scis.regis.edu ● scis@regis.edu

CIS 480/BA 479: Managing Technology for Business

Strategies

Week 1

Dr. Jesús BorregoRegis University

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Agenda

•Instructor•Course Overview •Course Materials•Introductions•Group Assignment•Chapters 1, 2 and 3•Homework 1

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InstructorDr. Jesús BorregoEducation

◦PhD MIS; MS CS; BS CS; BS EE

Hometown:◦Colorado Springs

Married, 5 kidsTeaching since 1989,

various levelsAt Regis U. since

19953

Background and Experience

•US Marines – Communications and Data Processing (among others)

•Programmer in many languages•Database designer for DoD Customers•Quality Engineer, Configuration Manager,

Software Tester•Hardware and Software Configuration

Management•Information Assurance

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Background and Experience (Cont’d)

•DoD:▫USMC, Logicon, Hughes Aircraft, Advanced Technology, ARINC, Integral Systems/Kratos

•Commercial:▫HP/Agilent, DMW Worldwide, Insurance Technologies, Intermap Technologies, Western Union

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Course Introduction

Prerequisites: NoneTextbook:•Laudon, L. & Laudon, J. (2014). Management Information Systems: Managing the Digital Firm. Cengage Learning. ISBN 13: 978-0-133-05069-1

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Course Description•Provides executive perspective on management information systems, systems analysis and database management.

• Develops an understanding of strategic issues underlying information systems technical issues in developing systems.

• Covers strategic issues related to critical business success factors.

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Course Description (Cont’d)•Includes information's role in competition, industry leadership, and business planning.

•Covers alternative development methods and addresses issues of databases, project management, and functional management.

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Course Outcomes• Assess the impact of Social Media and Mobile

Computing on both business and Information Technology.

• Utilize an Information Technology Development model in the construction of a specific business web site.

• Discuss the ethical consequences associated with the use of technology from a business and Information Technology perspective.

• Explore the tactical and strategic contributions of Information Technology to business.

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Course Outcomes (Cont’d)• Research an Emerging Technology and describe

how that technology impacts business and Information Technology.

• Explain the impact that data management, data security, and data access has on a business and Information Technology from a decision making perspective.

• Design an e-Commerce site based on specific customer requirements.

• Analyze the Enterprise Resource Planning Model to determine the impact this model has on both Information Technology and business.

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Week by Week

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Grading

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Written Assignments•Individual

▫Week 2: IT and Ethics▫Week 3: Emerging Technologies

•Group▫Week 2: Project Outline▫Week 3: Project Requirements▫Week 4: Project Budget▫Week 5: Project Proposal and Web

Design

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Rubric

•Refer to the rubrics in WorldClass•There are rubrics for:

▫Discussion/Participation▫Final Writing Assignment▫Course Project▫VoiceThread

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Group Project

•Work in a group, but only one member submits the assignment

•The submission must include the names of the group members

•Log on to WorldClass and review the course project information

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Group Project Overview

•Review WorldClass

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Written Assignments•An important component of this course is

the completion of written assignments•All written work is expected to meet

undergraduate level standards•Assignments will be graded for content and

for writing skills•The Publication Manual of the American

Psychological Association (APA) is to be used for written work in the College for Professional Studies. Research papers required in this and other courses are expected to follow APA guidelines.

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APA Format•The Publication Manual of the American

Psychological Association (APA) is to be used for written work in the College for Professional Studies

•Research papers required in this and other courses are expected to follow APA guidelines

•Regis University provides APA resources: http://www.regis.edu/regis.asp?sctn=ars&p1=ws

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Late work policy•This is an accelerated course•No late work is accepted unless there

are special circumstances▫En emergency is not lack of planning▫If accepted late, a penalty will be assessed

•In case of emergency, contact me as soon as possible

•Group project assignments must be submitted on time

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Discussions and Participation

•To receive credit for discussion and participation, you must come prepared to each class

•Complete the reading materials and complete the assigned work before class

•You must actively participate in each class and must demonstrate critical thinking to receive credit

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Student Introductions

•About yourself▫Your name, where you are from, where you live

•About your degree▫Your major, area of specialization, graduation

date•About your work

▫Place of employment, what you do•About Experience

▫Thoughts on technology•Expectations from this course

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Chapter 1

•Using Technology in a business▫“Shortening Lines at Disney World:

Technology to the Rescue”•What is the issue?•What solutions are identified?•Can we use the same technology in other

businesses?

