Week 2: Managing in a Digital World

MIS5001: Management Information SystemsDavid S. McGettigan

Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg

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Agenda

Group Term Paper

Prior Lecture Recap

Decision Making in the Enterprise

Types of Information Systems

Business Process Management

Google Case Discussion

Next Week

Group Term Paper

Assignment of Groups

Term Paper - Topic Analysis of a technology that would create significant

competitive advantage for a company

Term paper should simulate an internal project approval document (while still including citations as required in academia)

Examples of components: Solution description Impact to the company and/or competitive advantage Business case Vendor(s) analysis Implementation approach and timing

See syllabus for grading criteria and timing4

Prior Lecture Recap

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Recap Fundamentals

Components of an Information System

Data, Information and Intelligence

Gaining Competitive Advantage from IT Barriers to Entry Distribution Channels Switching Costs

Innovation in Marketing, Manufacturing and Customer Service

Decision Making in the Enterprise

No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.

Isaac Asimov (1920 - 1992)

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Decision Making Process Four phases of decision making

Intelligence – find or recognize a problem, need, or opportunity.

Design – consider ways to solve the problem, fill the need, or take advantage of an opportunity.

Choice – examine the merits of each solution, estimate the consequences of each, and choose the best one.

Implementation – carry out the chosen solution, monitor the results, and make adjustments as necessary.

Source; Management Information Systems for the Information Age (Fourth Edition)

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Decision Types Structured decision - processes a certain kind of

information in a specified way so that you will always get the right answer.

Nonstructured decision - one for which there may be several “right” answers, and there is no precise way to get a right answer.

Recurring decision - one that happens repeatedly, and often periodically.

Nonrecurring decision - one that you make infrequently.

Source; Management Information Systems for the Information Age (Fourth Edition)

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Decision Levels

Competitive advantageMarket leader

Long term

Improve operationswithout restructuring

Day-to-day actionskeep company running

New productsthat changethe industry

External events,rivals, sales, costs

quality, trends.Strategies

Tactics

Operations

New tools tocut costs or imp-rove efficiency

Schedulingemployees,

placing orders.

Expenses,schedules, salesmodels, forecast

Transactions,accounting,

HRM, inventory

Decision Level Description ExampleType of

Information

Types of Information Systems

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Systems Overview Transaction Processing Systems

Collect data Management Information Systems

Aggregate and collect data Decision Support Systems

Analyze and warehouse data Executive Support Systems

Provide higher level analysis Executive Information Systems

Highest level summary of information

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Decision Levels & Application Systems

Strategic Management

Tactical Management

Business Operations

Define the trends in terms of type, level, and decision maker as you move up the pyramid…

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Processing Time: Batch Typical in transaction processing systems Data is entered over a period of time and is

processed at a fixed interval daily, weekly, etc.

Terminals

Mainframe

For Example:

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Processing Time: Batch Works well for repetitive, routine transaction

processing Payroll, check processing, bill processing

Doesn’t work well for high-interaction operations such as Airline Reservation System

Prone to errors: No immediate data validation Separation of user from data

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Processing Time: Real Time Terminals attached to a central mainframe Transactions are handled “live” and are

processed as they are received Changes can be live Sources:

Point of Sale Process Control Electronic Data Interchange Electronic Commerce

“Blackboard” uses both:• Updates to the course

materials are real-time

• Beginning of semester “auto-enrollment” is done in batch

Why do you think this is the case?

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Management Issues Price of data validation

“Pay now or pay later” Performance Requirements:

Response time (fit with business model) Batch windows (time)

Scalability Do you plan for average volume or peak volume?

Business Process Management

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Business Process Management Business Processes

The functions an organization performs to add value to the business

Can be broken up into discrete steps Example: Sales order process

The procedure that a company goes through to complete a sale to a customer

Business Process Management Governance: oversight of key functions performed by the

organization Linkage to IS: an information system uses technology to

perform a business process Opportunities: corrective actions, standardization and/or

continuous improvement

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BPM: Linkage to IS Recognize inefficiencies

Multiple people filling out the same form Trace and correct errors

Lost orders Incorporate new functions

Acquisition of a new business Identify opportunities for automation through

technology Self-checkout at grocery stores ATMs

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Process Mapping Forces thought on every component of the

process Help get consensus on process, boundaries,

scope, responsibilities Provides a foundation for other Analysis

User Requirements Process Improvement / Reengineering Organization Design Infrastructure Planning SOP Writing

