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IT Systems 1toolsLundberg 1ITS are the tools organizations use to meet the MIS challenge to provide perfect service at customer moment of value (Lundberg.

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Presentation on theme: "IT Systems 1toolsLundberg 1ITS are the tools organizations use to meet the MIS challenge to provide perfect service at customer moment of value (Lundberg."— Presentation transcript:

1 IT Systems 1toolsLundberg 1ITS are the tools organizations use to meet the MIS challenge to provide perfect service at customer moment of value (Lundberg ) 2.aVF’sintegratingO’Connell 2.aVF’s market response strategy (Walmart) provided competitive advantage (Levi) by integrating IOS, TPS, DSS (O’Connell)  development involves SDLC including C:B considerations of all business processes ---opportunity costs: carrying costs of unsold inventory, stock-out w.r.t. perfect service at customer moment of value 2.b Innovation EconomyBusiness Week: 1Aug05, 31Jul06K-mart : Wal-Mart; Levi’s vs Vanity Fair; LL Bean vs Penny’s; CIO 1Aug02 2.b Organizations that do not use ITS to be more efficient in performing business processes (e.g. market response/ inventory replenishment) so that provide perfect service at the customer moment of value lose competitive advantage in the Innovation Economy (Business Week: 1Aug05, 31Jul06; K-mart : Wal-Mart; Levi’s vs Vanity Fair; LL Bean vs Penny’s; CIO 1Aug02) 2.c Levi’stCIOWhy IT Does MatterHBS 2.c Levi’s response with its own ITS for turn-around with Wal-Mart (CIO 15Jul03) illustrates Why IT Does Matter (HBS 10Sep03) CasesparablesJC  Cases are like parables to teach difficult concepts (JC used everyday stories to explain faith, hope, love to primitive people) Phariseesrich young man  many did not comprehend because they closed their eyes (Pharisees) or turned away (rich young man) YOU(Global Business Credential: listen & learn)  YOU must look to see, listen to hear, and think to understand (Global Business Credential: listen & learn) 3organizational structures are complex4a5a 3Real world organizational structures are complex because of their super-ordinate goals (4a) and complex missions (5a). 6a  Key is not to discuss information flows nor ITS until 6a 4a 4b -) 4adifferent organizational levels and functional areas are assigned to make different kinds of decisions that require different kinds of information and coordination of activities (4b - battle:war; dean:chair) 5a(5b - CSS entities) 5avariety of product lines within mission increases complexity of organizational structures (5b - CSS entities) 6ainformation flowscomplex. (CIO CASES) 6aConsequently, information flows are complex. Different ITS are designed to provide different information between / to different organizational levels / product divisions / functions so organizational activities can be integrated (CIO CASES) 7aITS5Cs(Vanity Fair) 7aITS are designed to perform the information processing tasks (5Cs) that support these complex information flows (Vanity Fair) 7cbegins“getting the architecture right” FLYZIK 7c Therefore, understanding & using IT systems begins with “getting the architecture right” –identifying the information flows needed to support essential business processes (FLYZIK, CIO of DHS, CIO 1Dec02) begin CIO casesbusiness processesproblemsITS support information flows  Essential to begin CIO cases with understanding the business processes (problems) then use ITS to support the information flows 8aBasic types ITS 8aBasic types of ITS supporting information flows in complex organizations benchmarkingbest practices KPMG  studied to provide guidance for benchmarking w.r.t. best practices (KPMG provided to CSS) CIO CASES  Your task in CIO CASES is to identify or suggest the application of best practices including ITS

2 9aTPS primary ITS 9aTPS are the primary ITS because : 9b primary real world interface all 5Cs fundamental events (objects) organization 9b primary real world interface by capture / cradle / communicate / create / convey (all 5Cs) information about fundamental events (objects) used throughout the organization journalizingsymbols  related to journalizing of transactions in accounting – capture real world in symbols that can be cradled to do all 5Cs  sales/SRA (AR), purchases/PRA (AP), CGS / CGM (Inv) etc. CIO cases BuildingDockHomeland Indian: orders & parts like Dell; Jackpot: patron play;Rx  CIO cases: Building: orders / use materials; Dock: location / movement containers; Homeland: entry /exit country, hazmat (NASA); Indian: orders & parts like Dell; Jackpot: patron play; Rx: prescribe & administer meds 9cprimary customer interface LaSalle K-MART/ DANA-FARBER  when customers perceive an inadequate interface they perceive the entire organization as inadequate (LaSalle: bursar/billing & financial aid; K-MART/ Dolyestown manager : Target / Wal-mart; DANA-FARBER CANCER CENTER)  databases (DBMS) & networks are components of shared information çRFID(ideas vs things capture / cradle / communicateTESCOWAL-MART çRFID are new technology (ideas vs things with potential to perform basic transaction processing tasks (capture / cradle / communicate) more reliably, timely & efficiently (TESCO, VNUNet.com 16Jan03; WAL-MART 14Jul03) 10aCIS 10b( ) 10bthe new customer interface that extends TPS by placing technology in customers’ hands (external or internal) so provides opportunity for: M-commerce /  M-commerce because customer can process their own transactions anywhere / anytime (LASALLEdatabasesSEC (LASALLE online registration, databases, grades; SEC Electronic Data Gathering, Analysis and Retrieval System) I-commerceWSJ : P&GDock of Bay to & from truck driver Rx FILES warning UPS  I-commerce involving 2-way communication (WSJ 29Oct01: P&G; Dock of Bay RFID system provides information to & from truck driver ; Rx FILES warning before administer; UPS online tracking;) Go to pg.com  Go to Proctor & Gamble website: pg.com (folders in IT Systems) moment of value 10d – 10f )  enhances capability to provide perfect service at customer moment of value ( 10d – 10f ) 11.aMIS 11.aMISafter TPS & CIS capture &cradle data 11bcreates conveys / sentrypoint man 11bcreates / conveys flow information in periodic / predetermined reports to alert (operational) management to opportunities / threats similar to sentry or point man (GRADES report to students; library material use : acquisitions; CSS occupancy rates : intake, QC reports : material use & scrap) 11cAR aging schedule 11d 11d characteristics: periodic / summarized / comparative / exception NETSUITELEVI’S  Dashboard (NETSUITE, LEVI’S) 14.aEIS 14a highly interactiveMISDSS / AI 14a highly interactive MIS combined with DSS / AI for creating new information & conveying in flexible formats ACCESS team projects,  ACCESS team projects, Excel whatis.com conveying  Capabilities include: data warehouse (cradling), drill down (whatis.com) / query (creating), flexible data presentation (reports - conveying)

