day 1 cio and mis - part 2

MIS - 2016

Managing Information Technology& With CEO, CIO & Managers

Lecture 1ICT applications in Business and

Manageement

nvthoan@ftu.edu.vnhttp://web.ftu.edu.vn/thoan

MIS 8.2011 – 6.2012 – 2013 – 10.2014 – 3.2016

MIS - 2016

Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively. Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal or target. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. 1. strategic management2. financial management3. human resource management4. operations management or production management5. marketing management6. information technology management (responsible for management information systems)

MIS - 2016

Managing IT in an E-World• BSG – Business Strategy Game• Applications of Simulation in Management

– Strategies– Marketing– Ecommerce– Finance– Production– International Business– Management Information Systems

Management is doing things right; leadership is doing the right things. Peter Drucker

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Simulation !

Example Uses of VRTraining U.S. Army to train tank crews

Amoco for training its drivers

Duracell for training factory workers on using new equipment

Design Design of automobiles

Walk-throughs of air conditioning/ furnace unitsMarketing Interactive 3-D images of products (used on the Web)

Virtual tours used by real estate companies or resort hotels

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VIRTUAL REALITYhttp://www.circlepix.com/virtualTours.htm?sel=master

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ICT Application Projects

Project 1. Build a website for your company- How long- How much- How many people

Making good decisions is a crucial skill at every level. Peter Drucker

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SYSTEMS DEVELOPMENT LIFE CYCLE• Systems development life cycle (SDLC)

– Highly structured process for developing customized applications

– Includes three phases and eight steps, although this can vary across organizations

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ICT Application Projects

Project 2. Build a website for selling products online (Online shop)- How long- How much- How many people How many stages?How can you divide budget for each

stage?

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SYSTEMS DEVELOPMENT LIFE CYCLE

• Extensive up-front time spent determining requirements to avoid expensive changes later

The SDLC steps

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Purchasing software Process

Project 3. The Accounting and Finance Department needs a software to facilitate functional activities, do they need a pilot version to test, and how can they implement?

“Don’t spend so much time trying to choose the perfect opportunity, that you miss the right opportunity.”

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PROTOTYPING METHODOLOGY

• Two ways in which prototyping is usually incorporated into an SDLC process:

Prototyping within an SDLC process

1. Used in the Definition phase to help users define system requirements

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PROTOTYPING METHODOLOGY

• Two ways in which prototyping is usually incorporated into an SDLC process:

Prototyping within an SDLC process

2. Includes a pilot implementation of a working prototype

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Make vs. Buy?

Project 4. Human Resources department needs a software for managing HR activities, should they buy, hire a software company to write or buy the available application in the market?How muchHow longHow many department involved

“Our business is about technology, yes. But it’s also about operations and customer relationships.”

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THE MAKE-OR-BUY DECISION

Make Buy

Cost savings

Faster speed of implementation

May better support generic business functions

Can better fits the company’s needs

Fewer trade-offs

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Make vs. Buy?

Project 5. Human Resources department needs a software for managing HR activities, should they buy, hire a software company to write or buy the available application in the market?List the key stages in purchasing this application?

“Try never to be the smartest person in the room. And if you are, I suggest you invite smarter people … or find a different room.”

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PURCHASING METHODOLOGY

• Steps for purchasing application packages fit into the three SDLC phases (referred to as the modified SDLC approach)

The purchasing steps

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Managing IT in an E-World

• 21. What is the differences between alpha and beta versions?

“Well, we started the company by building to the customer’s order. And interestingly enough, we didn’t do it because we saw some massive paradigm in the future. Basically, we just didn’t have any capital to mass-produce.”

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Purchasing software solutions

• When purchasing a software package, the construction phase is generally reduced

• One exception to this is when organizations test packages that are not fully developed

• The organization may serve as a(n):– Alpha site: can play a significant role in determining the final

functionality and user interface design for the new package– Beta site: plays a significant role in user acceptance testing

for the vendor

The purchasing steps

αβ

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Managing IT in an E-World

Project 6. Buy vs MakeHow much can your company save if purchasing available HR software in stead of hiring a software company to write?Save cost, but what is the disadvantages of buying? What benefits?

