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21-Apr-13

MIS - Basic Concepts

Shivani Parikh

Role of Information Systems in Business Today

Fully digital firms are now created

Digital firms definition:

Significant business relationships with customers, employees and suppliers are digitally enabled and mediated

Core business processes are accomplished through digital networks spanning across entire organization or linking multiple organizations

Key corporate assets are managed digitally (travel, desk, emails)

Time shifting, space shifting are a norm (e.g. Dell Computers)

Time Shifting: Business Conducted continuously i.e. 24x7, rather than 9am to 5pm

Space Shifting: work takes place globally in a global workshop (work from home, body shopping, Accenture)

Operational Excellence

Operational excellence:

Improvement of efficiency to attain higher profitability (e-mails, msn,

automobile industry has robots)

Information systems, technology an important tool in achieving

greater efficiency and productivity

Wal-Mart‟s RetailLink system links suppliers to stores for superior

replenishment system

Role of Information Systems in Business Today

How information systems are transforming business

Increase in wireless technology use, Web sites (B2C)

Shifts in media and advertising (decline in newspapers sales, google‟s

online ad revenue has increased, all payments via credit card)

New federal security and accounting laws (e.g. emails to be stored for

five years, chemical exposure data to be stored for 60 years)

Globalization opportunities

Internet has drastically reduced costs of operating on global scale

(24x7, suppliers, imports)

Presents both challenges and opportunities (e.g. DVDs)

Role of Information Systems in Business Today

Business firms invest heavily in information systems to achieve

the following six strategic business objectives:

1.

Operational excellence

2.

New products, services, and business models

3.

Customer and supplier intimacy

4.

Improved decision making

5.

Competitive advantage

6.

Survival

New products, services, and business models

New products, services, and business models:

Business model: describes how company produces, delivers, and sells

product or service to create wealth (production outsourced, dominos,

online insurance, shaadi.com)

Information systems and technology a major enabling tool for new

products, services, business models

Examples: Apple‟s iPod, iTunes, and iPhone, Netflix‟s Internet-based

DVD rentals

21-Apr-13

Customer and supplier intimacy

Customer and supplier intimacy:

Serving customers well leads to customers returning, which raises

revenues and profits

Example: Mandarin Oriental in Manhattan use computers to track

customer preferences and use to monitor and customize environment

Intimacy with suppliers allows them to provide vital inputs, which

lowers costs

Example: J.C.Penney‟s information system which links sales records

to contract manufacturer (TAL Apparals)

Improved decision making

Improved decision making

Without accurate information:

Managers must use forecasts, best guesses, luck

Leads to:

Overproduction, underproduction of goods and services

Misallocation of resources

Poor response times

Poor outcomes raise costs, lose customers

Example: Verizon‟s Web-based digital dashboard to provide managers

with real-time data on customer complaints, network performance, line

outages, etc.

Competitive advantage

Survival

Competitive advantage

Survival

Delivering better performance

Information technologies as necessity of business

Charging less for superior products

May be:

Responding to customers and suppliers in real time

Industry-level changes, e.g. Citibank‟s introduction of ATMs (BoB)

Governmental regulations requiring record-keeping

Example: Dell Computers (customized PCs in a day to few days)

Examples: Toxic Substances Control Act, Sarbanes-Oxley Act

Perspectives on Information Systems

Information Technology

Consists of all hardware and software business needs to achieve its

business objectives

Includes computers, printers, handheld PDA, Windows OS, MS Office suite

etc

Information system:

Set of interrelated components

Collect, process, store Data, and distribute information

Support decision making, coordination, and control

Information vs. data

Data are streams of raw facts

Information is data shaped into meaningful form

facts • Information is data shaped into meaningful form Raw data from a supermarket checkout counter

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent

or the total sales revenue from dish detergent for a specific store or sales

territory.

21-Apr-13

Information system • Input: Captures raw data from organization or external environment (e.g. pink lux
Information system
• Input:
Captures
raw
data
from
organization
or
external
environment (e.g. pink lux 1 unit sold at star bazaar)
• Processing: Converts raw data into meaningful form
• Output: Transfers processed information to people or activities
that use it (e.g. 5500 units of pink lux sold in Mumbai in 15 days)
• Feedback:
Output
returned
to
appropriate
members
of
organization to help evaluate or correct input stage

Case Study

Toyota Motors has a software that helps its top management

decide on which models are doing well and what are the latest trends in the car market. It starts with first the customer selects a car and then various options like tinted windows, navigation system, music system, seat covers, wheel caps and so on. This data is fed into a central system and it generates reports like car models that are selling well. What music system is well sold with the car. What color seat covers are more desired. How many GPS navigation systems are sold and so on.

Identify the following in the above case:

Inputs

Processing

Outputs

Information Systems Are More Than Computers

Information Systems Are More Than Computers Using IS effectively requires an understanding of the organization,

Using IS effectively requires an understanding of the organization, management, and IT shaping the systems. An information system creates value for the firm as an organizational and management solution to challenges posed by the environment.

Functions of an Information System

Functions of an Information System

Case Study

Inputs

Car models

tinted windows

navigation system

music system

seat covers

wheel caps

Processing

All inputs are entered in a central software system

Outputs

Total no of cars sold per each model

Total no of music system sold

Total no of car seat covers sold

Total no of car seat covers sold for each color available

Total no of GPS navigation systems sold

Organizational dimension of information systems

Organizational dimension of information systems

Hierarchy of authority, responsibility

Senior management

Middle management

Operational management

Knowledge workers

Data workers

Production or service workers

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Levels in a Firm

Levels in a Firm Business organizations are hierarchies consisting of three principal levels: senior management, middle

Business organizations are hierarchies consisting of three principal levels: senior management, middle management, and operational management. Information systems serve each of these levels. Scientists and knowledge workers often work with middle management.

Operating Models

operating model

Operating Model: describes how the business model will be implemented. Where will the company operate? What

kinds of products will it sell? Which customers and

segments will it serve? Which processes will be outsourced, or handled in-house? Which alliances will be most critical? How will decisions be made, and performance measured?

Operating model: is the abstract representation of how an organization operates across process, organization and technology domains in order to accomplish its function.

Operating model design should not be confused with

detailed design of tactical capabilities such as processes, systems and organization structures. For example, an

operating model might specify which business processes

are needed and whether those processes should be outsourced, centralized as shared services or handled by the business units but would not define the details of the processes to be executed. That said, it‟s important for all three elements (business model, operating model and tactical capabilities) to be closely aligned.

Organizational dimension of information systems

Organizational dimension of information systems

Separation of business functions

Sales and marketing

Human resources

Finance and accounting

Manufacturing and production

Unique business processes

Unique business culture

Organizational politics

Business model

business

model:

How

does

the

business make money?

A classic example is Gillette‟s business model of giving away razors in order to sell blades a model that

many other companies have adapted

to sell everything from wireless service subscriptions to inkjet cartridges.

operating model

Lenovo

of

restructure when push comes to shove.

offers

a

great

example

the

right

way

to

When the company acquired IBM‟s PC division in 2005,

many people were skeptical. They didn‟t see how a regional Chinese computer manufacturer could hope to integrate and leverage one of the world‟s most iconic brands. To silence the critics, Lenovo needed to create a new operating model that would fully capitalize on the merged entitiescombined capabilities. And it needed to do it fast. In just a few months, the company established global centers of excellence based around locations with leading talent and resources: manufacturing hubs in China, India, Mexico and

Europe; R&D hubs in China, Japan and the US; hardware and software testing centers in China; and a marketing hub

in India. It also established a fluid corporate structure with

senior management teams culturally and physically

dispersed across the globe. This new operating model directly addressed the market‟s fears, and provided a strong foundation for growth that has helped Lenovo become the world‟s fourth largest PC manufacturer.