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Technology impact on businesses•Emerging mobile digital platforms•Growing business use of ‘big data’•Cloud computing •Globalization

▫Global presence cost is reduced▫Increase in foreign trade▫Outsourcing and offshoring▫Increased challenges and opportunities

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US Airline industry

•The US Airline Industry 5 Forces, by Jerron Thornton (From YouTube), (2:20 min): https://www.youtube.com/watch?v=tQ8xdLGJPLE

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Ethics in IT

•In the following TED Talk, Damon Horowitz discusses our obligation to each other in terms of the data that we collect and distribute about each other.

•We need a “moral operating system”, by Damon Horowitz ( min): http://www.ted.com/talks/damon_horowitz

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How Data will transform Business•In the following TED Talk video Philip

Evans discusses changing business strategies, the value chain, traditional business processes and how data is influencing and ultimately changing the way businesses compete.

•How data will transform business, by Philip Evans (Ted Talks) (13:57 min): http://www.ted.com/talks/philip_evans_how_data_will_transform_business

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IT Capital Investment

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Information technology capital investment, defined as hardware, software, and communications equipment, grew from 32 percent to 52 percent of all invested capital between 1980 and 2009.

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In contemporary systems there is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do.

Organizations and IT Interdependency

Operational Excellence

• Improvement of efficiency to attain higher profitability and create a competitive advantage▫What is a competitive advantage?

• IS and Technology – important tools in achieving greater efficiency and productivity▫But only if properly implemented

•Ex: Walmart’s Retail Link Systems links suppliers to stores for improved replenishment▫Others: Car manufacturers, aircraft industry

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Process integration example•Boeing 777 example

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Role of IS in Today’s Business

•Business Model: describes how company produces, delivers, and sells product or services to create wealth

• IS and technology provide major enabling tools for new products, services, and business models▫Examples:

Apple’s iPhone, iPad Google’s Android OS Netflix PayPay eBay

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Business Model

•Example of a workflow

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SalesProject Setup

i-StoreAcquisitionData

Finishing/Editing

Data Processing

V&V

Value Added

Customer

Customer

Web Customer

Internal Review

Infrastructure

Internal Review

Information Management

Division

Engineering Division

OperationsDivision

Customer Care

Division

SalesDivision

Customers and Suppliers

•Great customer service leads to return sales increase in revenue and profit

•Close supplier relationships provide vital inputs reduced costs

• Information systems linking customers and suppliers with internal systems create synergy

•Management can rely on forecasts, best guess, plain luck▫Quality of information allows for better decision

making

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Competitive Advantage

•What you have that the competition does not

•What makes you superior to the competition•Allows you to deliver better products of

services to your customers•May lower costs and increase revenue•Allows you to increase customer satisfaction•Can respond to customers and suppliers in

real time▫FedEx, UPS, Apple

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Information Systems

•System: a collection of interrelated components that act together to accomplish a goal

•IS Systems collect, process, store and distribute information

•Support decision making, coordination and control

•Information and Data▫Same thing?▫What makes them different?

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Data and Information

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Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.

Information transformation

•IPO – Input, Process, Output•Input: Captures raw data from forms,

external environment, incoming requests•Process: Receives input, processes it and

transforms it into information▫Its output may be the input to the next

process•Output: Transfers processed information

to users or activities that require it

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Information transformation (Cont’d)

•Feedback: Output is returned to appropriate elements of the organization to help evaluate of correct input stage

•Computer/Computer Programs versus information systems▫Computers and software are technical

foundation tools similar to material and tools used to build a house

▫Like a house, blueprints are created to build information systems (flowcharts, diagrams, workflows, etc.)

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Functions of an IS

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IS Perspectives

•IS is more than hardware •Corporate organization:

▫Senior Management and Executives▫Middle Management▫Operational Management▫Knowledge Workers▫Data Workers▫Production or Service Workers

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Corporate Organization

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Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.

Separation of Business Functions•Sales and Marketing•Human Resources•Finance and Accounting•Manufacturing and Production•Engineering•Compliance and Audit•Information Technology•Security and Facilities

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Management role in IS

•Managers set organizational strategy to respond to business challenges and maintain operational capabilities

•Managers study business environment and competition to create new or update existing products and services

•If necessary, managers reorganize the business to quickly respond to business challenges

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Technology role in IS

•Technology’s basic role is to support the business▫Without the business, technology cannot

exist by itself•Business and technology must be aligned

in order to be productive•The IT infrastructure provides the

platform to build the systems required by the business

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Business view of IT

•IS is an instrument for creating business value

•Proper technology investment will return in superior returns:▫Productivity increases▫Revenue increases▫Superior long-term strategic positioning

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Business information value chain•Raw data is acquired and transformed

through stages that add value to that information

•Value of IS is determined in part by the extent which it leads to better decisions, greater efficiency, and higher profits

•The business perspective: calls attention to organizational and managerial nature of IS

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Business value chain

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From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability.

