Understanding Systems From a Business Viewpoint

Understanding Systems From a Business Viewpoint
Alter – Information Systems 4th ed. © Prentice Hall

Opening Case - Amazon How does Amazon.com provide value for customers?
Alter – Information Systems 4th ed. © 2002 Prentice Hall

Opening Case - Amazon At the beginning: Large discounts
Focus on customer’s online shopping experience: easy search, varied information about books, customer profiles, etc. Very little inventory Alter – Information Systems 4th ed. © 2002 Prentice Hall

An evolving business model:
Large warehouses Branched into selling other types of products Service perceived as very reliable Not profitable! Alter – Information Systems 4th ed. © 2002 Prentice Hall

Amazon.com The point of this case is not about technology essentially, rather it is about how information systems and information technology can transform business operations. How does Amazon.com provide value for its customers? What has “transformed” in this business? How has competitive advantage changed to competitive necessity? Alter – Information Systems 4th ed. © 2002 Prentice Hall

The Work System Framework
A useful way of thinking about information systems and their relationship to customers and participants from the perspective of a business professional. A work system is a system that produces products for internal and external customers through a business process performed by human participants with the help of information technology. An information system is a particular type of work system that uses information technology to capture transmit store, retrieve, manipulate, or display information, thereby supporting one or more other work systems. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Amazon.Com - WCA CUSTOMER PRODUCT Person who purchases books
Wholesalers that supply the books Amazon.com’s shipping department PRODUCT Information about books that might be purchased Information describing each book order Books that are eventually delivered Alter – Information Systems 4th ed. © 2002 Prentice Hall

Amazon.Com - WCA BUSINESS PROCESS Major Steps:
Purchaser logs on to Purchaser identifies desired book or gives search criteria Purchaser looks at book-related information and decides what to order Purchaser enters order Amazon.com orders book from wholesaler Wholesaler sends book to Amazon.com Shipping department packages order and sends it to the purchaser Rationale: Instead of forcing book buyers to go to typical bookstores, permit them to use online access from home or from work. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Amazon.Com - WCA PARTICIPANTS INFORMATION TECHNOLOGY
People interested in purchasing books Order fulfillment department of wholesaler Shipping department of Amazon.com INFORMATION Orders for books Price and other information about each book Purchase history and Related information for Each customer TECHNOLOGY Personal computer used by purchaser Computers and networks used by Amazon.com for order Processing The Internet (Infrastructure) Alter – Information Systems 4th ed. © 2002 Prentice Hall

Debate Topic: Is there any reason to believe that purely on-line retailers such as Amazon.com have major long-term advantages over retailers such as Barnes and Noble that have both physical stores and e-commerce sites? Alter – Information Systems 4th ed. © 2002 Prentice Hall

The Need for Frameworks and Models
Framework = a brief set of ideas & assumptions for thinking about a particular issue Model = a useful representation of some aspect of reality Typically based on a frameworks Emphasize some features of reality, while ignoring others Alter – Information Systems 4th ed. © 2002 Prentice Hall

A Classification of Models
Iconic Models Analog Models Mathematical Models Mental Models Alter – Information Systems 4th ed. © 2002 Prentice Hall

Iconic and Analog Models
Iconic (scale) models - the least abstract model, is a physical replica of a system, usually based on a different scale from the original. Iconic models can scale in two or three dimensions. Analog Models - Does not look like the real system, but behaves like it. Usually two-dimensional charts or diagrams. Examples: organizational charts depict structure, authority, and responsibility relationships; maps where different colors represent water or mountains; stock market charts; blueprints of a machine; speedometer; thermometer Alter – Information Systems 4th ed. © 2002 Prentice Hall

Mathematical Models Mathematical (quantitative) models - the complexity of relationships sometimes can not be represented iconically or analogically, or such representations may be cumbersome or time consuming.A more abstract model is built with mathematics. Note: recent advances in computer graphics use iconic and analog models to complement mathematical modeling. Visual simulation combines the three types of models. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Mental Models People often use a behavioral mental model.
A mental model is an unworded description of how people think about a situation. The model can use the beliefs, assumptions, relationships, and flows of work as perceived by an individual. Mental models are a conceptual, internal representation, used to generate descriptions of problem structure, and make future predications of future related variables. Support for mental models are an important aspect of Executive Information Systems. We will discuss this in depth later. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Examples of Models Alter – Information Systems 4th ed.
© 2002 Prentice Hall

