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Case: Sew What? The Role of Information Technology in Small Business Success.Case Summary:

1.) Provide a summary overview of the case in your own words.

Case Analysis:

2.) What role does IT play in small businesses that are not ecommerce companies? Do brick and mortar companies need IT just as much as ebusinesses?

Case Application:

3.) In narrative form, define and describe at least three technologies that small businesses should embrace in their IT work.

  • Learner successfully applied critical thinking to the case study analysis & recommendations/actions taken - 25 pts max.
  • - Learner s successfully incorporated a minimum of two concepts/principles from the textbook (or external sources) in their work to support their position. (No more than 10% of the entire submission should be from referenced sources. In other words, the references should support the learner’s work not be the bulk of what is written.) - 25 pts max.
  • - Learner met the criteria for academic writing (i.e. no spelling or grammar errors, properly formatted paragraphs, APA formatting used for references, etc.) - 15 pts max.
  • - Each question needs to more than 250 words. - 10 pts max.

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obr76817_fm_i-xxxiv_1.indd Page i 8/25/10 2:00 PM F-497 MANAGEMENT INFORMATION SYSTEMS /Users/F-497/Desktop/Tempwork/AUGUST 2010/18:08:10/FREE036:Volhart:VYN W I L S O N , J A M I E 5 0 5 1 B U obr76817_fm_i-xxxiv_1.indd Page ii 8/25/10 2:00 PM F-497 /Users/F-497/Desktop/Tempwork/AUGUST 2010/18:08:10/FREE036:Volhart:VYN W I L S O N , J A M I E 5 0 5 1 B U obr76817_fm_i-xxxiv_1.indd Page iii 8/25/10 2:00 PM F-497 MANAGEMENT INFORMATION SYSTEMS Tenth Edition James A. O’Brien College of Business Administration Northern Arizona University George M. Marakas KU School of Business University of Kansas /Users/F-497/Desktop/Tempwork/AUGUST 2010/18:08:10/FREE036:Volhart:VYN W I L S O N , J A M I E 5 0 5 1 B U obr76817_ch01_002-044.indd Page 2 7/28/10 10:10 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Management Challenges MODULE I Business Applications @bWh_X < Development Processes Information Technologies Foundation Concepts FOUNDATION CONCEPTS W W hy study information systems? Why do businesses need information I technology? What do you need to know about the use and manageL technologies in business? The introductory ment of information chapters of Module I are designed to answer these fundamental questions about S the role of information systems in business. O of Information Systems in Business presents an • Chapter 1: Foundations N • overview of the five basic areas of information systems knowledge needed by , business professionals, including the conceptual system components and major types of information systems. In addition, trends in information systems and an overview of the managerial challenges associated with information systems are J presented. Chapter 2: Competing with A Information Technology introduces fundamental concepts of competitive advantage through information technology and illusM trates major strategic applications of information systems. I Completing these chapters will prepare you to move on to study chapters E(Module II), business applications (Module III), on information technologies systems development processes (Module IV), and the management challenges of information systems (Module V). 5 0 5 1 B U 2 obr76817_ch01_002-044.indd Page 3 09/09/10 9:50 AM user-f501 207/MHRL043/kno31619_disk1of1/0070131619/kno31619_pagefiles: Management Challenges CHAPTER 1 Business Applications Module I Development Processes Information Technologies Foundation Concepts FOUNDATIONS OF INFORMATION SYSTEMS IN BUSINESS Ch apt er Highligh t s Section I Foundation Concepts: Information Systems in Business The Real World of Information Systems Real World Case: eCourier, Cablecom, and Bryan Cave: Delivering Value Through Business Intelligence The Fundamental Roles of IS in Business Trends in Information Systems The Role of e-Business in Business Types of Information Systems Managerial Challenges of Information Technology Section II Foundation Concepts: The Components of Information Systems System Concepts: A Foundation Real World Case: The New York Times and Boston Scientific: Two Different Ways of Innovating with Information Technology Components of Information Systems Information System Resources Information System Activities Recognizing Information Systems Real World Case: Sew What? Inc.: The Role of Information Technology in Small Business Success Real World Case: JetBlue and the Veterans Administration: The Critical Importance of IT Processes W I L L ea r n i n g O bj ect i v e s S 1. Understand the concept of a system and how it O relates to information systems. N 2. Explain why knowledge of information systems is important for business professionals, and identify , J A M I E 3. 4. 5. 5 0 5 1 B U 6. 7. five areas of information systems knowledge that they need. Give examples to illustrate how the business applications of information systems can support a firm’s business processes, managerial decision making, and strategies for competitive advantage. Provide examples of several major types of information systems from your experiences with business organizations in the real world. Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business. Provide examples of the components of real world information systems. Illustrate that in an information system, people use hardware, software, data, and networks as resources to perform input, processing, output, storage, and control activities that transform data resources into information products. Demonstrate familiarity with the myriad of career opportunities in information systems. 3 obr76817_ch01_002-044.indd Page 4 7/28/10 10:10 AM user 4 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts SECTION I Foundation Concepts: Information Systems in Business The question of why we need to study information systems and information technology has evolved into a moot issue. Information systems have become as integrated into our daily business activities as accounting, finance, operations management, marketing, human resource management, or any other major business function. Information systems and technologies are vital components of successful businesses and organizations—some would say they are business imperatives. They thus constitute an essential field of study in business administration and management, which is why most business majors include a course in information systems. Since you probably intend to be a manager, entrepreneur, or business professional, it is just as important to have a basic understanding of information systems as it is to understand any other functional area in business. Information technologies, W including Internet-based information systems, are playing vital and expanding roles in business. Information technology can help all kinds of I businesses improve the efficiency and effectiveness of their business processes, manaL gerial decision making, and workgroup collaboration, which strengthens their competitive positions in rapidly changing marketplaces. This benefit occurs irrespective of S whether the information technology is used to support product development teams, O customer support processes, e-commerce transactions, or any other business activity. Information technologies andNsystems are, quite simply, an essential ingredient for business success in today’s dynamic global environment. , The Real World of Information Systems What Is an Information System? Let’s take a moment to bring the real world into our discussion of the importance of information systems (IS) and information technology (IT). See Figure 1.1, and read J information technology to better understand and the Real World Case about using satisfy customer needs. A If we are to understand information systems and their functions, we first need to M In its simplest form, a system is a set of interrebe clear on the concept of a system. lated components, with a clearly I defined boundary, working together to achieve a common set of objectives. Using this definition, it becomes easy to see that virtually everything you can think of isE a system, and one system can be made up of other systems or be part of a bigger system. We will expand on this concept later in the next section, but for now, this definition gives us a good foundation for understanding the 5 systems. focus of this textbook: information 0 that we can expand upon later in the chapter. An We begin with a simple definition information system (IS) can be5any organized combination of people, hardware, software, communications networks, data resources, and policies and procedures that 1 stores, retrieves, transforms, and disseminates information in an organization. People B to communicate with one another using a variety rely on modern information systems of physical devices (hardware), information processing instructions and procedures U (software), communications channels (networks), and stored data (data resources). Although today’s information systems are typically thought of as having something to do with computers, we have been using information systems since the dawn of civilization. Even today we make regular use of information systems that have nothing to do with a computer. Consider some of the following examples of information systems: • Smoke signals for communication were used as early as recorded history and can account for the human discovery of fire. The pattern of smoke transmitted valuable information to others who were too far to see or hear the sender. • Card catalogs in a library are designed to store data about the books in an organized manner that allows readers to locate a particular book by its title, author name, subject, or a variety of other approaches. obr76817_ch01_002-044.indd Page 5 7/28/10 10:10 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business REAL WORLD CASE V 1 5 eCourier, Cablecom, and Bryan Cave: Delivering Value through Business Intelligence isitors to the eCourier Web site are greeted with the words “How happy are you? Take the eCourier happy test today!” Those words and the playful purple Web site represent the company’s customer satisfaction focus. And the company achieves that happiness through its focus on operational business intelligence. Business intelligence is moving out of the ivory tower of specialized analysts and is being brought to the front lines. In the case of eCourier, whose couriers carry 2,000 packages around London each day, operational business intelligence allows the company to keep real-time tabs on customer satisfaction. “This is a crucial differentiator in London’s competitive same-day courier market, where clients are far more likely to take their business elsewhere than they are to report a problem to their current courier,” says the company’s chief technology officer and cofounder Jay Bregman. Just one online directory, London Online, shows about 350 listings for courier services. Before implementing operational business intelligence, eCourier sought to define IT as a crucial differentiator. Cofounders Tom Allason, eCourier’s CEO, and Bregman ditched the idea of phone dispatchers and instead gave their couriers GPS-enabled handhelds so that couriers can be tracked and orders can be communicated electronically. They also focused on making online booking easy and rewarding, and much was invested in user-friendly applications: Customers can track online exactly where their courier is, eliminating the package delivery guesswork. Today, 95 percent of deliveries are booked online; this means that eCourier needs a much smaller staff for monitoring, tracking, and placing orders, which in turn makes the company more scalable. Bregman says this is notable in F IGUR E 1.1 Access to quality information about customers helps companies succeed at delivering value to shareholders. Source: © Digital Vision/Alamy. ● W I L S O N , J A M I E 5 0 5 1 B U a market where many courier companies use telephone dispatchers and guesswork about package whereabouts. Booking and tracking automation—although innovative—did not complete the customer happiness puzzle. Without leadingedge business intelligence, account managers could miss the same issues that plagued other courier services—late deliveries, surly couriers, or even an unnoticed ramp-up in deliveries. “We’re only