1. One of the major problems that organisations face is to allocate fixed costs among different IT tasks. Fixed costs refer to costs that remain the same regardless of any change in the activity level.
Another complication regarding the assessment of costs of IT is that the cost of a system does not end when the system is installed.Maintaining, debugging, and improving the system can result in an accumulation of costs over many years.
2. Intangible benefits from IT are difficult to quantify. In such cases, it is most likely that an inputwill be requested about the intangible benefits that an information system provides for you.
3. NPV stands for net present value. NPV method is used to convert future values of benefits to their present value equivalent by “discounting” them at the organisation’s cost funds. The method works best when the costs and benefits are well defined enough to be converted into monetary values.
Return on Investment (ROI) measures management’s effectiveness in generating profits with its available assets. The ROI measure is a percentage, and the higher the percentage return,the better.
Business case approach refers to a written document that managers use tojustify funding one o more specific applications or projects. It describes what you do, how you do it, and how a new system could better support you. A business case also provides the bridge betweenthe initial plan and its execution.
4. Outsourcing services are provided by:
· Software companies such as IBM and Oracle, who offer services for developing, operating, and maintaining IT applications.
· IT outsourcers such as EDS
· Large CPA companies
· Management consultants
5. An application service provider (ASP) is an agent or a vendor who assembles the software needed by enterprises and packages the software with services such as development, operations, and maintenance. Next, the customer accesses these applications via the Internet or VANs through a standard Web browser interface.
The advantages of ASP include:
· save costs
· reduce software maintenance and upgrades
· reduce user training
· make the company more competitive by reducing time-to-time market and enhance the company’s ability to adapt to changing market conditions.
6. ASP also has some disadvantages:
· ASPs might not offer adequate security protection.
· Software might not be perfect fit for the desired application.
· Company must make certain that the speed of the Internet connection between the customer and the Asp is adequate to handle the requirements of the application.
7. The selection and management of vendors and software packages is a major aspect of developing an IT application. The steps are as follows:
Step 1: Identify Potential Vendors. Through various sources such as software catalogs, web searches, peers in other companies, lists provided by hardware vendors, and technical and trade journals, companies can identify potential software.
Step 2: Determine the Evaluation Criteria. A vital part in evaluating a vendor and a software package is to develop a well defined set of evaluation criteria.
Step 3: Evaluate Vendors and Packages. The goal of the evaluation is to determine the gaps between the company’s needs and the capabilities of the vendors and their application packages.
Step 4: Choose the Vendor and Package. Once the company has narrowed down the list of potential suppliers, it can begin negotiations with these vendors to determine how their packages might be modified to remove any discrepancies with the company’s IT needs.
Step 5: Negotiate a contract. The contract with the software vendor is vital and specifies both the price of the software and the type and amount of support that the vendor agrees to provide.
Step 6: Establish a Service Level Agreement. A service level agreement (SLA) is a formal agreement that specifies how work is to be divided between the company and its vendors.
8. A request for proposal (RFP) is a document that is sent to potential vendors inviting them to submit a proposal describing their software package and how it would meet the company’s needs.
Thursday
Week 11: Chapter 9 - Managerial Support Systems
1. The decision process proposed by Simon composed of three major phases: intelligence, design, and choice.
The intelligence phase involves managers examining a situation and identifying and defining the problem.
In the design phase, decision makers construct a model that simplifies the problem. The model is constructed by making assumptions that simplify reality and by expressing the relationships among all relevant variables.
The choice phase involves selecting a solution that is tested “on paper”.
2. Managers need IT support to make good decisions with valid and relevant information.
3. The decision matrix consists of nine cells that comprises of three primary classes of problem structure and three broad categories of the nature of decisions.Lower-level managers usually perform the structured and operational control-oriented tasks (cells 1, 2 and 4). The tasks in cells 3. 5,and 7 are usually the responsibility of middle managers and professional staff. The remaining cells 6, 8, and 9 refer to the tasks normally undertaken by senior executives.
4. Data mining involves searching for valuable business information in a large database, data warehouse, or data mart. It performs two basic functions: predicting trends and behaviours and identifying previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future.
5. A digital dashboard provides rapid access to timely information and direct access to management reports. It is very user friendly and is supported by graphics. Most importantly it allows managers to examine exception reports and drill-down reports.