Elements of the Work System Framework:
The internal or external customers of the business process The products or services generated by the work system. The steps in the business process. The participants in the business process. The information the business process uses or creates. The technology the business process uses. Context = organizational, competitive, technical, and regulatory realm within which work system operates. Infrastructure = shared human or technical resourcs the work system relies on (even those those resources may be managed outside the work system). Alter – Information Systems 4th ed. © 2002 Prentice Hall

The system actually performing the work
Business process Participants Information Technology Outputs: Products & services used by the customers External factors Infrastructure Context Alter – Information Systems 4th ed. © 2002 Prentice Hall

The business process is at the core of the work system
The same process can be performed with drastically different results depending on Who does the work What information & technology is being used Alter – Information Systems 4th ed. © 2002 Prentice Hall

Balance Between the Elements of a Work System
The work system elements must be in balance A change in one element usually requires a change in other elements Well-intended changes may also have negative impacts Alter – Information Systems 4th ed. © 2002 Prentice Hall

Viewing Information Systems and Projects As Work Systems
Information system = a work system devoted to capturing, transmitting, storing, retrieving, manipulating, and displaying information Software products (e.g. Oracle, Excel) are NOT information systems Project = a work system that is designed to produce a particular product and then go out of existence Alter – Information Systems 4th ed. © 2002 Prentice Hall

Work System Principles

Work Systems Principles
Please the customers (customers, products & services) Perform the work efficiently (business processes) Serve the participants Create Value from information Minimize effort consumed by technology Deploy infrastructure as a genuine resource Minimize unintended impacts and conflicts (context) Alter – Information Systems 4th ed. © 2002 Prentice Hall

Information System vs. Work Systems
Bar code scanners and computers identify the items sold and calculate the bill Work system supported by the information system: Performing customer checkout Aspects of the work system not included in the information system: Establishing personal contact with customers, putting the groceries in bags University registration system permits students to sign up for specific class sections Work system supported by the information system: Registering for classes Aspects of the work system not included in the information system: Deciding which classes to take and which sections to sign up for in order to have a good weekly schedule Word Processing system used for typing and revising chapters Work system supported by the information system: Writing a book Aspects of the work system not included in the information system: Deciding what to say in the book and how to say it Alter – Information Systems 4th ed. © 2002 Prentice Hall

Information System vs. Work Systems
Interactive system top managers use to monitor their organization’s performance Work system supported by the information system: Keeping track of organizational performance Aspects of the work system not included in the information system: Talking to people to understand their views about what is happening System that identifies people by scanning and analyzing voice prints Work system supported by the information system: Preventing unauthorized access to restricted areas Aspects of the work system not included in the information system: Human guards, cameras, and other security measures Alter – Information Systems 4th ed. © 2002 Prentice Hall

Relationships Between Work Systems and Information Systems

Reality Check: Identify some situations in which you have encountered information systems that support other work systems. Describe the areas of overlap and non-overlap between information systems and the work system. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Need for a Balanced View of a System – Figure 2.5

Need for a Balanced View of a System
Focus on Business Results – Emphasize the customer’s satisfaction with whatever is being produced along with concern for the efficiency of the business process. Focus on People and Organization – Emphasize the work environment, job satisfaction, and whether the organization is operating smoothly. Focus on technology and organization – Emphasize the processing of information in databases, transmission of information, and whether the technology is operating efficiently and effectively. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Each of the three viewpoints is essential, but an excessive emphasis on any of them may lead to problems The importance of the ongoing collaboration between business and IT professionals. IT professionals may tend to look at the third viewpoint. It is important that business professionals make sure the first two perspectives are not lost. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Caution: Excessive Emphasis On…
Business Results can lead to superficial analysis of organizational and technical capabilities and wishful thinking of the power of technology. People and Organization can generate too much concern on how people are getting along and not enough on business results and whether technology and information are adequate. Technology and Information can sometimes generate technology solutions to minor problems and have little impact on business results or internal operations. Alter – Information Systems 4th ed. © 2002 Prentice Hall

The Principle-based Systems Analysis Method
One of the possible ways to analyze a work system Alter – Information Systems 4th ed. © Prentice Hall

The General Idea of Systems Analysis – Figure 2.6
Can be applied to the system as a whole and to its subsystems Iterative process Shortcoming: no guidelines as to what has to be done at each step Alter – Information Systems 4th ed. © 2002 Prentice Hall