3 Information on Reverse Side of Picture first & last nameCIO case telephone numbers schoolcellhomeaddress

4 IT Systems in Organizations: tools to meet the MIS challenge  “The real value will come from getting the right information (good, clean, timely, reliable data) to the right people, at the right time, and giving those people the tools to find the meaning in it.” Declaration of Integration Abbie Lundberg CIO 1Dec2002  Vanity Fair illustrates ITS are tools to meet MIS challenge in the information age

5 Vanity Fair Uses IT systems as tools to Beats the Pants off Levi Strauss uVuVF’s m mm market response system replenishes inventory in days (speed) with only b bb best-selling styles ( (( (force) which increases ROI V“V“We get more sales from the same amount of inventory…” 1.3 VLVLVLVLevi’s takes month VLVLVLVLL Bean & S SS Sears similar supply chain problems 30Aug05 uAuActually three i ii integrated IT systems : O’Connell CEO, Indian VtVtransactions processing system c c c c aptures, c cc c radles & c cc c reates basic information about transactions ViVinterorganizational system c ommunicates retailer (Wal- Mart) sales information to VF by linking computers VdVdecision support system c cc c reates, c cc c ommunicates, c cc c onveys the styles, sizes and related groups of goods to ship IntroductionSys-2.a

6  The strategy “ …was built on the backbone of a fully integrated system with all the elements (5Cs) needed to provide the right kind of information at right time to make the right kind of decisions.” O’Connell, CEO Indian Motorcycle  

7 MIS Challenge Right Information to Right People at Right Time “ The new company was built on the backbone of a fully integrated system with all the elements (5Cs) needed to provide the right kind of information at the right time to make the right kind of decisions.” Frank O’Connell, CEO Indian Motorcycle Company CIO, 15Jan01  IA-13.d What a aa about y yy your C CC CIO c cc case?

8 Vanity Fair Uses IT systems as tools to Beats the Pants off Levi Strauss uIuITS are tools that provide competitive advantage çOçOrganizations not using ITS to manage information more efficiently so provide perfect service at ( VF.5) customer moment of value lose competitive advantage in the i ii innovation economy Bus.Week 1Aug05 HKHKHKHK-mart vs. W WW Walmart D rayer, CIO 1Aug02 HJHJHJHJC Penny (shirts all buttoned up) W WSJ 11Sep03 uLuLuLuLevi’s response with its own ITS for turn-around with Walmart C IO 15Jul03 çiçillustrates W WW Why IT does matter H BS 10Sep03 uCuCuCuCIO cases are parables to teach difficult concepts ( (( (JC). IntroductionSys-2.b Assignment 

9 Levi’s responded to VF with its own IT Transformation IT transformation 41.A,3 u Levi’s plan to market through Wal-Mart required an IT transformation of its supply chain so: 41.A,3 speed ç Replenish on time – speed force 43.1 ç with what the customer wants - force u Lack of information translated to poor performance 43.7 ç Couldn’t track product ç 65% on time product delivery  Why IT does matter! dashboard 44.1 ç Same systems as VF (TPS, IOS, DSS) with dashboard (MIS) ç “right style in the right place at the right time” -- (95%) ç “Today, there are encouraging signs Levi’s is turning around.” ç Sales grew for the first time in 6 years and Levi’s in Fashionworld’s list of top ten brands preferred by young women IntroductionSys-2.c Asssignment CIO 15Jul03 “what customers wanted…when they are needed, not before and certainly not after.”