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PURCHASING METHODOLOGY

• Develop a high-level cost estimate with business manager and IS analyst input

Initiating the purchasing process

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Managing IT in an E-World

Project 8. Improve ICT Service Quality?List 5 methods to improve ICT Service Quality in your company?- PC- LAN- Internet- Wifi- Website

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ICT Service Quality

• Service Level Agreements (SLAs) should contain:– A simple definition of the service to be provided (e.g., help desk support)– The name(s) and contact information of IS personnel to contact for this service– A table listing the services to be provided and their costs (e.g., how quickly different types of

problems will be responded to, and the costs associated with providing this type of service level)– Escalation procedures (e.g., who to contact if the agreed upon service response is not being

provided)– A sign-off page for the appropriate business client and the IS liaison preparing the SLA

document

• Defines the client expectations for a specific type of IT service as well as procedures for when these expectations are not met

Service Level Agreements

(SLAs)

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Managing IT in an E-World

Project 9. ICT applicationsList 5-10 software which is used in your company.How much spend for a company?

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Managing IT Applications

• IT Applications Portfolio– Most companies cannot operate without software

applications – they are critical assets – Software portfolio needs to be managed as an asset– A company must know:

• What software it owns• Where it is located• What it does• How effective it is• What condition it is in

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Managing IT in an E-World

Q10. Why managing ICT complicated?

20th Michael Dell Quote – “I believe that you have to understand the economics of a business before you have a strategy, and you have to understand your strategy before you have a structure. If you get these in the wrong order, you will probably fail.” Michael Dell

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CIO and ICT management

• Need 5 knowledge and skills• Technical• Project Management• Business Domain• Sourcing• IT Administration

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CIO Skills

Technical Skills

• Systems analysis• Systems design• Programming• Systems testing• Database design/administration• IT architecture/standards• Operations (service delivery/ITIL)• Mainframe• Distributed systems• Operating systems• Voice/data telecommunications• Help desk/desktop support• Continuity/disaster recovery

Project Management Skills

• Project team leadership• Project planning, budgeting, &

scheduling• Project risk management• User relationship management• CMM utilization• Working globally/virtual teaming

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CIO Skills

Business Domain Skills

• Account management & communications

• Industry application knowledge

• Company-specific knowledge

• Function-specific knowledge

• Business process design & reengineering

• Change management/readiness

Sourcing Skills

• Sourcing strategy• Third-party provider

selection• Contracting & legal• Vendor relationship

management

IT Administration Skills

• IT governance• Financial management• Internal HR

management

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Managing IT in an E-World

Project 11. The ABC Airlines needs to install a new check in system. How can you suggest to implement?

“There are a lot of things that go into creating success. I don’t like to do just the things I like to do. I like to do things that cause the company to succeed. I don’t spend a lot of time doing my favorite activities.”

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Methods to implement new systems

• Transitioning strategies (cont’d)– Phased: new system is implemented one

component at a time– Cutover: old system is totally abandoned as soon

as the new system is implemented

Old – New information systems?

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Managing IT in an E-World

Project 11. Write your company’sInformation VisionInformation Architecture

(Select a companyGoogle to find out there Information Vision)

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ICT application plan (strategy)

• A written expression of the desired future about how information will be used and managed in the organization

Information Vision

• Depicts the way an organization’s information resources will be deployed to deliver that vision

Information Technology Architecture

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The Process Of Setting Direction

• IS decisions must be tightly aligned with the direction of the business

• Decisions should impact the next step in the process, but that is not always the case

IS and business planning

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Managing IT in an E-World

Q12. What is the most important Skills for ICT managers?

The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. Peter Drucker

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Google “Kungfu”

Star !Google to find at least 3 samples of ICT application strategy for companies in the same business or industry as yours.

Send links to class email, also to nvthoan@ftu.edu.vnNote to put your full name, subject: MIS-PGSM 2016

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ICT managers skills – What is most important?

• Skills pivotal for success in executive IT roles

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Managing IT in an E-World

Q13. How much VALUE can ICT adds or contribute to Value Chain of your company or Industry?

Eg. Airlines, Banks, Hospital, University, Government, Retails, Travel, Manufacturing, Farmers…

Chapter 1

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29. ICT applications and Value Chain

Value Chain

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Managing IT in an E-World

Q14. Find one product that suceed because of ICT application?

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“If we'd given customers what they said they wanted, we'd have built a computer they'd have been happy with a year after we spoke to them—not something they'd want now…”

Steve Jobs, Apple Computer

Managing in the Digital World

Needs

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Managing IT in an E-World

Q15. Find one company that gain the success through ICT application?BankUniversityMinistryHospitalFactory

The new information technology... Internet and e-mail... have practically eliminated the physical costs of communications. Peter Drucker

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Apple Computers1-42

Apple has many failures: Mac TV 1993, PowerMac G4 Cube Lisa, Newton

Peters’ suggest that a company’s survival may depend upon those employees who fail over and over but try new ideas.

Creativity

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Managing IT in an E-World

Q16. Find one CEO that find success through application of ICTFPTViettelVina milkAirlinesCoopmart

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Note #1Netscape Browser

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August 9, 1995

Who sees this opportunity?

