web.njit.edu~andersonCIS%20455%20Spring%202004.ppt by Abby McCary

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									      CIS 455
INFORMATION SYSTEMS
    MANAGEMENT
        Spring, 2004
    Mondays, 2:30-5:30pm
   Dr. William N. Anderson




New Jersey Institute of Technology   1
                                                CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT
Course Topics:
   The Importance of Information Systems Management
   The Top IS Job
   Strategic Use of Information Technology
   Information Systems Planning
   Distributed Systems: The Overall Architecture
   Managing Telecommunications
   Managing Information Resources
   Managing Operations
   Technologies for Developing Systems
                                                       2
                                              CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT
Course Topics
   Management Issues in System Development
   The Expanding Universe of Computing
   Supporting Decision Making
   Supporting Collaboration
   Supporting Knowledge Work
   The Challenges Ahead




                                                    3
                                                  CIS 455

                 HOMEWORK
 Typeface font should be 12 point
 Type the question before you give the answer
 Assume that every questions requires at least one
  paragraph (5-8 complete sentences) to answer, possibly
  two paragraphs if a complex or two-part question
 Run spell and grammar checker before you print
  it...better yet, have someone else read and review your
  answers to make sure they are clear and grammatically
  correct
 Do NOT copy complete sentences directly out of the text,
  journal articles, or case studies (anything that is not
  your own work) without using quotation marks and
  providing a citation (author, article/book title, date,
                                                          4
  volume, issue, publisher, city, state)
                                                  CIS 455

                 HOMEWORK

 Read the question, find the related material in the
  publication, THINK about what this means, provide
  your own description using examples that you feel are
  relevant, paraphrase the publication as a last resort
 I am looking for creative thinking on your part and
  don't want to re-read the textbook when grading your
  homework.
 Copying directly from text without quoting and
  providing a citation will result in a 0 (zero) on that
  question.


                                                           5
                                              CIS 455

                HONOR CODE
Academic Honesty/Integrity: Both NJIT and
Rutgers students are expected to follow published
guidelines on academic honesty and integrity. You
must acquaint yourself with these policies before
submitting any assignments. All written work
must be original. Violations of NJIT/Rutgers
policies will be reported to the Dean of Students at
both institutions and may result in failure on a
particular assignment, failure in the course, failure
in the course and probation, or failure in the course
and expulsion. Honor Code violations will be
pursued immediately and aggressively.               6
                                        CIS 455

       INFORMATION SYSTEMS
           MANAGEMENT
Class 1: The Importance of Information Systems
              Management (Chapter 1)

   History
   The Organizational Environment
   The Technology Environment
   The Mission of IS Organizations
   A Simple Model
   A Better Model

                                              7
                                          CIS 455



         Historical Perspective

• Agriculture dominates U.S. economy until
  ~1905
• Industrial era emerges, continuing to ~1957
• Information era continues to present day
• Number of service workers exceeds industrial
  workers ~1975
• By 1980 percent of U.S. workforce employed in
  agriculture ~3%

                                                  8
CIS 455




      9
                                   CIS 455


  The Organizational Environment

                 EXTERNAL

• The Internet Economy
• Global Marketplace
• Business Ecosystems
• Decapitalization
• Faster Business Cycles
•Accountability and Transparency


                                        10
                                        CIS 455


  The Organizational Environment

                 INTERNAL

• From Supply-Push to Demand-Pull
• Self Service
• Real Time Working
• Team-Based Working
• Anytime, Anyplace Information Work
• Outsourcing and Strategic Alliances
• Demise of the Hierarchy

                                             11
                                   CIS 455

     THE ORGANIZATIONAL
        ENVIRONMENT
                GOALS

• Leverage Knowledge Globally
• Organize for Complexity
• Work Electronically
• Handle Continuous and Discontinuous
  Change


                                        12
                          CIS 455

    THE TECHNOLOGY
      ENVIRONMENT

• Hardware Trends
• Software trends
• Data Trends
• Communications Trends




                               13
                             CIS 455




   What is the difference
   between “Management
Information Systems (MIS)”
            and
   “Information Systems
       Management”?


                                  14
                                  CIS 455



DEFINITIONS (Scope) OF MIS

Management Information System (MIS):
is an organized portfolio of formal
systems for obtaining, processing, and
delivering information in support of the
business operations and management of
an organization (Zwass, 1992).


                                       15
                                  CIS 455



DEFINITIONS (Scope) OF MIS

Management Information System (MIS):
provide managerial end users with
information products that support much
of their day-to-day decision-making needs
(O’Brien, 1999).



                                       16
                                   CIS 455



DEFINITIONS (Scope) OF MIS

Management Information System (MIS):
an information-producing system that
supports a group of managers who
represent an organizational unit such as a
management level or a functional area
(McLeod, 1998).


                                        17
                                           CIS 455

      INFORMATION SYSTEMS
          MANAGEMENT

• Information: the communication or
  reception of knowledge or intelligence;
  something which justifies change in a
  construct (as a plan or theory) that represents
  physical or mental content of information.



                                                18
                                           CIS 455

       INFORMATION SYSTEMS
           MANAGEMENT

• System: a regularly interacting or
  interdependent groups of items forming a
  unified whole; a group of interacting bodies
  under the influence of related forces; a group
  of devices or artificial objects or an
  organization forming a network especially
  for distributing something or serving a
  common purpose (telephone, heating,
  highway, data processing).                   19
                                        CIS 455

      INFORMATION SYSTEMS
          MANAGEMENT

• Management:         the conducting      or
  supervising of something; judicious use of
  means to accomplish an end; the
  collective body of those who manage or
  direct an enterprise.



                                               20
                                         CIS 455


    INFORMATION + SYSTEMS
        + MANAGEMENT
• The management of systems that provide
  senior executives with information about the
  history, current status, and future trends
  affecting the organization and its business
  interests.   It includes the technologies,
  people, processes, and organizational
  mechanisms for the purpose of improving
  organizational performance (McNurlin &
  Sprague, 1998).                            21
                            CIS 455


  MISSION FOR INFORMATION
TECHNOLOGY IN ORGANIZATIONS


   To improve the performance
    of people in organizations
        through the use of
     information technology.


                                 22
                                            CIS 455


  MISSION FOR INFORMATION
TECHNOLOGY IN ORGANIZATIONS
  1. The ultimate objective is performance
     improvement…

  2. The focus is on the people who make up the
     organization…

  3. The resource for this improvement is
     information technology…


                                                 23
                                             CIS 455

USERS BRIDGING THE TECHNOLOGY
             GAP
     System Designer    Information Specialist


   Expanded                       Sophisticated
  Information                     Products and
  Technologies                     Customers
User-Oriented Systems       Knowledgeable Users




                                                  24
                                       CIS 455



Characteristics of Information Work
        A. PROCEDURE-BASED

  • High volume of transactions
  • Low cost (value) per transaction
  • Well-structured procedures
  • Output measures defined
  • Focus on process
  • Focus on efficiency
  • Handling of “data”
  • Predominantly clerical workers          25
                                            CIS 455



Characteristics of Information Work
        A. PROCEDURE-BASED

 Examples???

    “Back office” - sorting, filing, counting, etc.
    Mortgage servicing
    Payroll processing
    Check processing
    Others???
                                                 26
                                       CIS 455



Characteristics of Information Work
           B. GOAL-BASED

 • Low volume of transactions
 • High value (cost) per transaction
 • Ill-structured procedures
 • Output measures less defined
 • Focus on problems and goals
 • Focus on effectiveness
 • Handling of concepts
 • Managers and professionals
                                            27
                                 CIS 455



Characteristics of Information Work

           A. GOAL-BASED

 Examples???
    Loan department
    Asset/liability management
    Planning department
    Corporate banking
    Others???
                                      28
                                                           CIS 455
                      Executive Leadership
                   (CIO, CEO, COO, CFO, etc.)

                             System
      Essential          Development and          Information
    Technologies             Delivery               Workers
    Distributed              Procedural Systems
                                                   Procedure-
     Hardware                                         based
   and Software                                   Information
                                                      Work
    Telecomm.
   Technologies
                                                   Goal-based
                               Support Systems    Information
   Information
                                                     Work
    Resources

Infrastructure Management


          A Framework for IS Management
                                                                29
                                CIS 455


  MISSION FOR INFORMATION
TECHNOLOGY IN ORGANIZATIONS

   To improve the performance of
   people in organizations through
        the use of information
             technology.



                                     30
                                           CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 2: The Top IS Job (Chapter 2)

   Where Is The IS Organization Headed?
   The CIO’s Responsibilities




                                                31
                              CIS 455

MISSION FOR INFORMATION
     TECHNOLOGY IN
     ORGANIZATIONS

 To improve the performance of
 people in organizations through
      the use of information
           technology.



                                   32
                                                           CIS 455
                      Executive Leadership
                   (CIO, CEO, COO, CFO, etc.)

                            System
      Essential         Development and           Information
    Technologies            Delivery                Workers
    Distributed              Procedural Systems
                                                   Procedure-
     Hardware                                         based
   and Software                                   Information
                                                      Work
    Telecomm.
   Technologies
                                                   Goal-based
                               Support Systems    Information
   Information
                                                     Work
    Resources

Infrastructure Management


          A Framework for IS Management
                                                                33
                                      CIS 455



        Waves of Innovation
Wave 1. Reduce Cost
Wave 2. Leveraging Investment
Wave 3. Enhancing Products and Services
Wave 4. Enhancing Executive Decision Making
Wave 5. Reaching the Consumer




                                           34
                                                          CIS 455


           Waves of Innovation
W av e 1    A ch iev e clerical a n d a d m inistra tiv e
            savin gs
W av e 2    M a ke m o re effectiv e use o f cu rren t
            a ssets
W av e 3    G ain stra tegic a d va n tag e/crea te n ew
            b u sin esses
W av e 4    Im p ro v e m a na g em en t d ecisio n -m a kin g

W av e 5    G et " closer" to the cu sto m er




                                                                 35
                                            CIS 455


         Waves of Innovation
Make Money                          5
                                        Reach
                                        Consumer
                      4
                           Enhance Decision Making
             3
                     Enhance Products/Services

     2
             Leverage Investments
1                                       Save Money

      Reduce Costs                               36
                                                                  CIS 455
  TRADITIONAL RESPONSIBILITIES BEING
  NIBBLED AWAY FROM IS DEPARTMENTS

                 Expanded Responsibilities
                        of IS Departments

                         Systems Planning
                        General Management
                                                             Purchased
                                                             Software,
                          Traditional                       Consultants,
                         Responsibilities                   Outsourcers
              Manage         of IS            Building
              Remote                          Systems
              Systems     Management

Distributed
 Systems,                    System
Outsourcers                  Analysis


                                             Business-led
                                               Teams                       37
                                                              CIS 455
         FOUR MAJOR IS ACTIVITIES
Added
Value
                                               Business
                                             Requirements
                                             Identification

                              Systems &
Impact                       Information
                             Architecture
                        Systems
                     Development &
                      Maintenance
               Computer
  Cost         Operations
Efficiency
             IT                 Balance of              Business
             Knowledge          Expertise              Knowledge
                                Required                           38
                                                                  CIS 455
     THE SQUEEZE ON TRADITIONAL
             ACTIVITIES
Added             Growing
Value            Capability of
                    Users                          Business
                                                 Requirements
                                                 Identification

                                  Systems &
Impact                           Information
                                 Architecture
                        Systems
                     Development &
                      Maintenance
               Computer                           Growing External
  Cost         Operations                             Services
Efficiency
             IT                     Balance of              Business
             Knowledge              Expertise              Knowledge
                                    Required                           39
                                              CIS 455
                      ROLES FOR IS
Added
Value



                           Systems &
Impact                    Information
                          Architecture

                 Broker



  Cost
Efficiency
             IT              Balance of    Business
             Knowledge       Expertise    Knowledge
                             Required                 40
                                                                       CIS 455

   BOEING INFORMATION SERVICES
                       Business Process             What business processes
                        Architecture                should be used?
  Drives
                         Information                What information is needed
                         Architecture               to accomplish those processes?
  Prescribes

                         Information                How are the processes and
                     Systems Architecture           information related?
  Identifies
                           Data                     How is the data managed?
                        Architecture

Supported by
                  Delivery System Architecture         Which hardware, software,
               Hardware, Software, Communications      and networks are required?

