CIS 480/BA 479: Managing Technology for Business Strategies Week 1

1. CIS 480/BA 479: Managing Technology for Business StrategiesWeek 1 Dr. Jesús Borrego Regis University

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

3. Instructor • Dr. Jesús Borrego • Education • PhD MIS; MS CS; BS CS; BS EE • Hometown: • Colorado Springs • Married, 5 kids • Teaching since 1989, various levels • At Regis U. since 1995

4. 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

5. 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

6. Course Introduction Prerequisites: None Textbook: • Laudon, L. & Laudon, J. (2014). Management Information Systems: Managing the Digital Firm. Cengage Learning. ISBN 13: 978-0-133-05069-1

7. 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.

8. 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.

9. 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.

10. 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.

11. Week by Week

12. Grading

13. 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

14. Rubric • Refer to the rubrics in WorldClass • There are rubrics for: • Discussion/Participation • Final Writing Assignment • Course Project • VoiceThread

15. 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

16. Group Project Overview Review WorldClass

17. 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.

18. 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

19. 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

20. 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

21. 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

22. 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?

23. 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

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

25. 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

26. 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

27. IT Capital Investment 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.

28. Organizations and IT Interdependency 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.

29. 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

30. Process integration example Boeing 777 example

31. 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

32. Business Model Example of a workflow

33. 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

34. 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

35. 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?

36. Data and Information 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.

37. 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

38. 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.)

39. Functions of an IS

40. 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

41. Corporate Organization 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.

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

43. 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

44. 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

45. 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

46. 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

47. Business value chain 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.

48. 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

49. Variation in returns on IT investment

50. 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