21-Apr-13

How to redesign your own operating model

1. Lead with your best punch. Since time is of the essence, it‟s smart to create a small, elite team of your most experienced and knowledgeable people to drive the overall design. There might be hundreds of people involved in the detailed design phase. But when it comes to making the 5 7 key design decisions typically required for restructuring, you need people with a broad view of how the operating model will affect the business for better or worse.

2. Put it in writing. It‟s tempting to start implementing your

new operating model without bothering to document the

design and business logic. That‟s a mistake. Rigorous documentation creates a clear link between the business model and execution details such as processes, systems and organization structures. This ultimately saves time by keeping everyone focused on the same destination and providing a context and baseline for ongoing design improvements. It might seem like a nuisance in the short run, but pays big dividends in the long run.

Example P&G

Procter & Gamble has long been

recognized as a market leader in consumer products, but is constantly striving to do even better. To that end, the company recently invested $5.6 billion over five years to make

its global operating model more

product-centric and agile. It restructured itself around a core of six product-based business units, simplified its management structure by eliminating layers, and

Operating Models

“Diversification” model

If your business units have few common customers, suppliers or ways

of doing business, you have a diversified organization. Hence, you have minimal need for either data integration or standardization of

processes across business units. But, fear not! You can still create major efficiencies with technology. Even in these situations, there are processes that tend to be similar across business units, such as Human

Resources and Finance, and shared services are a powerful way to

achieve economies of scale.

The many-to-one vs. one-to-many principle comes into play here.

Many-to-one means that every business unit is staffed up and technologiedup to execute the same processes. That‟s redundant. Major cost savings can be gained when the processes are consolidated into a one-to-many shared services unit. That‟s smart business.

Carlson Companies is exemplified in the book. They own Radisson

Hotels, T.G.I. Friday‟s restaurant, Carlson Marketing Group, Carlson Wagonlit Travel, Radisson Seven Seas Cruises, and the Gold Points Reward Network. Though the companies are run autonomously, Carlson has captured cost savings and synergies with a world-class, award winning shared services capability.

How to redesign your own operating model

3.Keep your customers in the tent. Significant and rapid changes to your operating model can make customers very nervous, especially when your competitors start spreading rumors and fanning the flames of doubt. To keep your customers from panicking, take the initiative to contact them and explain what‟s happening, even if they aren‟t directly affected by the changes.

Operating Models

Process standardization Low High Coordination Unification High Diversification Replication Low Data Integration
Process standardization
Low
High
Coordination
Unification
High
Diversification
Replication
Low
Data Integration

Coordination Model

Organizations that require high levels of data integration across

business units, but low levels of business process standardization, are in the upper left quadrant. They share data because their business units share customers, products, suppliers, or partners, or some combination thereof. Data integration improves efficiencies, as well as the overall customer experience at each organizational touch point. No matter where customers tap into the organization, local representatives know who they are, what they buy, and many other defining characteristics because they‟ve got the data!

Process standardization is low because it would wash out the

uniqueness of each service operation and commoditize the customer experiencenot to mention that standardization may be impossible because different products may require different processes! Low cost, which is one of the benefits of standardized processes, is usually not a primary driver of strategy for these organizations.

As highlighted in Enterprise Architecture as Strategy, large

financial services institutions such as Merrill Lynch (Global Private Client) and MetLife benefit from “Coordination” because they can integrate multitudes of products and processes without forcing standardization. They have an integrated view of customers and can interact with them via processes that fit for each product, service and business unit.

21-Apr-13

Replication model

The “Replication” model on the lower right is for organizations whose success depends on efficient and repeatable processes, but not on shared customer relationships. McDonald‟s and other franchise operations are clear examples of this type of organization. Repeat the process meticulously and make sure that the experience is consistent at each company outlet and you‟ve got a winning formula for success!

Operating Models

Of course there are hybrid situations

as well. Some companies employ one model for certain functions and another for others. Once you‟ve established where you fit in, or where you should fit in from the

standpoint of your operating model,

defining process and IT strategies becomes much easier.

What is a Process?

A process is a group of activities which, together, achieve a specific goal. Any activity in which inputs are transformed into outputs is a Process.

Examples:

Leave Application Process

Cheque Deposit Process

Loan Sanction Process

Annual Appraisal Process

– Leave Application Process – Cheque Deposit Process – Loan Sanction Process – Annual Appraisal Process

Unification Model

• “Unified” organizations bring it all together. Their needs for integration of data across business units and standardization of processes are both high. Dow Chemical is an example used by the Enterprise Architecture as Strategy authors. Dow cross-sells products within regions, so it needs excellent data integration, and it sells the same products, via standardized processes, in more than 175 countries around the world.

Process Mapping Shivani Parikh

Process Mapping

Shivani Parikh

What is a Process Map?

What is a Process Map?

21-Apr-13

Process Map • Helps in understanding a process by depicting it in a pictorial fashion.
Process Map
• Helps in understanding a process by depicting it in a pictorial fashion.
 Simplifies the process based on that understanding
• Contains Diagrams which show each step of the process
• Similar to flowcharts
• Visual representation allows us to view the process as a whole and
simplifies the redesigning the process

What is Process Mapping?

A visual aid for picturing work processes which show how inputs,

outputs and tasks are linked

A group of activities which , together, achieve a specific goal. Any

activity in which inputs are transformed into outputs is a Process

Any method used to depict a process in a manner similar to the

way a map depicts an area

Method for depicting a process, material or information flow in a

diagrammatic form. Defines key process input and outputs

Process Mapping Symbols

 
 
Start or End

Start or End

Display

Display

Decision  Start or End Display

Action/Process

Predefined ProcessStart or End Display Decision Action/Process System Activity Direction of Flow Document A On Page

System Activity Direction of Flow Document A On Page Connector Off Page Connector
System Activity
Direction of Flow
Document
A
On Page Connector
Off Page Connector

Process Maps: A Picture Is Worth 1000 Words

Operation as a Process Input Transformation Process Output Feedback Material Machines Goods or Service
Operation as a Process
Input
Transformation Process
Output
Feedback
Material
Machines
Goods or Service

Labor/people

Management

Capital

Key Terms used in Process Mapping

Input: Materials, money, people, information, or other factors that are essential to the process

Output: The end result i.e. the product or service that a customer receives

Parallel Process: Another process that can be executed at the same time

as the primary process

Primary Process:

The tasks must be carried out in order to achieve a

desired output from given inputs

Alternative Path:

off the primary path.

One or more options are presented that create a path

Decision Criteria: When incorporating alternative paths into a map, there must be a choice to be made between 2 or more options; the question being asked should be specific. (e.g. which restaurant to eat is a decision)

Inspection Point: A pass/fail decision to test an output in process.

