality systems and augmented reality applications create interactive simulations that act and look just like the real world.
There are many important business advantages to using intelligent techniques for knowledge management. Artificial intelligence is just as it sounds, so it lacks the breadth, flexibility, and general human intelligence; but it can be used to extend organizational knowledge, codify and capture. The expert systems capture tacit information from a limited domain of human expertise and express knowledge in the form of rules. Expert systems are best for problems of classification or diagnosis. Case-based reasoning models organizational knowledge that can be consistently updated and refined. Fuzzy logic is a software technology that expresses knowledge in the form of rules that use approximate or subjective values. Neural networks consist of hardware and software that try to mimic the thought processes of the actual human brain. They are great for their ability to learn without programming and recognize patterns that can't be easily described by humans. Thy are currently used in science, business and medicine to discern complicated patterns. Genetic algorithms create solutions using genetically based processed like fitness, mutation and crossover. Thy are typically used for process optimization, product design and monitoring industrial systems. Intelligent agents are software programs with built in or learned knowledge bases that carry out repetitive, specific and predictable tasks for users, business processes and software applications. Intelligent agents can be used to navigate through data to find important, useful information for the user.
Chapter 10 - E-Commerce: Digital Markets, Digital Goods
Chapter 10 starts by discussing some of the features that are unique to e-commerce, digital markets and digital goods. E-Commerce includes digitally enabled commercial transactions between companies and people. Ubiquity, global reach, universal technology standards, richness, information density and interactivity are all unique e-commerce features. Digital markets tend to be more transparent and they have reduced information asymmetry, transaction and search costs as well as the ability to change prices based on market conditions. Music, software, videos and books are all digital goods and can all be delivered over a digital network. Digital products are great because once the original has been created the price of delivering the product is typically lower.
E-tailers, market creators, transaction brokers, content providers, community and service providers and portals are all e-commerce business models. The main e-commerce revenue models are sales, advertising, free-freemium, subscription, affiliate and transaction fee.
E-commerce has transformed marketing by identifying marketers new ways of communication with millions of customers and at a low cost. Companies use crowd sourcing to use the "wisdom of crowds" and improve product offerings and grow customer value. Behavioral targeting techniques are also used to increase the effectiveness of rich media, banner and video ads.
Business to business transactions have also been affected by e-commerce. It is used to enable companies to locate suppliers, place orders, solicit bids and track orders electronically. Net marketplaces provide individual, digital marketplace for sellers and buyers. Even more private industrial networks link a company with its suppliers and other strategic business partners and develop extremely efficient and responsive supply chains.
For location based applications like, finding local hotels and restaurants m-commerce is best suited. Millions of people use mobile phones and other hand held devices to pay bills, banking, securities, music and games. M-commerce does require wireless portals and digital payment systems.
Anytime you build an e-commerce website you must ensure that you have a clear understanding of the business objectives that must be achieved and the technology necessary to hit those goals. E-commerce sites can be hosted locally or outsourced to external service providers.
E-tailers, market creators, transaction brokers, content providers, community and service providers and portals are all e-commerce business models. The main e-commerce revenue models are sales, advertising, free-freemium, subscription, affiliate and transaction fee.
E-commerce has transformed marketing by identifying marketers new ways of communication with millions of customers and at a low cost. Companies use crowd sourcing to use the "wisdom of crowds" and improve product offerings and grow customer value. Behavioral targeting techniques are also used to increase the effectiveness of rich media, banner and video ads.
Business to business transactions have also been affected by e-commerce. It is used to enable companies to locate suppliers, place orders, solicit bids and track orders electronically. Net marketplaces provide individual, digital marketplace for sellers and buyers. Even more private industrial networks link a company with its suppliers and other strategic business partners and develop extremely efficient and responsive supply chains.
For location based applications like, finding local hotels and restaurants m-commerce is best suited. Millions of people use mobile phones and other hand held devices to pay bills, banking, securities, music and games. M-commerce does require wireless portals and digital payment systems.
Anytime you build an e-commerce website you must ensure that you have a clear understanding of the business objectives that must be achieved and the technology necessary to hit those goals. E-commerce sites can be hosted locally or outsourced to external service providers.
Monday, November 14, 2011
Chapter 9 - Achieving Operational Excellence and Customer Intimacy: Enterprise Applications
Enterprise systems help businesses achieve operation excellence by collecting data and feeding into numerous applications that can support nearly all of an organizations internal business activities. As new information is entered by one process the information is made available immediately to other business processes. The enterprise systems support organizational centralization by enforcing uniform data standards and business processes throughout the company and a single unified technology platform. The company-wide data generated by enterprise systems often helps managers evaluate company performance.