                                                                                41
                              CIS 455


   The CIO’s Responsibilities

Roles in Three Eras:
     1. The Mainframe Era
     2. The Distributed Era
     3. The Web Era




                                   42
                                            CIS 455


              The CIO’s Roles

1. Leading: Creating a vision of the future and
   selling it
2. Governing: Establishing an IS governance
   structure
3. Investing: Shaping the IT portfolio
4. Managing: Fostering change



                                                  43
                                       CIS 455


 I. Leading: Creating a Vision of
     the Future and Selling It
What is a vision?

    “A vision is a statement of how
   someone wants the future to be or
           believes it will be”

Examples?

                                            44
                                       CIS 455


 I. Leading: Creating a Vision of
     the Future and Selling It
How do you get a vision?

              1. Explore the Present
              2. Scout the Future




                                            45
                                   CIS 455


 I. Leading: Creating a Vision of
     the Future and Selling It
How do you sell a vision?
First…..
  “By understanding the marketplace in
  terms of what the customer wants
  rather than what they should have.”



                                         46
                                    CIS 455


 I. Leading: Creating a Vision of
     the Future and Selling It
How do you sell a vision?
Second…..
  “Through personal relationships that
  continuously reinforce the message
  that you care about your customers.”



                                         47
                                       CIS 455


 I. Leading: Creating a Vision of
     the Future and Selling It
Encouraging Champions of IT Projects

   1. They need information
   2. They need resources
   3. They need support



                                            48
                            CIS 455


II. Governing: Establishing an IS
      Governance Structure

        Centralized
        Parent-led
        Federated
        Multi-local




                                 49
                                            CIS 455


     III. Investing: Shaping the IT
                 Portfolio
* Realize that the benefits come more from the
  discussions than the prioritization
* Put projects into categories where they are
  comparable
* Address project risks
* Prioritize quarterly, and apportion your budget
  accordingly
* Be consistent                                  50
                                    CIS 455



IV. Managing: Fostering Change

• Successful management of change
   a) The sponsor
   b) The change agent
   c) The target

• Working across organizational lines


                                         51
                                             CIS 455


              The CIO’s Roles

1. Leading: Creating a vision of the future and
   selling it
2. Governing: Establishing an IS governance
   structure
3. Investing: Shaping the IT portfolio
4. Managing: Fostering change

    Of these, which is the most important?
                    Why?
                                                  52
                           CIS 455


PRIMARY RESPONSIBILITIES OF THE
          EXECUTIVE

 Classical Theory

  1. Planning
  2. Organizing

  3. Controlling



                                53
                                                                              CIS 455


PRIMARY RESPONSIBILITIES OF THE
          EXECUTIVE

 Behavioral Theory
1. Defining objectives and maintaining goal direction
2. Providing means for goal attainment
3. Providing and maintaining group structure
4. Facilitating group cohesiveness and interaction
5. Maintaining group cohesiveness & member satisfaction
6. Facilitating group task performance


Stogdill, Ralph M. ( 1974) Handbook of Leadership, New York; The Free Press        54
                                                                              CIS 455

       FACTORS ASSOCIATED WITH
             LEADERSHIP
1. Capacity (intelligence, alertness, verbal facility,
   originality, judgement)

2. Achievement (scholarship, knowledge, athletic
   accomplishments)
3. Responsibility (dependability, initiative, persistence,
   aggressiveness, self-confidence, desire to excel)

4. Status (socioeconomic position, popularity)
5. Situation (mental level, status, skills, needs and interests
   of followers, objectives to be achieved, etc.)
Stogdill, Ralph M. ( 1974) Handbook of Leadership, New York; The Free Press        55
                                                                              CIS 455

  CHARACTERISTICS OF A LEADER

“The leader is characterized by a strong drive for
 responsibility and task completion, vigor and
 persistence in pursuit of goals, venturesomeness
 and originality in problem solving, drive to
 exercise initiative in social situations, self-
 confidence and sense of personal identify,
 willingness to accept consequences of decision
 and action, readiness to absorb interpersonal
 stress, willingness to tolerate frustration and
 delay, ability to influence other persons’ behavior,
 and capacity to structure social interaction
 systems to the purpose at hand.”

Stogdill, Ralph M. ( 1974) Handbook of Leadership, New York; The Free Press        56
                                CIS 455

CHARACTERISTICS OF A LEADER

   What is Wrong With The
    Classical and Behavioral
   Definitions of Leadership?

   AN OLD PARADIGM



                                     57
                                              CIS 455



“THE FLIGHT OF THE BUFFALO ”

                         A Herd of Buffalo

• A herd of buffalo follows the leader
• The leadership role rarely changes
• Only one member ever leads the herd
• All of the rest of the herd are followers



Belasco & Stayer, 1993                             58
                                            CIS 455



“THE FLIGHT OF THE BUFFALO ”

                         A Flock of Geese

• A flock of geese follows the leader
• The leadership role changes frequently and
  seamlessly
• Any member of the flock can and does lead
• All members of the flock are both leaders and
  followers

Belasco & Stayer, 1993                            59
                                    CIS 455

        OLD VS. NEW PARADIGM

         The old paradigm defines
     executives (leaders) as those who
        plan, organize, and control,
       thereby excluding all others.
      The new paradigm requires all
    members of an organization to be
    ready to assume a leadership role!

Belasco & Stayer, 1993                   60
                                                  CIS 455

   THE ENTERPRISE INFORMATION
       MANAGEMENT MODEL


    Strategic Plan         Impact        Information
        of the                           Technology
      Enterprise                        Opportunities


       Business                          Information
                         Alignment
    Organizations                    Systems Architecture
(that carry out plans)


Benson & Parker                                         61
                                                CIS 455

CHAPTER 2 – CRITICAL QUESTIONS

1. Why should it be a necessary CIO responsibility to
   establish an IS governance structure?

2. What are some industries that will require
   “technological maturity” and why is this the case?

3. Which is more important – vision OR strategy –
   and why might that be?

4. Why should it be necessary for information systems
   project teams to study the marketplace when the
   marketing unit or each line of business should be
   doing this anyway?

                                                        62
                                      CIS 455


     ANALYZING CASES (8 Steps)
1. Identify the Relevant Facts
2. Identify the Major Problems
3. Determine Which Problems are Symptoms and
   Which are Critical (Root)
4. Classify Critical Problems as:
       a. People And/Or
       b. Resource And/Or
       c. System


                                           63
                                           CIS 455


          ANALYZING CASES
5. Consider Causes of the Critical Problem(s)
6. Identify Possible Solutions to the Critical
   Problem(s)
7. Determine Who is Responsible for Solving the
   Critical Problem(s)
8. Make Your Recommendations For the
   Solution(s) and Cost(s)



                                                64
                                            CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 2: Strategic Uses of Information Technology
         (Chapter 3)

   Looking Inward: Business -to-Employee
   Looking Outward: Business-to-Consumer
   Looking Across:Business-to-Business
   Technical Considerations
   Legal and Ethical Considerations
                                                 65
                                                  CIS 455

 THE EVOLUTION OF ELECTRONIC
         COMMERCE

      STO CK             F eb . 2, 2003      W AS
     A O L /T W             $11.66        $75 (12/1999)
  Y A H O O .C O M          $18.20        $240 (1/2000)
P R IC E L IN E .C O M      $1.30         $100 (3/2000)
    P E T S .C O M            $0           $8 (3/2000)


Why did this happen?
Who wins? (What strategies did they employ?)
Who loses? (What strategies did they employ?)
                                                          66
                                                  CIS 455
STRATEGIC USES OF INFORMATION
           SYSTEMS
Working                            Business-to-
Outward                             Consumer



Working
Inward
          Business-to-                Business-to-
           Employee                    Business



                         Working
                         Across

                                                       67
                                            CIS 455

         WHAT IS E-BUSINESS?
 “...the use of telecommunications networks ,
 particularly the Internet, to conduct business
                  transactions.”

• Business-to-employee: Internet applications
  internal to a firm
• Business-to-consumer: Internet applications
  for a firm’s customers
• Business-to-business: Internet applications
  for a firm’s business partners
                                                  68
                                    CIS 455

         E-BUSINESS DRIVERS

• Wide Access To A Public Network

• Standard Communication Protocol

• Standard User Interface




                                         69
                                          CIS 455

Working Inward: Business-to-Employee


        Benefits of Intranets

• Wider access to company information
• More efficient and less expensive systems
• Decreased training




                                               70
                                   CIS 455


Working Outward: Business-to-Consumer

    Advantages of B2C E-Business

1. Global accessibility
2. Reduced order processing
3. Greater availability
4. Closer customer relationships
5. Increased customer loyalty
6. New products and services
7. Direct marketing
                                        71
                                          CIS 455


           The E-Business Model

      Redefining Customer Value

1. Respond to company information
2. Respond to product information
3. Respond to price information
4. Process orders faster
5. Deliver products to consumers faster
6. Customer convenience
7. Personalization of customer services
                                               72
                                 CIS 455


Working Outward: Business-to-Consumer

        Potential B2C Problems

1. Technical
2. Logistic
3. Personnel
4. Legal
5. Competitive response
6. Transparent prices
7. Greater competition
                                      73
                                         CIS 455


  Working Across: Business-to-Business

• Coordinating with Suppliers
• Establishing Close and Tight Relationships
   - Loose integration
   - Close integration
   - Tight Integration
• Becoming a Customer-Centric Value Chain
• Getting Back End Systems in Shape

                                               74
                                                                               CIS 455
            SPECTRUM OF VALUE CHAIN
                  INTEGRATION

   L evel of        C lass of       C ha ng e to
V alue C h ain   Interb usiness    V alue C h ain      F ocus of          E x am ple
Integ ration      A p plicatio n    P rocesses       Im p ro vem ent


  3 ) T ig ht       S hared        R eeng in eered      P rocess            P lans
                   D ata base                         In no vatio n      har m o nized

                                                                              C o-
  2 ) C lose         H ost-          A djusted          P rocess       m a n ag em ent of
                   Iteg rated                        E ffectiveness     infor m ation
                      EDI
                                   U ncha ng ed,                          O rd ers &
  1 ) L oose     D oor-to-do or      ex isting          P rocess           Inv oices
                      EDI          tran saction s      E fficiency        ex chang ed
                                    auto m a ted                        electro nically


                                                                                          75
                                                CIS 455

     CHARACTERISTICS OF
INTERORGANIZATIONAL SYSTEMS

1. They require “partners”.
2. Standards play a key role.
3. Education is important.
4. Third parties are often involved.
5. The work must be coordinated.
6. Work processes are often evaluated.
7. Technical aspects are not the major issue.
8. Efforts cannot be secretive.
                                                     76
                                       CIS 455


  Legal and Ethical Considerations

     Privacy & Intellectual Property
                 Rights
• Privacy
• Copyrights, Patents, Trademarks & Trade
  Secrets
• Legal Jurisdiction
• Online Contracting

                                            77
                                                 CIS 455
          EXAMPLES OF
  INTERORGANIZATIONAL SYSTEMS

  Creative Idea and
Characters for a Movie
                         Walt Disney
                                           Packaged and
                                           Distributed in
  Makes the Toys                          “Happy Meals”


             Hasbro                    McDonalds



                                                       78
                                                          CIS 455
        EXAMPLES OF
INTERORGANIZATIONAL SYSTEMS
                   FedEx boxes at all Post
                  Offices in the United States



 U.S. Post Office                              FedEx


 Mail on commercial                   Mail on FedEx airplanes
airlines that fly mostly              that fly mostly at night
     during the day

                      U.S. mail that is on
                    airplanes both day and
                     night (faster delivery)
                                                                 79
                                                      CIS 455
        EXAMPLES OF
INTERORGANIZATIONAL SYSTEMS
              Rutgers’ students taking CIS,
              Math & Engineering courses
                at NJIT (fuller courses)



 Rutgers-Newark                             NJIT


   Students pursuing                   Students pursuing
degrees in RU programs                  degrees in NJIT
                                           programs

                  NJIT students taking
                Humanities, Liberal Arts,
                 and Science courses at
                 Rutgers (fuller courses)                  80
                                               CIS 455

SYMBOLS: An observable part of culture

                CUSTOMERS
               Sales & Support People

               Department Managers
                 Store Managers,
               Buyers, Merchandise
                    Managers
                    Board of
                    Directors
The Company?                            Nordstrom, Inc.