one delivery away from someone deciding to use a different delivery firm,” says Bregman. So eCourier started to use software from a company called SeeWhy to try to generate customer data more quickly. “What’s unique about SeeWhy,” says Bregman, “is its ability to report what’s happening with customers instantly.” When a new booking enters eCourier’s database, the information is duplicated and saved into a repository within SeeWhy. The software then interprets the data by comparing it with previous information and trends, and if it notices an anomaly, it takes action. If a customer typically places an eCourier order every Thursday morning between 9:30 and 10:00 and there’s been no contact during that time, eCourier’s CRM team will receive an alert shortly after 10:00 that includes the client’s history and the number of bookings it typically places in a day. Bregman says there’s a fair amount of fine-tuning to get the metrics right. For example, the company had to tweak the system to recognize expected shifts in activity so that it doesn’t send a slew of alerts once the after-Christmas drop in business occurs. Getting that perfect balance of when to send alerts and how best to optimize the system is an ongoing process, he says. The SeeWhy software is designed to establish a “normal” client booking pattern from the first use, which is deepened with each subsequent booking. A sharp drop-off in bookings, an increase in bookings, or a change in dormant account activity generates an alert that is sent to that client’s account manager; the manager uses the opportunity to problem-solve or, in the case of increased activity, upsell to overnight or international services. “These capabilities have provided a big payoff,” says Bregman. He also believes the system saves his company the expense of having to hire people to monitor “who’s happy and who’s not—we’re able to do a lot more on our customer team with a lot less.” Other approaches to judging customer dissatisfaction exist. Cablecom, a Swiss telecom company, used SPSS’s statistical software to mine customer data, primarily from trouble tickets—such as the average duration of a ticket, or how many tickets had been opened for a customer over a specific time period—to build a model that could flag when a customer was at a high risk of leaving. “But the model proved to be only about 70 percent accurate,” says Federico Cesconi, director of customer insight and retention. So Cesconi used SPSS’s Dimensions survey research software to create an online customer survey, and from that he was able to determine that customer dissatisfaction usually begins around the ninth month of service, with the bulk of the customer losses occurring between months 12 and 14. Cesconi then created another survey that he now offers to obr76817_ch01_002-044.indd Page 6 7/28/10 10:11 AM user 6 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts customers in the seventh month of service, which includes an area where they can type in specific complaints and problems. “Cablecom calls customers within 24 hours of completing the survey,” says Cesconi. “The two approaches together provide the best view of customers ready to bolt, and the best chance at retaining them.” In 2002, global law firm Bryan Cave faced the milliondollar question: How do you make the most money with your resources while simultaneously delivering the highest customer value? The problem was pressing. Clients of the firm, which now has 800 lawyers in 15 offices worldwide, were demanding alternatives to the traditional hourly fee structure. They wanted new models, such as fixed pricing and pricing that was adjusted during a project. But making money from these new billing strategies required the complicated balance of staffing and pricing. Projects weighted too heavily with a law partner’s time would be expensive (for the law firm) and not optimized for profit. Devoting too little of a partner’s time would leave clients feeling undervalued. Optimizing profit and perceived value had to be achieved by spreading partners’ time throughout a number of cases and balancing the remaining resources needed for a case with the less-expensive fees of associates and paralegals. “Clients are most likely to stay with you if you deliver just the right mix,” says Bryan Cave’s CIO John Alber. The law firm’s traditional method of analyzing collected fees and profit used a spreadsheet that was complicated and took too long. “Spreadsheets provide a level of detail that can be valuable for analysts,” says Alber, “but the information in a spreadsheet can be confusing and difficult to work with.” Alber says he decided it was better to build an easy-to-understand interface using business intelligence tools. Although the company will not release specific figures, both profitability and hours leveraged—the hours worked by equity partners and all other fee earners at the firm—have increased substantially since the company implemented its first BI tool in 2004, according to Alber. The tools also allow lawyers to track budgets in real time so that they can make adjustments quickly. The BI tools CASE STUDY QUESTIONS 1. How do information technologies contribute to the business success of the companies depicted in the case? Provide an example from each company explaining how the technology implemented led to improved performance. 2. In the case of law firm Bryan Cave discussed above, the use of BI technology to improve the availability, access, and presentation of existing information allowed them to provide tailored and innovative services to their customers. What other professions could benefit from a similar use of these technologies, and how? Develop two different possibilities. 3. Cablecom developed a prediction model to better identify those customers at risk of switching to other company in the near future. In addition to those noted in the case, what other actions could be taken if that information were available? Give some examples of these. Would you consider letting some customers leave anyway? Why? even provide a diversity dashboard, which tracks the hourly mix of women and minorities working on the firm’s cases, a feature the company will license to Redwood Analytics for sale to other law firms. The firm developed this diversity tool to bring transparency to the diversity reporting process required by many clients. In other words, the tools provide Bryan Cave with a method of customizing its fees and helping clients better understand what they get for their money. As an illustration, Alber points to the customized pricing one lawyer gave to his real estate client. “Developers think in terms of square feet,” says Alber, “and this client couldn’t understand why legal fees for a 400,000-square-foot building might be the same as for a 4,000-square-foot building, though it required the same amount of the lawyer’s time.” So the lawyer used the pricing and staffing modeling tools and historical analysis tools to determine whether it made sense for the law firm to charge clients based on the size of their projects. W He found that while there was risk of underpricing large I buildings, the deal volume in small buildings offset that risk for firm. The result made per-square-foot pricing possible. Lthe law “It may be possible that someone with enough willpower Sor manpower could do that using traditional analysis,” says Alber, “but this lawyer had the information right at his finOgertips.” Business intelligence enables “us to be in touch Nwith clients and shift things around in response to what customers are asking,” says Alber. Adopting new and improved , project management, pricing, and customer service capabilities required planning, appropriate pacing, and user buy-in. “In today’s environment, you can’t do value innovation without being in touch with the economics of your business, J without really understanding where you make money and Awhere you don’t, and that’s what business intelligence tools Mdo,” says Alber. “Our goal,” he says, “is to build the best longterm relationships in the world.” I Source: Adapted from Diann Daniel, “Delivering Customer Happiness Operational Business Intelligence,” CIO Magazine, December 6, EThrough 2007; Diann Daniel, “How a Global Law Firm Used Business Intelligence to Fix Customer Billing Woes,” CIO Magazine, January 8, 2008; and Mary Weier, “Dear Customer: Please Don’t Leave,” InformationWeek, June 18, 2007. 5 0 REAL WORLD ACTIVITIES 5 1 1. Use the Internet to research the latest offerings in business intelligence technologies and their uses by B companies. What differences can you find with those in the case? Prepare a report to summarize U reviewed your findings and highlight new and innovative uses of these technologies. 2. Why do some companies in a given industry, like eCourier above, adopt and deploy innovative technologies while others in the same line of business do not? Break into small groups with your classmates to discuss what characteristics of companies could influence their decision to innovate with the use of information technologies. obr76817_ch01_002-044.indd Page 7 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 7 • Your book bag, day planner, notebooks, and file folders are all part of an in- • • formation system designed to help you organize the inputs provided to you via handouts, lectures, presentations, and discussions. They also help you process these inputs into useful outputs: homework and good exam grades. The cash register at your favorite fast-food restaurant is part of a large information system that tracks the products sold, the time of a sale, inventory levels, and the amount of money in the cash drawer; it also contributes to the analysis of product sales in any combination of locations anywhere in the world. A paper-based accounting ledger as used before the advent of computer-based accounting systems is an iconic example of an information system. Businesses used this type of system for centuries to record the daily transactions and to keep a record of the balances in their various business and customer accounts. Figure 1.2 illustrates a useful conceptual framework that organizes the knowledge presented in this text and outlines areas of knowledge you need about information systems. It emphasizes thatW you should concentrate your efforts in the following five areas of IS knowledge: I • Foundation Concepts.LFundamental behavioral, technical, business, and mana- • • • F IGUR E 1.2 A framework that outlines the major areas of information systems knowledge needed by business professionals. gerial concepts about the components and roles of information systems. ExamS system concepts derived from general systems ples include basic information theory or competitive strategy O concepts used to develop business applications of information technology for competitive advantage. Chapters 1 and 2 and other N this area of IS knowledge. chapters of the text support , Major concepts, developments, and management issues Information Technologies. in information technology—that is, hardware, software, networks, data management, and many Internet-based technologies. Chapters 3 and 4 provide an overview of computer hardware and J software technologies, and Chapters 5 and 6 cover key data resource management and A telecommunications network technologies for business. Business Applications. The major uses of information systems for the operations, M management, and competitive advantage of a business. Chapters 7 and 8 cover applications of information I technology in functional areas of business such as marketing, manufacturing, and accounting. Chapter 9 focuses on e-business apE plications that most companies use to buy and sell products on the Internet, and Chapter 10 covers the use of information systems and technologies to support decision making in business. 5 Development Processes. How business professionals and information specialists 0 information systems to meet business opportunities. plan, develop, and implement Several developmental methodologies are explored in Chapters 11 and 12, including 5 1 B U Business Applications Management Challenges Information Systems Development Processes Information Technologies Foundation Concepts obr76817_ch01_002-044.indd Page 8 7/28/10 10:11 AM user 8 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts F IGU RE 1.3 Information Systems The three fundamental roles of the business applications of information systems. Information systems provide an organization with support for business processes and operations, decision making, and competitive advantage. Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations • The Fundamental Roles of IS in Business the systems development life cycle and prototyping approaches to business appliW cation development. I The challenges of effectively and ethically managing Management Challenges. information technology at L the end-user, enterprise, and global levels of a business. Thus, Chapter 13 focuses on security challenges and security management S technology, while Chapter 14 covers some of the issues in the use of information key methods business managers O can use to manage the information systems function in a company with global business operations. N Although there are a seemingly , endless number of software applications, there are three fundamental reasons for all business applications of information technology. They are found in the three vital roles that information systems can perform for a J business enterprise: A and operations. • Support of business processes Support of decision making • Mby employees and managers. advantage. • Support of strategies for competitive I Figure 1.3 illustrates how the fundamental roles interact in a typical organization. E At any moment, information systems designed to support business processes and operations may also be providing data to, or accepting data from, systems focused on business decision making or achieving competitive advantage. The same is true for the 5 other two fundamental roles of IS. Today’s organizations are constantly striving to 0 to allow information to flow freely through them, achieve integration of their systems which adds even greater flexibility and business support than any of the individual 5 system roles could provide. 1 store as a good example of how these roles of IS in Let’s look at a typical retail business can be implemented.B The Fundamental Roles of IS in Business U Support of Business Processes and Operations. As a consumer, you regularly encoun- ter information systems that support the business processes and operations at the many retail stores where you shop. For example, most retail stores now use computer-based information systems to help their employees record customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. Store operations would grind to a halt without the support of such information systems. Support of Business Decision Making. Information systems also help store managers and other business professionals make better decisions. For example, decisions about what lines of merchandise need to be added or discontinued and what kind of investments they require are typically made after an analysis provided by obr76817_ch01_002-044.indd Page 9 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● computer-based information systems. This function not only supports the decision making of store managers, buyers, and others, but also helps them look for ways to gain an advantage over other retailers in the competition for customers. Support of Strategies for Competitive Advantage. Gaining a strategic advantage over competitors requires the innovative application of information technologies. For example, store management might make a decision to install touch-screen kiosks in all stores, with links to the e-commerce Web site for online shopping. This offering might attract new customers and build customer loyalty because of the ease of shopping and buying merchandise provided by such information systems. Thus, strategic information systems can help provide products and services that give a business a comparative advantage over its competitors. Welch’s: Balancing Truckloads with Business Intelligence Given dramatic fluctuationsW in gas prices, it’s no surprise that companies want to find ways to rein in transportation costs. One company finding success in that endeavor is I Welch’s, a well-known purveyor of food and packaged consumer goods. The company is tapping the power of L business intelligence for better insight into its supplychain operations, which in turn can help keep transportation expenses lower. Welch’s, S known for its jams, jellies, and juices, recently inthe $654 million manufacturer stalled an on-demand BI application from Oco. O One way Welch’s is leveraging the Oco BI application is to ensure that truckloads N delivered by its carriers go out full. , are already paying for the full truck when it delivers The idea is that customers goods, even if it’s only halfway or three-quarters loaded. With the BI system, Welch’s can tell if a buyer’s shipment is coming up short of full capacity and help them figure Jto max it out, thus saving on future shipping costs. out what else they can order “Welch’s can go to the customer and say, ‘You’re only ordering this much. Why A not round out the load with other things you need? It will be a lot cheaper for you,’” M and CEO of Oco. “If you’re able to put 4,000 more says Bill Copacino, president pounds on the 36,000-pound I shipment, you’re getting a 10 percent discount on transportation costs,” he adds. E every element—from the customer orders we re“We’re essentially capturing ceive, to bills of lading on every shipment we make, as well as every data element on every freight bill we pay,” says Bill Coyne, director of purchasing and logistics for 5 into one data warehouse [maintained by Oco], and we Welch’s. “We dump them all can mix-and-match and slice-and-dice any way we want.” Coyne says that Welch’s 0 tries to ship its products five days a week out of its distribution center. “But we found 5 ourselves just totally overwhelmed on Fridays,” he says. “We would complain, ‘How come there are so many orders 1 on Friday?’” Now, the new system helps Welch’s balance its daily deliveries so that it uses about B the same number of trucks, rather than hiring seven trucks on a Monday, five on a U and so forth. Tuesday, eight on a Wednesday, The company reaps transportation savings by using a stable number of trucks daily—“as capacity is not jumping all over the place,” Copacino says. “We are gaining greater visibility into cost-savings opportunities, which is especially important in light of rising fuel and transportation costs,” says Coyne. Welch’s spends more than $50 million each year on transportation expenses, and the Oco BI application and reporting features have become critical in a very short period of time. “We literally can’t go any amount of time without knowing this stuff,” Coyne says. Source: Adapted from Ted Samson, “Welch’s Leverages BI to Reduce Transport Costs,” InfoWorld, October 16, 2008; and Thomas Wailgum, “Business Intelligence and On-Demand: The Perfect Marriage?” CIO Magazine, March 27, 2008. 9 obr76817_ch01_002-044.indd Page 10 7/28/10 10:11 AM user 10 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts Trends in Information Systems The business applications of information systems have expanded significantly over the years. Figure 1.4 summarizes these changes. Until the 1960s, the role of most information systems was simple: transaction processing, record keeping, accounting, and other electronic data processing (EDP) applications. Then another role was added, namely, the processing of all these data into useful, informative reports. Thus, the concept of management information systems (MIS) was born. This new role focused on developing business applications that provided managerial end users with predefined management reports that would give managers the information they needed for decision-making purposes. By the 1970s, it was evident that the prespecified information products produced by such management information systems were not adequately meeting the decisionmaking needs of management, so the concept of decision support systems (DSS) was born. The new role for information systems was to provide managerial end users with ad hoc, interactive support of their decision-making processes. This support would be tailored to the unique decisions and decision-making styles of managers as they conW in the real world. fronted specific types of problems In the 1980s, several new roles I for information systems appeared. First, the rapid development of microcomputer processing power, application software packages, and telecommunications networksLgave birth to the phenomenon of end-user computing. S O N Enterprise Resource Planning and Business Intelligence: 2000s–2010s , Enterprisewide common-interface applications data mining and data F IGU RE 1.4 visualization, customer relationship management, supply-chain management J Internet-based e-business Aand e-commerce systems Web-enabled enterprise and global e-business operations and electronic M commerce on the Internet, intranets, extranets, and other networks I Strategic and End-UserE Support: 1980s–1990s Electronic Business and Commerce: 1990s–2000s The Expanding Roles of IS in Business and Management The expanding roles of the business applications of information systems. Note how the roles of computerbased information systems have expanded over time. Also, note the impact of these changes on the end users and managers of an organization. End-user computing systems Direct computing support for end-user productivity and workgroup collaboration Executive information systems Critical information for top management Expert systems Knowledge-based expert advice for end users Strategic information systems Strategic products and services for competitive advantage 5 0 5 1 B Decision Support: 1970s–1980s U Decison support systems Interactive ad hoc support of the managerial decision-making process Management Reporting: 1960s–1970s Management information systems Management reports of prespecified information to support decision making Data Processing: 1950s–1960s Electronic data processing systems Transaction processing, record-keeping, and traditional accounting applications obr76817_ch01_002-044.indd Page 11 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 11 End users could now use their own computing resources to support their job requirements instead of waiting for the indirect support of centralized corporate information services departments. Second, it became evident that most top corporate executives did not directly use either the reports of management information systems or the analytical modeling capabilities of decision support systems, so the concept of executive information systems (EIS) developed. These information systems were created to give top executives an easy way to get the critical information they wanted, when they wanted it, and tailored to the formats they preferred. Third, breakthroughs occurred in the development and application of artificial intelligence (AI) techniques to business information systems. Today’s systems include intelligent software agents that can be programmed and deployed inside a system to act on behalf of their owner, system functions that can adapt themselves on the basis of the immediate needs of the user, virtual reality applications, advanced robotics, natural language processing, and a variety of applications for which artificial intelligence can replace the need W for human intervention, thus freeing up knowledge workers for more complex tasks.I Expert systems (ES) and other knowledge-based systems also forged a new role for information systems. Today, expert systems can serve as consultL advice in limited subject areas. ants to users by providing expert An important new role for S information systems appeared in the 1980s and continued through the 1990s: the concept of a strategic role for information systems, someO systems (SIS). In this concept, information technology times called strategic information becomes an integral component N of business processes, products, and services that help a company gain a competitive advantage in the global marketplace. , the revolutionary emergence of enterprise resource planThe mid- to late 1990s saw ning (ERP) systems. This organization-specific form of a strategic information system integrates all facets of a firm, including its planning, manufacturing, sales, resource J inventory control, order tracking, financial managemanagement, customer relations, ment, human resources, and A marketing—virtually every business function. The primary advantage of these ERP systems lies in their common interface for all M computer-based organizational functions and their tight integration and data