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ICT In Organizations Guthrie, Winter 2013. What the Heck is ICT Information and Communications Technology (ICT) – More modern than saying, IT or IS because.

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Presentation on theme: "ICT In Organizations Guthrie, Winter 2013. What the Heck is ICT Information and Communications Technology (ICT) – More modern than saying, IT or IS because."— Presentation transcript:

1 ICT In Organizations Guthrie, Winter 2013

2 What the Heck is ICT Information and Communications Technology (ICT) – More modern than saying, IT or IS because communications is a large part of business innovation today. Like What? – Think about all the computers you used today and you already know. Gas Station Car (diagnostics, GPS, Onstar, Sirius) POS at the Starbucks (sale information) + all the data about what you buy and Website to reload your gold card Cal Poly - Checking the waitlist to see if you made it into this class.

3 ICT is Diverse Some Examples – Cloud Computing – Voting for the Oscars – UPS Package Tracking – Walmart Supply Chain in Katrina – ATM Machine at Every Bank – Pinterest

4 Ok Already ICT is Diverse Why do I care? – Innovation – Process improvement – Cost savings – Improve efficiency and effectiveness – Without effectively managed ICT, firms cannot compete

5 What is a strategic advantage? What is a strategic necessity? FaceBook – Having a link to Facebook on your business Web site was a novelty. – Now, everyone has it. – Used for promotions, liking products, contests. – Cheap and easy way to reach your customers.


7 Diverse Challenge of ICT From fixing your desktop printer to using population data to forecast where to put your next Yogurt Barn…no escape from ICT. Giant challenge for companies to manage all the IT they need. No one calls the IT department when things are running well. If something goes wrong, it is an immediate, unhappy crisis. Technology is constantly changing and there are lots of opportunities to learn new things and everybody needs to hire people with those skills.

8 End Which of the following technologies is a strategic necessity for a manufacturing business? A.Cloud Computing B.Secure Information Systems C.Mobile Computing maybe necessity probably

9 Organizational Decision Making Guthrie, Winter 2013

10 Anthony’s Model Robert Anthony Harvard At Robert McNamera’s request, became the Comptroller for the Department of Defense – reduced spending abuses. Made Accounting Easier to Learn – focus on decision making, not balance sheets. Anthony’s Triangle - 1965

11 Figure is from Wikipedia “Anthony’s Triangle” EIS or SIS Executive or Strategic Information Systems MIS - Management Information Systems TPS - Transaction Processing Systems Should we deploy products to areas hit by hurricane Katrina? Staffing - How many people need overtime to support the hurricane relief effort? What is the projected cost? Anthony’s Model Inventory - What do we need to tell our suppliers in order to stay stocked in flashlights, first aid kits and beer?

12 Anthonys’ Model and other characteristics Top – Decisions are strategic, unique and complex. Unclear where data might come from to support these types of decisions. (EIS, SIS) Middle – Decisions are semi- structured, more repetitive and oriented towards mid-level decisions. The data for these types of decisions are typically from summaries of reports from daily operations. (MIS Level) Bottom – Raw data reporting is highly repetitive, the decision making is well understood and structured and not very complex. (TPS)

13 TPS Decision Operational, Structured & Repetitive, Many Transactions Examples – POS: Scan the barcode & take their money. – Log helpdesk calls into the tracker. – Check books out of the library Decisions – What is out of stock? – How many help desk calls came in each day? – How many books are checked out.

14 MIS Managerial Focus, Aggregated Data/Data Summaries, Semi-structured & more infrequent decision making. Examples – Helpdesk – What is the most frequent problem callers have? How can we support them? – Library – What day is most busy? Is there a way to have self-serve check out so that we do not increase our labor costs?

15 SIS or EIS Strategic Focus, High Level Data that May Require special collection (like hearing from an expert), Unstructured decisions, Infrequently made Examples – Helpdesk – Should we outsource the helpdesk? – Library – Do we need a library? How can the library change to fit the digital world?

16 Rational Decision Making 1.Problem 2.Investigation (data collection) 3.Solution Generation 4.Test & Evaluation 5.Selection 6.Implementation 7.Assessment

17 Assessment of Decisions Assessment – Use of benchmarking and metrics to determine success or state-of-health of the system. Longitudinally measuring something will let your know if you’re better or worse than you were before. Measuring may also prove predictive in that you know when to expect cyclic changes in your industry. Plan ahead so you know that your measures will give you information that helps you make decisions.

18 Measures Metric - measure Benchmark - comparison Key Performance Indicator (KPI) – defined set of values to measure success. (concrete) – Number of new customers. – Average shipping time. Critical Success Factor (CSF) – something a company must do to achieve strategic goals. (abstract) – Attracting New Customers or Clients – Retaining Existing Customers or Clients – Producing Quality Products or Services

19 HR – KPIs from New employee satisfaction rate with recruiting process Percentage of new employee retention after x time Percentage job offer acceptance rate Percentage of vacancies filled within x time Average Number of Interviews from Submitted applications/ CVs Recruitment source ratio – internal -v- external applicants Recruiting fee as percentage of annual salary Percentage of new employees with a recruiting fee paid Performance evaluation scores on hired candidates after, a given period.

20 Business and Finance KPIs from Accounting costs Accounts Payable Accounts Payable Turnover Accounts Receivable Collection Period Accounts Receivable Turnover Average value of overdue invoices Cash Flow Return on Investments (CFROI) Cost per payslip issued Cumulative Annual Growth Rate (CAGR) Cycle time for expense reimbursements Cycle time to perform periodic close Cycle time to process payroll Cycle time to resolve an invoice error Cycle time to resolve payroll errors

21 End What type of Information System is Remote Checking Deposit? What type of Information System is one that tells a political candidate how to allocate television advertising? What type of Information System is used to handle employee payroll? TPS EIS TPS

22 End Which of the following are KPIs vs. CSFs? A.Average time to find a parking space. B.Maintaining diverse student body. C.Average class size. D.Professor evaluations. E.Use of technology in the classroom. F.Reducing the universities carbon footprint. KPI CSF

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