                                                    81
                                                                                   CIS 455

PETER KEEN’S PROGNOSTICATIONS
       FOR THE MID-1990’S

1. Every large firm in every industry will have from 25-80
   percent of its cash flow processed on-line.

2. EDI will be the norm.

3. Point-of-sale and electronic payments will be core
   services.

4. Image technology will be an operational necessity.



Keen, Peter G.W., (1991) Shaping the Future: Business Design Through Information        82
Technology, Harvard Business School.
                                                                                   CIS 455

PETER KEEN’S PROGNOSTICATIONS
       FOR THE MID-1990’S

5. Work will be distributed, and reorganization will be
   commonplace.

6. Work will increasingly be location independent.

7. Electronic business partnerships will be standard.

8. Reorganizations will be frequent, not exceptional.




Keen, Peter G.W., (1991) Shaping the Future: Business Design Through Information        83
Technology, Harvard Business School.
                                                                   CIS 455

           THE SHIPPING INDUSTRY
           Point-to-Point


Trucking         Less Than Truckload

                        Packaging Sort        UPS
       Package
       Delivery             Expedited Delivery



                                Airport          Federal Express
            Overnight
            Delivery                     Information Tracking


                                                           Airborne Express
                    Advanced       Distribution Network
                    Logistics              Inventory Facilities


                                                                         84
                                                    CIS 455
  CHAPTER 3 – CRITICAL QUESTIONS

1. Primozic, et al, suggest that a firm that correctly
   identifies a new market, and the technologies to
   exploit it, shifts to the new experience curve and is
   very successful. How does a firm correctly identify a
   new market?

2. Why does Amazon.com, a most visible e-retailer,
   continue to have its business viability questioned?

3. Why is it that the use of e-business to integrate the
   supply chain has proven to be the e-business application
   with the highest payoff?


                                                           85
                              CIS 455

MISSION FOR INFORMATION
     TECHNOLOGY IN
     ORGANIZATIONS

 To improve the performance of
 people in organizations through
      the use of information
           technology.



                                   86
                                                         CIS 455
MICROSOFT SHOULD MAKE CARS,
 GM SHOULD MAKE SOFTWARE
A t a recen t co m p u ter ex p o, B ill G ates rep orted ly
com p ared th e co m p u ter in d u stry w ith th e au to
in d u stry an d sta ted :

" If G M h a d k ep t u p w ith tech n ology lik e th e
com p u ter in d u stry h as, w e w ou ld all b e d rivin g
tw en ty -five d ollar cars th at got 100 0 m iles to th e
gallon ."

In resp on se to B ill's co m m en ts, G en eral M otors
issu ed a p ress release statin g th e follow in g:

                                                               87
                                                     CIS 455
"If GM had developed technology like Microsoft, we would
     be driving cars with the following characteristics:
1. For no reason whatsoever, your car would crash twice a
   day.
2. Every time they repainted the lines on the road, you
   would have to buy a new car.
3. Occasionally, your car would die on the freeway for no
   reason, and you would accept this, restart, and drive on.
 4. Occasionally, executing a maneuver such as a left turn
    would cause your car to shut down and refuse to
    restart; in which case you would have to reinstall the
    engine.
5. Only one person at a time could use the car, unless
   you bought 'Car95' or 'CarNT.' Then you would
   have to buy more seats.                                 88
                                                    CIS 455
6. Macintosh would make a car that was powered by the
   sun, was more reliable, five times as fast, and twice as
   easy to drive, but would only run on five percent of the
   roads.
7. The oil, water, temperature and alternator warning
   lights would be replaced by a single 'general car fault’
   warning light.
8. New seats would force everyone to have the same butt
   size.
9. The airbag system would say 'Are you sure?' before
   going off.

10. Occasionally, for no reason whatsoever, your car
    would lock you out and refuse to let you in until you
    simultaneously lifted the door handle, turned the key
    and grabbed hold of the radio antenna.                89
                                                    CIS 455
11. GM would require all car buyers to also purchase a
    deluxe set of Rand McNally road maps (now a GM
    subsidiary), even though they neither need them nor
    want them. Attempting to delete this option would
    immediately cause the car's performance to diminish
    by 50 per cent or more.

12. Every time GM introduced a new model, car buyers
   would have to learn how to drive all over again because
   none of the controls would operate in the same manner
   as the old car.
13. You'd press the 'Start' button to shut off the engine.”



                                                          90
                                          CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 3: Information Systems Planning (Chapter 4)

   The Changing World of Planning
   Six Planning Techniques




                                               91
                                            CIS 455

                PLANNING
1. What is planning?
2. What is a plan?
3. When are plans necessary?
4. When are plans unnecessary?
5. Who should be involved in planning?
6. What should be included in a plan?
7. How detailed does the plan have to be?



                                                 92
                                            CIS 455

                PLANNING
8. How do you make sure the plan is being
   followed?
9. What do you do if you find you are “off
   course”?
10. Does the plan stay the same or can/should it be
    changed?
11. How often should the plan change?
12. What if the most recent plan looks nothing
    like the original plan?

                                                 93
                                          CIS 455
The Wrong
   Way
            THE PLANNING PROCESS
     Where You
       Are




                     The Right           A Longer
                       Way                 Way




                                 Where You Want
     The Usual                       To Be
       Way
                                                  94
                                                CIS 455

   WHERE DO YOU WANT TO GO?
1. How clear are you in your destination?
2. Do you have the equipment to get you there?
3. If by car, do you have enough gas?
4. If by bus/train, do you know the schedule?
5. If you can’t do it alone, who will help you?
6. Do they need to know your destination?
7. Do you know what to do if you get “lost”?
8. Do they know what to do if they get “lost”?
9. Will you all be doing the same thing?
                                                     95
                                              CIS 455
The Wrong
   Way
                 The Planning Process
     Where You
       Are




                         The Right           A Longer
                           Way                 Way




                                     Where You Want
     The Usual                           To Be
       Way
                                                      96
                                                                            CIS 455


      THREE TYPES OF PLANNING

H orizon         F ocu s                Issu es                  P rim ary
                                                              R esp on sib ility

3 -5 Y ears    S trateg ic      V isio n, A rc hitectur e,   S enior M an ag e m e nt
                                    B usiness G oals                 C IO


1 -2 Y ears     T actical       R eso urc e A lloc atio n,    M iddle M anag ers,
                                  P roject S election         IS L ine M anag ers,
                                                             S teering C o m m ittee

6 M onths-1   O pe ratio n al   P roject M anag e m e nt,      IS P rofessio nals,
   Y ear                          M eeting T im e a nd         L ine M anag ers,
                                    B udg et T arg ets             P artn ers




                                                                                     97
                                         CIS 455

             TRADITIONAL
           STRATEGY-MAKING


• The future can be predicted
• Time is available
• IS supports and follow the business
• Top management knows best
• The company can be viewed as an army



                                              98
                                        CIS 455

       CHANGE AS A FUNCTION OF
           UNCERTAINTY


                                   Linear
Uncertainty




                         5 Years

                  Time
                                             99
                                          CIS 455

       CHANGE AS A FUNCTION OF
           UNCERTAINTY
                                   Exponential


Uncertainty




                         5 Years

                  Time
                                                 100
                                                  CIS 455

   THE ENTERPRISE INFORMATION
       MANAGEMENT MODEL


    Strategic Plan         Impact        Information
        of the                           Technology
      Enterprise                        Opportunities


       Business                          Information
                         Alignment
    Organizations                    Systems Architecture
(that carry out plans)


Benson & Parker                                         101
                                             CIS 455

   TODAY’S SENSE-AND-RESPOND
           APPROACH


• Let strategies unfold rather than plan them
• Formulate strategy closest to the action
• Guide strategy-making with a “strategic
  envelope”
• Be at the table
• Test the future
• Put the infrastructure in place

                                                 102
                                CIS 455

TOOLS AND APPROACHES FOR
   SYSTEMS PLANNING

 1. Stages of Growth
 2. Critical Success Factors
 3. Competitive Forces Model
 4. Value Chain Analysis
 5. Internet Value Matrix
 6. Linkage Planning Analysis



                                    103
                                      CIS 455

 1.) STAGES OF GROWTH


Stage I. Early Successes
Stage II. Proliferation
Stage III. Control of Proliferation
Stage IV. Mature Use




                                          104
CIS 455




    105
                                               CIS 455

 2.) CRITICAL SUCCESS FACTORS
"For each executive, critical success factors are
the few key areas of the job where things must
go right in order for the organization to flourish.
When listing the corporate objectives and goals
for the year, CSF's are used to determine which
factors are critical for accomplishing the
objectives, and are also used to determine the
prime measures for satisfying each factor. CSFs
can also be used to help companies identify
information systems that need to be improved or
developed" (McBride, 1998).
                                                      106
                                           CIS 455
      CRITICAL SUCCESS FACTORS
              FOR NJIT

   You are Dr. Robert Altenkirch, President of
    NJIT. As part of the planning process, the
Chairman of the Board of Trustees has asked you
to identify the top 10 CSF’s for NJIT and present
         them at the next board meeting.


 You have asked students in CIS 455 to provide
        you with a draft by tomorrow.

                                               107
                                             CIS 455
NJIT must...
 Be in compliance with all federal, state,
  county, and municipal regulations (EPA, OSHA,
  Title IV, EE/AA, etc.)
 Follow standard financial accounting and
  sound budgeting practices
 Maintain academic standards to keep accreditation
 (ABET, AACSB, CSAB, Middle States)
 Have a safe and secure campus
 Have a stable/growing enrollment
 Provide administrative, academic, and support
  services to students
 Receive continued financial support from the state
                                                 108
                                              CIS 455
 NJIT must...
 Minimize negative impact of external forces
 (competition, liability [civil/criminal]
 Provide quality instruction and research
 Have a positive relationship with local community
  (City of Newark)
 Have administrative systems that support
  instruction, research, and overall operation
 Satisfy the educational needs of people planning to
  enter or already in scientific/technical fields
 Have support from the corporate community
 Have strong relationships with N.J. community
  colleges
                                                   109
                                                          CIS 455
      3.) PORTER’S COMPETITIVE
             FORCES MODEL
                         Potential
                         Entrants
                                        Threat of new entrants
Bargaining power         Industry
  of suppliers          Competitors

Suppliers                                              Buyers
                       Rivalry among
                       existing firms
Threat of substitute                            Bargaining power
products or services                               of buyers

                        Substitutes
                                                                 110
                                                                           CIS 455

              4.)VALUE CHAIN ANALYSIS


                           Firm Infrastructure
                                                                       Margin
Support                  Human Resource Management
Activities                   Technology Development
                                    Procurement


             Inbound      Operations Outbound    Marketing   Service
             Logistics               Logistics     and                  Margin
                                                  Sales




                             PrimaryActivities

    Porter, 1985                                                                 111
                                       CIS 455

      VIRTUAL VALUE CHAINS
• Making operations visible
• Mirroring capabilities
• Space-based customer relationships




                                           112
                                                        CIS 455


    5.) E-BUSINESS VALUE MATRIX

                                  C riticality    N ew n ess
                                 to B u sin ess    of Id ea
   N ew F u n d am en tals           LOW            LOW
 O p eration al E xcellen ce        H IG H         LOW
R ation al E xp erim en tation      LOW            H IG H
 B reak th rou gh S trategy         H IG H         H IG H




                                                               113
                                          CIS 455

 6.) LINKAGE PLANNING ANALYSIS


1. Understand the “waves of innovation”
2. Exploit experience curves
3. Define power relationships
4. Map out your “extended enterprise”
5. Plan your electronic channels




