course objectives - yola2ndsemesternotes.yolasite.com/resources/mis chapter - 11.pdf · chapter no...

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Chapter No 11 Batch 2009

Compiled By: Muzammil Ahmad Khan and Kashif Shaikh

Sir Syed University of Engineering and Technology

Management Information Systems

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Chapter 11

Compiled By:

Muzammil Ahmad Khan

Muhammad Kashif Shaikh

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HS-107 : Management Information Systems

Course Objectives:

Upon successful completion of this course, the student will be able to:

Understand the role of Information Systems (IS) in organizations.

Understand how Information Systems (IS) can be used to create competitive advantages for businesses.

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Course Objectives:

Understand the key elements associated with designing Information Systems (IS).

Understand the key elements associated with planning and managing Information Systems (IS).

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Prerequisites:

Familiarity with basic computer devices and terminologies.

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MIS Books

Text Book

1. Management Information System, 8th EditionBy: James A. O' Brien , George Marakas

Reference Books

1. Management Information System, 9th EditionBy: Kenneth C. Laudon, Jane P. Laudon

2. Introduction to Information Systems: Supporting and Transforming BusinessBy: Rainer, Turban, Potter, 1st Edition

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Marks Distribution

Mid Term ________ 15Assignment + Class Performance + Quiz + Presentation + Report ________ 5Semester Final Paper ________ 80Total Marks ________ 100

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Marks Distribution [ Sessional ]

Class Test ______________ 10 PointsAssignment ______________ 10 PointsClass Presentation ______________ 15 PointsProject ______________ 15 PointsTotal Points ______________ 50 Points

Performance Bonus ______________ 10 Points

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MIS Website

http://www.ssuet.edu.pk/courses/hs107/mis

http://taimoor/hs107/mis

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Course Instructors

Muhammad Kashif Shaikh [email protected] Professor, CEDRoom No: BS-04Section A, B,E (Computer, Batch 2009)

Muzammil Ahmad Khan [email protected] Professor, CEDRoom No: BS-04Section C, D (Computer, Batch 2009)

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Project

Comprehensive study of Information Systems of an Organization.Organization OverviewOrganizational HierarchyMain business function of the organizationAnalysis of IT Department

Role/Activities and ResourcesIllustration of Computer based Information SystemSystem Development Life Cycle

Analysis of other business SystemSales, Marketing, Supply Chain, Accounts, HRHow IT interact with other business system?

DFD of main business function and ISGantt chart and PERT chartIdentification of problems/weaknesses in the existing systemSuggestions and RecommendationsConclusion

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Course Outline

Module 1: IntroductionChapter 1: Foundations of IS in Business Chapter 2: Competing with Information Technology

Module 2: Hard and Soft AspectChapter 3: Computer Hardware Chapter 4: Computer Software Chapter 5: Data Resource Management Chapter 6: Telecommunications and Networks

Module 3: E-BusinessChapter 7: Electronic Business Systems Chapter 10: Decision Support Systems

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Course Outline

Module 4: IT in BusinessChapter 11: Developing Business/IT StrategiesChapter 12: Developing Business/IT Solutions

Module 5: Special TopicsChapter 13: Special Topics in MIS

- Flow Chart- Data Flow Diagram [ DFD ]- Gantt Chart- Pert Chart- System Development Life Cycle [ SDLC ]

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DevelopingBusiness / IT Strategies

Chapter

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Compiled By: Muzammil Ahmad Khan & Muhammad Kashif Shaikh

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Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage as examples

Discuss the role of planning and business models in the development of business/IT strategies, architectures, and applications

Identify several change management solutions for end user resistance to the implementation of new IT-based business strategies and applications

Learning Objectives

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Planning Fundamentals

Information technology has created a seismic shift in the way companies do business

Just knowing the importance and structure of e-business is not enough

You must create and implement an action plan that allows you to make the transition from an old business design to a new e-business design

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Components of Organizational Planning

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Planning

Strategic PlanningDeals with the development of an organization’s mission, goals, strategies, and policiesBegins with strategic visioning questions

Tactical PlanningThe setting of objectives and the development of procedures, rules, schedules, and budgets