Organizing the Analysis Around the Work System Principles
The principle-based systems analysis TM (PBSA) A practical approach for analyzing systems at various levels of detail Combines the general system analysis concepts with the work system framework Converts the four steps of system analysis into three steps Alter – Information Systems 4th ed. © 2002 Prentice Hall

Defining the Problem & the Work System
The scope of the work system is not fixed Tradeoff between a too broad or too narrow a scope Work system snapshot – a tabular summary of the main aspects of the work system Alter – Information Systems 4th ed. © 2002 Prentice Hall

Identify constraints and priorities
Constraints = limitations that render certain options unfeasible Ex.: budgetary limits. Existing technology standards, etc. Priorities = statements about the relative importance of various goals A small number of high priority issues should remain the primary focus Alter – Information Systems 4th ed. © 2002 Prentice Hall

Explore the Situation & Search for Possible Improvements
Each principle is used in turn to focus on a different part of the work system Problems that were not included in the original problem definition may be uncovered Some potentially beneficial changes may negatively impact other parts of the system Alter – Information Systems 4th ed. © 2002 Prentice Hall

Address the Problem While Supporting the Existing Priorities
The recommendation: “What Should you do?” Clearly stated decision criteria to resolve the tradeoffs and uncertainties related to constraints, priorities, and implementation capabilities Tradeoffs: conflicting needs of work systems, performance vs. price, technical purity vs. business requirements, etc. Uncertainties: direction of future technology, what is best for the company, etc. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Complete recommendations may include:
Recommended changes in work systems elements. Clarification of work system vs. information systems changes. Explanation of how proposed improvements will address important parts of the problem. Justification in terms of organizational priorities and feasibility Identification of meaningful alternatives Timelines and required resources Tentative project plan and deliverables Alter – Information Systems 4th ed. © 2002 Prentice Hall

Applying PBSA to Work Systems, Information Systems, and Projects – Figure 2.7

Limitations & Pitfalls of PBSA
Compromise between complexity and completeness Works well when the business process consists of identifiable steps that produce a recognizable output Does not work so well when applied to activities such as “management” or “communication” Alter – Information Systems 4th ed. © 2002 Prentice Hall

Common Systems Analysis Pitfalls Related to Elements of the Work System Framework

Common Pitfalls – Work System Elements
Customer ignore customer and the fact that the customer should evaluate the product. Treating managers as customers even though they don’t use the product directly. Product forget that the purpose is to produce a product or service for a customer. Forget that the product of a work system is often not the product of the organization. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Common Pitfalls… Business Process Participants
Define process so narrowly that improvement is of little consequence. Define process to widely that it is too complex. Confuse business process measures(consistency and productivity) with product measures (cost to the customer and quality perceived by customer). Think of business process as theory and ignore its support by participants, information, and technology Participants ignore incentives and other pressures focus on users rather than participants. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Common Pitfalls… Information Technology
assume better information generates better results. Ignoring the importance of “soft” information not captured by formal systems. Technology Believing that the technology is the system. assume better technology generates better results. Focus on the technology without thinking about whether it makes a difference in the work system. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Common Pitfalls… Context Infrastructure
Ignoring context issue such as organizational culture and politics, organizational policies, the competitive environment, and government and industry standards and regulations. Ignoring non-participant stakeholders. Infrastructure Ignoring possible failures in technical infrastructure (what happens when the Internet is down?) Ignoring the need for human infrastructure to keep the work system in operation (Who does on-going training of new staff). Alter – Information Systems 4th ed. © 2002 Prentice Hall

Measuring Work System Performance

System architecture = the system’s main components, how they are linked, and how they operate together System performance = how well the system, its components, and its products operate Alter – Information Systems 4th ed. © 2002 Prentice Hall

Typical Performance Variables
Customer satisfaction Quality Accessibility Presentation Security Cost Quality Responsiveness Reliability Conformance to standards and regulations Cycle Time Down time Security Activity Rate Output rate Consistency Productivity Functional Capabilities Ease of Use Cost of Ownership Compatibility Maintainability Skills Involvement Commitment Job satisfaction Alter – Information Systems 4th ed. © 2002 Prentice Hall

Some important issues to keep in mind:
Separately evaluate the performance of different elements, because improvements in one area may not be beneficial in others More is not always better For some performance variables (e.g., customer satisfaction) more is better For others, such as consistency, rapid delivery, etc., more is often not better Alter – Information Systems 4th ed. © 2002 Prentice Hall