                                              114
                                                               CIS 455
        THE EXTENDED ENTERPRISE

                             Top
                          Management
                            Middle
                          Management
                          Operations


                       Electronic Channels




Retailers
                                                              Suppliers
Distributors
      Government                                         Financial
                              Traditional       New     Community
               Stockholders                                          115
                              Competitors    Competitors
                                           CIS 455


      7.) SCENARIO PLANNING

1. Define a decision problem and time frame to
   bound the analysis
2. Identify the major known trends that will
   affect the decision problem
3. Identify just a few driving uncertainties
4. Construct the scenarios


                                               116
                                               CIS 455


        S.W.O.T. ANALYSIS

    STR EN G TH S             W EA K N ESSES
   1                        1
   2                        2
   3                        3

O P P O R T U N IT IE S           THREATS
 1                          1
 2                          2
 3                          3




                                                   117
                                 CIS 455


PRODUCTS/MARKETS ANALYSIS

 OLD PRO DUCTS   NEW PRODUCTS
  1              1


  2              2


  3              3




  OLD M ARKETS    NEW M ARKETS
  1              1


  2              2


  3              3




                                     118
                                 CIS 455


PRODUCTS/MARKETS ANALYSIS

 OLD PRO DUCTS   NEW PRODUCTS
  1              1


  2              2


  3              3




  OLD M ARKETS    NEW M ARKETS
  1              1


  2              2


  3              3




                                     119
                                 CIS 455


PRODUCTS/MARKETS ANALYSIS

 OLD PRO DUCTS   NEW PRODUCTS
  1              1


  2              2


  3              3




  OLD M ARKETS    NEW M ARKETS
  1              1


  2              2


  3              3




                                     120
                                 CIS 455


PRODUCTS/MARKETS ANALYSIS

 OLD PRO DUCTS   NEW PRODUCTS
  1              1


  2              2


  3              3




  OLD M ARKETS    NEW M ARKETS
  1              1


  2              2


  3              3




                                     121
                                 CIS 455


PRODUCTS/MARKETS ANALYSIS

 OLD PRO DUCTS   NEW PRODUCTS
  1              1


  2              2


  3              3




  OLD M ARKETS    NEW M ARKETS
  1              1


  2              2


  3              3




                                     122
                                                  CIS 455
  CHAPTER 4 – CRITICAL QUESTIONS

1. What approaches might you use to convince top
   management to invest in organizational infrastructure,
   particularly when such investments cannot be identified
   with a specific project?
2. What is the difference between a CSF and an objective?
3. How could an entrepreneurial company just starting out
   assume mature technology use immediately given that it
   has a vision of the stages of growth and the problems to
   avoid?
4. How long might an organization expect to sustain a
   competitive advantage through differentiation of
   products when product life cycles are now measured in
   Internet time?                                     123
                                            CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 4: Distributed Systems: The Overall
         Architecture (Chapter 5)

   Seven Types of Distributed Systems
   Describing the Overall Architecture
   The Importance of IT Infrastructure



                                                124
                                                          CIS 455
                     Executive Leadership
                            (CIO)

                            System
      Essential         Development and          Information
    Technologies            Delivery               Workers
    Distributed             Procedural Systems
                                                  Procedure-
     Hardware                                        based
   and Software                                  Information
                                                     Work
    Telecomm.
   Technologies
                                                  Goal-based
                              Support Systems    Information
   Information
                                                    Work
    Resources

Infrastructure Management


          A Framework for IS Management
                                                               125
                                             CIS 455

ARCHITECTURE vs. INFRASTRUCTURE

 Architecture: defines where things are physically,
                what they look like, and how they
                 can inter-relate.

 Infrastructure: describes the implementation of
                 the architecture.




                                                   126
                                                 CIS 455

          METAPHOR: A HOUSE

Architecture: a house has a foundation, walls, a
 roof, rooms, windows, HVAC (heating/cooling
systems), an electrical system, etc.

 Infrastructure: when people live in a house they
 implement the architecture by defining the color
(external/internal), décor (furniture), the purpose of
each room, set HVAC controls, and maintain
systems (clean, repair, replace, etc.).

                                                     127
                             CIS 455

     DIFFERENCE BETWEEN
ARCHITECTURE & INFRASTRUCTURE


Architecture is designed.




Infrastructure is managed.


                                 128
                                      CIS 455

WHAT IS AN IT INFRASTRUCTURE?

”the base foundation of IT capability for
and (usually) provided by the information
systems function in the form of reliable
services and shared across multiple
business units or functional areas. The IT
capability includes both the technical and
managerial expertise required to provide
reliable services.” (Weill, Broadbent, and
St. Clair, 1966)
                                             129
                                         CIS 455

INFRASTRUCTURE MANAGEMENT
          ISSUES
  1. Location
  2. The Workstation
  3. Supported Operating System
  4. Redundancy
  5. Supported Communication Protocols
  6. Bandwidth
  7. Response Time on Network
  8. Security versus Ease of Use
  9. Breadth of Network Access
  10. Access to External Data Sources
                                             130
                             CIS 455

A SEVEN-LEVEL ORGANIZATIONAL
         FRAMEWORK
       Business Ecosystem

          Enterprise

      Country or Region

         Plant or Site
     Department or Process

      Work Group or Team

           Individual

                                 131
                                          CIS 455


      Mainframe Architecture
  Terminals                         Mainframe




                                    UI
                                Application
                                    Data

Pro: Scalable, Secure, Manageable
Con: Expensive, Inflexible
                                            CIS 455


  Client – Server Architecture
  Personal                          Data
 Computers                         Server




    UI                            Data
Application

Pro: Empowering, Graphical User Interface
Con: Expensive, Reduced Manageability
                                                         CIS 455


            Web Architecture
   Browser                                    Web
   Clients                                   Server




   UI                                    Web Pages


Pro:   Universal Access, Global Reach, Open Standards
Con:   Info Reference Only, Limited Scalability, No Transactions
CIS 455




    135
                              CIS 455


TYPES OF IT INVESTMENTS



 Informational    Strategic


         Transactional

         Infrastructure

                                  136
                                        CIS 455


    REASONS TO INVEST IN IT

1. Economies of scale (utility)

2. Support for business programs
   (dependent)
3. Flexibility to meet changes in the
   marketplace (enabling)



                                            137
                                             CIS 455
  GUIDELINES FOR INFORMATION
   TECHNOLOGY INVESTMENT
1. Link Technology Investment to Strategic Goals
2. Do Not Look for Specific Justification of
   Computer Hardware Purchases
3. Apply Information Technology to Innovation
4. Plan Personnel Costs Before Technology Costs
5. Insist on Plans
6. Use Information Technology to Improve
   Communication
7. Do Not Invest in Technology That Limits
  Growth
                                                 138
Strassman, Paul (1985)
                                           CIS 455
  GUIDELINES FOR INFORMATION
   TECHNOLOGY INVESTMENT
8. Get Information Technologists to “Join the
   Company”
9. Clarify the Role of the Experts
10. Take Advantage of Vendors’ Specialized
    Knowledge
11. Avoid Dabbling
12. Measure Productivity
13. Measure Quality of Information Services

                                                139
Strassman, Paul (1985)
                                                   CIS 455
  CHAPTER 5 – CRITICAL QUESTIONS

1. Self-managed teams often appear in a matrix
   organizational structure where employees have one boss
   for administrative (functional) matters and another boss
   for job-related (task) matters. What benefits and
   disadvantages might you experience working in such a
   matrix environment?

2. How can a client/server based architecture cause a firm
   to change or rethink its activities associated with a
   business process?

3. Why did many CIO’s and CTO’s, whose responsibility
   is infrastructure, get caught flat-footed with the
   Internet?
                                                       140
                                            CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 4: Managing Telecommunications
         (Chapter 6)

   The Evolving Telecommunications Scene
   The Role of the IS Department




                                                141
                                                  CIS 455


    STATUS OF TELECOM TODAY
1. Organizations have a multitude of networks
2. The reach of networks is expanding organizationally
3. Today’s 3 primary telecom networks will increase
4. “The last mile” is being opened up to competition
5. The telephone, PC, and TV are converging
6. Five technologies will underpin telecom advances
7. We are moving to an era of bandwidth abundance
8. The Internet has arrived for business use abundance
9. Intranets have become the next generation of
   computing

                                                         142
                                               CIS 455

"TELECOMMUNICATIONS HIGHWAY"
Slow Traffic: local streets with certain control
   mechanisms (Stop and Yield Signs; Traffic
   lights; Limited speeds [25-45 mph];
   Pedestrians)
Faster Traffic: highway with fewer control
   mechanisms (Speed limits [55-65 mph]; State
   Police; Toll booths
Fastest Traffic: superhighway with fewest or no
   controls (Autobahn in Germany)

                                                   143
                                             CIS 455
IMPORTANT ISSUES WITH EACH TYPE
        OF “TRAFFIC”?

Signage (Cues): How fast can/should I go?
     What's ahead? (Rest stops, food, gas, etc.)
     Directions (To get to Place X take Exit Y and
     Hwy Z)
Controls (Protocols): Driving rules (speed, safe
     distance between cars)
     Passing lanes
     HOV


                                                   144
                                     CIS 455

      THE EVOLVING
TELECOMMUNICATIONS SCENE
1. A New Telecom Infrastructure is
   Being Built
2. The Telecom Industry is Being
   Transformed




                                         145
                                                                                   CIS 455


       THE OSI REFERENCE MODEL
L a y er       Name                          Job                     P ro to co l E xa m p le
   7       A p p lica tio n   In terfa ce to a p p lica tio n      H T T P , X .5 0 0 , X .40 0
                                                                   P C L A N M a n a g er
   6       P resen ta tio n T ra n sla tes d a ta to a n d         N E T B IO S
                            fro m L a n g u a g e in L a y er 7
   5       S essio n        C o n tro ls d ia lo g , a cts a s a   S S L (S ecu re S o c kets
                            sessio n m o d era to r                L a y er)
   4       T ra n sp o rt   C o n tro ls flo w , en su res         TCP
                            relia b le p a c ket d eliv ery
   3       N etw o rk       A d d resses a n d ro u tes            IP , X .2 5 , P acket
                            p a ckets                              lev el P ro to co l
   2       L o g ica l      M a kes su re n o d a ta is lo st      E th ern et, T o ken
           L in k           o r g a rb led                         R in g , F D D I, IS D N
   1       P h y sica l     D efin es p h y sica l                 C o a x, tw isted p a ir,
                            co n n ectio n to n etw o rk           fib er o p tic ca b le

                                                                                          146
                                        CIS 455
             KEY ISSUES
1. Wide Area Network (WAN) Technology Has
   Changed

2. The Rate of Change is Accelerating

3. The Optical Era Will Provide Bandwidth
   Abundance

4. The New Frontier is Wireless
  * Wireless PANS, LANS, Wireless Local
    Loops, and M-Commerce
                                            147
                                           CIS 455


THE IS DEPARTMENT’S ROLE

1. Achieve Connectivity & Interoperability
   a) Allow users to communicate up
   b) Allow users to communicate down
   c) Allow users to communicate across
   d) Allow users to communicate outside
   e) Different computers and systems work
      together
                                               148
                                           CIS 455


THE IS DEPARTMENT’S ROLE

2. Operate the Network
 a) Internally or externally (outsource)

 b) Aim for dependability and reliability




                                               149
                                         CIS 455


THE IS DEPARTMENT’S ROLE

3. Stay Current with the Technology
 a) Experiment with current technology
 b) Test out new ideas




                                             150
                                                    CIS 455
  CHAPTER 6 – CRITICAL QUESTIONS

1. Since the Videophone was introduced in 1949, what are
   some of the reasons why this capability has only become
   generally available in the late 1990’s via the Internet?

2. Why would it be beneficial for a vendor to subscribe
   to an open systems approach when that implies an
   inability to “lock in” customers for future revenues?

3. Users always find new uses for emerging technologies
   and then demand more. How can the IS function be
   proactive, instead of reactive, and anticipate user's
   visions?