Cost of Technology

•Investing in technology does not guarantee increase in profits or revenue

•There is great variation in the return on investment in technology

•To succeed, need to adopt the right business model for the organization and invest in complementary assets, both organizational and management capital

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Variation in returns on IT investment

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Complementary Assets

•Assets required to derive value from a primary investment

•Firms supporting technology investments with investments in complementary assets receive superior returns

•Example: Invest in technology and they people to make it work properly

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Types of complementary assets

•Organizational assets▫Appropriate business model▫Efficient business processes

•Managerial assets▫Incentives for management innovation▫Teamwork and collaborative work

environments•Social assets

▫Internet and telecommunication infrastructure▫Technology standards

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ITIL Example•Information Technology Infrastructure

Library – concentrates on service management

52 Source: http://www.itil-officialsite.com/home/home.aspx

Approaches to IS

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Technical and Behavioral Approaches

•Technical approach▫Emphasizes mathematically based models▫Computer science, management science,

operations research•Behavioral approach

▫Behavioral issues (strategic business integration, implementation, etc.)

▫Psychology, economics, sociology

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Management Information Systems•Combines computer science, management

science, operations research and practical orientation with behavioral issues

•Four main actors▫Suppliers of hardware and software▫Business firms▫Managers and employees▫Firm’s environment (legal, social, cultural

context)

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Sociotechnical perspective of IS

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In a sociotechnical perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to each other until a satisfactory fit is obtained.

Chapter 2

•Global eBusiness and Collaboration•Review Telus case study

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Telus embraces social learning

•Problem: 40% of workforce nears retirement and want to capture knowledge

•Solution: Obtain technology for collaborative knowledge sharing

•MS SharePoint Server 2010: A companywide platform for collaboration, knowledge acquisition and transfer, and social tools

•Illustrates needs for organizational culture change and business processes to use IS effectively

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Business Processes

•Flows of material, information, knowledge•Sets of activities or steps•May be tied to functional area or be cross-

functional•A business can be seen as a collection of

business processes•Business processes may be assets or

liabilities

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Functional Business Processes

•Manufacturing and Production▫Creating and assembling the product

•Sales and marketing▫Customer identification, promoting the

product, making the sale•Finance and accounting

▫Financial statements, account payable and receivable, general ledger

•Human Resources▫Hiring employees, establishing policies

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Order fulfillment process

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IT enhances business processes•Increases efficiency of existing processes

▫Automating steps that were manual•Enables entirely new processes

▫Change flow of information▫Replace sequential steps with parallel steps▫Eliminate delays in decision making▫Support new business models

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Transaction processing systems (TPS)

•Serve operational managers and staff•Perform and record daily routine

transactions necessary to conduct business▫Sales, order entry, payroll, shipping

•Allow managers to monitor status of operations and relations with external environment

•Serve predefined, structured goals and decision making

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Payroll TPS

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BI Systems

•Business Intelligence (BI)▫Data and software tools for organizing and

analyzing data▫Used to help managers and uses make

improved decisions•BI Systems

▫Management Information Systems▫Decision Support Systems▫Executive Support Systems

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IS Types - MIS

•Serve middle management•Provide reports on firm’s current performance based on data from TPS

•Provide answers to routine questions with predefined procedure for answering them

•Typically have little analytic capability

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TPS providing data to MIS

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Sample MIS Report

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IS Types - DSS•Decision Support Systems

▫Serve middle management▫Support non-routine decision making

Example: what is the impact on production schedule if December sales doubled?

