Introduction to Information Systems Lecture 2 : Thursday Newman Theatre

1. 2-1 Introduction to Information SystemsLecture 2 : Thursday Newman Theatre

2. Examples of Critical Skills forNon-routine Cognition �� Constructing a model (a representation of a process). Think systematically and identify potential problems Collaborate with colleagues to develop plans and to consider feedback. Experiment and test. Adapt. Adjust. BEM1005 2010 2-2

3. Q2 � Development and Use of Information Systems DEVELOPMENT Managers can be involved in development and use of IS Information systems are built for business professionals (you) to use. You need to take an active role in specifying system requirements and in managing development projects to ensure that the system meets your needs and the organization�s needs. USEYou need to learn how to use to accomplish your goals. You have responsibilities for protecting security of system and data. You have responsibilities for backing up data. You will help in recover systems and data. 2-3

4. Establishing �good reasons� for developing a specific �new� information system. Everyone else is on Facebook !!! IS A ____ BAD REASON ___ ASK___ THE ____ RIGHT QUESTIONS ____ What can the system do for us? Is Facebook the best choice? Are the costs of maintaining a Facebook page sufficiently offset by the benefits? BEM1005 2010 2-4

5. How Can You Use the Five-Component Framework? 2-5

6. Always consider the consequences. 2-6

7. The Most Important Component --- YOU --- You are part of every information system that you use. Even if you have the perfect information system, if you do not know what to do with the information that it produces, you are wasting your time and money. Your quality of thinking is a large part of the quality of an information system. Substantial cognitive research has shown that you cannot increase your basic IQ. You can dramatically increase the quality of your thinking by changing the way you have programmed your brain to work BEM1005 2010 2-7

8. High-Tech versus Low-Tech Information Systems Typical example of Low-tech IS implementation A file of email addresses and an email program. Only small amount of work moved from the human side to computer side. Considerable human work is required to determine when to send which emails to which customers. . 2-8

9. Pre-planning a New Information System Ask questions What new hardware will you need? What programs will you need to license? What databases and other data must you create? What procedures will need to be developed for both use and administration of the information system? What will be the impact of the new technology on people? Which jobs will change? Who will need training? How will the new technology affect morale? Will you need to hire new people? Will you need to reorganize? BEM1005 2010 2-9

10. Context Change Process 2-10

11. Characteristics of Good Information BEM1005 2010 2-11

12. What makes some information better than other information Accurate�correct and complete data, and processed correctly. Accuracy is crucial; managers must be able to rely on results of their information systems. Timely�produced in time for its intended use. Relevant�both to the context and to the subject. Just barely sufficient�for purpose for which it is generated. Avoid information overload. Worth its cost�appropriate relationship between cost of information and its value. BEM1005 2010 2-12

13. Lecture 1 self-Study instructions. Review all the slides including those we didn�t discuss. Read the Flextime scenario (slides at end of this presentation) and answer the questions Can you find a picture (anywhere) of an information system? Can you identify a problem with this task? What are the different skill levels required for three common categories of work? Routine production work In-person services Symbolic-analytic services BEM1005 2010 2-13

14. FlexTime FlexTime is a hip, urban, sophisticated workout studio located in downtown Indianapolis. Kelly Summers started FlexTime 20 years ago after teaching aerobics at another firm. FlexTime occupies all four stories of its building. FlexTime clients make more than 15,000 visits a month. During prime time, the building is packed, the tempo is fast-paced, and the atmosphere is intense; loud music and well-dressed urban professionals flow through the hallways. BEM1005 2010 2-14

15. FlexTime At one time, Neil West was ranked as the number one amateur surfer in Southern California. Neil finished college at San Diego State and took a job in telemarketing sales for a small software company. He excelled at his job, and within a few years was selling large enterprise solutions for Siebel Systems, then a leading vendor of customer relationships management software. He made enough money during the dot com bubble to retire. BEM1005 2010 2-15

16. FlexTime FlexTime was a screaming success in every aspect save one�the back office was a disorganized mess. Kelly and her staff were running the business out of several file cabinets with temporary record storage in an orange crate. Neil experienced numerous delays when attempting to pay for goods and services at the front desk, and he noticed the inefficiency of FlexTime�s business processes. When Neil mentioned that he was about to leave Siebel, Kelly asked if he�d be willing to help her organize FlexTime�s office records. BEM1005 2010 2-16

17. FlexTime Neil agreed to help Kelly redesign Flex Time�s accounting, customer management, operations, and related processes in what he thought would be a six-month consulting job. He led several projects to install information systems, convert FlexTime from manual to electronic records, and train personnel on the use of the new systems. As he got into the project, he saw great potential for FlexTime and bought out Kelly�s financial partners to become a co-owner and partner of FlexTime. In 2008, they were married. BEM1005 2010 2-17

18. FlexTime FlexTime is an unqualified success with Kelly running the client/trainer side of the business and Neil managing the back-office system. However, that does not mean that it does not have problems and challenges, as you are about to learn. BEM1005 2010 2-18