The intelligence phase involves managers examining a situation and identifying and defining the problem.
In the design phase, decision makers construct a model that simplifies the problem. The model is constructed by making assumptions that simplify reality and by expressing the relationships among all relevant variables.
The choice phase involves selecting a solution that is tested “on paper”.
2. Managers need IT support to make good decisions with valid and relevant information.
3. The decision matrix consists of nine cells that comprises of three primary classes of problem structure and three broad categories of the nature of decisions.Lower-level managers usually perform the structured and operational control-oriented tasks (cells 1, 2 and 4). The tasks in cells 3. 5,and 7 are usually the responsibility of middle managers and professional staff. The remaining cells 6, 8, and 9 refer to the tasks normally undertaken by senior executives.
4. Data mining involves searching for valuable business information in a large database, data warehouse, or data mart. It performs two basic functions: predicting trends and behaviours and identifying previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future.
5. A digital dashboard provides rapid access to timely information and direct access to management reports. It is very user friendly and is supported by graphics. Most importantly it allows managers to examine exception reports and drill-down reports.
Monday
Week 10: Chapter 8 - Organisational Information Systems
Section 8.1 - Before You Go On…
1. What is a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs.
A transaction processing system (TPS) monitors, collects, stores, and processes data generated from all business transactions. It provides input to the organisation’s database. It is also input to the functional information systems, decision support systems, customer relationship management, knowledge management, and e-commerce.
Section 8.2 - Before You Go On…
1. What is a functional area information system? List its major characteristics.
A functional area information system provides information mainly to lower and middle level managers in the functional areas.
The information provided is used planning, organizing, and controlling operations.
2. How does an FAIS support management by exception? How does it support on-demand reports?
Exception reports include merely informationthat falls outside certain threshold standards. In order to support management by exception, management must firstly create performance standards. Next, the company sets up systems to observe performance, compare actual performance to the standards, and identify predefined exceptions.
Ad-hoc reports, also known as on-demand reports, are out-of-the-routine reports requested for information that is needed at different times outside the times when routine reports are performed.
Section 8.3 - Before You Go On…
1. Define ERP and describe its functionalities.
Enterprise resource planning (ERP) systems incorporate the planning, management, and use of all of an organisation’s resources. Their main objectives are to securely integrate the functional areas of the organisation and to enable information to flow impeccably across the functional areas. ERP systems provide the information necessary to control the business procedures of the organisation.
2. List some drawbacks of ERP software.
As advantageous ERP is, it also has some drawbacks. First of all, EPR can be tremendously complex, expensive, and time consuming to enforce. Another drawback is the predefined nature of the business processes of the software, meaning businesses may need to change existing business processes to suit it. Finally, ERP must be bought as a whole software package, even if the organisation only needs a few modules.
Section 8.5 - Before You Go On…
1. Define a supply chain and supply chain management (SCM).
A supply chain is the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end consumers. It also involves he organisation and processes that create and deliver products, information and services to end customers.
The role of supply chain management (SCM) is to plan, organize, and optimize the supply chain’s activities. SCM uses information systems. Its goal is to reduce friction along the supply chain.
2. List the major components of supply chains.
The major components of supply chains are upstream, internal, and downstream. Upstream refers to the sourcing or procurement from external suppliers occurs. The internal component is where packaging, assembly, or manufacturing takes place. Downstream is where distribution takes place, commonly by external distributors.
3. What is the bullwhip effect?
The bullwhip effect refers to erratic shifts in orders up and down the supply chain.
Section 8.6 - Before You Go On…
1. Define EDI and list its major benefits and limitations
Electronic data interchange (EDI) is a communication standard that allows business partners to exchange routine documents, such as purchasing orders, electronically.
EDI can be quite advantageous as it minimizes data entry errors because a computer processes each entry. In addition, the length of the message can be shorter and the messages are secured. EDI also increases productivity, improves customer service, minimizes paper usage and storage, and reduces cycle time.
As beneficial as EDI can be, it also has some drawbacks. EDI can be initially a costly investment, it is inflexible, and it also requires a long start up period.
1. What is a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs.
A transaction processing system (TPS) monitors, collects, stores, and processes data generated from all business transactions. It provides input to the organisation’s database. It is also input to the functional information systems, decision support systems, customer relationship management, knowledge management, and e-commerce.