10 Why IT Does Matter Why IT Does Matter Harvard Business School McFarlan & Nolan 10 Sep 2003 transforming potential 1.7 Levi’s 1.1: BroadVision u Technology’s transforming potential 1.7 Levi’s 1.1: BroadVision transaction costs (21.7) Perry Ellis The most important thing to understand is IT has enabled every industry’s transaction costs (TPS, CIS) to decrease continually as with (21.7) Perry Ellis 2.1 feasibilitynot possible in the past(Stonyfield; Jackpot; Rx: telemetry, EMR) H creating the feasibility of products and services not possible in the past (Stonyfield; Jackpot; Rx: telemetry, EMR) IntroductionSys-2.d

11 Why IT Does Matter Why IT Does Matter Harvard Business School McFarlan & Nolan 10 Sep 2003 transforming potential u Technology’s transforming potential 2. Organization boundariespermeable organicglobal (2.1) 2. Organization boundaries have become permeable, organic (grow as needed), and global through IT networks and the Internet (2.1) organizational structures (2.6) information partnershipsvirtual organizations H Providing opportunities for improvement of organizational structures (2.6) such as information partnerships and virtual organizations H Observed:VF+Levi’sPenny’s: all CIO cases H Observed: Wal-Mart: VF + Levi’s; Penny’s : TAL; all CIO cases) IntroductionSys-2.d

12 Why IT Does Matter Why IT Does Matter Harvard Business School McFarlan & Nolan 10 Sep 2003 transforming potential u Technology’s transforming potential change competitionexpand customer valuecreate strategic advantage Dell, Toyota 2.2, IT can change the rules and assumptions about competition, providing opportunities to expand customer value (MIS Challenge) and create strategic advantage (Dell, Toyota) 2.2, 2.6 evolved doesn’t endure(Vanity Fair Levi’s) 2.5 H Unless nurtured and evolved, IT-enabled competitive advantage doesn’t endure (Vanity Fair vs. Levi’s) 2.5 IntroductionSys-2.e

13 Why IT Does Matter Why IT Does Matter Harvard Business School McFarlan & Nolan 10 Sep 2003 u Evaluatingopportunities (threats)vitally important 3.2 u Evaluating these opportunities (threats) is vitally important, non-boring work. 3.2 ç New technologiesRFID transformed differentiateall CIO cases ç New technologies (e.g. RFID) will allow things to be transformed in nonlinear ways and give companies the opportunity to differentiate themselves (all CIO cases) ç These jobsunparalleled importance prototypes 3.6 ç These jobs will be of unparalleled importance in the decades ahead and prototypes of leadership skills needed for survival 3.6 ç Only limitteam’s imagination 2.4 ç Only limit is management team’s imagination 2.4 IntroductionSys-2.e Global Business Credential: Thinking Change Brain

14 Develop Global Credential Competencies (AICPA) in Team Presentation probe relentlessly. 4 integrate knowledge. 4 synthesize solutions & new paths. 6 listen & learn. 5 from experiences of others: ideal & nadir CIO cases difficult problems complex, ambiguous challenges Strategies Systems Information Age Information Age ( MIS challenge data, info., knowledge, 5C) concepts: tools solve difficult problems TEAMTIME

15 integrated IT systems 5Cs çVF used 3 integrated IT systems that performed all 5Cs to achieve competitive advantage perfect service customer moment of value uBy providing perfect service (right jeans) at customer moment of value (right time and right place) çLevis’s responded with its own IT systems right information right people right time uSame IT systems as VF with Dashboard to provide right information to right people at right time uChanged on time from 65% to 95% & in FashionWorld top 10 çWhy IT still matters! çInformation flows are complex because organizational structures are complex best practices benchmarking uBasic IT systems (7) are best practices for benchmarking Review Vanity Fair & Levi’s

16

17 Using IT systems to meet the MIS challenge requires understanding: I. Organizational Structures I. Organizational Structures are complex because of complex, superordinate goals II. Information flows II. Information flows in organization are similarly complex III. IT systems (ITS) (5Cs) III. IT systems (ITS) are designed to perform information processing tasks (5Cs) to support these information flows in organizational structures Introduction  Sys-3

18 NONMANAGEMENT operations STRATEGICmission TACTICALplans OPERATIONAL implementation MANAGEMENT Traditional Organizational Structure  Sys-4.a Organizational Structure This depiction / description of human organization (inductive) has normative implications (deductive) for ITS  Sys-4.b  Organizational levels must be integrated

19 Traditional Organizational Structure visionmission u STRATEGIC - provides an organization with overall direction and guidance (vision / mission). goalsstrategies u TACTICAL - develops the goals and strategies outlined by strategic management in the mission. day-to-day implementation u OPERATIONAL - manages and directs the day-to-day operations and implementation of the goals & strategies. -actually perform u NONMANAGEMENT - those who actually perform daily activities (order processing, developing / producing goods / services).. Organizational Structure Sys-4.b

20 MANAGEMENTMANAGEMENT  STRATEGIC TACTICAL OPERATIONAL NONMANAGEMENT General Motors Organizational Structure  Sys-5.a Organizational Structure This depiction / description of human organization (inductive) has normative implications (deductive) for MIS  Sys-5.b Sys-6.a  University SBA departments Functional units as well as organizational levels must be integrated ( University, SBA, departments ) SBA SAS NURSING ACC MIS MGT FIN MKT CSC ECON PSY Board President Provost

21 Dimensions of Organizations Organizational Structure other dimensions uOrganizational structures typically have other dimensions: çFunction (Production & development, marketing, Finance & Accounting, Human Resources, IT.) çProduct line (tires & foot pedals, seats & grips, helmets/bottles/pads) Sys4 premises implications Sys4 Inductive/descriptive premises have normative/deductive implications for MIS (ITS) Sys6 information flows Sys6 MIS must plan, develop and implement ITS that integrate the organizational levels, functions and (product) divisions by supporting information flows and Sys7 information processing tasks Sys7 information processing tasks throughout the organization.Sys-5.b