How to create Process Maps 1. Select a process In any organization there will be
How to create Process Maps
1. Select a process
In
any organization there will be various departments and numerous
processes involved. Nailing down that one process that needs to be
improved is essential before proceeding with the Process Mapping.
2. Define the process
A
clear definition of the Process that is selected helps in building the
Process Map easily and efficiently.
Problem
Causes
Best Practices vs. existing workflow
PROCESS
5
1
Suggestion for improvement
- Quick Fix
Cross-functional process map
1.
Problem
Solution
Due date
Effect
Best Practice 1
POLICY
GAP:
2.
Prioritised suggestions
for
Prioritised Action plans
3.
----------
-------
TECHNOLOGY
improvement
--------
-------
---------
-------
Quick Fix
Project
---------
-------
---------
-------
x
4.
--------
--------
x
x
1. Automate
PEOPLE
x
---------
--------
----------------------- ---- ---- ---- ----
----------
--------
Best Practice 2
----------------------- ---- ---- ---- ----
5.
2. Simplify
----------------------- ---- ---- ---- ----
GAP:
----------------------- ---- ---- ---- ----
----------------------- ---- ---- ---- ----
6.
x x
3. Eliminate
x
----------------------- ---- ---- ---- ----
x
----------------------- ---- ---- ---- ----
x
----------------------- ---- ---- ---- ----
x
Performance
Importance

21-Apr-13

Procedure

3. Map the Primary Process

Define the tasks that will be required to reach the desired output

Incorporate appropriate symbols in your Map

Make sure to show parallel processes

Example

Recruit

Recruit Hire Orient Train Deploy

Hire

Recruit Hire Orient Train Deploy

Orient

Recruit Hire Orient Train Deploy

Train

Recruit Hire Orient Train Deploy

Deploy

Procedure

5. Use Your Map to Improve the Process

Eliminate non-value-added steps

Set standards for the process

What will pass and what will fail

Types of Process Maps

Process maps can be depicted in various formats.

Given below is a generic classification of Process Maps:

1.

Relationship Maps or Top Level Process Maps

2.

Cross Functional Maps

3.

Flow Charts or Detailed Process Maps

Procedure

4. Map Alternative Processes

Map points along the primary process where decision are made

Recognize one or more alternative paths

Merge those paths back into the primary path

Evaluate Exam Score Score > or = 50 Pass
Evaluate
Exam Score
Score > or = 50
Pass

Retake Test

Making breakfast

Making breakfast

Relationship Maps or Top Level Process Map

These maps are used to depict the customer-supplier relationship or

linkages that exist between various departments of an organization.

Gives a big picture

Portrays how major functions of Business interact with one another

Example: Order Fulfillment Process as given below depicts the

Relationship mapping between various departments in an organization

e.g. 1000 Nano cars order received

21-Apr-13

Relationship Maps or Top Level Process Map

Example for Order Fulfillment Manufac Sales turing Engineering Distribution
Example for Order Fulfillment
Manufac
Sales
turing
Engineering
Distribution

Flow Chart Symbols

Elongated circles, which signify the start or end of a process.Flow Chart Symbols Rectangles, which show instructions or actions Diamonds, which show decisions that must be

Rectangles, which show instructions or actionscircles, which signify the start or end of a process. Diamonds, which show decisions that must

Diamonds, which show decisions that must be madesignify the start or end of a process. Rectangles, which show instructions or actions Arrows, show

Arrows, show the flow of the processstart or end of a process. Rectangles, which show instructions or actions Diamonds, which show decisions

Flow Chart Example 1 Start Attend Exam Evaluate No Score Score > or = 50
Flow Chart Example 1
Start
Attend Exam
Evaluate
No
Score
Score > or = 50
Yes
Pass
End

Flow Charts or Detailed Process Maps

Flow charts are easy-to-understand diagrams showing how steps in a process fit together.

This makes them useful tools for communicating how processes work, and for clearly documenting how a particular job is done.

The act of mapping a process out in flow chart format helps you clarify your

understanding of the process, and helps you think about where the process can be improved.

These have been used to:

Define

Document

Analyze processes

Detailed view

The example given in the next slide shows the process that is followed to

evaluate exams

How to draw a Flow Chart

To draw the flow chart, brainstorm process tasks, and list them in the order they occur. Ask questions such as "What really happens next in the process?" and "Does a decision need to be made before the next step?" or "What approvals are required before moving on to the next task?"

Start the flow chart by drawing the elongated circle shape, and labeling it "Start".

Then move to the first action or question, and draw a rectangle or diamond appropriately. Write the action or question down, and draw an arrow from the start symbol to this shape.

Work through your whole process, showing actions and decisions appropriately in the order they occur, and linking these together using arrows to show the flow of the process. Where a decision needs to be made, draw arrows leaving the decision diamond for each possible outcome, and label them with the outcome. And remember to show the end of the process

using an elongated circle labeled "Finish".

Flow Chart Example 2

Flow Chart Example 2 Flow chart for the process of getting out of bed in the

Flow chart for the process of getting out of bed in the morning

21-Apr-13

Cross Functional Maps

How an organizations major work processes cuts across various function?

Use cross-functional flowcharts to show the relationship between a business process and the functional units (such as departments) responsible for that process.

More detailed when compared to Relationship maps

functional units (such as departments) responsible for that process. • More detailed when compared to Relationship

Cross Functional Map Types

Cross Functional Map Types Horizontal Vertical

Horizontal

Vertical

Tips on preparing process maps

Prepare

Use standard flowchart symbols

Flow from top left to bottom right

Bring people together who know the process to prepare

Execute

Use group facilitated sessions with process owners

Use individual interviews where appropriate

Document process and technology opportunities for improvement as you go

Understand cost, quality and time (processing time and elapsed time) implications as you go

Cross Functional Map Example Order Fulfillment gDistr M nufa c tu r ini b utio
Cross Functional Map Example
Order Fulfillment
gDistr
M nufa c tu r ini
b utio n
C u s to m ea r
En gi n e e r in g
S ale s

Cross-functional flowchart Example

Cross-functional flowchart Example

Tips on preparing process maps

Who are the customers of the process?

Who performs each activity?

What generates the process/task?

What forms and reports are used?

What computer systems and files are used?

How do we do it? Why do we do it?

What decisions are made in the process?

What happens next? What sequence are the activities performed in?

Who reviews it and when?

How long does it take?

What is the nature, frequency and cause of errors/problems?

How are errors/problems/exceptions handled?

What is the output? How many?

Where does the output go?

21-Apr-13

Process Mapping using MS Visio

Process Mapping using MS Visio

MS Visio Template Selection

MS Visio Template Selection
Book Online Tickets Login to the Travel Website System displays the Homepage Book Tickets Online
Book Online Tickets
Login to the Travel Website
System displays the
Homepage
Book Tickets Online
This is a
predefined
Process. The User
Enter the details and
would need to
check availability
enter details like
age, gender, date
of travel,
destination etc.
System displays
results
Tickets Available
No
Yes
Modify the details
Book the
and check
tickets/Proceed
The User would
availability
to Payment
need to enter
details of his/
Credit card, type of
card etc.

MS Visio Highlights

Helps in pictorial representation of information / activities & processes.

Ease of Use

Standard shapes/templates available

Drag and Drop feature

Helps in creating business-related diagrams such as flowcharts, organization charts, and project scheduling diagrams.

Exercise 1 Book Tickets Online

The user Logs in to the Site

The user enters the details (Age, Gender, No. of people, date, from and to destination etc.)

The user checks for the availability of tickets

The system displays the results

In case the tickets are available to User continues to book the tickets

Else he/she modifies the details and resubmits.

