ITM 102 - Midterm Notes.docx

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Ryerson University
Information Technology Management
ITM 102
Catherine Middleton

ITM 102 – Business Information Systems (part 1) Chapter 1: Information Systems in Global Business Today Chapter 1: Key Questions 1. How are information systems transforming business, and what is their relationship to globalization? 2. Why are information systems so essential for running and managing a business today? 3. What exactly is an information system? How does it work? What are its management, organization, and technology components? The Role of IS in Business Today  Strategic business objectives of information systems: o Operational excellence o New products, services, and business models o Customer and supplier intimacy o Improved decision making o Competitive advantage o Survival Perspectives on Information Systems What is an information system?  A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization From data to information Components of IS Technology includes: - Hardware - Software - Data management - Networks/telecom, including internet, intranet, WWW Table 1-1 What is new in MIS? Chapter 2: How Businesses Use Information Systems Chapter 2: Key Questions 1. What are business processes? How are they related to IS? 2. How do IS serve the different management groups in a business? 3. How do systems that link the enterprise improve organizational performance? 4. Why are systems for collaboration and teamwork so important, and what technologies do they use? 5. What is the role of the information systems function in a business? How does IT enhance business processes? 1. increasing efficiency of existing processes  Automating steps that were manual 2. Enabling entirely new processes that are capable of transforming the businesses  Change flow of information  Replace sequential steps with parallel steps  Eliminate delays in decision making Types of systems  Transaction processing  Business intelligence for decision support o Management info systems o Decision support systems o Executive support systems o You need to know what the differences are among these systems: who uses them? What type of decisions do they support? Where does the info come from? Types of systems (org-wide)  Enterprise systems (ERP)  Supply chain management (SCM)  Customer relationship management (CRM)  Knowledge management systems (KMS)  Intranets/extranets CRM explanation and example  Gartner Group analysts‟ view of CRM: o It‟s a concept, not a technology o Customer service as the new marketing  311 in San Francisco o Changing government service delivery o Implementing new processes More systems  E-business o E-commerce  E-government  Collaboration and communication systems o Email, facebook, twitter, linkedin, second life o Cell phones/tablets o What are the benefits of collaboration and teamwork? Who runs these systems? The information systems department:  Formal organizational unit responsible for information technology services  Often headed by chief information officer (CIO) o Other senior positions include chief security officer (CSO), chief knowledge officer (CKO), chief privacy officer (CPO)  Programmers  Systems analysts  Information systems managers  Input from „end users‟ Chapter 3: Information Systems, Organizations, and Strategy Chapter 3: Key Questions 1. Which features of organizations do managers need to know about to develop and use IS successfully? What is the impact of IS on organizations? 2. How does Porter‟s competitive forces model help companies develop competitive strategies using information systems? 3. How to use the value chain to identify opportunities for using IS to enhance a business 4. Creating competitive advantage through alignment of info systems and organizational strategy What is an organization? Technical definition: Behavioral definition: Stable, formal social structure that takes resources A collection of rights, privileges, obligations, and from environment and processes them to produce responsibilities that is delicately balanced over a outputs period of time through conflict and conflict resolution A formal legal entity with internal rules and Informal arrangements about how things get done procedures, as well as a social structure Features of organizations  Routines and business processes  Organizational politics  Organizational culture  Organizational environments  Organizational structure o Five basic kinds of organizational structure o The kinds of information systems often reflects the type of organizational structure o  Why do these matter for using IS? Economic impacts of IT  IT changes relative costs of capital and the costs of information  Information technology is a factor of production, like capital and labor  IT affects the cost and quality of information and changes economics of information o Information technology helps firms contract in size because it can reduce transaction costs (the cost of participating in markets)  Outsourcing Organizational and behavioural impacts of IT  IT flattens organizations o Decision making pushed to lower levels o Fewer managers needed (IT enables faster decision making and increases span of control)  Post-industrial organizations o Organizations flatten because in post-industrial societies, authority increasingly relies on knowledge and competence rather than formal positions Organizational Resistance to Change  Information systems became bound up in organizational politics because they influence access to a key resource – information  Information systems potentially change an organization‟s structure, culture, politics, and work  