Operational PlanningDone on a short-term basis to implement and control day-to-day operations

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Strategic Visioning Questions

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The Scenario Approach

Gaining in popularity as a less formal, but more realistic, strategic planning methodology

Teams of managers and planners participate in microworld or virtual world exercises

Business scenarios are created and evaluated

Alternative scenarios are then created

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Trends that Affect Strategic Planning

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Planning for Competitive Advantage

Strategic business/IT planning Involves evaluating the potential benefits and risks of using IT-based strategies and technologies for competitive advantage

The following models can help generate ideas for the strategic use of IT to support initiatives

Competitive forces

Competitive strategies

Value chain

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Strategic Opportunities Matrix

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SWOT Analysis

SWOT stands for Strengths: a company’s core competencies and resourcesWeaknesses: areas of substandard business performance compared to othersOpportunities: potential for new business markets or innovative breakthroughs that might expand current marketsThreats: anything that has the potential for business and market losses

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SWOT Analysis of DELL

Threats1. Pace of technological changes.2. Mergers and alliances3. Private Labeled/White-Box PCs4. Low entry barriers for new

entrants5. Cultural Barriers in different

countries

Opportunities1. Potential growth in global

markets.2. Entry in new products.3. Convenience-oriented buyers.4. E-Commerce.5. Product innovation

Weakness1. Dependence on local vendors in

international market.2. Manufacturing Capacity

Strength1. Market Share2. Experienced Leadership3. Diversified Product Line4. E-Commerce5. R&D

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Business Models and Planning

Business model answers vital questions about the fundamental components of a business

Who are our customers?

What do our customers value?

How much will it cost to deliver that value?

How do we make money in this business?

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Questions for all Business Models

How do we price the value?Pricing

To which customers is this value being offered?

What range of products/services offered embody this value?

Scope

Are we offering something distinctive or at a lower cost than our competitors?

Customer Value

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What do we have to do to offer this value and when?

How connected are these activities?

Connected Activities

Where do the dollars come from? Who pays for what value and when? What are the margins in each market, and what drives them?

What drives value in each source?

Revenue Source

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What is it about the firm that makes it difficult for other to imitate it?

How do we keep making money?

How do we sustain our competitive advantage?

Sustainability

What structure, systems, people, and environment do we need to carry out these activities?

What is the fit between them?

Implementation

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What are our capabilities and capabilities gaps?

How do we fill these gaps?

Is there something distinctive about these capabilities that lets us offer the value better than other firms?

Is this capability hard to imitate?

What are the sources of these capabilities?

Capabilities

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Questions Specific to E-Business Models

What is the scope of customers that Internet technologies enable us to reach? Does the Internet alter the product or service mix that embodies the firm’s products?

Scope

What is it about Internet technologies that allows us to offer customers something distinctive? Can Internet technologies help us to solve a new set of problems for customers?

Customer Value

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How many new activities must be performed as a result of the Internet?

How much better can Internet technologies help us perform existing activities?

Connected Activities

Are revenue sources different with the Internet?

What is new?

Revenue Source

How does the Internet make pricing different?

Pricing

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Do Internet technologies make sustainability easier or more difficult?

How can the firm take advantage of it?

Sustainability

What new capabilities do we need?

What is the impact of Internet technologies on existing capabilities?

Capabilities

How do Internet technologies affect the strategy, structure, systems, people, and environment of the firm?

Implementation

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Business Models as Planning Tools

A business model forces rigorously and systematic thinking about the value and viability of business initiatives

The strategic planning process is then used to develop unique business strategies that capitalize on a business model

The goal is to gain a competitive advantage in an industry or marketplace

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The Business/IT Planning Process

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The Business/IT Planning Process

The business/IT planning process has three major components

Strategic development

Resource management

Technology architecture

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Information Technology Architecture

The IT architecture is a conceptual design that includes these major components

Technology platform

Data resources

Application architecture

IT organization

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Balanced Scorecard

The balanced scorecard measures a company’s activities in terms of vision and strategies