Make appropriate assumptions wherever necessary

Use appropriate symbols wherever needed

Exercise 2 Jeep Repair

Customer wants to repair his jeep and approaches sales team of "Popular"

car repair company. Sales team prepares a work order for the same. The

work order is sent to repair team (responsible for repairing the car) which

creates a list of parts required for the repair. The repair team asks parts

department to create an “order” for parts. Parts team shall ask purchasing to

create a purchase order for parts. Parts team is also responsible for checking

that all the parts have arrived from supplier. Purchasing is responsible for

placing an order with the approved parts supplier for the parts, updating the

database on parts received (once it is confirmed that all parts are received)

and preparing an invoice on completion of repairs and closing the order once

the customer makes the payment.

Note: Steps may or may not be in the right sequence

21-Apr-13

SDLC and Biometrics

Shivani Parikh

SDLC: Software Development Life Cycle

Progression of phases in the life of a software project

Stages involved in an information system development project

Various SDLC Methodologies

Methods selected specific to types of projects

Documentation is crucial regardless of model (since no physical model)

Security and Ethical Challenges

Shivani Parikh

SDLC

Feasibility Analysis Design Coding Test Implement Maintain • Go Ahead? • Gathering •High Level •
Feasibility
Analysis
Design
Coding
Test
Implement
Maintain
• Go Ahead?
Gathering
•High Level
Designs are
Separate and
Final stage of
Post
• Project Plan
Reqmts
Design
translated in
detailed
initial
Implementatio
Detailed
Low Level
code
Testing for
development
n Phase
• Budget
Study of
Design
Conventional
individual
Acceptance,
• Normal
Estimates
Business
programming
modules
installation and
maintenance
Overall
needs
Integration
deployment
of
the system
Structure is
Programming
Testing
Changing
defined
tools are used
Handling
Business
Ensure
Change
• Critical Stage
Based on
Processes
type of
interfaces
Requests
• Logical
application the
between
Handling
System is
module work
right
bugs and fixes
developed at
this stage
programming
System
Handling
language is
works on the
intended
Version
•Prototyping
may be done
used
changes or
platform
upgrades
Volume
Smooth
Testing
running of the
User
system to
Acceptance
Testing
avoid major
glitches
IT Security, Ethics, and Society • Information technology has both beneficial and detrimental effects on
IT Security, Ethics, and Society
• Information technology has both
beneficial and detrimental effects on
society and people
– Manage
work
activities
to
minimize
the
detrimental
effects
of
information technology
– Optimize the beneficial effects

21-Apr-13

Business Ethics

Ethics

questions

that

managers

confront

as

part

of

their

daily

business decision making include

Equity (executive salaries, non competitive agreements)

Rights (customer privacy, employee privacy, employment at will, whistle blower, sexual harassment Infosys Phaneesh Murty, employee health screening)

Honesty (inappropriate gifts, employee conflict of interest, govt contracts issue, financial and cash management procedures - Enron)

Exercise of corporate power (product safety coke, Chinese toys,

environmental issues erin brockovich, vapi , social issues raised by religious organizations e.g. Temple in Calcutta movie, workplace

Corporate Social Responsibility Theories

Stockholder Theory

Managers are agents of the stockholders

Their only ethical responsibility is to increase the profits of the business

without violating the law or engaging in fraudulent practices

Social Contract Theory

Companies have ethical responsibilities to all members of society, who

allow corporations to exist

Ethics Case Studies - KFC in INDIA

KFC was founded by Harland Sanders in

the early 1930s

he started cooking and serving food for hungry travellers who stopped by his

service station in Corbin, Kentucky, US

served people on his own dining table in the living quarters of his service station

His chicken delicacies became popular

Categories of Ethical Business Issues

Categories of Ethical Business Issues

Corporate Social Responsibility Theories

Stakeholder Theory

Managers have an ethical responsibility to manage a firm for the

benefit of all its stakeholders (e.g. Enron)

Stakeholders are all individuals and groups that have a stake in, or

claim on, a company

Ethics Case Studies - KFC in INDIA

On receiving permission to open 30 new

outlets across the country, KFC opened its first fast-food outlet in Bangalore in June 1995

Bangalore was chosen as the launch pad because it had a substantial upper middle class population, with a trend of families eating out

21-Apr-13

Ethics Case Studies - KFC in INDIA

He argued that non-vegetarian fast- food restaurants like KFC would encourage Indian farmers to shift from

production of basic crops to more

lucrative varieties like animal feed and meat leaving poorer sections of society

with no affordable food

PETA further intensified its campaign

Microsoft

Netscape Navigator was a proprietary web browser that was popular in the 1990s and had to be bought as a pack.

It was the flagship product of the

Netscape Communications Corporation and the dominant web browser in terms

of usage share

Microsoft was a late entrant into the

Microsoft

Microsoft……contd 1

 

Netscape Corporation filed a suit against Microsoft and its main contention was that Microsoft was a monopoly, which had used its monopoly power to suppress competition and gain an unfair advantage

Microsoft's 'Enterprise licensing' enabled clients to get unlimited use of Windows NT, Office and BackOffice, as well as its upgrades for a single price. This tied down the customer to other Microsoft products.

Microsoft's

aggressive

pricing

of

In June 2000,

the US District

Court

products, its offers of free software to

gave

its

ruling

that

Microsoft

had

Baazee.com • Avnish Bajaj Passout IIT Kanpur did MS in US • joined Apple Computer
Baazee.com
• Avnish Bajaj Passout IIT Kanpur did MS
in US
• joined Apple Computer as a Software
Engineer then did MBA from Harvard
Business School
• In late 1999 he was living in the U.S.
and
noticed
the
success
of
then–
nascent eBay.

Coke

Dr. John Pemberton, an Atlanta-based pharmacist, developed the original formula of Coke in 1886

The ingredients were refined to create a refreshing carbonated soda.

Coke went on sale for the first time in the Joe Jacobs Drug Store

The product slowly gained acceptance

21-Apr-13

Coke

Coke also faced problems in the 1970s when the Food and Drug Administration (FDA) ruled that saccharin, an important ingredient in Coke, was harmful and a potential source of cancer.

The controversy intensified further when a district administrator of Coke in

Coke

Teenagers today drank twice as much soda as milk

Vending machines in schools created a

preference for soda over milk, juice, and water."

overweight children tend to consume

more calories from soda than those who

were not.

Principles of Technology Ethics

Proportionality

The good achieved by the technology must outweigh the harm or risk; there

or

must

be

no

alternative

that

achieves

the

same

comparable benefits with less harm or risk

Informed Consent

Those affected by the technology should understand and accept the risks

Justice

The benefits and burdens of the technology should be distributed fairly.

Those who benefit should bear their fair share of the risks, and those who do not benefit should not suffer a significant increase in risk

Minimized Risk

Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk

Critics

said

that

these

contracts

represented the

growing

trend

of

commercialization on school campuses.

When students saw products advertised in their schools, they frequently thought that it was something that the schools were endorsing.

By displaying its logos prominently in

re-

public

schools,

Coke

hoped

to

Coke

Questions:

Is

in their marketing

strategy of having exclusive contracts with schools?

