107 MAN Assignment 2: Information Systems and Decision Making in Business

Samantha Pole ID: 6710233

LinkedIn Company Background

● Founded by Reid Hoffman in 2003, with a team from SocialNet and Paypal

● LinkedIn is a social networking site designed for the business community

● Initial membership is free of charge, but has tiered premium subscription options

● Current membership: 400 million users (2 views per second), across 200 countries, 56% men, 44% women

Sources: LinkedIn, 2015, WhatI.com, nd, DMR, 2015.

LinkedIn’s Business Revenue

● LinkedIn Business for business users

● LinkedIn Talent for recruiters● LinkedIn Job Seeker for jobs● LinkedIn Sales for sales

professionals

Sources: Business Insider, 2011.

Selected LinkedIn Decision Flow Diagram.

● How does data flow through LinkedIn?

● Advantages and Disadvantages of a DFD

● How does it help LinkedIn to make decisions.

Customer

LinkedIn Marketing Sales Team

Talent Acquisitions Team

Admin

Computer Interviewer

Yes No

ConnectorDe

tails

pas

sed

on to

in

terv

iew

er

Pass details on

Feed

back

Decision made

Mandate Approach

Project details

Connector Details

Link

edIn

Tal

ent D

esig

n De

cisi

on F

low

Dia

gram

Sources: Coventry, 5:1, Creately, 2016, Donald S Le Vie, nd, Advanced Performance Institute, nd.

What are information systems?

● Information System (IS) is a system composed of people and computers that processes or interprets information

● Big Data is defined as extremely large data sets that may be analysed mathematically to reveal trends, and associations

● Will reveal patterns and trends especially relating to human behaviour and interactions

● Cloud has enabled LinkedIn to become, flexible, agile, reliable

● High speed website for professionals

Transaction processing

Operational level

Tactical level

Strategic levelCompetitor analysis

Cash flow forecast

Subscription invoices

Executive information systems

Decision support systems

Information reporting systems

Office automation system

process control systems

transaction processing systems

Sources: Wikipedia, 2016, CUC, 4:2, GIGAOM, 2013, Diffen, 2013.

Membership data applications

● Premium subscription, marketing and talent solutions analytics:

● Matches advertisers and talent scouts to profiles of connectors

● How is the data used to help the marketing, recruitment and subscription revenues?

● Limitations of data

Sources: LinkedIn, 2016.

Legal ramifications of holding and using data

● What is Cloud Computing and why has LinkedIn chosen to use it?

● Security issues with cloud● Legal ramifications

Sources: Government Technology, 2014, Cloud Security Alliance, 2010.

Selected decision making models

Quantitative approaches

● Risk-reward

Qualitative approaches

● Stimulus response● Thought experiments

Business as usual

Increase website adverts

Focus on talent solutions Focus on social

Low Risk High Risk

Low Return

High Return

Sources: Coventry, 2:1

Reid Hoffman’s Two Rules for Strategy Decisions - Series B Pitch Deck

Speed

● ‘As a factor for which option is best-to speed up the process of making the decision itself’.

● ‘The key for big companies like LinkedIn is not to pursue strategies where “being faster” is critical.’

Simplicity - Enables Speed

● ‘Making the complex simple does not mean ignoring complexity’.

● ‘Wrestle with complexity yes, but frame and commit to a decision that’s simple enough for everyone to understand and act on.’

Burns and Stalker Organic model, Quantitative and Qualitative models and Mcgregor's X, Y theory models used.

Sources: Harvard Business Review, 2015

Selected managerial schools of thought

Scientific

F.W Taylor, 19th century: Standardised procedures, the functions of production and methods used

Bureaucratic

Max Weber, Clear hierarchies, managers put in place procedures to make flow of information for more reasonable (in a pre-computer age)

Porter’s Five Forces

Porter's five forces is based on the Structure-Conduct-Performance paradigm in industrial organizational economics.

Sources: Coventry, 2:1, Wikipedia, 2016.

Reference

Advanced Performance Institute, nd. What is Business Intelligence? [online] Available at: <https://www.youtube.com/embed/KpYw0xHancY?rel=0&wmode=transparent> [Accessed 8 February 2016].

Business Insider, 2011. Chart of the Day: Where LinkedIn’s Revenue Comes From. [online]. Available at: <www.businessinsider.com/chart-of-the-day-where-linkedins-revenue-comes-from-2011-5?IR=T> [Accessed 9 February 2016].

Cloud Security Alliance, 2010. Top Threats to Cloud Computing V1.0. [pdf] Available at: <https://cloudsecurityalliance.org/topthreats/csathreats.v1.0.pdf> [Accessed 6 February 2016].

Coventry 5:1. Data Flow Diagramming.

Coventry University Module 2:1 Schools of Management Thinking

Creately, 2016.Flowcharts for Strategic Decision Making. [onlne] Available at: <http://creately.com/diagram-type/usage/decision-making-made-easy-creately> [Accessed 10 February 2016].

Diffen, 2013. Facebook Vs LinkedIn [online] Available at: <http://www.diffen.com/difference/Facebook_vs_LinkedIn>[Accessed 11 February 2016].

Reference

DMR, 2015. By the Numbers:125+ Amazing LinkedIn Statistics. [online] Available at: <http://expandedramblings.com/index.php/by-the-numbers-a-few-important-linkedin-stats/> [Accessed 6 February 2016].

Donald S. Le Vie, nd. Understanding Data Flow Diagrams. [pdf] Available at: <http://ratandon.mysite.syr.edu/cis453/notes/DFD_over_Flowcharts.pdf> [Accessed 12 February 2016].

GIGAOM, 2013. How and Why LinkedIn is Becoming an Engineering Powerhouse. [online] Available at: <https://gigaom.com/2013/03/03/how-and-why-linkedin-is-becoming-an-engineering-powerhouse/> [Accessed 16 February 2016].

Government Technology, 2014. Data Breaches in the Cloud: Who is Responsible. [online] Available at: <http://www.govtech.com/security/Data-Breaches-in-the-Cloud-Whos-Responsible.html> [Accessed 11 February 2016].

Harvard Business Review, 2015. Reid Hoffman’s Two Rules for Strategy Decisions. [online] Available at: <https://hbr.org/2015/03/reid-hoffmans-two-rules-for-strategy-decisions> [Accessed 16 February 2016].

LinkedIn Official Blog, 2016. 20 Million Thank Yous. [online] Available at: <blog.linkedin.com/2016/01/19/uk-20-million/>[Accessed 13 February 2016].LinkedIn, 2015.A Brief History. [online] Available at:<https://ourstory.linkedin.com> [Accessed 5 February 2016].

Reference

WhatIs.com, nd.Definition LinkedIn. [online] Available at:<whatis.techtarget.com/definition/LinkedIn> [Accessed 5 February 2016].

Wikipedia, 2016. Porter Five Forces Analysis. [online] Available at:<https://en.wikipedia.org/wiki/Porter_five_forces_analysis> [Acessed 13 February 2016]

Wikipedia, 2016. Big Data. [online] Available at: <https://en.m.wikipedia.org/wiki/Big_data> [Accessed 11 February 2016].