22 Strategies, goals & directives Competitive intelligence from customers, suppliers, other partners & constituencies Communication among functional units & work teams OUTWARD FLOW OF INFORMATION Complex Information Flows in Organizations Complex Information Flows in Organizations  Sys-6.a Communication to customers, suppliers & other partners. How the organization is operating / transactions that have occurred INWARD FLOW OF INFORMATION STRATEGICmission TACTICALplans OPERATIONALimplementation NONMANAGEMENToperations DOWNWARD FLOW OF INFORMATION UPWARD FLOW OF INFORMATION HORIZONTAL FLOW OF INFORMATION StonyfieldAccess&Levi’sdashboard flavors / sizes yogurt & types / sizes jeans PG Dell    Jackpot, Rx Jackpot, Rx

23 How Information Flows in Organizations u Upward: describes current state of organization based on its daily transactions V IT consolidates information as passed upward to decision makers who respond to threats & opportunities u Downward: consists of the strategies, goals, and directives that originate at one level and are passed to lower levels for implementation u Horizontally: between functional business units & work teams u Outward: information communicated to customers, suppliers, distributors and other partners and constituencies (government, community, regulatory, accrediting) outside the organization u Inward: Communications and competitive intelligence from customers, suppliers, other partners & constituencies. Sys-6.b Information in Organizations CHS Intranet Film

24 ITS perform information-processing tasks supporting information flows information processing tasks support information flowinformation sharing decentralized computing IA c u ITS are designed to perform information processing tasks that support information flow to knowledge workers -- information sharing & decentralized computing IA c HCAPTURING HCAPTURING - obtaining information at its point of origin HCRADLING HCRADLING - storing information for use at a later time HCOMMUNICATING HCOMMUNICATING - sending information to other people or site (telecommunications) HCREATING HCREATING - processing information to obtain new information HCONVEYING HCONVEYING - presenting information in its most useful form Information in Organizations  Sys-7.a

25 architecture right right informationright people all of the time “If you get the architecture right, the net result is you will get the right information to the right people all of the time.” architecturestartsbusiness processes information (flows) after thatIT enablement of the business processes “The master architecture starts by identifying the business processes … the information (flows) that is most consumed by those processes and produced by those processes. Only after that …will they begin to look at IT enablement of the business processes.” Jim Flyzik CIO for DHS “Integrating America” CIO 1Dec2002 Homeland Security Information in Organizations  Sys-7.b

26 Strategies, goals & directives Communication to / competitive intelligence from customers, suppliers, other partners & constituencies Communication among functional units & work teams OUTWARD FLOW OF INFORMATION Complex Information Flows in Organizations Complex Information Flows in Organizations  Sys-6.a Communication to customers, suppliers & other partners. How the organization is operating & transactions that have occurred INWARD FLOW OF INFORMATION STRATEGICmission TACTICALplans OPERATIONALimplementation NONMANAGEMENToperations DOWNWARD FLOW OF INFORMATION UPWARD FLOW OF INFORMATION HORIZONTAL FLOW OF INFORMATION

27 9aTPS primary ITS 9aTPS are the primary ITS because: 9bfundamental events (objects) all 5Cs 9bcapture / cradle / communicate / create / convey information about fundamental events (objects) used throughout the organization (all 5Cs)  sales/SRA (AR), purchases/PRA (AP), CGS / CGM (Inv) journalizingsymbols  related to journalizing of transactions in accounting – capture real world in symbols that can be cradled, created, etc. CIO casesAll Systems DownSaving Money, Saving Lives  CIO cases: Jackpot, Rx Files (All Systems Down CIO 15Feb03; Saving Money, Saving Lives CIO 1Aug03) 9cprimary customer interface LaSalle K-mart/  when customers perceive an inadequate interface they perceive the entire organization as inadequate (LaSalle: bursar/billing & financial aid, K-mart/ Dolyestown manager : Target / Walmart;)  databases (DBMS) & networks are components of shared information çRFID (ideas vs thingsTESCOWAL-MART çRFID are new technology to perform basic information processing tasks (capture / communicate) supporting basic information flow --transaction processing (ideas vs things; TESCO, VNUNet.com 16Jan03; WAL-MART 14Jul03) 10aCIS 10b( ) 10bthe new customer interface that extends TPS by placing technology in customers’ hands (external or internal) so provides opportunity for: M-commerce /  M-commerce because customer can process their own transactions anywhere / anytime (LASALLESEC (LASALLE online registration, databases, grades; SEC Electronic Data Gathering, Analysis and Retrieval System) I-commerceWSJ : P&GEDGARDock of Bay Rx FILES UPS  I-commerce involving 2-way communication (WSJ 29Oct01: P&G; E-gov: SEC EDGAR; Dock of Bay RFID system provides information to & from truck driver ; Rx FILES warning before administer; UPS online tracking;) Go to pg.com  Go to Proctor & Gamble website: pg.com (folders in IT Systems)  enhances capability to provide perfect service at customer moment of value 11.aMIS 11.aMISafter TPS & CIS capture, create, cradle information 11bcreates conveys / sentrypoint man SearchCIO 11bcreates / conveys upward flow information in periodic / predetermined reports to alert (operational) management to opportunities / threats similar to sentry or point man (Grade reports to students; library material use : acquisitions; CSS occupancy rates : intake, QC reports : material use & scrap, Levi’s dashboard: SearchCIO ) 11cAR aging schedule 11d 11d characteristics: periodic / summarized / comparative / exception 14.aEIS 14a highly interactiveMISDSS / AI 14a highly interactive MIS combined with DSS / AI for creating new information & conveying in flexible formats Access team projects,  Access team projects, Excel conveying  Capabilities include: data warehouse (cradling), drill down / query (creating), flexible data presentation (reports - conveying) Whatis.com  See Whatis.com (drill down)