Coke

ethical

Responsible Professional Guidelines

A responsible professional

Acts with integrity

Increases personal competence

Sets high standards of personal performance

Accepts responsibility for his/her work

Advances the health, privacy, and general welfare of the public

21-Apr-13

Computer Crime

Computer crime includes

Unauthorized use, access, modification, or destruction of hardware, software, data, or network resources

The unauthorized release of information

The unauthorized copying of software

Denying an end user access to his/her own hardware, software, data, or network resources

Using or conspiring to use computer or network resources illegally to obtain information or tangible property

Examples: phishing at ICICI bank

Unauthorized Use at Work

Unauthorized

of computer

systems and networks is time and resource theft

use

Doing private consulting

Doing personal finances

Playing video games

Unauthorized use of the Internet or company networks

Software Piracy

Software Piracy

Unauthorized copying of computer programs

Licensing

Purchasing software is really a payment for a license for fair use

A third of the software industry’s revenues are lost to piracy

Hacking • Hacking is – The obsessive use of computers – The unauthorized access and
Hacking
• Hacking is
– The obsessive use of computers
– The unauthorized access and use of networked computer systems
• Electronic Breaking and Entering
– Hacking into a computer system and reading files, but neither stealing nor
damaging anything
• Cracker
– A
malicious
or
criminal
hacker
who
maintains
knowledge
of
the
vulnerabilities found for private advantage

Internet Abuses in the Workplace

General email abuses

Unauthorized usage and access

Copyright infringement/plagiarism

Newsgroup postings

Transmission of confidential data

Pornography

Hacking

Non-work-related download/upload

Leisure use of the Internet

Use of external ISPs

Viruses and Worms

A virus is a program that cannot work without

being inserted into another program

A worm can run unaided

These programs copy annoying or destructive routines into networked computers

Copy routines spread the virus

Commonly transmitted through

The Internet and online services

Email and file attachments

Disks from contaminated computers

Shareware

21-Apr-13

The Cost of Viruses, Trojans, Worms

Cost of the top five virus families

Nearly 115 million computers in 200 countries were infected in 2004

Up to 11 million computers are believed to be permanently infected

In 2004, total economic damage from virus proliferation was $166 to $202 billion

Average damage per computer is between $277 and $366

Opt-in Versus Opt-out

Opt-In

You explicitly consent to allow data to be compiled about you

This is the default in Europe

Opt-Out

Data can be compiled about you unless you specifically request it not

 

be

This is the default in the U.S.

Other Challenges

Employment

IT creates new jobs and increases productivity

It can also cause significant reductions in job opportunities, as well as requiring new job skills (e.g. SBI when implemented internet banking)

Computer Monitoring

Using computers to monitor the productivity and behavior of employees as they work

Criticized as unethical because it monitors individuals, not just work, and is done constantly

Criticized as invasion of privacy because many employees do not know they are being monitored

Working Conditions

IT has eliminated monotonous or obnoxious tasks

However, some skilled craftsperson jobs have been replaced by jobs requiring routine, repetitive tasks or standby roles

Privacy Issues • The power of information technology to store and retrieve information can have
Privacy Issues
• The power of information technology
to store and retrieve information can
have
a
negative
effect
on
every
individual‟s right to privacy
– Personal information is collected with every visit to a Web site
– Confidential
information
stored
by
credit
bureaus,
credit
card
companies, and the government has been stolen or misused

Cyberlaw

Laws intended to regulate activities over the Internet or via electronic communication devices

Encompasses a wide variety of legal and political issues

Includes intellectual property, privacy, freedom of expression, and jurisdiction

The intersection of technology and the law is

controversial

Some feel the Internet should not be regulated

Encryption and cryptography make traditional form of regulation difficult

The Internet treats censorship as damage and simply routes around it

Cyberlaw only began to emerge in 1996

Debate continues regarding the applicability of legal principles derived from issues that had nothing to do with cyberspace

Other Challenges

Individuality (online personality and offline one are different)

Dehumanizes and depersonalizes activities because computers eliminate human relationships

Inflexible systems

21-Apr-13

Health Issues

Cumulative Trauma Disorders (CTDs)

Disorders suffered by people who sit at a PC or terminal and do fast- paced repetitive keystroke jobs

Carpal Tunnel Syndrome

Painful, crippling ailment of the hand and wrist

Typically requires surgery to cure

Protecting Yourself from Cybercrime

Protecting Yourself from Cybercrime

Business Continuity Planning (BCP)

Business continuity planning (BCP) is “planning which identifies the organization's exposure to internal and external threats and synthesizes assets to provide

effective prevention and recovery for

the organization, whilst maintaining competitive advantage and value

Ergonomics

Designing

healthy

work

environments

Safe, comfortable, and pleasant for people to work in

Increases employee morale and productivity

Also called human factors engineering

Business Continuity Planning

Business Continuity Planning

Need for BCP?

Y2k (9 th Sep 1999, Leap years)

9/11

Little tolerance for any downtime or

business disruption

Loss of revenue (e.g. e-commerce,

POS goes down, online travel

insurance system is down)

21-Apr-13

BCP Concepts

Disaster Recovery: primarily involves protecting IT infrastructure and data from disabling data loss after an equipment or site failure. It is a part of BCP

Separation distance

Since the BC events against which we are planning frequently result in loss of access to or destruction of a location it is necessary to ensure that electronic and other records are duplicated at another geographically separated location in a form that allows them to be accessible and recovered for use within business-defined timescales.

Greater geographical separation decreases the likelihood of two sites being affected by the same incident

There is no „minimum‟ or „correct‟ distance for separation as the ability of worldwide infections and computer viruses to cause concurrent incidents demonstrates.

Also dependent on how much distance employees would travel (e.g. 9/11)

E.g.: Call centers at 2 locations Mumbai and Bangalore with SLAs set for them,

Software Testing

Shivani Parikh

Software Testing

Software Testing is an activity that helps in finding out bugs/defects/errors in a software system under development, in order to provide a bug free and reliable system/solution to the customer.

Software testing is used to measure the quality of developed software.

The process of analyzing a software item to detect the differences between existing and required conditions (I.e., bugs) and to evaluate the features of the software item

Examples:

While inviting guests home for dinner you would taste the food cooked to make sure its fine.

While buying a pen you would test if the pen is working fine.

FOREX calculations we check for real time exchange rate pick ups

Loan processing software to be tested for intensive calculations

E.g. Gillette razors

Threat analysis • Some common threats include the following: – Disease (what is the difference
Threat analysis
• Some common threats include the
following:
– Disease (what is the difference between disease and the others, SARS-
only calls, conjunctivitis)
– Earthquake
– Fire
– (non-salinated and contamination-free water, 26 th July – food
Flood
example)
– Cyber attack
– Sabotage
– Hurricane
– Utility outage (power, telephone lines etc)
– Terrorism
Agenda  Testing Definition  Objectives and Goals of Testing  Why do we test?
Agenda
 Testing Definition
 Objectives and Goals of Testing
 Why do we test?
 Testing Principles
 Levels of testing
 Testing Phases
 Two Approaches to Testing
 Test Cases
 Testing Principles

Software Testing real life examples

First U.S. space mission to Venus failed. (reason: missing comma in a Fortran

do loop)

December 1995: AA, Boeing 575, mountain crash in Colombia, 159 killed.

Incorrect one-letter computer command (Cali, Bogota 132 miles in opposite

direction, have same coordinate code)

June 1996: Ariane-5 space rocket, self-destruction, $500 million. (reason:

reuse of software from Ariane-4 without recommended testing).

Australia: Man jailed because of computer glitch. He was jailed for traffic fine

although he had actually paid it for 5 years ago.