Any one can access to the Internet

THEN

NOW

Web Brower – bring

Internet to every one

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Managing IT in an E-World

Q17. Find one website that many people can use and enjoy their benefits?YoutubeFacebook….

The purpose of a business is to create a customer. Peter Drucker

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Note #2: Uploading2-46

Advertising on Web – equal opportunity for any business in the world !

Wikipedia a huge success

Web 2.0

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Managing IT in an E-World

Q18. Find one traditional company which applied ICT successfully?WalmartFTUVietcombank

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Note #3: Supply Chaining2-48

SCM-Links to suppliers around the world.

Wal-Mart became an early leader

RFID tags used SCM

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Managing IT in an E-World

Q19. List 5 applications from Google?- Search- Adwords- What else

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Note #4: In-Forming2-50

You can find any information

Get any information, most freely

Individuals have access to massive amounts of information

Google

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Managing IT in an E-World

Q20. List 5 top CIO you know in Vietnam?- Government- Education- Health care- Industry- your choice

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Note #5Microsoft’s Bill Gates and Paul Allen

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Both dropped out of college to run Micro-Soft in 1975

Partnership with IBM to install MS-DOS on all PCs set the stage

Gates’ worth—$58 BillionAllen’s worth—$16.8

Billion

Key People !

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Managing IT in an E-World

Q21. Find example for this application of ICT - Faster

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1-IS for Automating: Doing Things Faster

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ICT helps automation: Faster Cheaper More accurately With greater

consistency

Faster

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Managing IT in an E-World

Q22. Find example for this application of ICT - Better

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2-IS for Organizational Learning: Doing Things Better

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ICT helps better quality, services? Learn about

processes Improve

processes Support

organizational learning

Better

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Managing IT in an E-World

Q23. Find example for this application of ICT - Smarter

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3-IS for Supporting Strategy: Doing Things Smarter

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ICT brings competitive advantage – do something smarter, differently in a good way Turning benefits of

automating and informating into strategic advantage

Smarter

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32. Strategizing: 5 strategies3-59

Create competitive advantages

Source: Courtesy A. A. Thompson and A. J. Strickland III, Strategic Management: Concepts and Cases, 8th ed. (Homewood, III.: Richard D. Irwin, 1995).

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Managing IT in an E-World

Q24. Find example for this application of ICT – Lower cost!

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1/5 Overall Low Cost Leadership

Strategy3-61

Lowest cost, lowest price

Broad focusWal-Mart

Source: Courtesy A. A. Thompson and A. J. Strickland III, Strategic Management: Concepts and Cases, 8th ed. (Homewood, III.: Richard D. Irwin, 1995).

Lower cost

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2/5 Focused Low-Cost Strategy

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Lowest cost in some categories

Focus on nicheDell

Source: Courtesy A. A. Thompson and A. J. Strickland III, Strategic Management: Concepts and Cases, 8th ed. (Homewood, III.: Richard D. Irwin, 1995).

Niche market

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Managing IT in an E-World

Q25. Find example for this application of ICT – Better Quality!

PubvnNetFlix

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3/5 Broad Differentiation Strategy

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Key differentiation, positioning

Broad Focus Sony MerceidesSource: Courtesy A. A. Thompson and A. J. Strickland III,

Strategic Management: Concepts and Cases, 8th ed. (Homewood, III.: Richard D. Irwin, 1995).

Differentiatio

n

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4/5Focused Differentiation Strategy

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Offer better products/services than competitors

Focus on nicheiPhone/ iPad/ Sony Vaio Source: Courtesy A. A. Thompson and A. J. Strickland III,

Strategic Management: Concepts and Cases, 8th ed. (Homewood, III.: Richard D. Irwin, 1995).

Niche - Positionin

g

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Best-Cost Provider Strategy3-66

Fair quality – Lowest price

Target

Source: Courtesy A. A. Thompson and A. J. Strickland III, Strategic Management: Concepts and Cases, 8th ed. (Homewood, III.: Richard D. Irwin, 1995).

Lower cost

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Managing IT in an E-World

Q26. Find example for this application of ICT – collaboration world wide?

BoeingANZ

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Phối kết hợp giữa các đối tác5-68

Boeing Information shared between employees across the

world Reduced product development cycles Ability to stay current on projects Ability to stay current with the changing market

conditions

Network around

the world

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End of Part 2

SummaryBSG gameSmart phone competition

SKYPE – can you call class mates with smart phone? Send photos – 5 at the same time Google Maps – find time from HK lake to Tuan Chau

Resort Google Earth - Sydney Opera house to Sydney

University

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