19. Flextime Case studyPrepare answers. What do you think that Neil thinks is FlexTime�s most important asset? Flextime has 16,000 visits per month. 1. What data do they need to record about these visits.2. What data is needed for billing?3. What data is needed for marketing?4. What data is needed for management planning? BEM1005 2010 2-19

20. Why collaborate? Ideally Abstract Reasoning with feedback Iterative Modelling Synergy from not working alone Clear System objectives. (the product of the work) Counterveiling forces Indifference Dogmatic points of view Lack of leadership and co-ordination Uneven effort by team members BEM1005 2010 2-20

21. Your new skill Define abstract reasoning, and explain why it is an important skill for business professionals. �Abstract reasoning is the ability to construct and use a model or representation. � Explain how a list of items in inventory and their quantity on hand is an abstraction of a physical inventory. �The inventory list and quantity on hand is a representation of the actual items on shelves out in the warehouse. BEM1005 2010 2-21

22. Business abstractions Give three other examples of abstractions commonly used in business. project plans, budgets, and business process models. �Can people increase their abstract-thinking skills? If so, how? If not, why not? �Yes, abstract thinking skills can be developed with practice. Working with existing models is a place to start, but actually creating the models and examining their usefulness is even more essential to develop these skills. BEM1005 2010 2-22

23. Typical abstract reasoning. Explain how Jennifer failed to demonstrate effective abstract-reasoning skills. Jennifer was unable to develop a model of the customer life cycle. She developed a model that made no sense and had customers interacting with Accounts Receivable before they were even customers. She claimed that she knew the process but couldn�t put it down on paper. BEM1005 2010 2-23

24. What are the critical factors for effective collaboration? Communication Content management Workflow control BEM1005 2010 2-24

25. Various types of collaborative business activities Group editing of documents Group based decision making and strategic planning Customised management of team activities. For example: Document flow control for processes such as insurance claims. Manufacturing routines, record management. Allows secure routing of documents in a pre-determined and optimal order. BEM1005 2010 2-25

26. Business collaboration examples? Communication Individual team members communication skills.Prepared to give and receive feedback Document/File Content managementwho made changes, why, and when. Workflow control Create, edit, use and dispose of content in a logical order, and by authorised persons. BEM1005 2010 2-26

27. The Apollo 11 Space Flight Apollo 11 400,000 participants made the mission work. 8 Years of collaboration Many companies involved. Need to choose some of the components of systems very early. Technical advances could have made some systems obsolete before the flight. In-flight computer had the same processing power as a small calculator. Project Management was the key to mission success. BEM1005 2010 2-27

28. Collaboration tools:Software. Google Docs and Spreadsheetsfor collaborative document editing. Files aren�t kept on user�s computer. Cloud hosted. Microsoft Groovefor collaborative document sharing and management. Requires Microsoft Groove installed on all users computers. Share PointRequires independent server. BEM1005 2010 2-28

29. Using Collaboration Systems for Decision Making? BEM1005 2010 2-29 Operational decisions Concern day-to-day activities�How many widgets should we order from vendor A? Obtain data from transaction processing systems Require very little collaboration Managerial decisions Focus on the allocation and utilization of resources�How many engineers should we assign to project B? Require some collaboration Strategic decisions Are broader in their scope and center around organizational issues�Should we start a new product line? Are almost always collaborative

30. Two Types of Decision Processes Structured Decisions Have an understood and accepted method for making decisions Have optimal solution Require very little collaboration Unstructured Decisions No agreed-on decision-making method No proven optimal solution Are often a collaborative process BEM1005 2010 2-30

31. Relationship Between Decision Type and Decision Process Operational decisions tend to be structured. Strategic decisions tend to be unstructured. Managerial decisions tend to be both structured and unstructured. Unstructured operational decision: �How many taxicab drivers do we need on the night before the homecoming game?� Structured strategic decision: �How should we assign sales quotas for a new product?� BEM1005 2010 2-31

32. Decision Process and Decision Type BEM1005 2010 2-32

33. Decision Making and Collaboration Systems Few structured decisions need collaboration. No feedback or iteration are necessary Collaboration in routine, structured decisions is expensive, wasteful, and frustrating. Unstructured decisions Feedback and iteration are crucial Different perspectives required Communications systems are very important to the process. BEM1005 2010 2-33

34. Collaboration Needs by Decision Types BEM1005 2010 2-34

35. Important factors when collaborating Delegation Permissions and access management Audit trail Governance and Authority Risk of corrupting data Version control Archive BEM1005 2010 2-35

36. How Will Collaboration Change By 2020? Face-to-face meetings (F2F) will be rare. Employees not needed to be present on site will work at home, either full time or at least several days a week. Nearly all corporate training will be online, mostly asynchronous. Travel industry will re-organize for nearly exclusively for recreational travel. Conventions will become virtual. BEM1005 2010 2-36

37. An online Conference BEM1005 2010 2-37

38. Corporate meeting using Telepresence BEM1005 2010 2-38