sharing, I decision making. We explore ERP and its associated necessary for flexible strategic functions in greater detail in Chapter 8. E We are also entering an era where a fundamental role for IS is business intelligence (BI). BI refers to all applications and technologies in the organization that are focused on the gathering and5analysis of data and information that can be used to drive strategic business decisions. Through the use of BI technologies and processes, or0 insight into the key elements and factors—both internal ganizations can gain valuable and external—that affect their 5 business and competitiveness in the marketplace. BI relies on sophisticated metrics and analytics to “see into the data” and find relation1 can be turned into profits. We’ll look closer at BI in ships and opportunities that Chapter 10. B Finally, the rapid growth of the Internet, intranets, extranets, and other interconnected global networksU in the 1990s dramatically changed the capabilities of information systems in business at the beginning of the 21st century. Further, a fundamental shift in the role of information systems occurred. Internet-based and Web-enabled enterprises and global e-business and e-commerce systems are becoming commonplace in the operations and management of today’s business enterprises. Information systems is now solidly entrenched as a strategic resource in the modern organization. A closer look at Figure 1.4 suggests that though we have expanded our abilities with regard to using information systems for conducting business, today’s information systems are still doing the same basic things that they began doing more than 50 years ago. We still need to process transactions, keep records, provide management with obr76817_ch01_002-044.indd Page 12 7/28/10 10:11 AM user 12 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts useful and informative reports, and support the foundational accounting systems and processes of the organization. What has changed, however, is that we now enjoy a much higher level of integration of system functions across applications, greater connectivity across both similar and dissimilar system components, and the ability to reallocate critical computing tasks such as data storage, processing, and presentation to take maximum advantage of business and strategic opportunities. Because of these increased capabilities, the systems of tomorrow will be focused on increasing both the speed and reach of our systems to provide even tighter integration, combined with greater flexibility. The Role of e-Business in Business F IGU RE 1.5 Businesses today depend on the Internet, intranets, and extranets to implement and manage innovative e-business applications. The Internet and related technologies and applications have changed the ways businesses operate and people work, as well as how information systems support business processes, decision making, and competitive advantage. Thus, many businesses today are using Internet technologies to Web-enable their business processes and create innovative e-business applications. See Figure 1.5. W In this text, we define e-business as the use of Internet technologies to work and I empower business processes, e-commerce, and enterprise collaboration within a company and with its customers, L suppliers, and other business stakeholders. In essence, e-business can be more generally considered an online exchange of value. Any online exchange of information, money,S resources, services, or any combination thereof falls under the e-business umbrella. The O Internet and Internet-like networks—those inside the enterprise (intranet) and between an enterprise and its trading partners (extranet)— N have become the primary information technology infrastructure that supports the e-business applications of many companies. These companies rely on e-business , applications to (1) reengineer internal business processes, (2) implement e-commerce systems with their customers and suppliers, and (3) promote enterprise collaboration among business teams and workgroups. J The Internet Engineering and research A M I E Extranets Suppliers and Other Business Partners Company Boundary 5Supply chain management: Procurement, distribution, and logistics 0 5 Intranets 1 B Manufacturing U and production Intranets Customer relationship management: Marketing Sales Customer service Extranets Consumers and Business Customers Accounting and finance obr76817_ch01_002-044.indd Page 13 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 13 Enterprise collaboration systems involve the use of software tools to support communication, coordination, and collaboration among the members of networked teams and workgroups. A business may use intranets, the Internet, extranets, and other networks to implement such systems. For example, employees and external consultants may form a virtual team that uses a corporate intranet and the Internet for e-mail, videoconferencing, e-discussion groups, and Web pages of work-in-progress information to collaborate on business projects. E-commerce is the buying, selling, marketing, and servicing of products, services, and information over a variety of computer networks. Many businesses now use the Internet, intranets, extranets, and other networks to support every step of the commercial process, including everything from advertising, sales, and customer support on the World Wide Web to Internet security and payment mechanisms that ensure completion of delivery and payment processes. For example, e-commerce systems include Internet Web sites for online sales, extranet access to inventory databases by large customers, and the use of corporate intranets by sales reps to access customer W management. records for customer relationship I Types of Information Systems Conceptually, the applications L of information systems that are implemented in today’s business world can be classified in several different ways. For example, several types of information systems can beS classified as either operations or management information systems. Figure 1.6 illustrates O this conceptual classification of information systems applications. Information systems are categorized this way to spotlight the major roles each plays in the operationsNand management of a business. Let’s look briefly at some examples of such information , systems categories. Operations Support Systems Information systems have always been needed to process data generated by, and used J operations support systems produce a variety of inforin, business operations. Such mation products for internal A and external use; however, they do not emphasize the M I F IGUR E 1.6 Operations and management classifications of information systems. Note how this conceptual overview E business operations and managerial decision making. emphasizes the main purposes of information systems that support Information Systems Support of Business Operations Specialized Processing Systems 5 0 5 1 B U Operations Support Systems Management Support Systems Support of Managerial Decision Making Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Management Information Systems Decision Support Systems Executive Information Systems Processing Business Transactions Control of Industrial Processes Team and Workgroup Collaboration Prespecified Reporting for Managers Interactive Decision Support Information Tailored for Executives Expert Systems Knowledge Management Systems Strategic Information Systems Functional Business Systems Expert Advice to Decision Makers Manage Organizational Knowledge Support Competitive Advantage Support Basic Business Functions Specialized Processing Systems obr76817_ch01_002-044.indd Page 14 7/28/10 10:11 AM user 14 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts F IGU RE 1.7 A summary of operations support systems with examples. Operations Support Systems • Transaction processing systems. Process data resulting from business transactions, update operational databases, and produce business documents. Examples: sales and inventory processing and accounting systems. • Process control systems. Monitor and control industrial processes. Examples: petroleum refining, power generation, and steel production systems. • Enterprise collaboration systems. Support team, workgroup, and enterprise communications and collaborations. Examples: e-mail, chat, and videoconferencing groupware systems. specific information products that can best be used by managers. Further processing by management information systems is usually required. The role of a business firm’s operations support systems is to process business transactions, control industrial procW esses, support enterprise communications and collaborations, and update corporate databases efficiently. See Figure 1.7 . I Transaction processing systems are important examples of operations support L the data resulting from business transactions. They systems that record and process process transactions in two basic S ways. In batch processing, transactions data are accumulated over a period of time and processed periodically. In real-time (or online) O processing, data are processed immediately after a transaction occurs. For example, Nmany retail stores use electronic cash register termipoint-of-sale (POS) systems at nals to capture and transmit sales data electronically over telecommunications links , to regional computer centers for immediate (real-time) or nightly (batch) processing. Figure 1.8 is an example of software that automates accounting transaction processing. Process control systems monitor and control physical processes. For example, a J petroleum refinery uses electronic sensors linked to computers to monitor chemical Ainstant (real-time) adjustments that control the refinprocesses continually and make ery process. Enterprise collaboration M systems enhance team and workgroup communications and productivity and include applications that are sometimes called office I knowledge workers in a project team may use e-mail automation systems. For example, to send and receive e-messages Eor use videoconferencing to hold electronic meetings to coordinate their activities. Management Support Systems F IGU RE 1.8 QuickBooks is a popular accounting package that automates small office or home office (SOHO) accounting transaction processing while providing business owners with management reports. When information system applications focus on providing information and support for 5 effective decision making by managers, they are called management support systems. 0 Providing information and support for decision making by all types of managers 5 1 B U Source: Courtesy of Quickbooks. obr76817_ch01_002-044.indd Page 15 09/09/10 9:51 AM user-f501 207/MHRL043/kno31619_disk1of1/0070131619/kno31619_pagefiles: Chapter 1 / Foundations of Information Systems in Business F IGUR E 1.9 ● 15 A summary of management support systems with examples. Management Support Systems • Management information systems. Provide information in the form of prespecified reports and displays to support business decision making. Examples: sales analysis, production performance, and cost trend reporting systems. • Decision support systems. Provide interactive ad hoc support for the decision-making processes of managers and other business professionals. Examples: product pricing, profitability forecasting, and risk analysis systems. • Executive information systems. Provide critical information from MIS, DSS, and other sources tailored to the information needs of executives. Examples: systems for easy access to analyses of business performance, actions of competitors, and economic developments to support strategic planning. and business professionals is a complex task. Conceptually, several major types of inforW of decision-making responsibilities: (1) management mation systems support a variety information systems, (2) decision support systems, and (3) executive information sysI tems. See Figure 1.9. L systems (MIS) provide information in the form of Management information reports and displays to managers S and many business professionals. For example, sales managers may use their networked computers and Web browsers to receive instantaO results of their products and access their corporate neous displays about the sales intranet for daily sales analysis N reports that evaluate sales made by each salesperson. Decision support systems (DSS) give direct computer support to managers during , For example, an advertising manager may use a DSS to the decision-making process. perform a what-if analysis as part of the decision to determine how to spend advertising dollars. A production manager may use a DSS to decide how much product to manufacture, based on the J expected sales associated with a future promotion and the location and availability ofA the raw materials necessary to manufacture the product. Executive information systems (EIS) provide critical information from a wide variM ety of internal and external sources in easy-to-use displays to executives and managers. For example, top executives I may use touch-screen terminals to view instantly text and graphics displays that highlight key areas of organizational and competitive E performance. Figure 1.10 is an example of an MIS report display. Other Classifications of Information Systems Several other categories of5 information systems can support either operations or management applications. For example, expert systems can provide expert advice for 0 operational chores like equipment diagnostics or managerial decisions such as loan portfolio management. Knowledge management systems are knowledge-based in5 formation systems that support the creation, organization, and dissemination of busi1 and managers throughout a company. Information ness knowledge to employees systems that focus on operational and managerial applications in support of basic B business functions such as accounting or marketing are known as functional business systems. Finally, strategic U information systems apply information technology to a firm’s products, services, or business processes to help it gain a strategic advantage over its competitors. See Figure 1.11. It is also important to realize that business applications of information systems in the real world are typically integrated combinations of the several types of information systems just mentioned. That is because conceptual classifications of information systems are designed to emphasize the many different roles of information systems. In practice, these roles are combined into integrated or cross-functional informational systems that provide a variety of functions. Thus, most information systems are designed to produce information and support decision making for various levels of management and business functions, as well as perform record-keeping and transaction-processing chores. Whenever you analyze an information system, obr76817_ch01_002-044.indd Page 16 7/28/10 10:11 AM user 16 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts F IGU RE 1.10 Management information systems provide information to business professionals in a variety of easy-to-use formats. Source: Courtesy of Infor. F IGU RE 1.11 A summary of other categories of information systems with examples. W I L S O N , Other Categories of Information Systems J • Expert systems. Knowledge-based systems that provide expert advice and act as A expert consultants to users. Examples: credit application advisor, process monitor, and M diagnostic maintenance systems. • Knowledge management Isystems. Knowledge-based systems that support the creation, organization, and dissemination of business knowledge within the enterprise. Examples: intranet access toE best business practices, sales proposal strategies, and customer problem resolution systems. • Strategic information systems. Support operations or management processes that 5 provide a firm with strategic products, services, and capabilities for competitive advantage. Examples: online stock trading, 0 shipment tracking, and e-commerce Web systems. • Functional business systems. 5 Support a variety of operational and managerial applications of the basic business functions of a company. Examples: information systems that support applications in 1 accounting, finance, marketing, operations management, and human resource management. B U you probably see that it provides information for a variety of managerial levels and business functions. Managerial Challenges of Information Technology Figure 1.12 illustrates the scope of the challenges and opportunities facing business managers and professionals in effectively managing information systems and technologies. Success in today’s dynamic business environment depends heavily on maximizing the use of Internet-based technologies and Web-enabled information systems to meet the competitive requirements of customers, suppliers, and other business partners in a global marketplace. Figure 1.12 also emphasizes that information systems obr76817_ch01_002-044.indd Page 17 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 17 F IG UR E 1.12 Examples of the challenges and opportunities that business managers face in managing information systems and technologies to meet business goals. The Business Enterprise Information Technology Strategies/Processes/Structure/Culture Customer Value Business Value Business / IT Challenges Business / IT Developments Business / IT Goals Speed and flexibility requirements of product development, manufacturing, and delivery cycles. Reengineering and cross-functional integration of business processes using Internet technologies. Integration of e-business and e-commerce into the organization’s strategies, processes, structure, and culture. Use of the Internet, intranets, extranets, and the Web as the primary IT infrastructure. Diffusion of Web technology to internetwork employees, customers, and suppliers. Global networked computing, collaboration, and decision support systems. Give customers what they want, when and how they want it, at the lowest cost. Coordination of manufacturing and business processes with suppliers and customers. Marketing channel partnerships with suppliers and distributors. W I L S O Nbe managed to support the business strategies, business and their technologies must processes, and organizational structures and culture of a business enterprise. That is , because computer-based information systems, though heavily dependent on information technologies, are designed, operated, and used by people in a variety of organizational settings and businessJenvironments. The goal of many companies today is to maximize their customer and business value by using information technology to help their employees implementA cooperative business processes with customers, suppliers, and others. M Success and Failure with IT I By now you should be able to see that the success of an information system should not E in terms of minimizing costs, time, and the use of be measured only by its efficiency information resources. Success should also be measured by the effectiveness of the information technology in supporting an organization’s business strategies, enabling its 5 its organizational structures and culture, and increasing business processes, enhancing the customer and business value 0 of the enterprise. It is important to realize, however, that information technology and informa5 tion systems can be mismanaged and misapplied in such a way that IS perform1 technological and business failures. Let’s look at an ance problems create both example of what happens after these failures occur, as well as what can be done to B avoid them. U Responsibility and Accountability for Project Success (and Failure) Your department—information technology—has just played a starring role in blowing a multimillion-dollar enterprise software project. The intense glare from the CEO, CFO and other business leaders is squarely focused on the CIO, VP of applications, project managers and business analysts charged with making sure that this didn’t happen. Of course, IT is never 100 percent at fault for any massive project— whether an ERP or CRM implementation, mainframe migration, or networking upgrade. The business side usually plays its part. obr76817_ch01_002-044.indd Page 18 7/28/10 10:11 AM user 18 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts But the unfortunate and unfair fact is that because these initiatives are considered “technology projects,” the business will almost always look in IT’s direction when there’s blame to be tossed around. “That’s just a fact of life in IT,” says Chris Curran, who’s both a consulting partner at Diamond Management & Techonology Consultants and its Chief Technology Offer. No sane executive would dismiss the strategic importance of IT today. And most don’t: An IT Governance Institute study, consisting of more than 250 interviews with executives of both large and small companies in a variety of industry sectors, found that half of the respondents said that IT is “very important to the enterprise,” and three-quarters stated that they align IT and business strategies. When it came to IT project accountability, “executive management” was identified as the group held accountable for IT governance in 71 percent of the enterprises. That’s all well and good, but when it comes to walking the walk with technology projects, non-IT executives appear to fall back on familiar rhetoric. In a similar 2009 survey of more than W 500 IT professionals by ISACA, a nonprofit trade group focusing on corporate governance, almost half of respondents said “the CIO is I responsible for ensuring that stakeholder returns on IT-related investments are optimized,” notes the survey report. L Curran takes those results a step further. “Business investments need to have S says. “But when a project goes south, especially business accountability,” Curran high-profile ERP implementations, O IT gets blamed—but it’s not an IT project.” Curran’s advice for such massive undertakings, which CIOs and analysts talk up N but many don’t follow, is practical: Think bite-sized project chunks and set proper expectations. He also advises ,his clients and their IT shops to embrace change and transparency—even if it hurts at first. “The corporate culture—the status quo— tends to be: ‘Everything’s good. We don’t talk about problems until they are near J people don’t like bad news,’” Curran says. unrecoverable, because we know But there are always going A to be problems. That, also, is “just a fact of life in IT.” M I E Source: Adapted from Thomas Wailgum, “After a Massive Tech Project Failure: What IT Can Expect,” CIO.com, August 5, 2009. Developing IS Solutions 5 0 and professionals today. As a business professional, challenge for business managers you will be responsible for proposing or developing new or improved uses of infor5 mation technologies for your company. As a business manager, you will frequently 1 of information systems specialists and other business manage the development efforts end users. B Most computer-based information systems are conceived, designed, and impleU mented using some form of systematic development process. Figure 1.13 shows that Developing successful information system solutions to business problems is a major several major activities must be accomplished and managed in a complete IS development cycle. In this development process, end users and information specialists design information system applications on the basis of an analysis of the business requirements of an organization. Examples of other activities include investigating the economic or technical feasibility of a proposed application, acquiring and learning how to use any software necessary to implement the new system, and making improvements to maintain the business value of a system. We discuss the details of the information systems development process in Chapters 11 and 12. We will explore many of the business and managerial challenges that arise in developing and implementing new uses of information technology in Chapters 13 and 14. Now let’s look at how a company changed its development practices to deliver the obr76817_ch01_002-044.indd Page 19 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 19 F IGUR E 1.13 Developing information systems solutions to business problems can be implemented and managed as a multistep process or cycle. Investigate Analyze Maintain Developing Information System Solutions Design Implement Agile Systems Development at Con-Way, Inc. W I right functionality to users and become more responsive to their needs. This example emphasizes the importanceL of tailoring systems development practices to the needs of a business. S O N In the old days, companies could spend months planning a technology project and , then months or even years implementing it. Not anymore. Strategies are far more dynamic these days, especially