Dallas Prisoner released due to program design flaw: He was temporary

transferred from one prison to another (witness). Computer gave him

“temporary assignment”.

21-Apr-13

Objectives and Goals of Testing

Objectives

Testing is obviously concerned with errors, faults, failures and incidents. A test

is the act of exercising software with test cases with an objective of

Executing a program with the intent of finding an error.

A good test case is one that has a high probability of finding an as-yet

undiscovered error.

Goals of Testing

Evaluate properties of software

Reliability

– Evaluate properties of software • Reliability • Performance (Eg: Page Loading, EOD in a bank

Performance (Eg: Page Loading, EOD in a bank e.g. Citibank EOD failure)

Memory Usage (E.g.: LOC)

Security (e.g. authorization)

Usability (e.g.: Navigation should be simple, Banking users do not want

mouse related functionality)

Why do we test?

Provide confidence in the system (e.g. autopilot)

Identify areas of weakness

Establish the degree of quality

areas of weakness • Establish the degree of quality • Establish the extent that the requirements

Establish the extent that the requirements have been met, i.e. what the

users asked for is what they got not what someone else though they wanted

To prove it is both usable and operable

Levels of Testing

Prgm 1 Prgm 2 Prgm n Prgm 1 Prgm 2 Prgm n Unit Test Unit
Prgm 1
Prgm 2
Prgm n
Prgm 1
Prgm 2
Prgm n
Unit Test
Unit Test
Unit Test
Unit Test
Unit Test
Unit Test
Cases 1
Cases 2
Cases n
Cases 1
Cases 2
Cases n
……
……
Module 1
Module 2
Prgm 1
Prgm 2
Prgm n
Module Test
Module Test
Cases 2
Cases 1
Unit Test
Unit Test
Unit Test
Cases
Cases
Cases
……
Module Test
Cases n
Module n
Application Under Test
Requirements
Requirements
Integration
Integration
Integration
Performance,
Operational,
Test Cases
Test Cases
Test Cases
……
Requirements
Configuration
H/w, S/w, OS
Scalability
Disaster Recovery…
Application System
System
System
System
User Acceptance
Acceptance
Acceptance
Test Cases
Test Cases
Test Cases
……
Test Cases
Test Cases
Document
……
Objectives and Goals of Testing Software testing is used in association with verification and validation
Objectives and Goals of Testing
Software testing is used in association with verification and validation
Verification: Have
we
built
the
software
right? (i.e.,
does
it
match
the
specification).
Validation: Have we built the right software? (i.e., is this what the customer
wants).

Testing Principles

All tests should be traceable to customer

requirements.

Tests should be planned long before testing begins. (after requirements model is complete)

Testing should begin “in the small” and

progress toward testing “in

the large.

Exhaustive testing is not possible.

To be most effective, testing should be conducted by an independent third party.

(companies have testing department, there

are external testing agencies)

be conducted by an independent third party. (companies have testing department, there are external testing agencies)

Testing Phases

Unit Test

A unit is a piece of software implemented by a single programmer - typically

single functions or small groups of functions that work together to accomplish

some simple task.

Programmers are usually responsible for testing units alone during their

implementation before they are integrated with other parts of the system.

Integration Test

When several units are brought together to form a module, or system, they are

tested as a group.

Software components may be integrated in an iterative way or all together ("big

bang"). Normally the former is considered a better practice since it allows

interface issues to be localized more quickly and fixed.

Examples: Marriage, Login-Inbox-Compose, Core Banking software has various

modules like loans, nostro, Cheque management etc

)

21-Apr-13

Testing Phases contd

System Test

Once a system has been completely integrated, it must be tested as a whole.

System testing

exercises

a

program

with

input

generated

from

system

requirements that may not reflect the use of the system by its intended users.

Acceptance Test (UAT: User Acceptance Testing)

Whole system is exercised with data reflecting use of the system by its intended

users.

Often small groups of users participate in acceptance testing in an effort to

provide a more realistic trial of the software.

Two Approaches to Testing

Black-box: external view

White-box: internal view

Two Approaches to Testing Black-box: external view White-box: internal view
Two Approaches to Testing Black-box: external view White-box: internal view

Various types of Black-box Testing

Functional Testing

In this type of testing, the software is tested for the functional requirements.

The tests are written in order to check if the application behaves as expected.

Load Testing

The application is tested against heavy loads or inputs such as testing of web

sites in order to find out at what point the web-site/application fails or at what

point its performance degrades.

It is conducted in a test environment identical to the production environment

Examples: Exam results posted on net, ATM software testing, a word processor

or graphics editor can be forced to read an extremely large document; or a

financial package can be forced to generate a report based on several years'

worth of data

Testing Phases contd

Acceptance Test

Alpha testing

Alpha testing is simulated or actual operational testing by potential

users/customers or an independent test team at the developers' site. Alpha

testing is often employed for off-the-shelf software as a form of internal

acceptance testing, before the software goes to beta testing.

Beta testing

Beta testing comes after alpha testing and can be considered a form of

external user acceptance testing. Versions of the software, known as beta

versions, are released to a limited audience outside of the programming team.

The software is released to groups of people so that further testing can

ensure the product has few faults or bugs. Sometimes, beta versions are

made available to the open public to increase the feedback field to a maximal

number of future users

Black-Box Testing (Behavioral Testing)

Black box testing takes an external perspective of the test object to derive test

cases.

The test designer selects valid and invalid input and determines the correct

output

There is no knowledge of the test object's internal structure.

Various types of Black-box Testing

Usability Testing

This testing is also called as „Testing for User-Friendliness‟. This testing is done if User Interface of the application stands an important consideration and needs to be specific for the specific type of user. Companies offering this service online. (e.g. Dubai Bank spelling mistake)

Recovery Testing

Recovery testing is basically done in order to check how fast and better the application can recover against any type of crash or hardware failure etc. Type or extent of recovery is specified in the requirement specifications.

Examples: Power failure (transactions goes back or completes)

User Acceptance Testing

UAT is a process to obtain confirmation by a Subject Matter Expert (SME),

preferably the owner or client of the object under test, through trial or review,

that the modification or addition meets mutually agreed-upon requirements.

In software development, UAT is one of the final stages of a project and often occurs before a client or customer accepts the new system.

21-Apr-13

White Box Testing

White Box Testing … our goal is to ensure that all statements and conditions have been

our goal is to ensure that all statements and conditions have been executed at least once…

Black Box vs. White Box Testing SELECTED RESULTANT DESIRED INPUTS OUTPUTS OUTPUT “BLACK BOX” TESTING
Black Box vs. White Box Testing
SELECTED
RESULTANT
DESIRED
INPUTS
OUTPUTS
OUTPUT
“BLACK BOX” TESTING
RESULTANT
DESIRED
OUTPUTS
OUTPUT
SELECTED
DESIGN
BEHAVIOR
“WHITE BOX” TESTING

INPUTS

INTERNAL

SOFTWARE

Exercise 2

Login Test Cases

You have an account on Gmail and you need to login to the same. Conditions

given are your user ID should be Alphanumeric and less than Length of 30

characters and password should be Alphanumeric and special characters and its

Length should be > 3 and <12. Password should be masked by asterisk

White-box Testing Advantages/Disadvantages

Advantages

As the knowledge of internal coding structure is prerequisite, it becomes very easy to find out which type of input/data can help in testing the application

structure is prerequisite, it becomes very easy to find out which type of input/data can help

effectively.