                                                           151
                                  CIS 455
 CHAPTER 6 – DISCUSSION QUESTION


 The chapter implies that a company
     should stay at the forefront of
telecommunications technology lest it
  fall seriously behind. On the other
 hand, it might be better to let others
   go first, and then learn from their
mistakes. Which of these approaches
             is better? Why?

                                      152
                                                            CIS 455


COMPANY/TECHNOLOGY ANALYSIS

                            Technology Speed
                          LOW         M E D IU M          H IG H


Company       LOW         L ow         M ed ium       M ed ium /H igh
Size
and         M E D IU M    L ow      M ed ium /H igh       H igh

Resources
             H IG H      M ed ium   M ed ium /H igh       H igh



                                                                   153
                                          CIS 455

       INFORMATION SYSTEMS
           MANAGEMENT

Class 5: Managing Information Resources
         (Chapter 7)

   Managing Data
   Managing Information
   Toward Managing Knowledge



                                              154
                                               CIS 455

  EVOLUTION OF INFORMATION

Data: consists of facts devoid of meaning or
      intent
Information: data in context…the data has an
      explicit meaning within a specific context

Knowledge: information with direction, or
      intent, where intent is derived from
      strategies or objectives and is manifested
      in business rules
                                                   155
                                      CIS 455
GETTING CORPORATE DATA INTO
           SHAPE
 1. Inconsistent Data Definitions
 2. The Role of Data Administration
   a) Clean up data definitions
   b) Control shared data
   c) Manage data distribution
   d) Maintain data quality
3. Importance of Data Dictionaries

                                          156
                                                                             CIS 455

THE STRUCTURE OF INFORMATION

                                D ata R ecord s       D ocu m ents

Ite m o f in terest             E ntity               C o ncep t o r id ea
A ttrib u te o f ite m          F ield                S et o f sym b o ls
A ll a ttrib u tes fo r ite m   R eco rd              L o gical p aragrap h
A ll rela ted ite m s           F ile                 D o cu m e nt
A g ro u p o f rela ted files D atab ase              F ile cab inet

A co llectio n o f              A p p licatio n       L ib rary, reco rd s center
d a ta b a ses                  syste m

D a ta m o d e ls               H ierarchical, etc.   K e yw o rd s, h yp erte xt




                                                                                    157
                                                     CIS 455

   IMPORTANCE OF DATA QUALITY

Original Data

          Modified/Updated

                    Modified/Updated

                                Modified/Updated

                                           Final Data
  Final data looks nothing like the original data, means
 something else, but is used as if it were the original data.
                                                          158
                                                     CIS 455


FOUR TYPES OF INFORMATION

                 Internal                External
 Record         T rad ition al      P u blic D atab ases
 Based           E D P /M IS

             W ord P rocessing      C orp orate L ibrary
Document   R ecord s M an agm ent        W eb S ites
 Based



 Where are conversations?
                                                           159
                                                                            CIS 455

    THE SCOPE OF INFORMATION
          MANAGEMENT
                  T yp ical            Inform ation           T ech n ologies
                  C orp orate          S ou rces              U sed
                  A u th ority
In tern a l      IS d ep artm e nts T P syste m s             D B M S , D ata
reco rd -b a sed                    O rgan. units             d ictio naries

In tern a l       A d m in. V .P .    C o rp o rate           T ext and grap hic
d o cu m en t-    R eco rd s m g m t. m e m o s, letters,     retrieval syst.
b a sed                               rep o rts
E xtern a l      E nd users            P ub lic d atab ases   P ub lic netw o rks
reco rd -b a sed C o rp . p lannin g

E xtern a l       C o rp o rate        P ub lic literature  B ib lio grap hic &
d o cu m en t-    lib rary             N e w s serv ices    enviro n. scan ning
b a sed                                P urchased rep o rts
                                                                                    160
                                           CIS 455


 THREE-LEVEL DATABASE MODEL
Conceptual: Application Program Files
Logical: Logical Database Organization
Physical: Physical Database Organization

         DATA MODELS:
             1. Hierarchical
             2. Network
             3. Relational
             4. Object

                                               161
                                          CIS 455
12 RULES FOR DISTRIBUTED
       DATABASES
  1. Local autonomy
  2. No reliance on a central site
  3. Continuous operation
  4. Location independence (transparency)
  5. Fragmentation independence (transparency)
  6. Replication independence
  7. Distributed query processing
  8. Distributed transaction management
  9. Hardware independence
 10. Operating system independence
 11. Network independence
 12. Database independence
                                                 162
                                      CIS 455

ALTERNATIVES TO “TRUE”
 DISRIBUTED DATABASES

a) Downloaded data files
b) Copies of data stored at nodes
c) Not fully synchronized databases
d) Server-based databases
e) Federated databases



                                          163
                                             CIS 455


  DATA WAREHOUSE PROJECT STEPS


1. Define the business uses of the data

2. Create the data model for the warehouse
3. Cleanse the data
4. Select the user tools
5. Monitor usage and system performance


                                                 164
                               CIS 455

        WHAT IS A DOCUMENT?


“..a unit of recorded information
      structured for human
          consumption.”



Levien, Roger E. (1989)
                                    165
                                           CIS 455
      EXAMPLES OF DOCUMENTS
• Contracts and agreements
• Drawings, blueprints, and photographs
• Reports
• E-mail and voice-mail messages
• Manuals and handbooks
• Video clips
• Business forms
• Scripts and visuals from presentations
• Correspondence
• Others?
                                               166
                                                    CIS 455
    IMPROVING THE PUBLISHING
            PROCESS

 Electronic        Offset
Creation and    Lithography    Warehouse      Transportation
Composition


Traditional Process

  Electronic     Electronic                       Electronic
 Creation and   Storage and   Communication      Printing and
 Composition    Management                        Finishing


Reengineered Publishing Process
                                                         167
                                         CIS 455

    THE ROLES DOCUMENTS PLAY

1. As a product, or support for a product
2. As a fundamental mechanism for
  communication among people and groups
3. As the primary vehicle for business
   processes
4. As an important part of organizational
   memory
                                             168
                                         CIS 455


     WEB CONTENT MANAGEMENT


1. Managing Content and Acquisition

2. Content Administration and Safeguarding
3. Content Deployment and Presentation




                                             169
                                  CIS 455

WEB CONTENT MANAGEMENT LIFE
           CYCLE
           Create/Acquire




          Web Content
          Management
Deploy/                     Administer/
Present
                             Safeguard


                                          170
                                                    CIS 455
  CHAPTER 7 – CRITICAL QUESTIONS

1. How might the organizational structure or culture of a
   firm need to change in order to adequately support
   distributed databases?

2. Some believe that technology management is the main
   job of the IS department while others believe that
   information management is the main job. What is your
   opinion?

3. Considering the hierarchical, network, relational
   database and object models, which one is best suited to
   support the distribution of data across a network and
   why?

                                                         171
                                                    CIS 455
  CHAPTER 7 – CRITICAL QUESTIONS

4. What is your view on whether or not corporate data
   administration should consider all data in an
   organization to be shared and thus exercise control over
   it?

5. The successful use of groupware such as Lotus Notes
   depends upon the culture of the organization. Why is
   this the case?

6. If organizational culture is an important consideration
   for both when to distribute computing responsibilities
   and sharing corporate data, how would you go about
   changing the corporate culture if you felt it was
   necessary for the future success of your organization?
                                                        172
                                           CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 6: Managing Operations (Chapter 8)

   What Are Operations?
   Outsourcing IS Functions
   Information Security
   Planning for Business Continuity



                                               173
                                                  CIS 455

     WHAT ARE OPERATIONS?

1. IS activities that occur on a regular basis
  a. Batch transaction processing (one output)
  b. Batch transaction processing (multiple outputs)
  c. Single I/O transactions
  d. Multiple I/O transactions
  e. Routine transactions (daily, weekly, monthly, etc.)
  f. “Ad hoc” transactions processing
  g. Output format
  h. Output delivery
  i. Transaction backup (tapes, storage, retrieval, etc.)
                                                       174
                                            CIS 455

     WHAT’S NEW IN OPERATIONS

1. Companies Have “Cleaned Their Operational
   House”

2. More Operations Managers Are Managing
   Outward
3. Operations Are Being Simplified
4. Certain Operations Are Being Offloaded




                                                175
                                  CIS 455


OUTSOURCING’S HISTORY

1. IT Outsourcing
2. Transitional Outsourcing
3. Best-of-Breed Outsourcing
4. Offshore Outsourcing
5. Shared Services
6. Business Process Outsourcing
7. E-business Outsourcing


                                      176
                                              CIS 455

      QUESTIONS TO ASK WHEN
     CONSIDERING OUTSOURCING
1) Which information systems are strategic to our
   company’s business?

2) Will outsourcing save us at least 15%?

3) Does our firm have access to the needed
   technological expertise?
4) Does outsourcing increase our firm’s flexibility?


                                                  177
                                                           CIS 455
     THE OUTSOURCING MANAGEMENT
              SPECTRUM



Internal                       Outsource
             Contractor                     Joint       Alliance
Sourcing                      Management
                                           Venture
      Outsourcing                              Partnership

 •Managed relationship                     •“Trust” relationship
 •Customer/supplier                        •Interdependence of strategy
   relationship                            •Joint goals
 •Vendor initiates services                •Accomplishments benefit
                                            both partners
 •Vendor has majority of                   •Joint financial investment
  investment                               •Joint organizat. investment
                                           •Shared risk/reward
                                                                 178
                              CIS 455


     MANAGING OUTSOURCING

1) Organizational Structure
2) Governance
3) Day-to-Day Working




                                  179
                                                    CIS 455


OUTSOURCING GOVERNANCE RULES
 1. Service levels must stay in the top 25%
 2. Problem escalation gets more painful; resolve early
 3. Supplier is the grand project manager
 4. Work style is based on respect and confidence
 5. Add significant value
 6. Aim to operate in an “open book” manner
 7. New services can be put out for bid
 8. No exclusive agreements
 9. Meet our standards
10. Let us know about potential problems in advance
11. Spend our money as if it were your own                180
                             CIS 455


SECURITY IN THE INTERNET AGE

1. The Threats
2. Security’s Five Pillars
  a) Authentication
  b) Identification
  c) Privacy
  d) Integrity
  e) Nonrepudiation


                                 181
CIS 455




    182
CIS 455




    183
CIS 455




    184
                                       CIS 455


SECURITY IN THE INTERNET AGE

3. Countermeasures
  a) Firewalls
  b) Encryption
  c) Virtual Private Networks (VPNs)




                                           185
                                        CIS 455

     PLANNING FOR BUSINESS
          CONTINUITY

1. Using Internal Resources
   a) Multiple Data Centers
   b) Distributed Processing
   c) Backup Telecommunications Facilities
   d) Local Area Networks (LANS)



                                             186
                                          CIS 455

  DISASTER RECOVERY FOR
   DISTRIBUTED SYSTEMS

2. Using External Resources
   a) Integrated Disaster Recovery Services
   b) Specialized Disaster Recovery Services
   c) On-line and Off-line Data Storage




                                              187
                                              CIS 455

         DISASTER RECOVERY

1. Consider the risks of a natural disaster
2. Create a plan to return to the primary site
3. Do not expect damaged equipment to be
   replaced in kind/restored to original condition
4. Test hot-site resources under full workload
   conditions
5. Plan for alternate telecomm routing
6. Maintain critical data at alternate site(s) for
   fast data recovery
                                                     188
                                                  CIS 455
  CHAPTER 8 – CRITICAL QUESTIONS

1. In many IS organizations, operations personnel are
   regarded with some disdain and lack the prestige often
   given to the systems staff (analysts and programmers).
   What steps might be undertaken to relive or remedy this
   problem?
2. How would it be possible for an organization to use
   outsourcing to gain competitive edge on competition?

3. What information security risks are involved when
   outsourcing your information IS functions to
   multiple vendors?