In order for supply chain management systems to coordinate planning, production and logistics with suppliers they must automate the flow of information among members of the supply chain so they can use it to make better decisions about how to much purchase and when and where to ship it. The more accurate the information received the less likelihood of uncertainty and the impact of the bull whip effect. Supply chain management software includes software for supply chain planning and for supply chain execution. Internet technology supports the management of global supply chain information. Better communication between the chain members also gains better customer response and movement toward a demand-driven model.
Customer relationship management (CRM) systems integrate and automate customer facing processes in sales, marketing and customer service which provides an enterprise-wide view of customers. Many companies use this knowledge to enhance customer interactions and provide them with better service or the ability to provide new products and services. The biggest customer relationship management software packages provide capabilities for both operational CRM and analytical CRM. They typically include modules for managing relationships with selling partners and for employee relationship management.
As enterprise applications are difficult to implement there are challenges that arise. Enterprise applications require extensive organizational change, big software investments and careful assessment of exactly how these systems will enhance organizational performance. In order for the systems to enhance operations they must be integrated into systems that are not flawed, that and ensuring that all employees understand how to use systems and how they should work help enhance a successful roll out. Training for all employees using the technology is necessary as well.
Chapter 8 - Securing Information Systems
Because the Internet is designed to be an open system and makes internal corporate systems more vulnerable to actions from outsiders; digital data is even more vulnerable to destruction, misuse, error, fraud and hardware or software failures. Computer hackers can unleash denial of service (DoS) or penetrate corporate networks causing serious system disruption. Wi-Fi networks can also be easily hacked by intruders. Computer viruses and worms can also disarm networks and websites. The spread out nature of cloud computing makes it difficult to track unauthorized activity or to apply controls from afar.
The business value of security and control is huge. Lack of good security and control can cause major problems down the line for any business or organization; and can lead to loss of sales and productivity. Information assets, such as confidential employee records, trade secrets or business plans lose a lot of their value if they are revealed to company outsiders. New laws such as HIPPA, the Sarbanes-Oxley Act and the Gramm-Leach-Bliley Act have made it mandatory for a company to have very strict electronics management policies.
In order for a company to have solid security and control it is necessary to establish a good set of both general and application controls for their IS. Risk assessment evaluates information assets, identifies control points and control weaknesses and determines the most cost effective set of controls. Organizations also have to develop a coherent corporate security policy and plans for continuing business operations in the event of a disaster or a major disruption to daily business operations. The security policy should include policies for acceptable use and identity management; as well a comprehensive, systematic MIS auditing tool.
Chapter 7 - Telecommunications, the Internet, and Wireless Technology
The principle components of telecommunications networks include computers, network interfaces, a connection medium, network operating system software and either a hub or switch. The networking infrastructure for a large organization includes the traditional telephony system, mobile cellular communication, wireless local area networks, video-conferencing systems, a corporate website, intranets, extranets and a wide array of local and area wide networks, including the Internet.The rise of client/server computing, the use of packet switching and the adoption of the Transmission Control Protocol/Internet Protocol (TCP/IP) have all shaped contemporary networks.
The main telecommunications transmission media are twisted copper wire, coaxial cooper cable, fiber optic cable and wireless transmission. Local area networks (LAN) connect PC's and other digital devices together within a 500 meter radius and are used today for many corporate computing tasks. Network components may be connected together using a star, bus or ring topology. Wide area networks (WANs) span broad geographical distances ranging from several miles to continents. Digital subscriber lines (DSL) technologies, cable Internet connections and T1 lines are often used for high-capacity Internet connections.
The Internet is a world wide network of networks that used the client/server model of computing and the TCP-IP reference model. Every computer that uses the Internet has a unique number associated with it (IP address). Main Internet services include email, newgroups, chatting, instant messaging, Telnet, FTP and the Web. Web pages are based on Hypertext Markup Language (HTML) and can display text, graphics, video an audio. Companies have also started to realize economies by using VoIP technology for voice transmission and by using virtual private networks (VPNs) as low cost alternatives to WANs.