Source; Joseph Wootten, BPM Process Mapping Course

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Process Mapping: Symbols

Process Start / End Internal

Process / Activity

Decision Connectors

External Process / Activity

On-page Connector

Off-page Connector

Source; Joseph Wootten, BPM Process Mapping Course

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Process Mapping: Approach

Add Decis. Points

etc

Connect Activities

List as Many

Activities as

Possible

Cluster Common Activities

Name the

Clusters

Place Clusters in Order

Ind

ivid

ual

Sm

all

Gro

up

sW

hol

eG

rou

p

Further Consoli-

dateActivities

Consoli-date

Activities

ADeeper

Analysis Required?

NoYes

Repeat Process

A

Process Map Needed

Session Compete

Source; Joseph Wootten, BPM Process Mapping Course

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Process Mapping: Example

Process

Sub-Processes

Activities

Tasks

• Confirm Strategy with Executive Users

• Define Project Scope

• Define Organization

• Build Business Case

• Confirm Sub-Processes/ Activities with Users

• Define Automated/ Manual Activities

• Define Application Scope

• Define Jobs/roles• Define Benefit

Areas

• Confirm Activities/ Tasks with Users

• Define User Requirements

• Define Information Needs

• Define Skills• Define Procedures

Process Maps can be developed to varying levels of detail to serve a variety of design needs

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Process Mapping: Example Level 0

donors

zoo boostermembers

1donor and

public relations

2produce

managementreports

3managehuman

resources

4animalcare

5manage

zoofacilities

public/zoo visitors

management

certificationagencies

employees

other zoos& breeders

PR data, receipts, etc.

money and requests

receipts/accounting

reports

management reports

usage reports

Pay data, requests

employee schedule

specialist request

specialist request

employee schedule

animal status

hours and benefits

public requests

needs and budgets

animal requests and health

research

animal requests & and health research

Maintenance and building requests

Maintenance schedule

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Process Mapping: Example Level 1public/zoo visitors

1.1produce PR& outreachprograms

1.5produce

accounting &reports

1.2handledonor

requests

1.3org. boosterservices &meetings

1.4track needsand donorprograms

donorszoo boostermembers

“Adopt an animal” database

PR data, receipts,

etc.

money and requests

PR data, receipts, etc.

money and requests

PR data, receipts, etc.

money and requests

2produce

managementreports

receipts/accounting

reports

money, data, and

visitor statistics

donor lists needs

and plans

donor requests

needs and

plans

booster requests

expenses and budget

animal needspublic requests

needs and budgets

public requests

4animalcare

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Process Mapping: Checklist Have we covered the core processes?

Have we mapped for the most common steps first, then managed exceptions later?

Have we covered the interfaces and handoffs?

Have we covered decision points and management process interfaces?

Do we have sufficient detail? Have we involved the right people? Do we have a consensus?

Source; Joseph Wootten, BPM Process Mapping Course

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Process Mapping: Next Steps After defining the “To Be” process, be sure to

record the following: What are the Organization Implications of the new

model? Change in Jobs Reorganization

What technology / tools will be needed to support the process?

What metrics will be used to measure the process?

Will any new infrastructure be needed?

Note where “technology” enters the process here.

Source; Joseph Wootten, BPM Process Mapping Course

Value Chain Analysis

29 Source: http://en.wikipedia.org/wiki/Value_chain

Google Case Discussion

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Google Discussion Questions The case describes several of Google’s “products” (their search

engine, Gmail, Google Earth, etc.). What do they have in common? How would you describe the line of business Google is in?

What is Google’s revenue model (how do they make money)? Who are its customers? With this in mind, what is Google’s real product?

Based on the material in the case, how would you describe Google’s strategy? Do they have one?

The last section of the case is titled “What Should Google Do?” What do you think Google should do (it doesn’t have to be one of the options described in the case)? Make sure you explain why you chose that course of action.

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Porter’s Five Forces

32Source: http://en.wikipedia.org/wiki/File:Porters_five_forces.PNG

Evaluate Google based upon this framework…

Next Week

Systems Thinking and Managing Complexity