28 Seven fundamental IT Systems (ITS) Support Information Flows in Organizations by Performing Information Processing Tasks (5Cs) Seven fundamental IT Systems (ITS) Support Information Flows in Organizations by Performing Information Processing Tasks (5Cs) ¶Transaction Processing Systems  TPS ·Customer Integrated Systems  CIS ¸Management Information Systems  MIS ¹Executive Information Systems  EIS ºDecision Support Systems  DSS »Workgroup Support Systems  WSS ¼Interorganizational Systems  IOS  çITS best practices benchmarking CIO cases çITS are best practices for benchmarking in CIO cases Whitehead, Bloom Whitehead, Bloom

29 Transaction Processing Systems (TPS) ITS in Organizations   Sys-9.a Most important ITS because everything begins here! Build: materials; Dock: containers; Homeland: hazmat; Indian orders/ parts like Dell; Jackpot: patron play; Rx: scripts /admin. meds fundamental events:  primary interface with real world – captures in symbols (journalize) so 5Cs Tesco RFID ideas vs. things Database(DBMS:DSS) Networks applications across many industries (TechRepublic 18Aug03 p.2.1) Vanity Fair, Penny’s, Dell Askteams? Ask teams?

30 Transaction Processing Systems (TPS) u System that processes transactions occurring in organization and supports OLTP by: V Capturing information at its point of origin (concerning an order). V Creating information based on the captured transaction (total purchase & applicable tax) V Cradling information such as the order for use by others in billing, credit, promotions V Conveying information to the order filling specialist, billing & promotions specialists. RxDock VFLevi u Process both internal, within organization (Rx & Dock) and external, between organizations (VF & Levi) transactions ITS in Organizations Sys-9.b

31 Transaction Processing Systems (TPS) primary systems u primary systems (along with CIS) in an organization: primary customers interface VProvide the primary customers interface basic information VF, Penny’s, Levi’s VCapture, create & cradle basic information (sales, accounts receivable, purchasing, inventory, accounts payable, payroll) used throughout an organization VF, Penny’s, Levi’s whole organization suffers VIf they fail, the whole organization suffers çRx FilesAll Systems DownSaving Money, Saving Lives çRx Files (All Systems Down CIO 15Feb03; Saving Money, Saving Lives CIO 1Aug03) customersinadequate interface entire organization uwhen customers perceive an inadequate interface they perceive the entire organization as inadequate HKmart HKmart (Doylestown manager) vs Target HUniversity HUniversity: Bursar (billing), Financial Aid ITS in Organizations Sys-9.d

32 Tesco The Future of RFID NASA monitors hazardous materials The Future of RFID Tesco NASA monitors hazardous materials RFID in shipping labels in shipping labels (PDR timer)

33 integrated IT systems 5Cs çVF used 3 integrated IT systems that performed all 5Cs to achieve competitive advantage perfect service customer moment of value uBy providing perfect service (right jeans) at customer moment of value (right time and right place) çLevis’s responded with its own IT systems right information right people right time uSame IT systems as VF with Dashboard to provide right information to right people at right time uChanged on time from 65% to 95% & in FashionWorld top 10 çWhy IT still matters! çInformation flows are complex because organizational structures are complex best practices benchmarking uBasic IT systems (7) are best practices for benchmarking Review Vanity Fair & Levi’s

34 Seven fundamental IT Systems (ITS) Support Information Flows in ComplesOrganizations by Performing Information Processing Tasks (5Cs) Seven fundamental IT Systems (ITS) Support Information Flows in ComplesOrganizations by Performing Information Processing Tasks (5Cs) ¶Transaction Processing Systems  TPS ·Customer Integrated Systems  CIS ¸Management Information Systems  MIS ¹Executive Information Systems  EIS ºDecision Support Systems  DSS »Workgroup Support Systems  WSS ¼Interorganizational Systems  IOS  Sys-8 çITS best practices benchmarking CIO cases çITS are best practices for benchmarking in CIO cases

35 Customer Integrated Systems (CIS) ITS in Organizations  Sys-10.a LaSalleRxFilesDock(Driver)BuzzsawJackpot(Winet)  1.captures 2.communicates 6. creates 5. conveys 4. communicates 7. communicate 8. convey 9. create 10. convey 11. communicate 3.cradles Technology in customers’ hands Networks Database(DBMS:DSS) & On-line banking