Section 8.2 - Before You Go On…
1. What is a functional area information system? List its major characteristics.
A functional area information system provides information mainly to lower and middle level managers in the functional areas.
The information provided is used planning, organizing, and controlling operations.
2. How does an FAIS support management by exception? How does it support on-demand reports?
Exception reports include merely informationthat falls outside certain threshold standards. In order to support management by exception, management must firstly create performance standards. Next, the company sets up systems to observe performance, compare actual performance to the standards, and identify predefined exceptions.
Ad-hoc reports, also known as on-demand reports, are out-of-the-routine reports requested for information that is needed at different times outside the times when routine reports are performed.
Section 8.3 - Before You Go On…
1. Define ERP and describe its functionalities.
Enterprise resource planning (ERP) systems incorporate the planning, management, and use of all of an organisation’s resources. Their main objectives are to securely integrate the functional areas of the organisation and to enable information to flow impeccably across the functional areas. ERP systems provide the information necessary to control the business procedures of the organisation.
2. List some drawbacks of ERP software.
As advantageous ERP is, it also has some drawbacks. First of all, EPR can be tremendously complex, expensive, and time consuming to enforce. Another drawback is the predefined nature of the business processes of the software, meaning businesses may need to change existing business processes to suit it. Finally, ERP must be bought as a whole software package, even if the organisation only needs a few modules.
Section 8.5 - Before You Go On…
1. Define a supply chain and supply chain management (SCM).
A supply chain is the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end consumers. It also involves he organisation and processes that create and deliver products, information and services to end customers.
The role of supply chain management (SCM) is to plan, organize, and optimize the supply chain’s activities. SCM uses information systems. Its goal is to reduce friction along the supply chain.
2. List the major components of supply chains.
The major components of supply chains are upstream, internal, and downstream. Upstream refers to the sourcing or procurement from external suppliers occurs. The internal component is where packaging, assembly, or manufacturing takes place. Downstream is where distribution takes place, commonly by external distributors.
3. What is the bullwhip effect?
The bullwhip effect refers to erratic shifts in orders up and down the supply chain.
Section 8.6 - Before You Go On…
1. Define EDI and list its major benefits and limitations
Electronic data interchange (EDI) is a communication standard that allows business partners to exchange routine documents, such as purchasing orders, electronically.
EDI can be quite advantageous as it minimizes data entry errors because a computer processes each entry. In addition, the length of the message can be shorter and the messages are secured. EDI also increases productivity, improves customer service, minimizes paper usage and storage, and reduces cycle time.
As beneficial as EDI can be, it also has some drawbacks. EDI can be initially a costly investment, it is inflexible, and it also requires a long start up period.
Wednesday
Week 9: Chapter 4
Chapter 4: Data and Knowledge Management
1. There are several difficulties in managing data;
1. There are several difficulties in managing data;
- The amount of data builds up over time.
- Data may not be stored and managed properly.
- New data are unstructured, meaning their content cannot be truly represented in a computer record. Such as blogs, podcasts or RFID tags.
- Data decays over time. Eg. customers move to new addresses or new products are developed etc.
- Data security, quality and integrity can easily be jeopardised.
Data warehousing and databases can help manage data and resolve these issues.
2. The various sources for data are-
- Internal Data- eg. corporate databases
- External Data- eg. personal thoughts, opinions and experiences
- Personal Data- eg. commercial databases, government reports, and corporate websites.
Data can also come from the Web, in the form of Clickstream Data- those data that visitors and customers produce when they visit a web site and click on hyperlinks.
3. A primary key is the identifier field. It uniquely identifies that record so that it can be retrieved, updated and sorted in the database. The secondary keys are other fields that have some identifying information but typically doesn't identify the file with complete accuracy.
Further information on the keys: http://www.dynamicsoftware.com/knowledgebase/whataresoftwarekeys.html
4. An entity can be identified as an attribute of a person, place, thing, or event about which information is maintained in a record. A relationship is an association among two or more entities. Entities are shown as boxes and relationships as diamonds.
5. A relational database is based on the concept of two-dimensional tables - usually called a flat file - that contains all of the records and attributes. An advantage of this allows users to have great flexibility in the variety of queries they can make. However, a disadvantage of this is that a large-scale database can be composed of many interrelated tables, therefore the overall design can be complex and therefore have slow search and access.