The principal technologies and standards for wireless networking, communication and Internet access are high speed, high bandwidth and digital packet switched transmission. Broadband 3G networks are capable of transmitting data at speeds ranging from 144 Kbps to more than 2 Mbps. 4G networks capable of transmission speeds that could reach 1 Gbps are also starting to be released. Code Division Multiple Access (CDMA) and Global Systems for Mobile Communications (GSM) are both common cellular standards.
Chapter 6 - Foundations of Business Intelligence: Databases and Information Management
Chapter 6 identified some of the problems associated with managing data resources in a traditional file environment and how are they solved by a database management system. The typical file management techniques make it hard for firms to keep track of the pieces of data they use in a systematic way and to organize the data so that it can be easily accessed. In order to develop their own files independently different functional areas and groups were created. As time progressed the traditional file management environment created problems like data redundancy and inconsistency, program data dependence, poor security, inflexibility and lack of data sharing and availability. Database management system (DBMS) helps solve these problems with software that permits centralization of data and data management so that businesses have a single consistent source for all their needs.
Some of the major capabilities of DBMS include data definition, data dictionary and a data manipulation language. The data definition capability specifies the structure and content of the database. The data dictionary is an automated or manual file that stores information about the data in the database, including names, definitions, formats and descriptions of data elements. The manipulation language such as SQL, is a specialized language for accessing and manipulating data in the database. The relational database is the primary method for organizing and maintaining data today in informational systems because it is so flexible and easily accessible.
There are some important database design principles. Designs should include both a logical and physical design. The logical design should model the database from a business perspective. The model should reflect an organizations main business processes and decision making requirements. A well designed relational database will not include many-to-many relationships, and all attributes for a specific entity will only apply to that entity. It should try to enforce the referential integrity rules to ensure that relationships between coupled tables will remain consistent.
Some principle tools and technologies for accessing information from databases to improve business performance and decision making are data warehouses. They consolidate current and historical data from many different operational systems in a central database designed for reporting and analysis. Data warehouses support multidimensional data analysis, also known as online analytical processing (OLAP). OLAP represents relationships among data as a multidimensional structure, which can be visualized as cubes of data and cubes of data within data, which enables more sophisticated data analysis.
When developing a database environment it is crucial to require policies for managing organizational data as well as a good data model and database technology. A formal information policy should govern maintenance, distribution and use of information in the organization. In larger companies a formal data administration function is responsible for the information policy. Inaccurate, incomplete and inconsistent data creates a serious operational and financial problem. Companies must take whatever steps necessary to ensure they have a high level of data quality.
Some of the major capabilities of DBMS include data definition, data dictionary and a data manipulation language. The data definition capability specifies the structure and content of the database. The data dictionary is an automated or manual file that stores information about the data in the database, including names, definitions, formats and descriptions of data elements. The manipulation language such as SQL, is a specialized language for accessing and manipulating data in the database. The relational database is the primary method for organizing and maintaining data today in informational systems because it is so flexible and easily accessible.
There are some important database design principles. Designs should include both a logical and physical design. The logical design should model the database from a business perspective. The model should reflect an organizations main business processes and decision making requirements. A well designed relational database will not include many-to-many relationships, and all attributes for a specific entity will only apply to that entity. It should try to enforce the referential integrity rules to ensure that relationships between coupled tables will remain consistent.
Some principle tools and technologies for accessing information from databases to improve business performance and decision making are data warehouses. They consolidate current and historical data from many different operational systems in a central database designed for reporting and analysis. Data warehouses support multidimensional data analysis, also known as online analytical processing (OLAP). OLAP represents relationships among data as a multidimensional structure, which can be visualized as cubes of data and cubes of data within data, which enables more sophisticated data analysis.
When developing a database environment it is crucial to require policies for managing organizational data as well as a good data model and database technology. A formal information policy should govern maintenance, distribution and use of information in the organization. In larger companies a formal data administration function is responsible for the information policy. Inaccurate, incomplete and inconsistent data creates a serious operational and financial problem. Companies must take whatever steps necessary to ensure they have a high level of data quality.
Chapter 5 - IT Infrastructure and Emerging Technologies
In order to understand Chapter 5 I must first define IT infrastructure and it's components. IT infrastructure is the shared technology resources that provide the platform for the firms specific information system applications. IT infrastructure includes hardware, software and services that are shared across the entire organization. Major IT infrastructure components are computer hardware platforms, operating system platforms, enterprise software platforms, networking and telecommunications platforms, database management software, Internet platforms and consulting services and systems integrators.