The other advantage of white box testing is that it helps in optimizing the code

It helps in removing the extra lines of code, which can bring in hidden defects.

Disadvantages

As knowledge of code and internal structure is a

 As knowledge of code and internal structure is a

prerequisite, a skilled tester is needed to carry out this

type of testing, which increases the cost.

And it is nearly impossible to look into every bit of code to find out hidden errors, which may create problems, resulting in failure of the application

Test Cases

A test case in software engineering is a set of conditions or variables under

which a tester will determine if a requirement or use case upon an application is

partially or fully satisfied. It may take many test cases to determine that a

requirement is fully satisfied.

Test cases are often incorrectly referred to as test scripts.

Need to decided which bugs to be given priority (UI / functional etc.)

Identifying an efficient Team Mix for Testing

Exercise 2

Login Test Cases

1.Enter right user ID and right password

2.Enter wrong ID and wrong password

3.Enter right ID and wrong password

4.Enter wrong ID and right password

5.DO not enter user ID and enter password

6.Enter user ID and DO NOT enter password

7.Leave user ID and password blank and click on enter

8.Try to enter special characters in the user ID box

9.Try to enter user ID greater than 30 characters

10.Try to enter password less than 3 characters

11.Try to enter password greater than 12 characters

12.Check if the Password is masked by asterisk

21-Apr-13

Types of IS

Shivani Parikh

Business processes

Examples of functional business processes

Manufacturing and production

Assembling the product (raw materials, production, quality)

Sales and marketing

Identifying customers (cold calling)

Finance and accounting

Creating financial statements (P&L, Balance sheet, Annual reports)

Human resources

Hiring employees

Exercise 1

Processes

Non-processes

 

Leave application by employee

 

Scanning documents

Checking for Quality

 

Printing of letters

Ordering

for

stationary

in

an

Filing

of

document

in

a

filing

organization

 

cabinet

Business processes

Business processes

Sets of activities, steps

May be tied to functional area or be cross-functional (e.g. leave

application, Ordering a hamburger at McDonalds, eating Italian food at

a high end bistro)

Businesses: Can be seen as collection of business processes

Business processes are at the heart of every business

Examples of Business processes:

Applying for a driver‟s license at the RTO

Hiring a new employee this can be broken into various steps such as

placing ads in newspaper and online, contact employment agencies,

collect resumes, review resumes, interview candidates, rank candidates,

make employment decision, offer letter to candidate, enroll employee in

company

Exercise 1

Identify which of the following are processes and which are not:

1. Scanning documents

2. Printing of letters

3. Leave application by employee

4. Filing of document in a filing cabinet

5. Checking for Quality

6. Ordering for stationary in an organization

Business Processes and Information Systems

The Order Fulfillment Process
The Order Fulfillment Process
and Information Systems The Order Fulfillment Process Fulfilling a customer order involves a complex set of

Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.

21-Apr-13

Business Processes and Information Systems

Information technology enhances business processes in two main ways:

1. Increasing efficiency of existing processes

Automating steps that were manual (password management systems,

passport office forms, balance enquiry in call center, bank statements)

2. Enabling entirely new processes that are capable of transforming the businesses

Change flow of information making it more possible for more people to

access and share information (Amazon.com: book ordering)

Replace sequential steps with parallel steps (pay before drink, pay and

park)

Eliminate delays in decision making

Sales and Marketing systems

Sales and marketing are responsible for selling the organizations products and services

Marketing is concerned with identifying the customers for firms products and services, determining what customers need or want, planning and developing products and services to meet their needs and advertising and promoting these products and services

Sales is concerned with contacting the customers, selling the products and

services, taking orders and following up on sales

Sales and marketing systems

Help monitor trends, analyzing advertising and promotional campaigns (Italian restaurant in LA did analysis of trends)

Helps locating prospective customers (e.g. sms on cell phones)

Tracking sales (e.g. Onida gave cell phones to sales agents)

Processing orders

Providing Customer service support (e.g. online service by ICICI)

Examples: POS devices

Finance and accounting systems (F&A systems)

Finance is responsible for managing the firms financial assets such as

cash, bonds, stocks.

Also responsible for managing capitalization of the firm

To determine whether the firm is getting best ROI

Accounting function is responsible for maintaining records like receipts,

disbursement, depreciation, payroll, to keeping an account for flow of

funds within the firm

Senior Management uses F&A systems to establish long term investment

goals and long term forecasts on firms financial performance

Middle Management uses F&A systems to oversee and control firms

financial resources

Operational Management uses F&A systems to track flow of funds in a firm

through transactions such as payroll, payment to vendors, security reports

and receipts

Types of IS (functional perspective)

Each firm has a different system for conducting e-mail campaigns

to ads placed on Google.

Systems from a functional perspective

1. Sales and Marketing

2. Manufacturing and production systems

3. Finance and accounting systems

4. Human resources systems

Manufacturing and production systems

Manufacturing and production functions is responsible for actually

producing the firms goods and services

Manufacturing and production systems deal with the following:

Planning, development and maintenance of production facilities, (robotics)

Acquisition, storage and availability of production materials (RFID)

Scheduling of equipment, facilities, materials and labor required to finish

products

Example: Inventory Management System

Human resources systems • HR is responsible for attracting, developing and maintaining the firms workforce
Human resources systems
• HR is responsible for attracting, developing and maintaining the firms
workforce
• HR
information
systems
help
in
identifying
potential
employees,
maintaining records on existing employees and creating programs to
develop employees talents and skills.
• Example: Online Training

21-Apr-13

Types of IS (constituency perspective)

Systems from a constituency perspective

1. Transaction Processing Systems

2. Management Information Systems

3. Decision Support Systems

4. Executive Support Systems

TPS Example

A Payroll TPS
A Payroll TPS
TPS Example A Payroll TPS A TPS for payroll processing captures employee payment transaction data (such

A TPS for payroll processing captures employee payment transaction data (such as a time card). System outputs include online and hard-copy reports for management and employee paychecks.

Sample MIS Report

Sample MIS Report

Transaction processing systems

Transaction processing systems

Perform

and

record

conduct business

daily

routine

transactions

necessary

to

Examples: sales order entry, hotel reservation, payroll, air tickets reservation

Allow managers to monitor status of operations and relations with external environment

Serve operational levels

Serve predefined, structured goals and decision making

TPS are so central to a business that TPS failure for a few hours can lead to a firm‟s demise and perhaps other firms linked to it

Management information systems

Serve middle management

Principle question addressed by MIS is “Are things working well?”

Provide

reports

on

firm‟s

current

performance,

and

predict

future

performance based on data from TPS that are produced on regular

schedule

The basic data from TPS are compressed and usually presented in reports

Provide answers to routine questions with predefined procedure for

answering them

Typically have little analytic capability

Example: Tickets sold on each route

Decision support systems

Decision support systems

Serve middle management

Support non-routine decision making

Example: What is impact on production schedule if December sales

doubled?