                                                       189
                                             CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 6: Technologies for Developing Systems
  (Chapter 9)

   Foundations of System Development
   System Integration
   Interorganizational System Development
   Internet-Based Systems
   Project Management
                                                 190
                                                           CIS 455
                     Executive Leadership
                            (CIO)

                            System
      Essential         Development and           Information
    Technologies            Delivery                Workers
    Distributed             Procedural Systems     Procedure-
     Hardware                                         based
   and Software                                   Information
                                                      Work
    Telecomm.
   Technologies
                                                   Goal-based
                                Support Systems   Information
   Information
                                                     Work
    Resources

Infrastructure Management


          A Framework for IS Management
                                                                191
                                                                                 CIS 455
GENERAL SYSTEMS THEORY (Boulding, 1956)
L ev el        Name                                C h a ra cteristics

  1        F ra m ew orks     T he g eog ra p hy an d a nato m y of th e u niverse
                              (ato m s, m olecules, etc.)
  2        C lockw orks       S im ple dy n a m ic sy stem s w ith predeterm ined,
                              necessa ry m otio ns (solar sy stem s)
  3         T her m ostat     T ran sm ission an d interpretation of inform a tio n
                              (ho m eo stasis)
  4        O pen S y stem     S elf-m aintaining , ta kes reso urces fro m o utside, self
                              rep ro du cing (rivers, fla m es)
  5            P lant         G en etic-so cietal (divisio n of la bo r a m o ng cells,
                              specialization)
  6           A nim al        Increased m o bility , teleolog ical beha vior, self-
                              aw areness
  7           H um an         S elf-conscio usness (la ng u ag e and sy m b olis m )


  8            S ocial        C ontent an d m ea ning of m essag es, v alues, histo ry ,
          O rg anizatio ns    creativity (art, m usic, literatu re, etc.)
  9       T ran scen dental   E x ploration of the un kn ow n (philo so p hy ,            192
                              ex istentialism , theolog y , cosm olog y , resea rch)
                                                                       CIS 455

 THE “WATERFALL” DEVELOPMENT
          LIFE CYCLE
   System
Requirements

          Software
        Requirements

                 Preliminary
                   Design

                               Detailed
                               Design

                                          Code and
                                           Debug

                                                       Test and
  Validation/Testing                                 Preoperation
   at Every Stage                                                    Operation
                                                                       and
                                                                    Maintenance
                                                                              193
                             CIS 455
  THE SPIRAL MODEL OF SYSTEM
         DEVELOPMENT
                     Requirements
Testing
                     Specification




Implementation      Design
                                 194
                                        CIS 455


FOURTH GENERATION LANGUAGES


Key Feature of 4-GL’s
   a) DBMS and data dictionary
   b) Nonprocedural language
   c) Interactive query and reporting
   d) Graphics
   e) Data analysis & modeling tools
   f) Reusable code
                                            195
                                       CIS 455


    SOFTWARE PROTOTYPING


1. Feature of Prototypes
   a) Live, working system
   b) May become the actual production system
   c) Used to test out assumptions
   d) Is created quickly
   e) Is relatively inexpensive
   f) Is an iterative process
                                           196
                                          CIS 455

   COMPUTER-AIDED SOFTWARE
      ENGINEERING (CASE)
1. An information repository
2. Front-end tools for planning through design
3. Back-end tools for generating code
4. A development workstation

Timeboxing

    OBJECT-ORIENTED DEVELOPMENT
      CLIENT SERVER COMPUTING

                                                 197
                                         CIS 455


        SYSTEM INTEGRATION
• Database Management Systems

• Enterprisewide Resource Planning Systems
  (ERP)
• Middleware




                                             198
                          CIS 455


  INTERNET-BASED APPLICATIONS

1) Application Servers
2) JAVA
3) Web Services




                                199
                                              CIS 455

  KEYS TO PROJECT MANAGEMENT
            SUCCESS
1) Establish the Ground Rules
2) Foster Discipline, Planning, Documentation, and
   Management
3) Obtain and Document the “Final” User
   Requirements
4) Obtain Tenders From All Appropriate Potential
   Vendors
5) Include Suppliers in Decision Making
6) Convert Existing Data
7) Follow Through After Implementation
                                                     200
                                                CIS 455

        TIPS FOR GOOD PROJECT
             MANAGEMENT

1) Proper Planning
2) Appropriate User Involvement and Strong Visible
   Management Support
3) Project Manager(s) with Authority and Time
4) Good Change Management
5) Working as a Team
6) Proper Project Monitoring and Control
7) Proper Project Closure
                                                    201
                                   CIS 455


IS STEERING COMMITTEES

M em b ersh ip : perm anent m em bers
include senior ex ecutives; tem porary
m em bers include low er-level
m anagers and consultants




                                         202
                                                       CIS 455
     IS STEERING COMMITTEES
1) Set priorities for systems development and IS
   direction.
2) Check progress against an established direction.
3) Allocate scarce resources, especially IS staff, to achieve
   business objectives.
4) Communicate concerns, issues, and possible remedies.
5) Provide education and the development of shared mind-
   sets.
6) Develop shared responsibility and ownership of actions.
7) Resolve conflicts that arise over priorities.
8) Proved fiscal control.
                                                            203
                                             CIS 455


    IS STEERING COMMITTEES

Benefits:
  1. IS projects will be characterized by good
     management (planning and control).

  2. IS projects will be used to support users
     throughout the organization.




                                                 204
                                   CIS 455

IS STEERING COMMITTEES AT NJIT

• Enterprise Resource Planning (SCT)
    1. Advancement Development (ADS)
    2. Human Resources (HRS)
    3. Financial Resources (FRS)
    4. Student Information System (SIS)


                                       205
                                            CIS 455

IS STEERING COMMITTEES AT NJIT

            President’s Cabinet


      Strategic IS Management Committee


   ADS         HRS          FRS            SIS
K. Kramer   R. Bossert     W. Garcia   W. Anderson



                                         Project
                            Data       Management
                         Management
                                                 206
                                                   CIS 455
  CHAPTER 9 – CRITICAL QUESTIONS

1. Since the improper use of 4GLs can lead to a
   proliferation of "little databases", what measures should
   be taken in data administration to minimize this risk?

2. Since 4GLs can increase development productivity, more
   traditional programmers, particularly those with
   computer science backgrounds who relish lower level
   language choices, may not be the best performers in this
  4GL environment. What is your view of this hypothesis?

3. With companies buying rather than making new
   application systems, what does this portend for the
   future of application programmers?

                                                         207
                                        CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 7: Management Issues in System
         Development (Chapter 10)

   Managing IS Staff
   Implementing Systems Successfully
   Improving Legacy Systems
   Measuring the Benefits of Systems


                                            208
                               CIS 455

   COMPANIES ARE IN THREE
        BUSINESSES

1. Infrastructure Management
2. Customer Relations
3. Product Innovation




                                   209
                                            CIS 455
     A SYSTEMS VIEW OF
HUMAN RESOURCE MANAGEMENT

Skills            Recruitment      Wage & salary
inventory         and selection    administration


                  Breaking a job
Career             down into its   Training and
planning           performance     development
                    indicators



 Delegating and   Performance      Coaching and
 assigning work   appraisal        counseling


                                                    210
                                            CIS 455
          IT CAREER CLUSTERS
• Database development and administration
• Digital media
• Enterprise systems analysis and integration
• Network design and administration
• Programming/software engineering
• Technical support
• Technical writing

                                                211
                                           CIS 455


DESIGNING MOTIVATING WORK


A Model of Human Motivation

1) Five Core Job Dimensions
2) Three Critical Psychological States
3) Leading to Personal and Work Outcomes



                                               212
                                     CIS 455



Five Core Job Dimensions
  a) Skill variety
   b) Task identity
   c) Task significance
   d) Autonomy
   e) Feedback from the job itself




                                         213
                                         CIS 455



Three Critical Psychological States
a) Experienced meaningfulness of work
b) Experienced responsibility for work outcomes
c) Knowledge of the actual results of the work
   activities




                                             214
                                        CIS 455



Leading to Personal and Work Outcomes
  a) High internal work motivation
   b) High-quality work performance
   c) High satisfaction with the work
   d) Low absenteeism and turnover




                                            215
                                                  CIS 455

 WHAT APPLICATIONS SHOULD BE
         DEPLOYED?
  Support                                     Facilitate
Intellectual   Knowledge         Discussion Interpersonal
   Work                                         Work




                      Transactions




               Automate Mechanistic Work
                                                       216
                                           CIS 455

HOW CAN HIGHER QUALITY SYSTEMS
        BE DEVELOPED?

  1. Focus on the “Right” Work
  2. Manage the Data and Its Quality
    a) The importance of data in context
  3. Develop a Maintenance Strategy




                                               217
                                               CIS 455


OPTIONS FOR RESTRUCTURING

      Broad
                  R estru ctu re      R een g in eer
                 O r O u tso u rce
   Type of
   Change          F o cu sed           P ro cess
                R estru ctu rin g    Im p ro v em en t
      Narrow
                Short          Time to          Long
                               Make the
                               Change

Ernst & Young                                      218
                                                                    CIS 455

       HOW CAN LEGACY SYSTEMS BE
              IMPROVED?

   Options:

                                                            Replace with
Restructure Reengineer Refurbish Rejuvenate   Rearchitect    a package Rewrite




 Small                                                                Large
                    Amount of Change


                                                                          219
                                                       CIS 455
    IMPROVING LEGACY SYSTEMS
1. Restructure - application doing the job, but runs
   inefficiently (7 steps)
2. Reengineer - move data and business logic to new
   hardware platforms; reverse & forward engineering
3. Refurbish - old system is maintainable; add new
   extensions (e.g. Web- front-end)
4. Rejuvenate - adds new functions that make the
   system more valuable by giving it a more strategic role
5. Rearchitect - having a to-be architecture for new
   systems and migrating legacy systems to it
6. Replace - purchase new software (advantages &
   disadvantages)
7. Rewrite - start from scratch                            220
                                        CIS 455

HOW CAN SYSTEM BENEFITS BE
       MEASURED?


Efficiency - doing things right
       Examples?

Effectiveness - doing the right thing
      Examples?




                                            221
                                         CIS 455

HOW CAN SYSTEM BENEFITS BE
       MEASURED?

1. Distinguish Between the Different Roles of
   Systems

  a) Measuring organizational performance
  b) Measuring business value
  c) Measuring a product or service
2. Measure What is Important To Management

                                                222
                                                          CIS 455
 HOW CAN SYSTEM BENEFITS BE
        MEASURED?
3. The Value Assessment Framework
                 E con om ic   O rganization al   T ech n ology
                  P ayoffs         Im p acts        Im p acts

In d ivid u al



D ivision



C orp oration




                                                                  223
                                                   CIS 455
  CHAPTER 10 – CRITICAL QUESTIONS

1. What are some of the positive characteristics of
   maintenance work that might make it desirable to some
   programmers?
2. It is suggested that we measure what is important to
   management. Why is this more important than
   measuring what is important to the customer?
3. As the result of a scarcity of systems personnel,
   assume that an IS department had to choose between
   outsourcing new development or outsourcing the
   redevelopment of legacy systems. Which one would
   you outsource and why?
4. What are some of the early signs that may indicate
   that a legacy system might need overhauling or
                                                          224
   replacing?
                                           CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 9: Supporting Decision Making
      (Chapter 11)

   Technologies That Support Decision Making
   Toward the Real-Time Enterprise




                                                225
                                                          CIS 455
                     Executive Leadership
                            (CIO)

                            System
      Essential         Development and          Information
    Technologies            Delivery               Workers
    Distributed             Procedural Systems
                                                  Procedure-
     Hardware                                        based
   and Software                                  Information
                                                     Work
    Telecomm.
   Technologies
                                                  Goal-based
                                                 Information
   Information                Support Systems
                                                    Work
    Resources

Infrastructure Management


          A Framework for IS Management
                                                               226
                                            CIS 455


          TYPES OF PROBLEMS


Structured - inputs AND outputs are both known

Semi-structured - inputs OR outputs are known

Unstructured - inputs AND outputs are both
               unknown
Wicked - the nature of the problem itself is not
         understood
                                                   227
                                                    CIS 455
 CHARACTERISTICS OF A HIGHLY
      STRUCTURED TASK
1. The information requirements are known precisely.