The chapter also details the stages and technology drivers of the IT infrastructure evolution. The five stages of IT infrastructure evolution are the mainframe era, the personal computing era, the client/server era, the enterprise computing era and the cloud and mobile computing era. Moore's Law deals with the growth in processing power and decrease in the cost of computer technology. As we learned in Chapter 4 the power of micro-processors doubles every 18 months and the price of computing falls in half. The Law of Mass Digital storage deals with the exponential decline in the cost of storing data, stating that the number of kilobytes of data can be stored on magnetic media for $1 doubles every 15 months. Metcalfe's Law helps show that a networks value to participants grows as the network takes on more members.
Some of the current trends in the computer hardware platform are computing on a mobile digital platform, grid computing, virtualization and cloud computing. Grid computing involves connecting geographically remote computers into a single network to create computational grid that combines the computing power of all computers on the network. Virtualization organizes computing resources so that their use is not restricted by physical configuration or geographic location. In cloud computing organizations and individual users obtain computing power and software as services over a network, including the Internet, rather than purchasing and installing the hardware and software on their own computer.
Some of the current trends in software platforms include open source software that is produced and maintained by global community of programmers and can usually be downloaded for free. Linux is a powerful open source OS that can run on multiple hardware platforms and is used widely to run Web servers. Java is an OS and hardware-independent programming language that is the leading interactive programming environment for the Web. Now often times corporations are purchasing their software from outside sources including software packages, by outsourcing customer application development software services (SaaS). Mash ups combine two different software services to create new software applications and services.
Managing IT infrastructure in the modern world does come with some inherent challenges. Those challenges include dealing with the platform and infrastructure change, infrastructure management and governance and making wise infrastructure investments. The solution guidelines include using a competitive forces model to determine how much to spend on the IT infrastructure and where to take strategic infrastructure investments, and establishing the total cost of ownership (TCO) of information technology assets. The TCO of owning technology resources usually includes not only the cost of the original hardware and software, but also the costs for upgrades, maintenance, technical support and training.
Chapter 4 - Ethical and Social Issues in Information Systems
Chapter 4 started by identifying five moral dimensions of the Information Age.
The 5 Moral Dimensions of the Information Age:
1. Information rights and obligations - what information rights do individuals and organizations possess with respect to themselves? What can they protect?
2. Property rights and obligations - how will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership are difficult and ignoring such property rights is so easy?
3. Accountability and control - Who can and will be held accountable and liable for the harm done to individual and collective information and property rights?
4. System quality - What standards of data and system quality should we demand to protect individual rights and the safety of society?
5. Quality of life - What values should be preserved in an information and knowledge based society?
There are some key technology trends that raise ethical issues. Computing power doubles every 18 months, this has made it possible for companies to use IS for their core production processes. Now most corporations are dependent on systems; which makes us even more vulnerable to system errors and poor data quality. Data storage costs are quickly declining so organizations can easily maintain detailed databases on individuals. That opens more opportunities for profiling, which is when different computers are used to compile different pieces of information on individuals and create electronic dossiers to store the information. Within the trend of profiling non-obvious relationship awareness (NORA) technology has given the public even more ways to profile individuals. When data flows over the Internet it can be viewed and monitored at any point. Not all websites have strong enough privacy protection policies and cookies also make it easy for private information to become public information. Traditional copyright laws are outdated and insufficient for protecting against software piracy.
Chapter 4 teaches us that there must be ethical choices within IS. Ethical choices are decisions made by individuals who are responsible for the consequences of their actions. Responsibility is a main element of ethical action - it means that you accept the potential costs, duties and obligations for the decisions you make. Accountability is a feature of systems and social institutions. It means that mechanisms are in place to determine who took responsible action and who is responsible. Liability extends the concept of responsibility further to the area of laws. These three fairly basic concepts help form the basis of ethical analysis of IS and those who manage them.
There are six ethical principles for judging conduct and they include the Golden Rule, Immanuel Kant's Categorical Imperative, Descartes' rules of change, the Utilitarian Principle, the Risk Aversion Principle and the ethical "no free lunch rule". In addition to ethical analysis these principles should be used to guide behavior when managing IS.
Information systems have had an impact on our everyday life. Advancing technology and computer systems have made some invaluable, positive changes to our lives but they've also made some negative changes. Computer errors can cause harm to a person's professional and personal life and poor data quality can have a negative impact on the professional environment. Positions can be eliminated when employees are replaced by computers or tasks become unnecessary due to advancements made to technology. Widespread usage of computers also increases the likelihood of computer crimes and computer abuse.
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