▫May use external information as well as TPS/MIS data

▫Model drive DSS Voyage-estimating systems

▫Data driven DSS Intrawest’s marketing analysis systems

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Voyage-estimating DSS

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IS Types - ESS

•Executive Support Systems▫Support senior management▫Address non-routine decisions

Requiring judgment, evaluation, insight▫Incorporate data about external events (net

tax laws or competitors) as well as summarized information from internal MIS and DSS

▫Example: digital dashboards with real-time view of firm’s financial performance (working capital, AR, AP, cash flow, inventory

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IS Types – Enterprise Applications

▫Systems for linking the enterprise▫Span functional areas▫Execute business processes across firm▫Include all levels of management▫Four major applications:

Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems

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Enterprise Application Architecture

Enterprise Systems

•Collect data from different firm functions and store data in single data repository

•Resolves problem of fragmented data•Enable:

▫Coordination of daily activities▫Efficient response to customer orders

(production, inventory0▫Help managers make decisions about daily

operations and longer-term planning

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IS Types - SCM

•Supply Chain Management (SCM ) Systems▫Manage firm’s relationships with suppliers▫Share information about:

Orders, production, inventory levels, delivery of products and services

▫Goal: Right amount of products to destination with

least amount of time and lowest cost Example: HP and FedEx

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IS Types - CRM

•Customer Relationship Management (CRM) Systems▫Provide information to coordinate all of the

business processes that deal with customers Sales Marketing Customer Service

▫Helps firms identify, attract, and retain most profitable customers

▫Example: SalesForce

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IS Types - KMS

•Knowledge Management Systems (KMS)▫Support processes for capturing and

applying knowledge and expertise

How to create, produce, deliver products and services

▫Collect internal knowledge and experience within firm and make it available to employees

▫Link to external sources of knowledge77

Networks

•Internet▫The global network of diverse computers

•Intranet▫Internal network including Web sites,

accessible to employees•Extranet

▫Company Web sites accessible externally to suppliers and vendors

▫Used typically to coordinate supply chain

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IS Types - Commerce

•E-Business▫Use of digital technology and Internet to drive

major business processes•E-Commerce

▫Subset of e-business▫Buying and selling goods and services through

the Internet•E-Government

▫Using Internet technology to deliver information and services to citizens, employees, and businesses

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Collaboration and Teamwork

•Collaboration: ▫Short-lived or long-term▫Informal or formal (teams)

•Growing importance of collaboration:▫Changing nature of work▫Growth of professional work—“interaction jobs”

▫Changing organization of the firm▫Changing scope of the firm▫Emphasis on innovation▫Changing culture of work

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Social Business

•Use of social networking platforms, internal and external

•Engage employees, customers, and suppliers•Goal is to deepen interactions and expedite

information sharing•“Conversations”•Requires information transparency

▫Driving the exchange of information without intervention from executives or others

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Collaboration and Teamwork Benefits

•Investments in collaboration technology can bring organization improvements, returning high ROI

•Benefits:▫Productivity▫Quality▫Innovation▫Customer service▫Financial performance

Profitability, sales, sales growth

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Collaboration Requirements

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Collaboration and Teamwork Systems

•Building a collaborative culture and business processes▫“Command and control” organizations

No value placed on teamwork or lower-level participation in decisions

▫Collaborative business culture Senior managers rely on teams of employees. Policies, products, designs, processes, and

systems rely on teams. The managers purpose is to build teams.

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Tools

•E-mail and instant messaging•Wikis•Virtual worlds•Collaboration and social business platforms

▫Virtual meeting systems (telepresence)▫Google Apps/Google sites▫Cyberlockers▫Microsoft SharePoint▫Lotus Notes▫Enterprise social networking tools

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Enterprise Social Network Tools

•Software capabilities▫Profiles▫Content sharing▫Feeds and notifications▫Groups and team workspaces▫Tagging and social bookmarking▫Permissions and privacy

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Collaboration Technologies

•Two Dimensions▫Space (or location)—remote or co-located▫Time—synchronous or asynchronous

•Six steps in evaluating software tools1.What are your firm’s collaboration challenges?2.What kinds of solutions are available? 3.Analyze available products’ cost and benefits.4.Evaluate security risks.5.Consult users for implementation and training

issues.6.Evaluate product vendors.

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Time/Space Collaboration Tool Matrix

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The IS Function in Business•Information systems department:

•Formal organizational unit responsible for information technology services

•Often headed by chief information officer (CIO) Other senior positions include chief security

officer (CSO), chief knowledge officer (CKO), chief privacy officer (CPO)

•Programmers

•Systems analysts

• Information systems managers89

IT Functions (Cont’d)•End users

▫Representatives of other departments for whom applications are developed

▫Increasing role in system design, development

• IT Governance:▫Strategies and policies for using IT in the

organization▫Decision rights▫Accountability▫Organization of information systems function

Centralized, decentralized, and so on90

Chapter 3

•Organizations and Information Systems influence each other, the relationship influenced by the organizations:

Structure Business processes Politics Culture Environment Management decisions

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Organization Definition

•Technical definition: • Formal social structure that processes

resources from environment to produce outputs• A formal legal entity with internal rules and

procedures, as well as a social structure•Behavioral definition: • A collection of rights, privileges, obligations,

and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution

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IPO

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Behavioral View

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Business Processes

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Organization Issues

•Organizational Politics▫What are politics and what do they have to

do with the way processes are handled?•Organizational Culture

▫What is a corporate culture?•Organizational Environments

▫Different environments provided affect how the organization operates

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Organizational Structures

•Entrepreneurial: ▫ Small start-up business

•Machine bureaucracy: ▫ Midsize manufacturing firm

•Divisionalized bureaucracy: ▫ Fortune 500 firms

•Professional bureaucracy: ▫ Law firms, school systems, hospitals

•Adhocracy: ▫ Consulting firms

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Transaction cost theory

•Firms seek to economize on transaction costs (the costs of participating in markets).

Vertical integration, hiring more employees, buying suppliers and distributors

•IT lowers market transaction costs for firm, making it worthwhile for firms to transact with other firms rather than grow the number of employees

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Agency Theory

•Firm is nexus of contracts among self-interested parties requiring supervision.

•Firms experience agency costs (the cost of managing and supervising) which rise as firm grows.

•IT can reduce agency costs, making it possible for firms to grow without adding to the costs of supervising, and without adding employees.

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Organizational/Behavioral Impacts •IT flattens organizations

▫Decision making is pushed to lower levels.▫Fewer managers are needed (IT enables

faster decision making and increases span of control).

•Postindustrial organizations▫Organizations flatten because in

postindustrial societies, authority increasingly relies on knowledge and competence rather than formal positions

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Resistance to change

•Information systems become 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.

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Internet and Organizations

•The Internet increases the accessibility, storage, and distribution of information and knowledge for organizations.

•The Internet can greatly lower transaction and agency costs.▫Example: Large firm delivers internal

manuals to employees via a corporate Web site, saving millions of dollars in distribution costs

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Planning new system

•Environment•Structure

▫Hierarchy, specialization, routines, business processes

•Culture and politics•Type of organization and style of leadership •Main interest groups affected by system;

attitudes of end users•Tasks, decisions, and business processes the

system will assist

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Competitive Forces

1. Traditional competitors 2. New market entrants 3. Substitute products and services4. Customers5. Suppliers

Source: Michael Porter’s competitive forces model

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Competitive Forces

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Competition

• Traditional competitors–All firms share market space with

competitors who are continuously devising new products, services, efficiencies, and switching costs.

• New market entrants –Some industries have high barriers to entry,

for example, computer chip business.–New companies have new equipment,

younger workers, but little brand recognition.

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Competitive Advantage

•Substitute products and services▫Substitutes customers might use if your

prices become too high, for example, iTunes substitutes for CDs

•Customers ▫Can customers easily switch to competitor’s

products? Can they force businesses to compete on price alone in transparent marketplace?

•Suppliers▫Market power of suppliers when firm

cannot raise prices as fast as suppliers

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Strategies

•Low-cost leadership •Product differentiation•Focus on market niche•Strengthen customer and supplier intimacy

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Internet impact on Advantage

•Transformation or threat to some industries▫Examples: travel agency, printed

encyclopedia, media•Competitive forces still at work, but

rivalry more intense•Universal standards allow new rivals,

entrants to market•New opportunities for building brands

and loyal customer bases110

Value Chain

•Firm as series of activities that add value to products or services

•Highlights activities where competitive strategies can best be applied▫Primary activities vs. support activities

•At each stage, determine how information systems can improve operational efficiency and improve customer and supplier intimacy

•Utilize benchmarking, industry best practices

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Value Chain Model

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Homework Assignments

•Individual▫IT and Ethics

•Group▫Course Project Outline

•Due next week•Make sure you review the WorldClass

information in the course content area

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HW 1 – Emerging Technologies• Identify an emerging technology that has the potential

to assist a business and IT to operate more efficiently and effectively.

• Summarize the technology in a 3-5 page paper in APA format (title page and references do not count towards count)

• You may choose to select a technology that has recently been implemented in your own organization (e.g., database, Intranet, application) or choose a technology that you believe would benefit your current organization.

• Your technology selection should be focused on a business solution rather than a personal type of technology.

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Group Project

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Questions?

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