36 Customer Integrated System (CIS) (m-commerce). u The new customer interface that extends TPS by placing technology in the hands of customers (external or internal) process their own transactions, anywhere / anytime (m-commerce). EDGAR EDGAR V SEC’s Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) provides on-line: software, tutorial, filing, retrieval V LaSalle V LaSalle: on-line registration, library databases, reporting grades (I-commerce) u provide opportunity for two-way communication (I-commerce) V WSJ 29Oct01  P&GVictoria’s Secret V WSJ 29Oct01  P&G, Road Runner Sports, Victoria’s Secret V Jackpot  V Jackpot  information about customers & to customers V Rx Files  V Rx Files  warning before medication administered V Dock  V Dock  information makes driver efficient and willing to return ITS in Organizations Sys-10.b

37 Sys-10.c P & G’s CIS supports I-commerce by two-way communication with customers / clients to from to “P&G’s innovative capability is based on the application of technology to making connections with customers and developing a deep understanding of their habits, needs and wants.” P&G.com (Jackpot; DHS) Customer-Driven Innovation Optimizemag.com Feb07 from

38 For both Tesco & Kroger, the approach begins with individual purchase data from loyalty cards, giving a look into every bag of groceries and providing data on neighborhood (ZIP & telephone) as well as seasonal buying patterns. Victoria’s Secret “Collaboration with customers is transforming product- development strategies ….tapping into an almost endless source of ideas for new product offerings that will differentiate you from your competition.” Feb07 p27 Nabisco 100 calorie sensible snack packs

39 Sys-10.d

40 Rise of I-Commerce u “ (1.5) Sawhney, Professor e-connerce, u “We tend to take a very narrow lens when we think about e-commerce. It’s not just about buying and selling things on the Net.” (1.5) Sawhney, Professor e-connerce, Northwestern Unversity Northwestern Unversity (1.3) Michael Totty u “The information they provide to customers on their Web sites, along with the intelligence merchants are able to gather about consumers can be at least as valuable as the stuff the actually sell on line.” (1.3) Michael Totty News Editor, WSJ News Editor, WSJ (2.10) Waits, research manager, P&G u On the internet, “Information gathering is much more important than actually selling actual products to consumers” (2.10) Waits, research manager, P&G WSJ Report 29 Oct 01 ITS in Organizations Sys-10.e

41 Rise if I-Commerce u “In today’s electronic age, the role of IT is becoming increasingly significant across all areas of our (P&G’s) business.” u “From day one, you’ll work on a core business team …. Here we improve business results by exploiting IT capability for P&G’s customer teams….” datainformation knowledge u “We develop a thorough understanding of our customers system, data and information …. We then transform this understanding into knowledge and insight about the customer, the market and the consumer.” PG.com/information technology 7Feb05 7Feb05 ITS in Organizations Sys-10.e BUS 205 CIO team

42 5.communicate 4.creates  Inventory reports Accounts Receivable QC reports 6.convey Networks (DBMS:DSS) Database 2.cradles  Periodic  Periodic Predetermined Predetermined Summarized Summarized Comparative Comparative  Like sentry, alerts management to threats or opportunities Networks3.communicates  Sys-11.a Management Information Systems ITS in Organizations  Levi’s & Netsuite Dashboards (cio.com) After TPS (CIS) capture & cradle data, MIS create & convey upward flow of information about transactions & operations TPSCIS 1.capture

43 Management Information System (MIS) periodicpredetermined summarizealert sentry u System that provides periodic and predetermined reports that summarize information within a database to alert management (like a sentry) to opportunities or problems requiring decisions by V Creating new information through the analytical processing of information captured in a database (OLAP) V Conveying new information to alert management to the existence or potential of threats or opportunities. u Examples Levi’s dashboard CIO 15Jul03 V inventory reports like Levi’s dashboard CIO 15Jul03 V aging schedules of accounts receivable V material usage & scrap V quality control reports ITS in Organizations Sys-11.b

44   Sys-11.c ITS in Organizations predetermined structure structure periodic summary exceptions comparative

45 MIS Characteristics u Periodic u Periodic - typically, produced at a regular time intervals, can be requested as needed (ad hoc) u Summarized u Summarized - aggregate information in some predetermined way u Comparative u Comparative - relate two or more sets of similar information u Exception u Exception – highlight exceptional / unusual phenomena that might require decisions IT systems in Organizations Sys-11.d

46 Roll over the highlighted numbers on the screen to see descriptions of NetSuite Dashboard (Levi’s) To see a different role, To see a different role, click on one of the three role buttons directly below, click on one of the three role buttons directly below,

47 Roll over the highlighted numbers on the screen to see descriptions of NetSuite Dashboard features.

48 The Dashboard offers instant real-time snapshots of key performance indicators.

49 Executive Information Systems  Sys-12.a EIS MIS + DBMS + DSS interactive 3.conveys 1.cradlesdatabase networks 2.communicates 4. opportunity for KW to create create  Access team projects Tesco & Kroger “Optimize”, Information Week

50 u highly interactive MIS combined with DSS /AI for creating new information from external and subjective as well as internal and objective information and conveying that information to the user data warehouse V Include data warehouse drill down V Support drill down capabilities V provide flexible data presentation V Access to DSS / AI tools. :Access team projects, (JOA Apr 00, Aug 00) u Example: Access team projects, Excel (JOA Apr 00, Aug 00) Executive Information Systems Sys-12bEIS