as companies respond to challenging economic times. J When someone has a good idea, it’s nice to see it come to fruition right away. At transportation company A Con-Way—founded in 1929, with more than 26,000 employees and 2008 revenue M of more than $5 billion—almost all good ideas require technology to implement. Yet historically, ideas became cold by the time they I committees, project planning, and design reviews. made it through IT steering Then, Con-Way became agile—that is, it adopted Agile development practices. E Using Agile, software development is no longer accomplished through lengthy projects. Instead, the overall concept 5 of the desired system is defined at a high level up front and then developed in short iterations. An iteration is typically no longer than 0is released for use after each iteration. As people use the one month, and the software software, they determine which 5 features should be built next, providing a feedback loop that results in building the highest priority functionality. One big change for 1 IT is that with Agile, an implementation date is always impending; team members B on a project. Meanwhile, developers, used to having never feel they are able to relax private space, can feel that space is violated resulting from “pair programming,” U which has two developers constructing the same piece of code at the same time, and colocation, which has team members sitting as close together as humanly possible. As for the business users, Agile requires them to take a much more active role throughout the entire process. They must work jointly with IT to determine the priorities for each iteration, and they must provide daily direction to IT on the needs for the functionality being built. “I made the case for change in IT by explaining how the business would benefit if we delivered the highest priority functionality faster. I also kept reiterating what was in it for them—and there was a lot,” says Jackie Barretta, vice president and CIO of Con-Way, Inc. “At the same time, I made the case for change to the business by preparing a solid ROI that quantified the benefits of increasing the efficiency of obr76817_ch01_002-044.indd Page 20 7/28/10 10:11 AM user 20 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts development processes, delivering the right functionality more quickly and reducing the overall amount of work in progress.” The change effort has been worth it: After nine months, Agile is delivering on its promises. The iterative approach to software development is providing a feedback loop that results in building the right functionality. “We no longer have the waste problem that was inherent in the old waterfall method. Agile is creating greater alignment between IT and the business because of the constant, daily interaction and because Agile techniques help IT personnel understand the business better,” says Barretta. “However, like anything that’s really going to pay off, Agile is a huge change for IT and the user community.” Source: Adapted from Jackie Barretta, “How to Instill Agile Development Practices Among Your IT Team,” CIO Magazine, January 14, 2009. W Challenges and Ethics of IT Hannaford Bros.: The Importance of Securing Customer Data As a prospective manager, business professional, or knowledge worker, you will be I challenged by the ethical responsibilities generated by the use of information techL of information technology might be considered imnology. For example, what uses proper, irresponsible, or harmful S to other people or to society? What is the proper business use of the Internet and an organization’s IT resources? What does it take to be a responsible end user of O information technology? How can you protect yourself from computer crime and other N risks of information technology? These are some of the questions that outline the ethical dimensions of information systems that we will discuss and illustrate with real, world cases throughout this text. Figure 1.14 outlines some of the ethical risks that may arise in the use of several major applications of information technology. The following example illustrates some of the security chalJ business over the Internet. lenges associated with conducting A M I as a fruit and vegetable stand in 1883, but it has Hannaford Bros. may have started expanded from its Maine roots to become an upscale grocer with more than 160 E stores throughout Maine, Massachusetts, New Hampshire, upstate New York, and Vermont. In March 2008, the supermarket chain disclosed a data security breach; Hannaford said in a notice to customers posted on its Web site that unknown intrud5 ers had accessed its systems and stolen about 4.2 million credit and debit card numbers 0 between December 7 and March 10. The breach affected all of Hannaford’s 5 1 B must be faced by business managers who implement major F IGU RE 1.14 Examples of some of the ethical challenges that applications of information technology. U Applications of IT ■ Potential Risks Customer Relationship Management Potential Harms ■ ■ ■ Human Resources Management Business Intelligence Systems ■ Infringements on privacy ■ Inaccurate information ■ Collusion Consumer boycotts ■ Work stoppages ■ Government intervention Possible Responses ■ Codes of ethics ■ Incentives ■ Certification obr76817_ch01_002-044.indd Page 21 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 21 165 supermarkets in New England and New York, as well as 106 stores operated under the Sweetbay name in Florida and 23 independently owned markets that sell Hannaford products. In a likely precursor of what was yet to come, two class-action lawsuits were filed against the company within the week. The filers argued that inadequate data security at Hannaford had resulted in the compromise of the personal financial data of consumers, thereby exposing them to the risk of fraud. They also claimed the grocer also appeared not to have disclosed the breach to the public quickly enough after discovering it. Even though the Hannaford breach is relatively small compared with some other corporate security problems, it is likely to result in renewed calls for stricter regulations to be imposed on companies that fail to protect consumer data. In addition to facing the likelihood of consumer lawsuits, retailers who suffer breaches have to deal with banks and credit unions, which are getting increasingly anxious about having to shell out tens of thousands W of dollars to pay for the cost of notifying their customers and reissuing credit and debit cards. I Retailers, on the other hand, have argued that the commissions they pay to card companies on each transaction L are supposed to cover fraud-related costs, making any additional payments a double penalty. They also have said that the only reason they S store payment card data is because of requirements imposed on them by the major credit card companies. O While the ultimate impact of these and other security breaches may be hard to N quantify, it represents one of the most important challenges resulting from the ubiq, uitous use of electronic transaction processing and telecommunication networks in the modern networked enterprise, and one that is likely to keep growing every day. The security of customer and other sensitive data also represents one of the primary J concerns of IT professionals. A M I E Source: Adapted from Jaikumar Vijayan, “Hannaford Hit by Class-Action Lawsuits in Wake of Data-Breach Disclosure,” Computerworld, March 20, 2008. Challenges of IT Careers Both information technology and the myriad of information systems it supports have created interesting, challenging, 5 and lucrative career opportunities for millions of men and women all over the globe. At this point in your life you may still be uncertain 0 to follow, so learning more about information technolabout the career path you wish ogy may help you decide if5you want to pursue an IT-related career. In recent years, economic downturns have affected all job sectors, including IT. Further, rising labor 1 and Europe have resulted in a large-scale movement costs in North America, Canada, to outsource basic softwareBprogramming functions to India, the Middle East, and Asia-Pacific countries. Despite this move, employment opportunities in the informaU with more new and exciting jobs emerging each day as tion systems field are strong, organizations continue to expand their use of information technology. In addition, these new jobs pose constant human resource management challenges to all organizations because shortages of qualified information systems personnel frequently occur. Dynamic developments in business and information technologies cause constantly changing job requirements in information systems, which will ensure that the long-term job outlook in IT remains both positive and exciting. Along with the myth that there are no jobs for IS professionals (we will dispel this one below!), another common myth is that IS professionals are computer geeks who live in a cubicle. Once again, nothing could be further from the truth! Today’s IS professional must be highly skilled in communication, dealing with people, and, most of all, articulate in the fundamentals of business. The marketplace is demanding a obr76817_ch01_002-044.indd Page 22 7/28/10 10:11 AM user 22 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts business technologist with a big “B” and a big “T.” The world of the IS professional is filled with constant challenge, variety, social interaction, and cutting-edge decision making. No desks and cubicles here. If action is what you are after, then you have found it here. One major recruiter of IS professionals is the IT industry itself. Thousands of companies develop, manufacture, market, and service computer hardware, software, data, and network products and services. The industry can also provide e-business and e-commerce applications and services, end-user training, or business systems consulting. The biggest need for qualified people, however, comes from the millions of businesses, government agencies, and other organizations that use information technology. They need many types of IS professionals, such as systems analysts, software developers, and network managers to help them plan, develop, implement, and manage today’s Internetbased and Web-enabled business/IT applications. The accounting industry is a more recent major recruiter of IS professionals. Recent legislation, entitled the Sarbanes-Oxley Act of 2002, required major changes W by public accounting firms and internal control with regard to auditing practices processes within publicly held I organizations of all sizes and industries. Many of these changes directly affect the IT/IS practices of all parties involved. To facilitate L of Sarbanes-Oxley, the accounting industry is acthe execution of the covenants tively recruiting graduates S from accounting programs that have a significant emphasis on IS education. In addition, they are spending equal energy to recruit O the accounting industry. In either case, the result IS/IT professionals to work within is a significant increase in demand N for graduates with an IS/IT background or emphasis. Figure 1.15 lists just a few of the many career roles available to the modern , IT professional. According to recent reports by the U.S. Department of Labor, computer systems analysts, database administrators, and other managerial-level IS positions are expected J occupations through 2012. Employment of IS proto be among the fastest-growing fessionals is expected to grow more A than 36 percent (much higher than average) for all occupations as organizations continue to adopt and integrate increasingly sophistiM cated technologies. Job increases will be driven by very rapid growth in computer I which is projected to be one of the fastest-growing system design and related services, E F IGU RE 1.15 Careers in IS are as diverse and exciting as the technologies used in them; IS professionals have career opportunities in every business environment and activity throughout the world. Systems Analyst Chief Information Officer Network Administrator Database Administrator IS Auditor PC Sales Representative System Consultant 5 0Computer Operator Dictionary 5 DataSpecialist 1 Database Analyst BEnd-User Computer U Manager Business Applications Consultant Computer Serviceperson Network Manager Documentation Specialist Equipment Manufacturer Representative Programmer Program Librarian