6. Knowledge management (KM) is a process that helps organisations manipulate important knowledge that is part of the organisation's memory, usually in an unstructured format.
7. Tacit knowledge is the cumulative store of subjective or experiential learning. In contrast, explicit knowledge deals with more objective, rational and technical knowledge.
Tuesday
Week 8: Chapter 7
Chapter 7 Wireless, Mobile Computing, and Mobile Commerce
1. Wireless technologies include both wireless devices (smart phones) and wireless transmission media (microwave, satellite, and radio). These technologies have changed the way businesses operate and function in the modern world.
Wireless technologies have several applications to business-
Firstly, wireless technologies enable employees to communicate anytime and anywhere via wireless networks, providing organisations a strategic advantage by increasing productivity and speed and improving customer service.
Secondly, wireless technologies promote mobile commerce such as e-commerce transactions within the wireless environment.
2. Wireless transmission media/technologies, transmit signals without wires over the air or in space.
The various types of wireless media are:
Wireless fidelity (Wi-Fi) - is a set of standards for wireless local area networks based on the IEEE 802.11 standard.
Wireless wide-area networks (WWANs) - connect users to the Internet over geographically dispersed territory and operate over the licensed spectrum. These networkscan be placed into two categories: cellular radio and wireless broadband.
3rd Generation (3G) - of mobile telephony standards facilitate growth, increase bandwidth, and support more diverse applications. 3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency.
5. The drivers of mobile computing and mobile commerce are:
1. Wireless technologies include both wireless devices (smart phones) and wireless transmission media (microwave, satellite, and radio). These technologies have changed the way businesses operate and function in the modern world.
Wireless technologies have several applications to business-
Firstly, wireless technologies enable employees to communicate anytime and anywhere via wireless networks, providing organisations a strategic advantage by increasing productivity and speed and improving customer service.
Secondly, wireless technologies promote mobile commerce such as e-commerce transactions within the wireless environment.
2. Wireless transmission media/technologies, transmit signals without wires over the air or in space.
The various types of wireless media are:
- Microwave- microwave transmission systems are commonly used for high-volume, long distance, line-of-sight communication. They are susceptible to environmental interference and their towers cannot be more than 30miles apart.
- Satellite- satellite transmission systems utilize communication satellites.
At the moment, there are three types of satellites around the earth:
1. Geostationary (GEO),
2. Medium earth orbit (MEO), and
3. Low earth orbit (LEO).
Satellites must transmit and receive data via line-of-sight. However, since satellites cover a larger area of the earth, they overcome the limitations of microwave data relay stations. Satellites are also high enough for broadcast transmission. - Infrared- is red light that is not normally visible to the human eye. It is commonly used in remote control units for televisions, VCRs, DVDs and CD players as well as mobile phones for file-share. Infrared transmission is used for short-distance connections between computers and peripheral equipment.
- Radio- radio transmission uses radio-wave frequencies to send data directly between transmitters and receivers. It is inexpensive and easy to install and can transmit data at high speeds.
3. What is bluetooth? Bluetooth is an industry specification used to create small personal area networks. How is it used? Bluetooth can link up to 8 devices within a 10 metre area using low-power, radio-based communication. Bluetooth is used for common applications such as wireless handsets and filesharing for mobile phones and portable music players.
Wireless fidelity (Wi-Fi) - is a set of standards for wireless local area networks based on the IEEE 802.11 standard.
Wireless wide-area networks (WWANs) - connect users to the Internet over geographically dispersed territory and operate over the licensed spectrum. These networkscan be placed into two categories: cellular radio and wireless broadband.
3rd Generation (3G) - of mobile telephony standards facilitate growth, increase bandwidth, and support more diverse applications. 3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency.
5. The drivers of mobile computing and mobile commerce are:
- Widespread availability of mobile devices
- No need for PC- users can now access the Internet via a smart phone or other wireless device.
- The “cell phone culture”- the widespread use of cell phone.
- Declining prices- the price of wireless devices is declining.
- Bandwidth improvement- Wi-Fi, 3G cellular technology, and WiMax provide the necessary bandwidth for transmitting text, voice, video, and multimedia.
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