wrap up of course material - issues in the application of

Summary:Summary:Business Information SystemsBusiness Information Systems

Fall, 2005Fall, 2005

Virginia Franke Kleist, Ph.D.Virginia Franke Kleist, Ph.D.

Assistant ProfessorAssistant Professor

Division of MIS/Management Division of MIS/Management

Business Information SystemsBusiness Information Systems MANG 420MANG 420 22

Business Information SystemsBusiness Information Systems

How will you use information technology (IT) How will you use information technology (IT) your firms job?your firms job?

How will technology make you firm more How will technology make you firm more successful?successful?

What kinds of information technologies will What kinds of information technologies will you see in the business world?you see in the business world?

What are good ways to manage information What are good ways to manage information technology?technology?

Can IT give competitive advantage for your Can IT give competitive advantage for your company, anyway?company, anyway?

How can one identify How can one identify whichwhich technologies will technologies will best give strategic advantage?best give strategic advantage?


Contact InformationContact Information Virginia Franke Kleist, Ph.D.Virginia Franke Kleist, Ph.D. [email protected]@mail.wvu.edu www.be.wvu.edu/divmim/mgmt/kleistwww.be.wvu.edu/divmim/mgmt/kleist 304-293-7939304-293-7939 I welcome your comments and contacts!I welcome your comments and contacts! Several drawings are adapted from Laudon and Several drawings are adapted from Laudon and

Laudon, (2005), Laudon, (2005), Management Information Systems: Management Information Systems: Managing the Digital Firm Managing the Digital Firm, New Jersey: Prentice , New Jersey: Prentice Hall (8Hall (8thth ed.). ed.).

Some material adapted from Burgelman, Some material adapted from Burgelman, Christensen and Wheelwright, (2004), Christensen and Wheelwright, (2004), Strategic Strategic Management of Technology and InnovationManagement of Technology and Innovation , , Boston: McGraw-Hill Irwin (4Boston: McGraw-Hill Irwin (4thth ed.). ed.).


What did we learn?What did we learn?

Strategic advantage from information Strategic advantage from information technologytechnology

Latest information technologiesLatest information technologies How do you successfully select, How do you successfully select,

implement and manage a new IT?implement and manage a new IT? How can your firm benefit from IT?How can your firm benefit from IT? How do you pick an MIS system?How do you pick an MIS system? How do you manage MIS well?How do you manage MIS well?

Strategic Strategic Information Information

SystemsSystems


Strategic Information SystemStrategic Information System

Technology used to gain an edge Technology used to gain an edge over an organization’s competitionover an organization’s competition

Can be used at all levels of an Can be used at all levels of an organization or just a feworganization or just a few

Makes a differenceMakes a difference Profoundly alters the way an Profoundly alters the way an

organization does businessorganization does business Sustained strategic, competitive Sustained strategic, competitive

advantageadvantage


Examples of Strategic Information Examples of Strategic Information SystemsSystems

American AirlinesAmerican Airlines Fed ExFed Ex CitibankCitibank Wal-MartWal-Mart Abitibi Abitibi

ConsolidatedConsolidated Simonton Windows Simonton Windows

(SBR)(SBR)

USA TodayUSA Today BenettonBenetton SheetzSheetz PNC CorporationPNC Corporation PriceWaterhouse PriceWaterhouse

CoopersCoopers Baxter HealthcareBaxter Healthcare


Four types of Information SystemsFour types of Information Systems OperationalOperational Decision SupportDecision Support ManagerialManagerial ExecutiveExecutive Decision-making becomes more Decision-making becomes more

complex the more executive the levelcomplex the more executive the level Operational systems have been around Operational systems have been around

a long time and tend to have good ROI’sa long time and tend to have good ROI’s

Current Technologies for Current Technologies for Strategic Information Strategic Information

SystemsSystems


What are the latest What are the latest technologies of interest?technologies of interest?

CPU’s and software, open source codeCPU’s and software, open source code Client server computingClient server computing Interactive multimedia Interactive multimedia Developments in Electronic CommerceDevelopments in Electronic Commerce TCP/IP and the InternetTCP/IP and the Internet Databases and DataminingDatabases and Datamining Handhelds, M-commerceHandhelds, M-commerce Knowledge Management tools and Artificial Knowledge Management tools and Artificial

IntelligenceIntelligence


Technologies: CPU’s and Technologies: CPU’s and SoftwareSoftware

Hardware components of a computer systemHardware components of a computer system Buses, CPUs, MHz, RAM, Gigs and cacheBuses, CPUs, MHz, RAM, Gigs and cache Bits and Bytes, storageBits and Bytes, storage Moore’s Law and price points per MIPsMoore’s Law and price points per MIPs Mainframes, RISC computers, Parallel processingMainframes, RISC computers, Parallel processing Open source movement in operating systemsOpen source movement in operating systems Enterprise Resource Planning softwareEnterprise Resource Planning software Object oriented programmingObject oriented programming