Project Manager Records Manager Hardware Sales Representative Scheduling and Control Person Security Officer Office Automation Specialist Senior Project Leader Service Sales Representative Software Sales Representative Technical Analyst Software Quality Evaluator Technical Writer Telecommunications Specialist Training & Standards Manager User Interface Specialist obr76817_ch01_002-044.indd Page 23 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 23 industries in the U.S. economy. In addition, many job openings will arise annually from the need to replace workers who move into managerial positions or other occupations or who leave the labor force. Most important to you, IS/IT graduates generally receive one of the highest starting salaries in the school. Despite the recent economic downturn among information technology firms, IS professionals still enjoy favorable job prospects. The demand for networking to facilitate sharing information, expanding client/server environments, and the need for specialists to use their knowledge and skills in a problem-solving capacity will be major factors in the rising demand for computer systems analysts, database administrators, and other IS professionals. Moreover, falling prices of computer hardware and software should continue to induce more businesses to expand their computerized operations and integrate new technologies. To maintain a competitive edge and operate more efficiently, firms will keep demanding the services of professionals who are knowledgeable about the latest technologies and can apply them to meet the needs of businesses. W to put a sharper edge on this message: The field of inPerhaps the time has come formation systems is growing I at an increasingly rapid pace, and there is no risk of being unemployed upon graduation! I believe that the concern over a lack of IT/IS-related L media and is now, quite simply, unfounded. Headlines jobs was fueled by the news proclaimed the death of ISSand the lack of jobs in the United States due to massive outsourcing and offshoring. The jobs that were being sent overseas were real ones, to O not the jobs that you or your fellow students were ever be sure. They were, however, going to train for during your N stay in college—unless, of course, you aspire to being a faceless voice in a call center. These jobs are service-related jobs that, while vital to the big picture, are not the, management level, creative business technologist positions that colleges and universities typically train their students to obtain. The real problem facing the IS field today is the lack of graduates! Students are choosing other J low pay and unemployment, whereas recruiters are professions because they fear simultaneously begging forA more graduates to feed their voracious appetites for more IS professionals. If you choose to avoid a career in information systems, it should not M be because you think there are no jobs, that it does not have to do with people, or I that it is no fun. Over the course of this book, we will dispel, with strong evidence, all of these rumors and myths. Let’s start with some facts related to the first one. E The Bureau of Labor Statistics has some compelling evidence in favor of a career in information systems: 5 and information systems managers should be excellent. Prospects for qualified computer Fast-paced occupational 0growth and the limited supply of technical workers will lead to a wealth of opportunities for qualified individuals. While technical 5 scarce in the United States, the demand for them workers remain relatively continues to rise. This 1 situation was exacerbated by the economic downturn in the early 2000s, when many technical professionals lost their jobs. Since then, B to avoid this work since it is perceived to have many workers have chosen poor prospects. U People with management skills and an understanding of business practices and principles will have excellent opportunities, as companies are increasingly looking to technology to drive their revenue. (Bureau of Labor Statistics Occupational Outlook Handbook, 2008–2009) Increasingly, more sophisticated and complex technology is being implemented across all organizations, which will continue to fuel the demand for these computer occupations. The demand for systems analysts continues to grow to help firms maximize their efficiency with available technology. Expansion of e-commerce—doing business on the Internet—and the continuing need to build and maintain databases that store critical information about customers, inventory, and projects are fueling demand for database administrators familiar with the latest technology. Finally, the increasing obr76817_ch01_002-044.indd Page 24 7/28/10 10:11 AM user 24 ● /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Module I / Foundation Concepts importance placed on “cybersecurity”—the protection of electronic information—will result in a need for workers skilled in information security. Let’s take a look at the emerging role of business analysts as liaisons between IT specialists and their business customers. The Critical Role of Business Analysts For two decades, the CIO has been viewed as the ultimate broker between the business and technology functions. But while that may be an accurate perception in the executive boardroom, down in the trenches, business analysts (BA) have been the ones tasked with developing business cases for IT application development, in the process smoothing relations among competing parties and moving projects along. The 21st century business analyst is a liaison, bridge, and diplomat who balances the oftentimes incongruous supply of IT resources and demands of the business. A recent Forrester Research report W found that those business analysts who were most successful were the ones who could “communicate, facilitate and analyze.” The busiI right now due to business reliance on technology, ness analyst is a hot commodity according to Jim McAssey, a L principal at The W Group, a consulting firm. “The global delivery capabilities of technology today make the challenges of successfully S and IT even harder,” he says. bridging the gap between business “Companies typically don’tO invest in an IT project without a solid business case,” says Jeff Miller, senior vice president of Aetea, an IT staffing and consulting firm. A good business analyst is N able to create a solution to a particular business problem and act as a bridge to the,technologists who can make it happen. “Without the BA role, CIOs are at significant risk that their projects will not solve the business problem for which they were intended,” says Miller. The ideal candidate will have J 5 to 10 or more years of experience (preferably in a specific industry), a technical undergraduate degree, and an MBA. A Strong risk assessment, negotiation, and problem resolution skills are key, and hands-on experience is critical.MBusiness analysts must be process-driven and able to see a project through conflict and change, from start to finish. “The BA also must I have the ability to learn new processes,” says Miller. “A good BA learns business Ethem to the specific needs of the project.” concepts and can quickly relate In the end, the more business technology analysts that are working in the business, the better off the CIO and IT function will be—no matter if the business technology analysts are reporting5into IT or the business side. That’s because those IT-savvy analysts, who will have 0 a more in-depth understanding of and more expertise in technologies, will “ultimately help the business make better decisions when it comes to its interactions with 5 IT,” contend the Forrester analysts. And “CIOs have new allies in the business.” Salaries range from $45,000 (entry level) to $100,000 1 (senior business analyst) per year. B U Source: Adapted from Thomas Wailgum, “Why Business Analysts Are So Important for IT and CIOs,” CIO Magazine, April 16, 2008; and Katherine Walsh, “Hot Jobs: Business Analyst,” CIO Magazine, June 19, 2007. The IS Function The successful management of information systems and technologies presents major challenges to business managers and professionals. Thus, the information systems function represents: • A major functional area of business equally as important to business success as the • functions of accounting, finance, operations management, marketing, and human resource management. An important contributor to operational efficiency, employee productivity and morale, and customer service and satisfaction. obr76817_ch01_002-044.indd Page 25 7/28/10 10:11 AM user /Volumes/207/MHSF191/foe85387_disk1of1/0073385387/foe85387_pagefiles Chapter 1 / Foundations of Information Systems in Business ● 25 • A recognized source of value to the firm. • A major source of information and support needed to promote effective decision • • • • making by managers and business professionals. A vital ingredient in developing competitive products and services that give an organization a strategic advantage in the global marketplace. A dynamic, rewarding, and challenging career opportunity for millions of men and women. A key component of the resources, infrastructure, and capabilities of today’s networked business enterprises. A strategic resource. W I L S O N , J A M I E 5 0 5 1 B U obr76817_ch01_002-044.indd Page 26 15/09/10 11:43 PM user-f494 26 ● /208/MHBR180/obr76817_disk1of1/0073376817/obr76817_pagefiles Module I / Foundation Concepts SECTION II System Concepts: A Foundation Foundation Concepts: The Components of Information Systems System concepts underlie all business processes, as well as our understanding of information systems and technologies. That’s why we need to discuss how generic system concepts apply to business firms and the components and activities of information systems. Understanding system concepts will help you understand many other concepts in the technology, applications, development, and management of information systems that we cover in this text. For example, system concepts help us understand: • Technology. Computer networks are systems of information processing compo• • • nents that use a variety of hardware, software, data management, and telecommuW nications network technologies. I e-commerce applications involve interconnected Applications. E-business and business information systems. L Development. Developing Sways to use information technology in business includes designing the basic components of information systems. O Management. Managing information technology emphasizes the quality, strategic business value, and security N of an organization’s information systems. Read the Real World Case about , how some companies are turning to IT to help them develop new products and services. We can learn a lot from this case regarding the various ways in which IT can be used to foster innovation. See Figure 1.16. J What Is a System? We have used the term system more A than 100 times already and will use it thousands more before we are done. It therefore seems reasonable that we focus our attention on exactly what a system is. As weM discussed at the beginning of the chapter, a system is defined as a set of interrelated components, with a clearly defined boundary, working together I to achieve a common set of objectives by accepting inputs and producing outputs in an organized E transformation process. Many examples of systems can be found in the physical and biological sciences, in modern technology, and in human society. Thus, we can talk of the physical system of the sun and its planets, the biological system of the human body, the technological system of an5 oil refinery, and the socioeconomic system of a business organization. 