The system has four processesTranslating vision into operational goals

Communicating the vision and linking it to individual performance

Business planning

Feedback/learning and strategy adjustment

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Balanced Scorecard

The business perspectives a scorecard measures 1. Financial: reflects financial performance,

such as cash flow or ROI2. Customer: measures having a direct impact on

customers, such as time to process phone calls3. Business process: reflects the performance of

key business processes, such as time spent prospecting or process costs

4. Learning/growth: the company’s learning curve, such as how many hours are spent training staff

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Identifying Business / IT Strategies

The most valuable Internet applications allow companies to

Transcend communication barriers

Establish connections that enhance productivity

Stimulate innovative development

Improve customer relations

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Strategic Positioning Matrix

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Strategic Matrix

Cost and Efficiency ImprovementsUse the Internet as a fast, low-cost way to communicate and interact with othersUse of e-mail, chat systems, discussion groups, and company websites

Performance Improvement in EffectivenessMajor improvements in business effectiveness recommendedIncrease use of Internet-based technologies, such as intranets and extranets

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Strategic Strategies

Global Market PenetrationCapitalize on a high degree of customer and competitor connectivity and use of ITUse e-commerce websites with value-added information services and extensive online customer support

Product and Service TransformationDevelop and deploy new Internet-based products and services that strategically reposition it in the marketplace

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E-Business Strategy Examples

Market Creator: Be among the first to market and remain ahead of the competition by continuously innovating

Channel Reconfiguration: Use the Internet as a new channel to directly access customers, make sales, and fulfill orders

Transaction Intermediary: Use the Internet to process purchases

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E-Business Strategy Examples

Infomediary: Use the Internet to reduce the search cost; offer a unified process for collecting the information needed to make a large purchaseSelf-Service Innovator: Provide a comprehensive suite of services that the customer’s employees can use directlySupply Chain Innovator: Use the Internet to streamline supply chain interactionsChannel Mastery: Use the Internet as a sales and service channel

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Business Application Planning Process

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Comparing Planning Approaches

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E-Business Architecture Planning

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Implementation

Many companies plan changes very wellFew manage to convert a plan into action

This is true even if senior management consistently identifies e-business as an area of great opportunity

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Implementing Information Technology

Many businesses have undergone multiplemajor reorganization since the early 1980s

Business process reengineeringInstallation and upgrades of an ERP systemCreating shared service centersJust-in-time manufacturingSales force automationContract manufacturingThe introduction of euro currency

E-business is the latest organizational change

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Impact and Scope of Implementing IT

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Intranet Enterprise Portal Challenges

Security, security, securityDefining the scope and purpose of the portalFinding the time and the moneyEnsuring consistent data qualityGetting employees to use itOrganizing the dataFinding technical expertiseIntegrating the piecesMaking it easy to useProviding all users with access

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Enterprise Resource Planning Challenges

Getting end user buy-inScheduling/planningIntegrating legacy systems/dataGetting management buy-inMultiple/international sites and partnersChanging culture and mind-setsIT trainingGetting, keeping IT staffMoving to a new platformPerformance/system upgrades

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End User Resistance and Involvement

Any way of doing things generates some resistance from the people affected

CRM projects have a history of failureUp to 75 percent of CRM projects fail to meet their objectivesThis is often due to sales force automation problems and unaddressed cultural issuesSales staffs are often resistant to, or fearful of, using CRM systems

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Keys to Solving End User Resistance

Keys to solving end user resistance problemsEducation and trainingEnd-user involvement in organizational changes and system developmentRequiring involvement and commitment of top management and all stakeholders

Systems that inconvenience or frustrate users cannot be effective, no matter how technically elegant or efficient

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Obstacles to KM Systems

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Change Management

People factors have the highest level of difficulty and the longest time to resolve of any dimension of change management

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Key Dimensions of Change Management

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Change Management

Implementing a new e-business application may involve

Developing an action plan

Assigning managers as change sponsors

Developing employee change teams

Encouraging open communications and feedback about organizational changes

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Change Management

Key tactics recommended by change expertsInvolve as many people as possible in e-business planning and application developmentMake constant change an expected part of the cultureTell everyone as much as possible about everything, as often as possible, in personMake liberal use of financial incentives and recognitionWork within the company culture, not around it

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A Change Management Process

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