Technologies: Client Server Technologies: Client Server ComputingComputing

Distributed processing vs. centralized Distributed processing vs. centralized processingprocessing

Network computingNetwork computing ServersServers Bridges and routers, gatewaysBridges and routers, gateways Network managementNetwork management Ethernet and Token RingEthernet and Token Ring


Technologies: Interactive Technologies: Interactive MultimediaMultimedia

GroupwareGroupware Voice over IP Voice over IP Streaming technologyStreaming technology FlashFlash MP3MP3 Seeing corporate uses in training Seeing corporate uses in training

applicationsapplications


History of TechnologyHistory of Technology 1960s: Mainframe computers, MIS not 1960s: Mainframe computers, MIS not

superb at meeting budgets or superb at meeting budgets or deadlinesdeadlines

1980s: First PCs emerge, beginning of 1980s: First PCs emerge, beginning of schism between departments and schism between departments and centralized MIScentralized MIS

1990s: MIS and departments work 1990s: MIS and departments work together well, networks key technotogether well, networks key techno

2000: Enterprise networks2000: Enterprise networks Next: Vice Presidents of Electricity?Next: Vice Presidents of Electricity?


Technologies: Electronic Technologies: Electronic CommerceCommerce

The client/server/database three tier The client/server/database three tier modelmodel

HTML, JavaScriptHTML, JavaScript XML vs. EDI, ASP and ActiveX, PHP, CGIXML vs. EDI, ASP and ActiveX, PHP, CGI Web ServicesWeb Services Interdev and development toolsInterdev and development tools Security and encryption issuesSecurity and encryption issues Intranets and ExtranetsIntranets and Extranets


Technologies: TCP/IP and the Technologies: TCP/IP and the InternetInternet

Codes, bits and bytesCodes, bits and bytes Analog vs. Digital transmissionAnalog vs. Digital transmission Packet switching and circuit Packet switching and circuit

switchingswitching The IP address, TCP/IP layersThe IP address, TCP/IP layers The world is becoming digitalThe world is becoming digital VoIPVoIP


Technologies: Databases, Technologies: Databases, DataminingDatamining

Data is the company’s strategic asset Data is the company’s strategic asset Data warehouses, multidimensional Data warehouses, multidimensional

databases and data martsdatabases and data marts Informix, Oracle and Red BrickInformix, Oracle and Red Brick The database management systemThe database management system Data mining is a type of software Data mining is a type of software

application that finds patterns in data application that finds patterns in data that can guide decision-makingthat can guide decision-making

Data mining allows focused Data mining allows focused differentiation and the ability to narrow differentiation and the ability to narrow target marketstarget markets


Technologies: Handhelds and Technologies: Handhelds and M- CommerceM- Commerce

Cellular technologyCellular technology WAP technologyWAP technology Handheld market and applicationsHandheld market and applications The Win CE platformThe Win CE platform Linux in the small devicesLinux in the small devices What is M-commerce and what does What is M-commerce and what does

it mean to me?it mean to me?


Technologies: Knowledge Technologies: Knowledge Management Tools and Artificial Management Tools and Artificial

IntelligenceIntelligence

Examples of Knowledge Management Examples of Knowledge Management systemssystems

Expert systems: the earthenware Expert systems: the earthenware damdam

Neural NetworksNeural Networks Fuzzy logicFuzzy logic Intelligent agentsIntelligent agents


Technologies: Wireless Technologies: Wireless

802.11b, a and g802.11b, a and g Weaknesses in security in wirelessWeaknesses in security in wireless Access pointsAccess points Use firewalls behind access pointUse firewalls behind access point Netstumbler and war drivingNetstumbler and war driving

Managing for Managing for Information Information

Systems Strategic Systems Strategic AdvantageAdvantage


Management: Information Management: Information Systems PlanningSystems Planning

IS plan maps to the corporate IS plan maps to the corporate strategic planstrategic plan

Variety of IS planning styles: CSF, Variety of IS planning styles: CSF, Enterprise Planning Enterprise Planning

Components of Information Systems Components of Information Systems Strategic PlanStrategic Plan

Organizational change from systems: Organizational change from systems: TQM, BPR, paradigm shifts or simple TQM, BPR, paradigm shifts or simple automationautomation


Management: the Systems Management: the Systems Development Life CycleDevelopment Life Cycle

Systems analysisSystems analysis Systems designSystems design ProgrammingProgramming TestingTesting ConversionConversion Production mode and ongoing Production mode and ongoing

maintenancemaintenance


Management: IS Strategic PlanManagement: IS Strategic Plan

Purpose linked to strategyPurpose linked to strategy Current situationCurrent situation Systems: What do you have, what will Systems: What do you have, what will

you need to meet futureyou need to meet future New developments in corporationNew developments in corporation Management strategies with techno: Management strategies with techno:

Bleeding edge, leading edge, lagging Bleeding edge, leading edge, lagging edge, single vendor strategy, edge, single vendor strategy, outsourceoutsource


Management: ImplementationManagement: Implementation

The RFP documentThe RFP document Financial issues for IS planningFinancial issues for IS planning The payback concernsThe payback concerns Programming: the mythical man/monthProgramming: the mythical man/month Construction issuesConstruction issues Testing and maintenanceTesting and maintenance End users End users Prototypes and pilotsPrototypes and pilots OutsourcingOutsourcing


Management: Security Issues Management: Security Issues

System quality, reliability, accuracySystem quality, reliability, accuracy Threats: hackers, viruses, Trojan Threats: hackers, viruses, Trojan

horses, denial of service attacks, horses, denial of service attacks, identity theftidentity theft

ControlsControls The firewall and internet issues The firewall and internet issues

Encryption, DES, SSL, SETEncryption, DES, SSL, SET BiometricsBiometrics


Management: Legal Issues with Management: Legal Issues with InformationInformation

HIPAA. Health Insurance Portability HIPAA. Health Insurance Portability and Accountability Act, 1996and Accountability Act, 1996

Gramm-Leach-Bliley Act, 1999Gramm-Leach-Bliley Act, 1999 Sarbanes-Oxley Act of 2002Sarbanes-Oxley Act of 2002


Strategic Advantage: IT at workStrategic Advantage: IT at work

IT and changes in the organization of IT and changes in the organization of business: flatter, leaner, teams, JIT, business: flatter, leaner, teams, JIT, globalglobal

Datamining and WalmartDatamining and Walmart E-commerce and the supply chain at E-commerce and the supply chain at

DellDell M-commerce and Progressive AutoM-commerce and Progressive Auto Internet and EggheadInternet and Egghead American Airlines, Baxter, CitibankAmerican Airlines, Baxter, Citibank


Strategic Advantage: How does Strategic Advantage: How does one come up with this idea, one come up with this idea,

anyway?anyway?(Laudon and Laudon, 2000)(Laudon and Laudon, 2000)

Porter’s Value Chain: primary and Porter’s Value Chain: primary and support activitiessupport activities

The competitive forces model: Threats The competitive forces model: Threats from new market entrants, suppliers, from new market entrants, suppliers, substitute products and customerssubstitute products and customers

Core competenciesCore competencies Network economicsNetwork economics


Some Problems from IT for Some Problems from IT for Competitive AdvantageCompetitive Advantage

The productivity paradoxThe productivity paradox Tangible vs. intangible benefits from ITTangible vs. intangible benefits from IT Future cash flows analysisFuture cash flows analysis Unique vs. staying even with Unique vs. staying even with

competitioncompetition Value from simple automation projectsValue from simple automation projects Value from highly risky, but strategic IT Value from highly risky, but strategic IT

projectsprojects Risk vs. return issuesRisk vs. return issues


Technology Life Cycle Technology Life Cycle (Little, 1981)(Little, 1981)

Emerging techno- Not demonstrated Emerging techno- Not demonstrated potentialpotential

Packing techno- Has demonstrated Packing techno- Has demonstrated potentialpotential

Key techno- Embedded, major Key techno- Embedded, major impact, proprietaryimpact, proprietary

Base techno- Minor impactBase techno- Minor impact Can a technology cause innovation? Can a technology cause innovation?

Leadership?Leadership?


How could the firm where you How could the firm where you work benefit from IT?work benefit from IT?

In supply chain management through In supply chain management through inventory managementinventory management

In the customer interface via ecommerceIn the customer interface via ecommerce In logistics through GPS/GISIn logistics through GPS/GIS In client management through groupwareIn client management through groupware In marketing through dataminingIn marketing through datamining In internal management through IntranetsIn internal management through Intranets


Class Discussion: The Dell Class Discussion: The Dell CaseCase

How did Dell achieve success?How did Dell achieve success? What IT technologies did Dell use?What IT technologies did Dell use? How does Dell use ecommerce How does Dell use ecommerce

successfully?successfully? What are the ways that Dell uses IT for What are the ways that Dell uses IT for

strategic, competitive advantage?strategic, competitive advantage? What is Dell’s business model?What is Dell’s business model? Will Dell be able to keep this success Will Dell be able to keep this success

going, given the recent troubles?going, given the recent troubles?


What have we learned?What have we learned?

Strategic advantage from Strategic advantage from information technologyinformation technology

Latest information technologiesLatest information technologies How do you successfully select, How do you successfully select,

implement and manage a new IT?implement and manage a new IT? How can your firm benefit from How can your firm benefit from

IT?IT?