0 Systems have three basic functions: 5 • Input involves capturing and 1 assembling elements that enter the system to be • • processed. For example, raw materials, energy, data, and human effort must be secured and organized for B processing. Processing involves transformation processes that convert input into output. ExU amples are manufacturing processes, the human breathing process, or mathematical calculations. Output involves transferring elements that have been produced by a transformation process to their ultimate destination. For example, finished products, human services, and management information must be transmitted to their human users. Example. A manufacturing system accepts raw materials as input and produces finished goods as output. An information system is a system that accepts resources (data) as input and processes them into products (information) as output. A business organization is a system in which human and economic resources are transformed by various business processes into goods and services. obr76817_ch01_002-044.indd Page 27 09/09/10 9:54 AM user-f501 207/MHRL043/kno31619_disk1of1/0070131619/kno31619_pagefiles: Chapter 1 / Foundations of Information Systems in Business REAL WORLD CASE A 2 27 The New York Times and Boston Scientific: Two Different Ways of Innovating with Information Technology lmost everybody has a theory about how to save the U.S. newspaper industry. The only consensus, it seems, is that it needs to change fundamentally or it could all but disappear. At The New York Times, tough times have elevated IT-enabled innovation to the top of the agenda. A research and development group, created in 2006, operates as a shared service across nearly two dozen newspapers, a radio station, and more than 50 Web sites. “Our role is to accelerate our entry onto new platforms by identifying opportunities, conceptualizing, and prototyping ideas,” explains Michael Zimbalist, the company’s vice president of R&D. Zimbalist’s staff of 12 includes experts in rapid prototyping, specialists in areas like mobile or cloud computing and data miners who probe Web site data for insight into what visitors do. They work within a common framework based on idea generation, development, and diffusion throughout the business. Recent projects included prototypes for new display ad concepts, as well as BlackBerry applications for Boston.com and the expert site About.com. The team’s work is intended to supplement and support innovation taking place within the business units. For example, the team is prototyping E-Ink, an emerging display technology; some business units can’t spare the resources to investigate it. At NYTimes.com, the design and product development group of Marc Frons, CTO of Digital Operations, worked with Zimbalist’s team and Adobe developers on the Times Reader 2.0 application, the next generation, on-screen reading system it developed on the Adobe AIR platform. Frons further encourages forward thinking among his 120-person team with twiceannual innovation contests. Winners receive cash, recognition F IGUR E 1.16 IT can enable innovation initiatives as companies seek to develop new products and services. Source: © Stockbyte/Getty Images. ● W I L S O N , J A M I E 5 0 5 1 B U and the resources to turn their ideas into reality. Typical projects are measured against criteria like revenue potential or journalistic value. R&D projects aren’t. “Since we build software, there’s no huge capital investment up front,” Frons says, “which allows us to experiment. The emphasis is on rapid development.” Times Widgets, a widget-making platform, was a contest winner, as was the recently launched Times Wire, a near real-time customizable interface for online content. “We’re trying to solve specific problems and think about where the business is going,” Frons says. Frons is focused on enhancing revenue, cutting costs, and increasing efficiency through process improvements and automation. The New York Times has launched a cool interactive map that shows the most popular Netflix rentals across 12 U.S. metropolitan areas: New York, San Francisco/Bay Area, Boston, Chicago, Washington, Los Angeles, Seattle, Minneapolis, Denver, Atlanta, Dallas, and Miami. If you’re a Netflix junkie and a closet Twilight fan (and you live in a major U.S. city), your rental habits are now on display. To create the map, The New York Times partnered with Netflix. The map is a graphical database of the top 100 most-rented Netflix films of 2009 laid on top of maps. With it you can graphically explore top 2009 Netflix movies based on three criteria: films that were hated or loved by critics, an alphabetical list, and most rented. For example, select most rented, and when you place the mouse over a zip code, a window pops up showing you what the top Netflix rentals are for that specific region. Some trends are not surprising: The most popular Netflix movie of 2009 was The Curious Case of Benjamin Button, although Slumdog Millionaire and Twilight were both in the top 10. Milk, the story of San Franciscan activist Harvey Milk, was popular in San Francisco and other city centers, but not so much in the suburbs of southern cities (such as Dallas and Atlanta). Mad Men, the 1960s-set drama about advertising execs, was hot in parts of Manhattan and Brooklyn, but not in any other major cities. It barely got mention in Denver and Dallas, and not at all in Miami. The map does show some interesting trends: Big blockbusters were not as popular in city centers (Wanted and Transformers: Revenge of the Fallen, barely made a splash in the city centers of Manhattan and San Francisco), although this could be due to the fact that a lot of people see blockbusters in movie theaters. Last Chance Harvey, a romantic comedy starring Dustin Hoffman and Emma Thompson, was enjoyed in wealthier suburbs (such as Scarsdale), but not in city centers (such as Manhattan). Tyler Perry’s movies (Tyler Perry’s Madea Goes to Jail and Tyler Perry’s The Family That Preys) were popular in predominantly black neighborhoods. Much of what has been innovative thus far at The New York Times can be classified as process or product innovation. Typically, a healthy and growing company should be content with focusing 90 to 95 percent of its innovation dollars on such core business innovation and 5 percent or 10 percent on new business models, says Mark Johnson, chairman obr76817_ch01_002-044.indd Page 28 7/28/10 6:49 PM user-f494 28 ● /Users/user-f494/Desktop/Neeraj Module I / Foundation Concepts of strategic innovation consultancy Innosight. However, he adds, “The newspaper industry is in so much trouble that business model innovation is more important than ever.” Now is a good—and bad—time for fostering such innovation. “You’ve got the leadership’s attention you need,” says Johnson. “But it’s harder in the sense that there’s an urgency to fix the financials, and being patient in the way you need to be for a new business model to unfold is a very difficult thing to do.” The New York Times is focused on experimenting with a number of different initiatives, but Boston Scientific faces a much different challenge: how to foster innovation without risking the disclosure and leakage of very valuable intellectual property. And the company has turned to technology to help find the right mix of access and security. Boston Scientific wants to tear down barriers that prevent product developers from accessing the research that went into its successful medical devices so that they can create new products faster. But making data too easily accessible could open the way to theft of information potentially worth millions or billions of dollars. It’s a classic corporate data privacy problem. “The more info you give knowledge workers, the more effective they can be in creating a lot of value for the company,” says Boris Evelson, a principal analyst at Forrester. “This creates disclosure risks—that someone’s going to walk away with the data and give it to a competitor.” This tension compels the $8 billion company to seek out software that allows the broader engineering community to share knowledge while managing access to product development data, says Jude Currier, cardiovascular knowledge management and innovation practices lead at Boston Scientific. “Active security is the way to address this problem,” Currier says. That is, regularly monitor who’s accessing what, and adjust permissions as business conditions change. Keeping the pipeline of new stents, pacemakers, and catheters fresh is especially important because heart-related items account for 80 percent of Boston Scientific’s sales. Over the past few years, engineers have been focused on CASE STUDY QUESTIONS 1. As stated in the case, The New York Times chose to deploy their innovation support group as a shared service across business units. What do you think this means? What are the advantages of choosing this approach? Are there any disadvantages? 2. Boston Scientific faced the challenge of balancing openness and sharing with security and the need for restricting access to information. How did the use of technology allow the company to achieve both objectives at the same time? What kind of cultural changes were required for this to be possible? Are these more important than the technology-related issues? Develop a few examples to justify your answer. 3. The video rental map developed by The New York Times and Netflix graphically displays movie popularity across neighborhoods from major U.S. cities. How would Netflix use this information to improve their business? Could other companies also take advantage of these data? How? Provide some examples. quality system improvements, Currier says. Boston Scientific had inherited regulatory problems from acquisitions it made during that time. Now that those situations are addressed, the company is ready to reinvigorate internal innovation. Boston Scientific is piloting Invention Machine’s Goldfire software, which, Currier says, provides the right mix of openness and security for data. Before, Boston Scientific’s product developers worked in silos with limited access to research by colleagues on different product lines. Information was so locked down that even if scientists found something useful from a past project, they often didn’t have access to it. “We’re changing that,” Currier says. Goldfire makes an automated workflow out of such tasks as analyzing markets and milking a company’s intellectual property. It combines internal company data with information from public sources, such as federal government databases. Researchers can use the software to find connections W among different sources, for instance by highlighting similar I ideas. Engineers can use such analysis to get ideas for new and begin to study their feasibility. The goal is to have Lproducts any engineer be able to access any other engineer’s research. S “The people in the trenches can’t wait for that day to arrive,” he says. O Although the goal is more openness, not all data stay Nopen forever. For example, as a project gets closer to the patent application stage, access to the data about it is clipped , to fewer people, Currier says. He adds that since installing Goldfire, patent applications are up compared to similar engineering groups that do Jnot use the Goldfire tool. “We have had to educate people that we aren’t throwing security out the window bu...
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Management Information Systems - Outline
Thesis statement: Through information technology small businesses are now getting more
automated in their processes utilizing software to enhance their marketing, customer experience,
inventory management and accounting practices to attain their objectives.
Management Information Systems
A. Case summary
B. Case analysis
C. Case application


Running head: MANAGEMENT INFORMATION SYSTEM

Management Information Systems

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Institution

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CHANGE MANAGEMENT PLAN

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Management Information System
Case Summary
Innovation is an ultimate path to success for any business entity. Advancement in
technology is increasingly changing the approach to business. In fact, information technology
(IT) is significantly contributing to increasing efficiencies in business operations. Information
technology has transformed the lives of individuals and organizations. Today, through IT, we can
shop online, and businesses can utilize digital marketing. Social networks have increased
interactions across the world (Mollinillo & Japutra, 2017). Business enterprises can now use
information technology to create customer value and in competing in the market. The need to
adapt to the changes in technology has become essential for not only large corporations but also
small businesses.
Small businesses play a vital role in the growth of many economies and significantly
contribute to the nation's gross domestic product. To...


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Excellent resource! Really helped me get the gist of things.

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