Most common reason for failure of large projects is due to organizational and political resistance to change Implications for Design, Understanding of IS  Information systems must be developed with an understanding of the organization in which they will be used  These must be considered: The organization‟s culture, structure, environment, the groups who will use the IS, and the kinds of tasks, processes and decisions the information system is meant to assist Michael Porter’s Competitive Forces - model for understanding profitability of industries Low-cost leadership  Response to competitive rivalry, helps to increase barriers to entry by new firms  How can companies use IS to produce products and services at a lower price than competitors while enhancing quality and level of service? Product differentiation  Response to competitive rivalry, reduces bargaining power of buyers  How can companies use IS to enable new products or services, greatly change customer convenience and experience? Focus on market niche  Response to competitive rivalry, reduces power of buyers  How can companies use information systems to enable a focused strategy on a single market niche; specialize Increase switching costs  Part of strengthening customer intimacy results in strong loyalty  How can companies use information systems to increase switching costs?  (this helps to decrease the threat of new entrants and reduce the use of substitutes) The Value Chain - model helps companies understand how they create value within businesses - Primary activities serve customers directly, support activities don‟t - Can apply IS to all parts of the value chain IS and strategic alignment  Information systems can be used to create, maintain competitive advantage  Need to understand a company‟s strategy and align (match) the info systems used with the strategic approach, enhance core competencies  Want consistency between systems and strategy (ex. Using tools your customers already use, social networking etc.) Chapter 4: Social, Ethical, and Legal Issues in Information Systems Chapter 4: Key Questions 1. What social, ethical, and legal issues are raised by information systems? 2. What specific principles for conduct can be used to guide ethical decisions? 3. Why do comtemporary information systems, technology, and the internet pose challenges to the protection of individual privacy and intellectual property? 4. How have information systems affected everyday life? 5 moral dimensions of the info age  Information rights and obligations o Ex. Privacy, information management  Property rights and obligations o Ex. Intellectual property, copyright  Accountability and control o Ex. Liability  Drivers know that using the phone while driving is one of the most dangerous things you can do on the road, but refuse to admit that it‟s dangerous when they themselves do it  System quality o Ex. Data quality, system errors  Quality of life o Equity, access, boundaries o Ex. Spam Tech trends raising ethical issues T Information rights: privacy/freedom  PIPEDA: Personal Information Protection and Electronic Document Act o Accountability o ID purpose of collecting data o Obtain consent o Limit collection; limit use, disclosure, retention o Ensure accuracy & security o Make info management policies available, personal infos The perils of texting (pg 122)  How many wireless subscribers are there now in Canada?  How many text messages do Canadians send a day in Q1 2012?  What is the Ontario law on texting and driving?  Which of the five moral dimensions of information systems identified in this text is involved in this case?  What are the ethical, social, and political issues raised by this case?  Which of the ethical principles described in the text are useful for decision making about texting while driving? Ethical Analysis  Identify and clearly describe the facts  Define the conflict or dilemma, and identify the higher-order values involved  Identify the stakeholders  Identify the options that you can reasonably take  Identify the consequences of your options Ethical, social, political issues?  Ethics: is it ok to do this?  Social: what are the social factors that influence behaviours?  Political: is this something that should be the subject of a law? Who should decide what is allowed? Ethical principles (help guide decisions)  Golden rule: do unto others as you would have them do unto you  Immanuel Kant‟s Categorical Imperative: if an action is not right for everyone to take, then it is not right for anyone  Descartes‟ rule of change: if an action cannot be taken repeatedly, then it is not right to be taken at any time  Utilitarian Principle: take the action that achieves the greatest value for all concerned  Risk aversion principle: take the action that produces the least harm or incurs the least cost to all concerned  Ethical “no free lunch” rule: assume that all tangible and intangible objects are owned by someone else, unless there is a specific declaration otherwise Chapter 5: IT Infrastructure and Emerging Technologies Chapter 5: Key Questions 1. What is IT infrastructure and what are its components? 2. What are the current trends in computer hardware platforms? 3. What are the current trends in software platforms? 4. What are the stages and technology drivers of IT infrastructure evolution? 5. What are the challenges of managing IT infrastructure and management solutions? What is IT infrastructure?  