2. The methods for processing the information are known
   precisely.
3. The desired format of the information is known
   precisely.
4. The decisions or steps within the task are clearly
   identified and repetitive.
5. The criteria for making decisions are understood
   precisely.
6. The quality of a decision or success in executing the task
   can be measured precisely.                             228
                                           CIS 455


           EXAMPLES OF DSS
Institutional DSS - intended for organizational
support on a continuing basis written using a
decision support language

“Quick Hit” DSS -
     a. Reporting DSS
     b. Short analysis programs
     c. Programs built with a DSS generator



                                                  229
                                                                 CIS 455
 CHARACTERISTICS OF A DECISION
       SUPPORT SYSTEM
                         For Groups and     Interdependent
                           Individuals       or Sequential
   For Managers                                Decisions
 at Different Levels
                                                            Support
                                                          Intelligence,
Unstructured and                                         Design, Choice
Semi-Structured
   Decisions
                                                            Support
                                DSS                        Variety of
    Ease of
  Construction                                           Decision Styles
                                                          & Processes
 Evolutionary
                                                         Adaptability &
    Usage
                                                           Flexibility
                  Humans
                                Effectiveness,     Ease of Use
                 Control the
                                Not Efficiency                        230
                  Machine
Turban, 1990
                                        CIS 455

      COMPONENTS OF A DSS




Database                      Model Base

           DBMS      MBMS

              DGMS
                            Software System



                  User
                                              231
                                                                                   CIS 455

   DECISION SUPPORT FRAMEWORK

                      O p era tio n a l   M a n a g eria l    S tra teg ic    S u p p o rt
                        C o n tro l        C o n tro l        P la n n in g   N eed ed
                        A cco u nts           B udg et         F ina ncial      M IS,
   S tructured        R eceiv a ble,         A naly sis,     M anag em ent, O peratio ns
                      O rd er E ntry      M ake or B uy       W a reho use    R esea rch
                                             A naly sis         L ocation   M odels, T P S
                       P rod uction           C redit        B uilding N ew
 S em istru ctu red    S cheduling ,       E valuatio n,      P lant, N ew       DSS
                        Inv entory            B udg et          P rod uct
                          C ontrol         P rep aration        P lan ning
                       S electing a       R ecruiting an         R & D
  U nstructured        C over for a         E x ecutive,       P lan ning ,      DSS
                        M ag azine          L ob by ing            N ew           ES
                                                              T ech nolog y




                                                                                             232
Turban, 1990
                                                      CIS 455
  DSS: CURRENT DEVELOPMENTS
1. The PC revolution, the hardware, software, and the
   emphasis on ease of use through common interfaces
   such as Windows, and the common representations such
   as spreadsheets.
2. The increasing capability and decreasing cost of
   telecommunications, both WANS and LANS
3. The Internet and its vast source of external data
4. The growth of AI techniques such as expert systems
   and natural language processing
5. The rapid increase in end user computing
6. The increasing availability of large color screens and
   color graphics software
7. The increasing availability of mobile computing        233
                                  CIS 455

  FRESHMAN CLASS DSS AT NJIT

Semi-structured Question:

  Given the number of students who
 apply and are admitted as freshmen,
 can we predict the number who will
  actually enroll? If so, when is the
  earliest an accurate prediction can
               be made?
                                        234
                                                                              CIS 455

         FRESHMAN ADMISSIONS DATA
              Fall Semesters, 1995-2000
           (as of last Friday in March of each year)
Y ear     A p plicatio ns    G ross       N et       G ross         N et      E nrolling
            R eceiv ed      A d m its   A d m its   D ep osits   D ep osits   F resh m en
1 99 5        1 44 7          9 02        8 84         97           97           4 56

1 99 6        1 55 4         1 03 8      1 02 4       1 24         1 24          5 35

1 99 7        1 59 8         1 02 0       9 93        1 47         1 45          5 20

1 99 8        1 86 2         1 12 5      1 10 0       1 53         1 52          5 36
1 99 9        2 10 7         1 23 1      1 20 3       2 01         2 00          5 96
2 00 0        2 18 3         1 27 5      1 25 5       1 77         1 77          6 41


1. Explore relationships between data
2. Develop a model
3. Test assumptions
4. Make prediction                                                                  235
                                              CIS 455

COMPONENTS OF FRESHMAN CLASS DSS




Database                            Model Base
 Applicant                        Regression
             DBMS      MBMS
   Data                             Model
                DGMS
                                  Software System

                              Statistical
                    User       Package
                                                    236
                                                                              CIS 455

         FRESHMAN ADMISSIONS DATA
              Fall Semesters, 1995-2000
           (as of last Friday in March of each year)
Y ear     A p plicatio ns    G ross       N et       G ross         N et      E nrolling
            R eceiv ed      A d m its   A d m its   D ep osits   D ep osits   F resh m en
1 99 5        1 44 7          9 02        8 84         97           97           4 56

1 99 6        1 55 4         1 03 8      1 02 4       1 24         1 24          5 35

1 99 7        1 59 8         1 02 0       9 93        1 47         1 45          5 20

1 99 8        1 86 2         1 12 5      1 10 0       1 53         1 52          5 36
1 99 9        2 10 7         1 23 1      1 20 3       2 01         2 00          5 96
2 00 0        2 18 3         1 27 5      1 25 5       1 77         1 77          6 41


1. Regression equation explains 95% of variance
2. p-value = 0.001
3. Model is valid
4. Use 2001 data to make prediction                                                 237
                            CIS 455


  FUTURE CHALLENGES FOR DSS

• Integrated Applications
• Connectivity
• Document Data
• More Intelligence




                                238
                                      CIS 455

DATA WAREHOUSING AND DATA
         MINING
Data Warehousing
• Metadata: The Standardizing Element
• Quality Data: The Biggest Challenge
• Data Marts: Subsets of Data Warehouses
Data Mining

• Seeks Insights Through Data Exploration

                                            239
                                                                      CIS 455
CHARACTERISTICS OF A EXECUTIVE
       SUPPORT SYSTEM
                            Tailored to          Contains Extensive
                          Executive’s Style          Graphics
  Used for Tracking                                 Capabilities
    and Control
                                                                 Provides
                                                                  Timely
 Designed for Top                                              Information
   Executives

                                                                  Exception
                                  ESS                          Reporting Shows
    Includes
  External Data                                                Variation From
                                                                   Targets
  Easy to Use
                                                                Time-series
                                                                 Features
                  Filter and
                                    Drill-down         Fits the Corporate
                tracks critical
                                    Capability               Culture         240
                     data
Turban, 1990
                                       CIS 455

         WHY INSTALL AN EIS

1. Attack a critical business need

2. A strong personal desire by the executive

3. “The thing to do.”




                                           241
                                             CIS 455
         EIS: DOING IT WRONG

1. Lack of executive support

2. Undefined system objectives

3. Poorly defined information requirements
4. Inadequate support staff

5. Poorly planned evolution




                                                 242
                                       CIS 455

COMPONENTS OF EXPERT SYSTEMS

 A user interface

 An inference engine

 Stored expertise (in the form of a
  knowledge base)




                                           243
                                                                             CIS 455
                       COMPONENTS OF ES

  KNOWLEDGE BASE                                    INFERENCE ENGINE
 If-then rules supplied by                     Uses rules and database to infer
        the experts                             new facts and decide which to
                                                            obtain


          DATABASE                                       INTERFACE
 Facts about the situation,                    Method for communicating with
  obtained by interaction                      the user and for obtaining new
with the user, from another                     facts from the user or from an
 database, or by inference                             external database
        using rules


                             EXPLANATION MODULE
               On user request, explains how the inference engine drew
               specific conclusions or why the system is asking a specific
                                        question                                  244
 Alter, 1992
                                                           CIS 455


      EXPERT SYSTEMS FRAMEWORK

    High


             Knowledge-Intensive               Strategic
                  Systems                       Systems

Knowledge
Complexity


             Personal Productivity       Integrated Product
                   Systems                     Systems

     Low

             Low                                           High   245
                           Technology Complexity
                                       CIS 455
      TRAINING A NEURAL NETWORK

High Salary

 Medium                   Profitable
 Salary                   Customer

Owns Home

Less than 3               Deadbeat
years on job

    Prior
 bankruptcy
                    Each line represents
 Owns a dog              one point
                                           246
                                       CIS 455
      TRAINING A NEURAL NETWORK

High Salary

 Medium                   Profitable
 Salary                   Customer

Owns Home

Less than 3               Deadbeat
years on job

    Prior
 bankruptcy
                    Solid line: Strengthen
 Owns a dog         Dotted Line: Weaken
                                             247
                                 CIS 455

 TOWARD THE REAL-TIME
     ENTERPRISE

a) Enterprise Nervous Systems
b) Straight-Through Processing
c) Real-Time CRM
d) Communicating Objects
e) Moderating the Dark Side


                                     248
                                                   CIS 455
  CHAPTER 11 – CRITICAL QUESTIONS

1. Implementing separate databases for decision support
   applications tends to increase data redundancy. What
   about the potential threat of referential integrity
   problems in using such an approach?
2. If data warehouses are not intended to be updated as
   events occur, what implications does this have for an
   executive’s need for real-time data?

3. Since an EIS can be highly personal, what might
   happen to the EIS when the original executive user is
   replaced by a new executive?
4. What type of architectural issues need to be
   considered when planning a DSS or EIS?
                                                           249
                                          CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 10: Supporting Collaboration (Chapter 12)

   Understanding Groups
   Systems to Support Collaboration
   Managing Collaboration in Virtual
    Organizations



                                              250
                      CIS 455


CHARACTERISTICS OF GROUPS
  • Membership
 • Interaction
 • Hierarchy




                          251
                                   CIS 455
              TYPES OF GROUPS
• Authority groups
• Intradepartmental groups
• Project teams
• Interdepartmental work groups
• Committees and task forces
• Business relationship groups
• Peer groups
• Networks
• Electronic groups
• Communities of practice (CoPs)
• Network armies                       252
                                           CIS 455

           EIGHT TYPES OF TASKS

         1. Generating Plans
         2. Generating Ideas
         3. Solving Problems with Correct Answers
         4. Deciding Issues with No Right Answer
         5. Resolving Conflicts of Viewpoint
         6. Resolving Conflicts of Interest
         7. Resolving Conflicts of Power
         8. Executing Performance Tasks


                                               253
McGrath, 1984
                                  CIS 455

ENVIRONMENT FOR GROUP WORK


           Task



  Group             Performance

                       ENVIRONMENT
                    •Organization Culture
          Support   •Decision Environment
           (GDSS)   •Physical Environment


                                       254
                                                    CIS 455

     BENEFITS OF GROUP WORK (I)
   Groups are better than individuals at understanding
    problems.

   People are accountable for decisions in which they
    participate.

   Groups are better than individuals in catching errors.

   A group has more information (knowledge) than any
    one member, and, as a result, more alternatives are
    generated for problem solving.

   Synergy may develop so that the effectiveness of the
    group is greater than what could have been produced
    individually.
                                                          255
                                                    CIS 455

BENEFITS OF GROUP WORK (II)

   Working in a group may stimulate the process and
    the individuals.

   Group members have their own egos imbedded in
    the decision they make, so they will be committed
    to the implementation.

   The participation of the members means less
    likelihood of their resisting implementation.




                                                        256
                                                   CIS 455

WHY AND WHEN A GROUP SHOULD BE
         UTILIZED (I)
 1. A group problem solving together will provide those
    participating with a baseline common understanding
    and information that cannot be replicated in a memo or
    less personal means.
 2. A group setting provides an environment that
    legitimizes a variety of viewpoints.
 3. A group is capable of producing greater quantity and
    variety of ides than the average individual.
 4. A good experience in a group can generate enthusiasm
    and can be contagious.

                                                       257
                                                     CIS 455

WHY AND WHEN A GROUP SHOULD BE
         UTILIZED (II)
 5. The give-and-take of open and free discussion among a
    group can spring new ideas into play that may never
    have been considered by an individual.

 6. People feel quite differently about the solution they have
    to live with if they have been given a fair opportunity to
    participate and are aware of all the factors underlying
    an issue.