51 Strategies, goals & directives Communication to / competitive intelligence from customers, suppliers, other partners & constituencies Communication among functional units & work teams OUTWARD FLOW OF INFORMATION Complex Information Flows in Organizations Complex Information Flows in Organizations  Sys-6.a Communication to customers, suppliers & other partners. How the organization is operating & transactions that have occurred INWARD FLOW OF INFORMATION STRATEGICmission TACTICALplans OPERATIONALimplementation NONMANAGEMENToperations DOWNWARD FLOW OF INFORMATION UPWARD FLOW OF INFORMATION HORIZONTAL FLOW OF INFORMATION

52  flexible / interactive Artificial Intelligence (Decision Support System - DSS) DSS / AI Sys-13.a IBM software to prevent server failures blood analysis cancer cell detection regression DSS + Groupware Sys-14c Sys-14c GPS (zilllow.com) k n o w l e d g e  complex  complex &ill-structured infrequentorsubjective  Excel  ExcelAccess Expert Choice projectsPipeline

53 Decision Support System (DSS) & Artificial Intelligence (AI) u create and convey information to facilitate decision-making tasks requiring significant effort / analysis V Access V Excel u DSS are highly flexible / interactive IT systems because designed to support decentralized decision making when the problem is unstructured /complex V Expert Choiceresearch projects V Expert Choice (AHP) in research projects ç Pipeline Planning Project ç Hiring Technical Managers ç Setting Accounting Policies DSS / AI Sys-13.b

54 V Genetic Algorithms (trial-error approach) V Genetic Algorithms apply iterative processes to generate increasingly better solutions to complex / unstructured problems (trial-error approach) regression ç Examples: chefs experiment, regression, building stock portfolio V Neural Networks (empirical approach) V Neural Networks uses observed frequencies over a large number of observations to infer weights / probabilities / patterns in observed occurrences (empirical approach) tumors/heart attacks diagnosisServer Failure Prevention Software (21JAN01) ç Examples: tumors/heart attacks diagnosis, Server Failure Prevention Software (21JAN01) V Expert Systems (clinical Approach) V Expert Systems captures the reasoning (rules) of human experts to reach a conclusion based on a user’s input (clinical Approach) ç Expert Choice Rogero:GASB ç Expert Choice applies human pairwise comparison approach to complex / unstructured problems Rogero:GASB Artificial Intelligence Sys-13.c DSS / AI AI  AI making machines imitate human thinking /behavior

55 Information processing tasks provide shared information and decentralized computing shared information and decentralized computing That supports decision making & innovation  IA-20.a shared information (networks& databases) (networks & databases) decentralized computing (DSS) decision making & innovation u Hu Hu Hu How DSS used to meet the MIS challenge in CIO Cases? R Rx check script; Dock & Build locate/unload ship or warehouse; Jackpot CRM with DBMS capture, communicate, cradle communicate, convey, create (DSS) communicate, cradle Microsoft Explorer Access Excel PowerPoint / Word  DSS

56 LaSalle & CSS accreditation committees (teams)) with each other & administration Communication between teams formed with suppliers, customers, other partners & constituencies (Buzzsaw, APL, Indian extranet) Communication among functional units & work teams (Jackpot, Rx) OUTWARD FLOW OF INFORMATION INWARD FLOW OF INFORMATION WSS Support Information Flows Within / Between Teams Sys-14.aWSS

57 Workgroup Support Systems (WSS) u Teams u Teams (groups) are vital in complex organizations because they are the only way to achieve superordinate goals V LaSalle: V LaSalle: faculty, departments, deans etc. V Hospital: V Hospital: admissions, housing, food services, medical staff, pharmacy (Rx Files), departments (radiology; therapy; surgery; physical, speech, inhalation therapy) u WSS u WSS are designed specifically to improve the performance of teams by supporting the sharing and flow of information both within / between teams V Hospital V Hospital: doctors script to pharmacy & nurse administering drugs V CIO Teams WSSSys-14.b Figure Sys-14.a

58 Groupware Supports 3 Group Processes WSSSys-14.cCommunicating Cradling CapturingCreatingConveying CSS adopted MS standard in 2003 MSOffice: MS Office:  PowerPoint  Word  Excel  Access  Netscape  Explorer  Lotus Notes  Outlook  MS Live- Meeting Meeting

59 Groupware Supports 3 Group Processes Groupwaresoftware u Groupware is software in WSS that supports 3 functions: V Team Dynamics (Communicating ) V Team Dynamics includes facilitating meetings and communications in organizations restructured by globalization & telecommuting (Communicating ) V Document Management (Cradling) V Document Management includes organizing and managing documents of specific teams (Cradling) V Applications Development (Creating) V Applications Development includes tools for creating new applications (Creating) WSSSys-14.d Figure Sys-12.d

60 Groupware for Team Dynamics most basicfundamental communications u The most basic & fundamental because it supports communications among the members with: V Electronic Messaging V Electronic Messaging is software that helps team members communicate ç includes: , electronic bulletin boards, intranets ç LaSalle ç LaSalle: Core Curriculum Committee, research teams V Electronic Meeting Support V Electronic Meeting Support is software that helps schedule and carry out meetings. (Outlook in MS OfficeCalendar in Notes) ç includes: software for group scheduling (Outlook in MS Office, Calendar in Notes), electronic meetings, videoconferencing, whiteboards WSSSys-14.e

