Week 2: Managing in a Digital World MIS5001: Management Information Systems

Week 2: Managing in a Digital
World
MIS5001: Management Information Systems
David S. McGettigan
Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg
Agenda

Group Term Paper

Prior Lecture Recap

Decision Making in the Enterprise

Types of Information Systems

Business Process Management

Google Case Discussion

Next Week
2
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 timing
4
Prior Lecture Recap
Recap

Fundamentals

Components of an Information System

Data, Information and Intelligence

Gaining Competitive Advantage from IT

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Barriers to Entry
Distribution Channels
Switching Costs
Innovation in Marketing, Manufacturing and
Customer Service
6
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)
Decision Making Process

Four phases of decision making



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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)
8
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)
9
Decision Levels
Decision Level
Description
Example
Type of
Information
Strategies
Competitive advantage
Market leader
Long term
New products
that change
the industry
External events,
rivals, sales, costs
quality, trends.
Tactics
Improve operations
without restructuring
Operations
Day-to-day actions
keep company running
New tools to
Expenses,
cut costs or impschedules, sales
rove efficiency
models, forecast
Scheduling
employees,
placing orders.
Transactions,
accounting,
HRM, inventory
10
Types of Information
Systems
Systems Overview

Transaction Processing Systems


Management Information Systems


Analyze and warehouse data
Executive Support Systems


Aggregate and collect data
Decision Support Systems


Collect data
Provide higher level analysis
Executive Information Systems

Highest level summary of information
12
Decision Levels & Application Systems
Define the trends in terms of type, level, and
decision maker as you move up the
pyramid…
S
TP
MIS
Tactical
Management
ES
S
DS
S
Strategic
Management
EIS

Business
Operations
13
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
For Example:
Mainframe
14
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
15
Processing Time: Real Time



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Terminals attached to a central mainframe
Transactions are handled “live” and are
processed as they are received
Changes can be live
“Blackboard” uses
both:
Sources:
• Updates to the course




Point of Sale
Process Control
Electronic Data Interchange
Electronic Commerce
materials are real-time
• Beginning of semester
“auto-enrollment” is done
in batch
Why do you think this is
the case?
16
Management Issues

Price of data validation

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Performance Requirements:



“Pay now or pay later”
Response time (fit with business model)
Batch windows (time)
Scalability

Do you plan for average volume or peak volume?
17
Business Process
Management
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
19
BPM: Linkage to IS

Recognize inefficiencies


Trace and correct errors


Lost orders
Incorporate new functions


Multiple people filling out the same form
Acquisition of a new business
Identify opportunities for automation through
technology


Self-checkout at grocery stores
ATMs
20
Process Mapping



Forces thought on every component of the
process
Help get consensus on process, boundaries,
scope, responsibilities
Provides a foundation for other Analysis

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
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User Requirements
Process Improvement / Reengineering
Organization Design
Infrastructure Planning
SOP Writing
Source; Joseph Wootten, BPM Process Mapping Course
21
Process Mapping: Symbols
Process
Start / End
Decision
Internal
Process /
Activity
Connectors
Source; Joseph Wootten, BPM Process Mapping Course
External
Process /
Activity
On-page
Connector
Off-page
Connector
22
Process Mapping: Approach
Whole
Group
Small
Groups
Individual
Process Map
Needed
List as
Many
Activities
as
Possible
Consolidate
Activities
A
Further
Consolidate
Activities
Name
the
Clusters
Cluster
Common
Activities
A
Yes
Place
Clusters
in Order
Deeper
Analysis
Required?
No
Add
Decis.
Points
etc
Connect
Activities
Session
Compete
Repeat Process
Source; Joseph Wootten, BPM Process Mapping Course
23
Process Mapping: Example
Process Maps can be developed to varying levels of detail to serve a
variety of design needs
Process
Sub-Processes
Activities
Tasks
• Confirm
Strategy with
Executive
Users
• Define Project
Scope
• Define
Organization
• Build Business
Case
• Confirm Activities/
Tasks with Users
• Define User
Requirements
• Define Information
Needs
• Define Skills
• Define Procedures
• Confirm SubProcesses/
Activities with Users
• Define Automated/
Manual Activities
• Define Application
Scope
• Define Jobs/roles
• Define Benefit
Areas
24
Process Mapping: Example Level 0
public/
zoo visitors
donors
PR data,
receipts, etc.
zoo booster
members
receipts/
accounting
reports
needs and
budgets
money and
requests
1
donor and
public
relations
animal
status
2
produce
management
reports
management
reports
management
certification
agencies
public
requests
hours and
benefits
animal requests
and health
research
4
animal
care
employee
schedule
3
manage
human
resources
specialist
request
animal
requests &
and health
research
Maintenance
and building
requests
specialist
request
employees
Pay data,
requests
Maintenance
schedule
other zoos
& breeders
employee
schedule
5
manage
zoo
facilities
usage reports
25
Process Mapping: Example Level 1
public/
zoo visitors
money and
requests
PR data,
receipts,
etc.
receipts/
accounting
reports
2
produce
management
reports
money and
requests
PR data,
receipts, etc.
1.1
produce PR
& outreach
programs
money,
data, and
visitor
statistics
zoo booster
members
donors
1.2
handle
donor
requests
donor
lists
1.5
produce
accounting &
reports
needs
and
plans
PR data,
receipts, etc.
money and
requests
1.3
org. booster
services &
meetings
donor
requests
expenses and
budget
needs
and
plans
booster
requests
public
requests
1.4
track needs
and donor
programs
animal needs
needs and
budgets
public
requests
“Adopt an animal”
database
4
animal
care
26
Process Mapping: Checklist

Have we covered the core processes?

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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
27
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
Note where
“technology” enters
the process here.
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?
Source; Joseph Wootten, BPM Process Mapping Course
28
Value Chain Analysis
Source: http://en.wikipedia.org/wiki/Value_chain
29
Google Case Discussion
30
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.
31
Porter’s Five Forces
Evaluate Google based upon this framework…
Source: http://en.wikipedia.org/wiki/File:Porters_five_forces.PNG
32
Next Week
Systems Thinking and Managing
Complexity