Efficiency vs. effectiveness
EFFICIENCY involves doing things the right way An internal view Focus on how well resources are being used to produce the outputs Ex.: productivity, cycle time, etc. EFFECTIVENESS involves doing the right things An external view Focus on improving customer satisfaction Ex.: cost, quality, responsiveness, etc. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Performance Variables
Performance variables can be described or measured at different levels of clarity. Quality experts are adamant that careful performance measurement is essential for process improvement. Note differences between vague description and measurements. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Comparing Vague Descriptions, Measurements, and Interpretations
ACCURACY OF INFORMATION Vague description: The information doesn’t seem very accurate. Measurement: 97.5% of the readings are correct within 5%. Interpretation:This is (or is not) accurate enough, given the way the information will be used. SKILLS OF PARTICIPATION Vague description: The sales people are very experienced. Measurement: Every salesperson has 5 or more years of experience; 60% have more than 10 years. Interpretation:This system is (or is not) appropriate for such experienced people. CYCLE TIME OF BUSINESS PROCESS Vague description: This business process seems to take a long time. Measurement: The three major steps take an average of 1.3 days each, but the waiting time between the steps is around 5 days. Interpretation:This is (or is not) better than the average for this industry, but we can (or cannot) improve by eliminating some of the waiting time. QUALITY OF THE WORK SYSTEM OUPUT Vague description: We produce top quality frozen food, but our customer’s aren’t enthusiastic. Measurement:65% of our customers rate it average or good even though our factory defect rate is only.003% Interpretation: Our manufacturing process does (or doesn’t) seem O.K., but we do (or don’t) need to improve customer satisfaction. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Important Point Improvements in a work system can often be found by looking at relationships between architecture and performance issues. Customer satisfaction is largely determined by product performance (effectiveness). Product performance is often determined by a combination of product architecture and the internal work system performance(efficiency). Note: efficiency vs. effectiveness Alter – Information Systems 4th ed. © 2002 Prentice Hall

From work system architecture to customer satisfaction

Clarifications Related to the Elements of a Work System

Internal vs. External Customers
External customers - individuals or representatives of other firms or government organizations The reason the firm exists Internal customers – work for the firm & participate in other work system Also important for the firm as a whole Alter – Information Systems 4th ed. © 2002 Prentice Hall

Multiple Customers With Different Concerns – Figure 2.8

Transforming Customers Into Participants
Self-service work systems Ex.: ATMs, Web sites, etc. May be beneficial to both firm and customers Cost reductions Better feedback, etc. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Products & Services Customers evaluate the product
Several areas of of product performance, such as: Cost Perceived quality Reliability, etc. Separate consideration of each factor helps in devising new ways to improve customer satisfaction Alter – Information Systems 4th ed. © 2002 Prentice Hall

Participants The people that perform the work process
Difference between work system participants and IT users Focus on work-related aspects as opposed to the information system itself Alter – Information Systems 4th ed. © 2002 Prentice Hall

Data, Information, Knowledge – Figure 2.10
Data – facts, images, or sounds that may or may not be pertinent or useful for a particular task Information – data whose form or content are appropriate for a particular use Knowledge – instincts, ideas, rules, and procedure that guide actions and decisions Alter – Information Systems 4th ed. © 2002 Prentice Hall

Hard and Soft Data Hard data = clearly defined data generated by formal systems Soft data = intuitive or subjective information obtained by informal means Often essential for understanding what really happened, or whether proposed actions might encounter resistance Alter – Information Systems 4th ed. © 2002 Prentice Hall

Technology INFORMATION TECHNOLOGY = computer and communication hardware and software IT has no impact unless it is used within a business process Alter – Information Systems 4th ed. © 2002 Prentice Hall

Infrastructure The shared human, informational, and technical resources on which a work system relies in order to operate These resources exist and are managed outside the work system Ex.: a shared corporate database, a computer network, a support & training organization The infrastructure should be operated and managed like any other work system Alter – Information Systems 4th ed. © 2002 Prentice Hall

Technology vs. Infrastructure
Guidelines: Infrastructure if: It is shared between many work systems It is owned/managed by a centralized authority Details are generally hidden from users Not included in the infrastructure if: Owned & controlled within the work system Its hands-on users need to understand the technical details Alter – Information Systems 4th ed. © 2002 Prentice Hall

Human Infrastructure Often less noticed than the hardware & software components, but equally important Responsibilities include: Managing the IT facilities Training Enforcing standards, etc. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Information Infrastructure
Codified information that is shared across the company This type of high level of information sharing is still rare Alter – Information Systems 4th ed. © 2002 Prentice Hall