The shared technology resources that provide the platform for the firm‟s specific information system applications  Includes investment in hardware, software, and services, such as consulting, education, and training Firm wide IT services include:  Computing platforms providing computing services  Telecommunications services  Data management services  Application software services  Physical facilities management services  IT management, standards, education, research and development services Infrastructure supports strategy Evolution of IT infrastructure  General-purpose mainframe and minicomputer era: 1959 to present  Personal computer era: 1981 to present  Client/server era: 1983 to present  Enterprise computing era: 1992 to present  Cloud Computing and Mobile Computing era: 2000 to present Important observations Law of Mass Digital Storage  The amount of digital information is roughly doubling every year  The cost of storage is falling at an exponential rate of 100 percent per year  So – more data but cheaper to store it Metcalfe‟s Law and Network Economics  A network becomes more valuable as more people join it – ex. Facebook Computer Hardware Platforms  Client machines (desktops, laptops, and PDAs)  Server machines o Blade servers o Server Farms  Mainframe systems used as giant servers for enterprise networks and corporate Web sites Operating System Platforms  Microsoft Windows dominates the market of client machine software  Unix or Linux widely used as server software o Linux available as open-source software Enterprise Software Applications  Largest suppliers of enterprise software are o SAP o Oracle o PeopleSoft (acquired by Oracle) Data management and storage  Database software: IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (adaptive server enterprise), MySQL  Physical data storage: EMC Corp (large-scale systems), Seagate, Maxtor, Western Digital  Storage area networks (SANs): connect multiple storage devices on dedicated network Networking/Telecom Platforms  Leading network hardware providers are Cisco, Lucent, Nortel, and Juniper  Software leaders are Microsoft, Novell, Linux, and Unix  Service vendors include Bell Canada, Primus, and regional carriers  Growth of wireless and Voice over IP (VoIP) Internet Platforms  Hardware, software, management services to support company Web sites, (including Web hosting services) intranets, extranets  Internet hardware server market: Dell, HP/Compaq, IBM  Web development tools/suites: Microsoft (FrontPage, .NET) IBM (WebSphere) Sun (Java), independent software developers: Macromedia/Adobe, RealMedia Consulting/Systems integration  Even large firms do not have resources for full range of support for new, complex infrastructure  Software integration: ensuring new infrastructure works with legacy systems  Legacy systems: older TPS created for mainframes that would be too costly to replace or redesign  Accenture, IBM Global Services, EDS, Infosys, Wipro Linking IT all together: infrastructure Hardware trends  The emerging mobile digital platform  Grid computing  Virtualization and Multicore processors  Cloud computing  Autonomic computing  Green computing Mobile – why is this important?  Cell phones, smartphones (BlackBerry, iPhone, Android) have assumed data transmission, Web surfing, e-mail and IM duties  Netbooks: small, low-cost lightweight notebooks optimized for wireless communication and core computing tasks  Tablets: not just the iPad Cloud computing  Firms off-load peak demand for computing power to remote, large-scale data processing centers  Firms pay only for the computing power they use, as with an electrical utility  Excellent for firms with spiked demand curves caused by seasonal variations in consumer demand, ex. Holiday shopping  Saves firms from purchasing excessive levels of infrastructure  Data permanently stored in remote servers, accessed and updated over the internet by users, ex. Google Other trends  Grid computing: connect multiple computers together, make use of existing capacity  Virtualization: can access resources in other locations, other configurations, ex. Software trends  Linux and open-source software  Software for the Web: Java and Ajax  Web services and Service-Oriented Architecture  Mashups and Apps  Software outsourcing Rise of linux, Open-source software  Open-source software is free and can be modified by users – but can be complex, companies often buy linux systems/support  Developed and maintained by a worldwide network of programmers and designers under the management of user communities  Linux is the most widely used open-source software program Service Outsourcing  Software packages and enterprise software  Software outsourcing (domestic or offshore) o Domestic  Primarily for middleware, integration services, software support o Offshore  Primarily for lower level maintenance, data entry, call centers, although outsourcing for new-program development is increasing Cloud Services  Software as a service (SaaS)  Accessed with Web browser over internet  Ranges from free or low-cost services for individuals to business and enterprise software  Users pay on subscription or per-transaction  Service Level Agreements (SLAs): formal agreement with service providers Mashups & Apps  Mashups o Combinations of two or more online applications, such as combining mapping software (Google Maps) with local content. Ex. Ryerson  Apps o Small pieces of software that run on the internet, on your computer, or on your cell phone  iPhone, BlackBerry, Android o Generally delivered over the internet Management Issues  Dealing with infrastructure change  Management and governance  Making wise infrastructure investments o Competitive forces model for IT infrastructure o Total cost of ownership of technology assets  VocaLink example  Problem: VocaLink is a leader in auto
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