                                                          258
                                                    CIS 455
   PROBLEMS/DISADVANTAGES OF
    GROUP PROBLEM SOLVING (I)
1. The results of group decision making are often dismissed
   by those in positions of influence who are unwilling to
   give credence to a process few of them have experienced
   positively.

2. All too often, participants learn that what appears to be
   a fair, democratic process is in reality a charade in
   which decisions have already been made and group
   participation is provided as a means of placating those
   having to live with the ultimate decision.
3. Unless well designed, a group effort at problem solving
   can be a colossal waste of time, money, and effort.

                                                         259
                                                     CIS 455
   PROBLEMS/DISADVANTAGES OF
    GROUP PROBLEM SOLVING (II)
4. Few group leaders are trained in the effective utilization
  of group members, which can result in a deterioration of
  both the process and task dimensions of group life.

5. As a result, instead of morale and team spirit
   improving because of a group approach, it may
  degenerate.
6. If the selection of group members is not related carefully
   to the task at hand, the technical and experiential
   components simply will not be available when needed.


                                                          260
                                                   CIS 455
   PROBLEMS/DISADVANTAGES OF
    GROUP PROBLEM SOLVING (II)
7. It is common that members of a problem-solving group
   fail either to be briefed adequately prior to the meeting
   or fail to do the pre-meeting work that enables the group
   to establish a common point of beginning with clearly
  defined goals.

8. A few individuals can often take over a group and
   dominate its process or inhibit the participation of
   members whose contribution represents the reason for
   the group in the first place.



                                                        261
              GROUPWARE

   Group Decision Support Systems (GDSS)

   Electronic Meeting Systems (EMS)

   Computer-Supported Cooperative Work
    (CSCW)

   Computer-Mediated Communication (CMC)



                                            262
                                                         CIS 455


  GROUPWARE OPTIONS:MODE

                 SAME TIME              DIFFERENT TIME


                 Face to Face            Asynchronous
 SAME            Interaction              Interaction
 PLACE
                                Any
                                Time
                                Any
                                Place
DIFFERENT
 PLACES          Synchronous            Asynchronous
                  Distributed            Distributed
                  Interaction            Interaction


                                                             263
Johansen, 1991
                                                             CIS 455


    GROUPWARE OPTIONS: EXAMPLES
                SAME TIME                DIFFERENT TIME

           Presentation Systems      Transaction databases
           Copyboards                Shared Files
SAME
PLACE      PC Projectors             Electronic Mail
           Facilitation Services     Voice Mail
           Polling Systems
           Group Decision Rooms      Shift Work Communications

           Typical Telephone          EDI
DIFFERENT
  PLACE   Video Telephone             Electronic Mail
           Video Conferencing         Computer Conferencing
           Live Radio TV Broadcast    Voice Mail
                                      Fax


                                                                 264
                                    CIS 455

SUPPORTING DISPERSED GROUPS
 • Same time/same place

 • Same time/different place

 • Different time/different place




                                        265
                                      CIS 455
VIRTUAL ORGANIZATIONS & VIRTUAL
            TEAMS

1. National and multinational firms
2. Across multiple time zones
3. Project-based work
4. Highly skilled workers
5. Cultural differences
6. Communication/technical problems
7. Numerous advantages
                                          266
                                                    CIS 455
  CHAPTER 12 – CRITICAL QUESTIONS

1. What effect will GSS’s have on the interpersonal
   communication that generally occurs in face-to-face
   meetings that many deem important?

2. Why is it that hierarchy tends not to be present when
   interdepartmental work groups use a GSS “team
   room”?
3. How will a GSS alleviate the problem of wasted
   meetings that typically are a time management
   problem?

4. NJIT is a technological university. Why is it that we
   study GSS here, but don’t use it?

                                                           267
                                        CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 12: Supporting Knowledge Work
       (Chapter 13)

   A Model for Managing Knowledge
   Intellectual Capital Issues
   The Vast Arena of Computer Ethics



                                            268
                         CIS 455

A MODEL FOR MANAGING
     KNOWLEDGE

   Human Capital
   Structural Capital
   Customer Capital




                             269
                                  CIS 455
         WHAT IS KNOWLEDGE
           MANAGEMENT?

“…transferring the knowledge from
 people’s heads into lasting things,
    such as processes, products,
  practices, databases, directories,
           software, etc.”


 Sprague & McNurlin, p. 2.
                                       270
271
                                                                          CIS 455

INFORMATION MANAGEMENT VS.
  KNOWLEDGE MANAGEMENT

In form ation M an agem en t              K n ow led ge M an agem en t
E m p h asizes d eliv ery an d         E m p h asizes ad d in g v alu e to
accessib ility o f co n ten t          co n ten t b y filterin g , sy n th esizin g ,
                                       in terp retin g , an d ad d in g co n tex t
H as h eav y tech n o lo g y fo cu s   B alan ces fo cu s b etw een
                                       tech n o lo g y an d cu ltu re o r w o rk
                                       p ractice
A ssu m es in fo rm atio n cap tu re   R eq u ires o n g o in g h u m an in p u ts
can b e stan d ard ized an d           an d lin k s to co m m u n ities
au to m ated




                                                                                  272
273
                          CIS 455

INTELLECTUAL CAPITAL ISSUES

1. Value Issues
  a) Information maps
  b) Information guides
  c) Business documents
  d) Groupware
2. Usage Issues
3. Sharing Issues

                              274
                                  CIS 455

       COMPUTER ETHICS
1. Information Privacy
2. Intellectual Property Rights
  a) Copyrights
  b) Patents
  c) Trademarks
  d) Trade Secrets

3. Legal Jurisdiction
4. Online Contracting
                                      275
                                                    CIS 455
  CHAPTER 14 – CRITICAL QUESTIONS

1. Is there a similarity between compound documents
   and the concepts of objects and, if so, what are the
   similarities and differences?
2. In what ways can EDM contribute to competitive
   advantage?

3. How can multimedia documents benefit training
   procedures?

4. Why does it make sense for the IS department to lead
   efforts in making EDM critical to organizations?



                                                          276
                                          CIS 455

        INFORMATION SYSTEMS
            MANAGEMENT

Class 13: The Challenges Ahead (Chapter 14)

   Organizing Principles
   Understanding a Networked World
   Moving Forward




                                              277
                                  CIS 455
 TECHNOLOGICALLY MATURE
      ORGANIZATION

 “…one that realizes the business
 value of information and IT, and
manages the assimilation of IT into
           its business.”




                                      278
                                      CIS 455



     GOALS OF THE NEW WORK
          ENVIRONMENT

1. Leverage Knowledge Globally

2. Organize for Complexity
3. Work Electronically
4. Handle Continuous and Discontinuous Change



                                          279
                                        CIS 455



      ORGANIZING PRINCIPLES

1. Processes Rather than Functions
2. The Self-Organizing Rather than Designed
3. Communities Rather than Groups
4. Virtual Rather Than Physical
5. The Learning Organization


                                              280
                                          CIS 455
 UNDERSTANDING A NETWORKED
          WORLD
1. Communication is Personal, Not Mass Market
2. Customer Contact is Interactive, Not Broadcast
3. The Customer Service Timeframe is Theirs, Not
   Yours
4. The Culture is Bottom Up, Not Top Down

            Transaction, interest,
          relationship, and fantasy
        communities are being created.
                                              281
                                              CIS 455

     THE TECHNOLOGY CAMEL
1. Eager Beavers: Innovators and Pioneers -
  the zealots, proselytizers, salespeople, writers,
  and Internet server owners. (Support Them)
2. Early Adopters: The First Consumers -
  just behind the innovators. (Support Them
  With Caution)
3. Early Majority: The First Big Wave - have
  concerns about risks and costs. (Be Prepared to
  Justify IS Investments)

                                                  282
                                            CIS 455

     THE TECHNOLOGY CAMEL
4. Late Majority: The Technology Skeptics -
  concerned about wasting time and money
   and the “real” benefits of the technology.
  (Show Them)

5. Technically Averse: “Not on my Time you
   Don’t”-
   concerned about the loss of privacy, security,
   control and possible exposure to competition.
   (Understand Them)


                                                283
                                      CIS 455

 FUTURE SYSTEMS PROFESSIONALS

 High level business analysts (account
 executive/senior management)

 Multidisciplinary team leaders (project
 management)

 Super technical people (technical expert)

                                          284
                                     CIS 455

    GENERIC IS COMPETENCIES

Managing Change:
 Envision results, challenge status quo,
 catalyze action, assemble resources,
 foster effective processes, monitor
 progress, behave flexibly, anticipate and
 resolve obstacles, design effective
 working environments.


                                         285
                                    CIS 455

    GENERIC IS COMPETENCIES

Behave Commercially:
 Orient to results, understand business
 practices, understand the organization
 in its business context, focus on
 customers, be profit and cash conscious,
 understand electronic commerce.



                                        286
                                   CIS 455

    GENERIC IS COMPETENCIES

Manage Relationships:
 Understand “win-win”, negotiate and
 commit to results, monitor performance,
 confront shortcomings, build trust,
 accept mutual dependency.




                                       287
                                    CIS 455

    GENERIC IS COMPETENCIES

Working with Others:
 Communicate clearly (verbally and in
 writing), advocate causes and influence
 outcomes, be alert and aware, be
 sympathetic and encouraging, behave
 reliably, provide feedback, be adaptable
 and resilient, tolerate stress.


                                        288
                                   CIS 455

    GENERIC IS COMPETENCIES

Applying Systems Thinking:
 Understand concepts, analyze and solve
 problems, think creatively, recognize
 systemic patterns, synthesize
 components into a whole, understand
 processes, learn from experience.



                                       289
                                   CIS 455

     GENERIC IS COMPETENCIES
Exploiting Information:
 Manage data quality, share data,
 understand the impact of context,
 practice semiotic analysis, make
 assumptions explicit, surface tacit
 knowledge, understand external sources.



                                       290
                                      CIS 455

     GENERIC IS COMPETENCIES

Exercising General Management Skills:
 Think strategically, lead and inspire, be
 assertive, exercise judgement and make
 decisions, control budgets, manage
 resources, manage quality, resolve
 conflict, empower and facilitate staff,
 take risks and manage outcomes, be
 energetic, set an example.

                                          291
                                     CIS 455

    GENERIC IS COMPETENCIES

Applying Information Technology:
 Design technical architecture, integrate
 existing systems, develop applications,
 understand structured development
 methods, understand emerging
 technologies, manage data and
 application security.


                                            292
                                   CIS 455

    FUTURE GROWTH AREA OF IS


1. PC and LAN technical support

2. Systems support and technical support
   groups in systems departments

3. Research and development groups




                                       293
                                                          CIS 455
                     Executive Leadership
                            (CIO)

                            System
      Essential         Development and          Information
    Technologies            Delivery               Workers
    Distributed             Procedural Systems
                                                  Procedure-
     Hardware                                        based
   and Software                                  Information
                                                     Work
    Telecomm.
   Technologies
                                                  Goal-based
                              Support Systems    Information
   Information
                                                    Work
    Resources

Infrastructure Management


          A Framework for IS Management
                                                               294
                                    CIS 455

THRIVING ON CHAOS (Tom Peters)


Two assumptions at the very core of
   our economic system are now
 causing untold harm: 1.) bigger is
better, and biggest is best; 2.) labor
  (human beings at work) is to be
even more narrowly specialized, or
       eliminated if possible.
                                         295
                                            CIS 455
   The Successful Firm in the 1990’s and
      Beyond Will Be (Tom Peters) :
1. Flatter
2. Populated by autonomous units
3. Oriented toward differentiation
4. Quality conscious
5. Service conscious
6. More responsive
7. Much faster at innovation
8. A user of highly trained, flexible people as
   the principle means of adding value
                                                  296
                                                   CIS 455

Five Areas of Management that Constitute
  the Essence of Proactive Performance:

1. An obsession with responsiveness to customers

2. Constant innovation in all areas of the firm

3. Partnerships - the wholesale participation of and gain
   sharing with all people connected with the organization

4. Leadership that loves change (instead of fighting it)
   and instills and shares inspiring vision
5. Control by means of simple support systems aimed at
   measuring the “right stuff” for today’s environment

Tom Peters                                                 297

								
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