61 Groupware for Document Management u database / DBMS storingorganizingaccessing u database / DBMS for managing (storing / organizing / accessing) all documents related to specific teams: teams V Contains documents from many teams security V Supports levels of security ç LaSalle: SBA database ç LaSalle: SBA database including goals, assessment, vita ç Hospitals:patient records ç Hospitals: patient records including notes from doctors & other healthcare team members variety of forms V Stores information in a variety of forms revision V Store copies of information by date and revision ç research ç research development & revision searches V Performs searches throughout document database regardless of form WordPowerPoint çSimilar to functions available on PC in Word & PowerPoint Sys-12.g WSSSys-14.f

62 Storage, Security, Search Functions Similar to MS Operating System / Office Sys-14.gWSS

63 Groupware for Applications Development building blockscreate applications u Basic building blocks that be used to create applications quickly, so teams can get to work, including: V Prewritten - commonly performed functions V Programming tools - for creating unique applications V Relate to: V Relate to: Access & Excel u Work flow automation software u Work flow automation software - designed to automate the flow of business documents in a specific work process or procedure V Relate to: V Relate to: automatic of prewritten documents u CSC151BUS150basic skills knowledge worker Information Age u CSC151 & BUS150 (Presentations) introduce these basic skills because they are essential to being a knowledge worker in the Information Age WSSSys-14.h

64 WSS Groupware Team project u As a team u As a team, discuss, identify and list the problems you have experienced in team projects throughout your education or work experience. u As a team u As a team, discuss, identify and list the Groupware features that would solve these problems. u As a teamdemonstrate u As a team, demonstrate how your team will or has used these features. u As a teamrelate u As a team, relate how your team could use these features to your CIO case. u HintsMicrosoft Office u Hints: Think of Microsoft Office as a form of Groupware. V Go to WSSSys-14.i

65 Interorganizational Systems   Sys-15.aIOS Communicate directly Communicate directly computer to computer computer to computer ç Direct deposit pay / SS ç SEC & IRS filings ç CSS & government agencies ç Indian (Dell), Jackpot (CRM), DHS (intelligence), Building (designs), Dock (container, ship locations), Rx (emr)  Costs & Errors Speed & Force TPS & Database Networks Database & DSS Initially, B2B (TPS), EvolvedB2C professional sites weather channel weather channel RRS   Vanity Fair, Levi’s, TAL Wal-Mart Penny’s

66 u automated direct computer-to-computer communication of all information types between organizations to support strategic, tactical & managerial decision making V Support Electronic Data Transfer (EDT) of transaction information contained in standard business documents. ç Reduce information processing costs / errors because information is communicated / captured electronically ç Examples: Vanity Fair to J.C. Penny & Wal-Mart, SEC filings, IRS filings (permits application of DSS) IT systems in Organizations Interorganizational Systems (IOS) Sys-15.bIOS

67 economiesIT V Allow organizations to create an economies of scale in IT ç Examples: ç Examples: Building on IT; NAPA; Service Star hardware stores new products / services. V Enhance organizations capacity to cooperate in developing new products / services. ç Examples: ç Examples: Jackpot; DHS; NASA; Xerox & Visioneer interrelatedextensions u Systems are interrelated special cases / extensions. V CIS is organization-customer IOS (B2C) (Xerox & Visioneer) V IOS is expanded WSS between organizations (Xerox & Visioneer) IT systems in Organizations Interorganizational Systems (IOS) Sys-15.c ITS in Organizations

68 ç ITS are best practices (general principles) for benchmarking in CIO cases (concrete details). Whitehead ç Functional ITS are integrated combinations of IT systems intended to perform all 5Cs so that they support decision making and innovation in complex organizations with complex information flows. Vanity Fair & Levi O’Connell, CEO Indian ç “Getting the right information to the right people all the time …starts by identifying the business processes … the information that is most consumed by those processes and produced by those processes. Only after that …will they begin to look at IT enablement of the business processes.” Flyzik, DHS Some Final Thoughts Sys-16.a ITS in Organizations

69 Some Final Thoughts ç New technologies will continue to give companies the opportunities to differentiate themselves. Innovation Economy BW 1Aug05 ç Only, the senior management team’s imagination limits new IT- based opportunities. ç Evaluating these opportunities as well as thinking through their implications and timing is vitally important, non-boring work. ç These jobs will be of unparalled importance in the decades ahead. Why IT does matter! McFarlan & Nolan HBS 10Sep03 Why IT does matter! McFarlan & Nolan HBS 10Sep03Sys-16.b ITS in Organizations Your team

70 Some Final Thoughts ç CIO CASES are examples (parables) to teach difficult concepts. Jesus Christ used everyday stories to explaining faith, hope, love to primitive people. ç Many did not comprehend because they closed their eyes like the Pharisees or turned away like the rich young man. ç You must look to see, listen to hear, and think to comprehend. Sys-16.b ITS in Organizations

71 Develop Global Credential Competencies in Team Presentation probe relentlessly integrated knowledge synthesize solutions & new paths listen & learn from experiences of others: ideal & nadir CIO cases difficult problems complex, ambiguous challenges Strategies Systems Information Age & MIS Challenge concepts: tools solve difficult problems

72 Develop Global Credential Competencies in Team Presentation probe relentlessly integrated knowledge synthesize solutions & new paths listen & learn from experiences of others: ideal & nadir CIO cases difficult problems complex, ambiguous challenges Strategies Systems Information Age & MIS Challenge concept: tools solve difficult problems Team Time

73 Quiz If Participation Indicates Lack of Preparation


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