Context The organizational, competitive, technical, and regulatory environment within which the work system operates Includes: External stakeholders Organizational policies, practices, and culture Business pressures, etc. May create both incentives and obstacles Alter – Information Systems 4th ed. © 2002 Prentice Hall

Another Way to Look at This – From Alter’s 3rd Edition - Five Perspectives for Looking at a Work System Alter – Information Systems 4th ed. © Prentice Hall

WCA framework for thinking about any system in business

Five Perspectives for Understanding a Work System
ARCHITECTURE What are the components of the system that performs the work and who uses the work product? How are the components linked? How do the components operate together? PERFORMANCE How well do the components operate individually? How well does the system operate? (How well is the work performed?) How well should the system operate? INFRASTRUCTURE What technical and human infrastructure does the work rely on? In what ways does infrastructure present opportunities or obstacles? CONTEXT What are the impacts of the organizational and technical context? In what ways does the context present opportunities or obstacles? RISKS What foreseeable things can prevent the work from happening, can make the work inefficient, or can cause defects in the work product? What are the likely responses to these problems? Alter – Information Systems 4th ed. © 2002 Prentice Hall

Important Point Improvements in a work system are usually related to the links between the architecture and the performance perspectives. Customer satisfaction is largely determined by product performance. Product performance is determined by a combination of product architecture and the internal work system performance. Note: efficiency vs. effectiveness Alter – Information Systems 4th ed. © 2002 Prentice Hall

From work system architecture to customer satisfaction

Detailed Discussion of the Five Perspectives:
Architecture Performance Infrastructure Context Risks Alter – Information Systems 4th ed. © 2002 Prentice Hall

Architecture, Perspective #1
Architecture is a summary of how a work system operates. It focuses on the components of the system and how those components are linked, and how they operate together to produce outputs. It is not merely a technical issue; IT and business professional involved with a system need to understand how it operates. It is impossible to build an information system without detailed documentation of information and technology components of the architecture. We use successive decomposition for documenting and summarizing architecture. Process operation and process characteristics Alter – Information Systems 4th ed. © 2002 Prentice Hall

CUSTOMER Customer’s entire cycle of involvement with the product Requirements Acquisition Use Maintenance Retirement PRODUCT Components Information content Physical Content Service content (more in Chapter 6) Alter – Information Systems 4th ed. © 2002 Prentice Hall

BUSINESS PROCESS Process operation: Processes providing inputs Sequence and scheduling of major steps Processes receiving the outputs Process characteristics: Degree of structure Range of involvement Level of integration Complexity Degree of reliance on machines Linkage of planning, execution, and control Attention to exceptions, errors, and malfunctions More to be covered in Chapter 3…. Alter – Information Systems 4th ed. © 2002 Prentice Hall

PARTICIPANTS Formal and informal organization: Job responsibility Organization chart INFORMATION Major data files in the database: Data organization and access TECHNOLOGY Major components: Hardware Software Alter – Information Systems 4th ed. © 2002 Prentice Hall

Performance, Perspective #2
Performance - How well the system operates. A complete analysis involves qualitative and quantitative measurements. Consider some performance variables…. Alter – Information Systems 4th ed. © 2002 Prentice Hall

PARTICIPANTS Skills Involvement Commitment Job satisfaction INFORMATION Quality Accessibility Presentation Prevention of unauthorized access TECHNOLOGY Functional capabilities Ease of use Compatibility Maintainability Alter – Information Systems 4th ed. © 2002 Prentice Hall

Comparing Vague Descriptions, Measurements, and Interpretations
ACCURACY OF INFORMATION Vague description: The information doesn’t seem very accurate. Measurement: 97.5% of the readings are correct within 5%. Interpretation:This is (or is not) accurate enough, given the way the information will be used. SKILLS OF PARTICIPATION Vague description: The sales people are very experienced. Measurement: Every salesperson has 5 or more years of experience; 60% have more than 10 years. Interpretation:This system is (or is not) appropriate for such experienced people. CYCLE TIME OF BUSINESS PROCESS Vague description: This business process seems to take a long time. Measurement: The three major steps take an average of 1.3 days each, but the waiting time between the steps is around 5 days. Interpretation:This is (or is not) better than the average for this industry, but we can (or cannot) improve by eliminating some of the waiting time. QUALITY OF THE WORK SYSTEM OUPUT Vague description: We produce top quality frozen food, but our customer’s aren’t enthusiastic. Measurement:65% of our customers rate it average or good even though our factory defect rate is only.003% Interpretation: Our manufacturing process does (or doesn’t) seem O.K., but we do (or don’t) need to improve customer satisfaction. Alter – Information Systems 4th ed. © 2002 Prentice Hall

Infrastructure, Perspective #3
Infrastructure: Essential Resources shared with other systems. Infrastructure failures may partially be beyond the control of people who rely on it (e.g. power outages). Evaluation is difficult because the same infrastructure may support some applications excessively and others insufficiently. Critical mass, having enough users to attain desired benefits, may be a key infrastructure issue. Distinguish between infrastructure and the supporting technology (laptops used in the sales process vs. used for company ). Alter – Information Systems 4th ed. © 2002 Prentice Hall

Technology can be infrastructure if it is outside the work system, shared between work systems, owned and managed by a central authority, or when details are largely hidden from users. Business professionals are often surprised at the amount of effort and expense absorbed by human infrastructure. Alter – Information Systems 4th ed. © 2002 Prentice Hall

CUSTOMER Technical and human infrastructure the customer must have to use the product PRODUCT Infrastructure related to information content Infrastructure related to physical content Infrastructure related to service content Alter – Information Systems 4th ed. © 2002 Prentice Hall

BUSINESS PROCESS Infrastructure related to internal operation of the process Infrastructure related to inputs from other processes Infrastructure related to transferring the product to other processes Alter – Information Systems 4th ed. © 2002 Prentice Hall

Context, Perspective #4. The organizational, competitive, and regulatory environment surrounding the system. The environment around the system may create incentives and even urgency for change. The personal, organizational, and economic parts of the context have direct impact through resource availability. Even with enough monetary resources, context factors ranging from historical precedents and budget cycles to internal politics can be stumbling blocks. Incentives Organizational Culture Stakeholders Alter – Information Systems 4th ed. © 2002 Prentice Hall

Context, Perspective #4 Alter – Information Systems 4th ed.

Context, Perspective #4 CUSTOMER PRODUCT
Issues in the customer’s environment that may affect satisfaction or use Business and competitive climate PRODUCT Substitute products Ways the customer might bypass this type of product altogether Alter – Information Systems 4th ed. © 2002 Prentice Hall

Context, Perspective #4 BUSINESS PROCESS Organizational culture
Concerns of stakeholders Organizational policies and initiatives Government regulations and industry standards Alter – Information Systems 4th ed. © 2002 Prentice Hall

Context, Perspective #4 PARTICIPANTS INFORMATION TECHNOLOGY Incentives
Other responsibilities and job pressures INFORMATION Policies and practices regarding information sharing, privacy, etc. TECHNOLOGY Technology policies and practices Technology that may become available soon Alter – Information Systems 4th ed. © 2002 Prentice Hall

Risk, Perspective #5 Risks: Foreseeable Things that can go wrong in terms of: accidents and malfunctions computer crime project failure (To be considered again in Chapter 13….) Alter – Information Systems 4th ed. © 2002 Prentice Hall

Risk, Perspective #5 Alter – Information Systems 4th ed.

Risk, Perspective #5 CUSTOMER PRODUCT Customer dissatisfaction
Interference by other stakeholders PRODUCT Inadequate or unreliable products Fraudulent products Alter – Information Systems 4th ed. © 2002 Prentice Hall

Risk, Perspective #5 BUSINESS PROCESS Operator error Sloppy procedures
Inadequate backup and recovery Mismatch between process requirements and participant’s abilities Unauthorized access to computers, programs, data Alter – Information Systems 4th ed. © 2002 Prentice Hall

Risk, Perspective #5 PARTICIPANTS INFORMATION TECHNOLOGY
Crime by insiders or outsiders Inattention by participants Failure to follow procedures Inadequate training INFORMATION Data errors Fraudulent data Data theft TECHNOLOGY Equipment failure Software bugs Inadequate performance Inability to build common sense into information systems Alter – Information Systems 4th ed. © 2002 Prentice Hall

Work Systems Principles
Please the customers (customers, products & services) Perform the work efficiently (business processes) Serve the participants Create Value from information Minimize effort consumed by technology Deploy infrastructure as a genuine resource Minimize unintended impacts and conflicts (context) Alter – Information Systems 4th ed. © 2002 Prentice Hall

Alter – Information Systems 4th ed.

Understanding Systems From a Business Viewpoint

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