Often use external information as well from TPS and MIS

21-Apr-13

Executive support systems

Support senior management

Address non-routine decisions requiring judgment, evaluation, and

insight

Incorporate data about external events (e.g. new tax laws or

competitors) as well as summarized information from internal MIS

and DSS

Example: ESS that provides minute-to-minute view of firm‟s

financial performance as measured by working capital, accounts

receivable, accounts payable, cash flow, and inventory

Information Systems Function in Business

Information systems department:

Formal organizational unit responsible for information technology

services

Includes programmers, systems analysts, project leaders, information

systems managers

Often headed by chief information officer (CIO), also includes chief

security officer (CSO) and chief knowledge officer (CKO)

End-users:

Representatives of other departments, for whom applications are

developed

Organization of the Information Systems Function

Organization of the Information Systems Function

Systems from a constituency perspective

processing

Transaction

systems:

supporting

operational

level

 

employees

Management information systems and decision-support systems:

supporting managers (middle management)

management)

Executive

• Executive support systems: supporting executives (senior

support

systems:

supporting

executives

(senior

Information Systems Function in Business

Small firm may not have formal information systems group

Larger companies typically have separate department which may

be organized along one of several different lines:

Decentralized (within each functional area)

Separate department under central control

Each division has separate group but all under central control

Organization of the Information Systems Function

Organization of the Information Systems Function

21-Apr-13

Organization of the Information Systems Function

Organization of the Information Systems Function

User interface

A user interface is a collection of techniques and mechanisms to interact

with machines (e.g. Washing Machine, AC, Computer explain how are

these used)

The user interface includes hardware (physical) and software (logical)

components

User interfaces provide a means of:

Input, allowing the users to manipulate a system, and/or (e.g. ATM)

Output, allowing the system to indicate the effects of the users'

manipulation

Goal is to produce a user interface which makes it easy, efficient, and

enjoyable to operate a machine in the way which produces the desired

result.

This means that the operator needs to provide minimal input to achieve

the desired output, and also that the machine minimizes undesired

outputs to the users

Usability

Shivani Parikh

User interface

User interfaces should be designed to match the skills, experience and

expectations of its anticipated users

e.g. designing a website for heart attack or diabetes - old people prefer

fewer clicks and tend to focus more on bullets, tables

E.g. designing a website for a city‟s public transportation system

System users often judge a system by its interface rather than its

functionality (discuss about NMIMS placement cell example)

A poorly designed interface can cause a user to make catastrophic errors

(e.g. plane)

Poor user interface design is the reason why so many software systems are

never used

Graphical User interface (GUI)

Graphical User interface (GUI)
Graphical User interface (GUI)
Graphical User interface (GUI)
Graphical User interface (GUI)
Graphical User interface (GUI)

Characteristics

Description

Windows

Multiple windows allow different information to be displayed simultaneously on the users screen

Windows Multiple windows allow different information to be displayed simultaneously on the users screen
Windows Multiple windows allow different information to be displayed simultaneously on the users screen
Windows Multiple windows allow different information to be displayed simultaneously on the users screen
Windows Multiple windows allow different information to be displayed simultaneously on the users screen
Windows Multiple windows allow different information to be displayed simultaneously on the users screen

Icons

Icons represent different types of information. On some systems icons represent files (word, excel, PowerPoint) in some they represent Process (e.g. copy, paste, delete)

     
     
     

Menu

Commands are selected from a menu

Menu Commands are selected from a menu history
Menu Commands are selected from a menu history
history
history
 

A pointing device such as mouse is used for selecting

choices from a menu or indicating items of interest in a

 

Pointing

Window (which others are available)

 
Pointing Window (which others are available)  
Pointing Window (which others are available)  
Pointing Window (which others are available)  

Graphics

Graphical elements can be mixed with text on the same display

security
security
Graphics Graphical elements can be mixed with text on the same display security
   

21-Apr-13

Usability

Usability refers to how well users can learn and use a product to achieve

their goals and how satisfied they are with that process

Usability is closely related to ease of use

Usability is a combination of factors including:

Ease of learning

Efficiency of use (e.g. how fast can a travel agent book tickets)

Memorability

Error frequency and severity

Subjective satisfaction

Human factors in interface design

Limited short-term memory

People can instantaneously remember about 7 items of information. If

you present more than this, they are more liable to make mistakes

People make mistakes

When people make mistakes and systems go wrong, inappropriate alarms and messages can increase stress and hence the likelihood of more mistakes (e.g. Error message “are you sure you want to delete”)

People are different

People have a wide range of physical capabilities. Designers should not

just design for their own capabilities. (e.g. Blind, deaf)

People have different interaction preferences

Some like pictures, some like text

own capabilities. (e.g. Blind, deaf) • People have different interaction preferences Some like pictures, some like

The question is not whether they do.

It is how GOOD they are!

Why is it so hard?

• It‟s common practice between developers to postpone non-technical

problems to the end. But then it‟s too late to make changes

Many usability problems are considered peripheral

Usability problems are difficult to quantify

Websites work anyway, don‟t they?

Yes, but

Real life usability

People are trying to make things easier to use for a long time now.

In this presentation we‟ll bring some examples of good and bad design

(and some smart solutions to the bad ones)

21-Apr-13

Which design makes it easier to match the knob to the plate?

Which design makes it easier to match the knob to the plate?

Which design makes it easier to match the knob to the plate?
The street lights emit yellow light instead of the more typical bluish white The problem
The street lights emit yellow light instead of the more typical bluish white The problem

The street lights emit yellow light instead of the

more typical bluish

white

The problem is that sometimes it is difficult to tell whether a light is a yellow street light or a yellow traffic light.

Is this usable?

Is this usable?

Either drink or hear music ! People generally don‟t comply to pre defined paths…

Either drink or hear music!

Either drink or hear music ! People generally don‟t comply to pre defined paths…

People generally don‟t comply to pre defined paths…

People generally don‟t comply to pre defined paths… open this file cabinet users found themselves pulling
open this file cabinet users found themselves pulling the handle on the top (See arrow).

open this file

cabinet users found themselves pulling the handle on the top (See arrow).

When

trying

to

Guess what happened?

cabinet users found themselves pulling the handle on the top (See arrow). When trying to Guess

21-Apr-13

WHY?
WHY?
21-Apr-13 WHY? Is that clear that you can turn right when the red lights are on?
21-Apr-13 WHY? Is that clear that you can turn right when the red lights are on?
21-Apr-13 WHY? Is that clear that you can turn right when the red lights are on?
Is that clear that you can turn right when the red lights are on?

Is that clear that you can turn right when the red lights are on?

UI design principles

UI design must take account of the needs, experience and capabilities of

the system users

Designers should be aware of people‟s physical and mental limitations and

should recognise that people make mistakes

UI design principles underlie interface designs although not all principles

are applicable to all designs

21-Apr-13

UI design principles

Principle

Description

User familiarity

The interface should use terms and concepts which are drawn from the experience of the people who will make most use of the System (e.g. Shopping Cart, MS have files, folders, documents as words, TurboTax changed words from Accounts receivables and Accounts Payable to cash in and cash out)

Consistency

The interface should be consistent in that, wherever possible, comparable operations should be activated in the same way

Minimal surprise

Users should never be surprised by the behaviour of system

 

The interface should include mechanisms to allow users to

Recoverability

recover from errors (UNDO, soft deletes)

User guidance

The interface should provide meaningful feedback when errors occur and provide context-sensitive user help facilities (user manuals, online help)

User diversity

The interface should provide appropriate interaction facilities for different types of system user

How do you get good usability

Ask the users! (e.g. banking users do not want mouse functionality, call

centers need head phones, washable keyboard)

The 50-cent usability test

Usually 5-6 people is enough, will start to see consensus

– Don‟t need formal usability lab, or “people off the street”

Just sketch or prototype and ask your neighbor

Passport Office example contd

Copied & pasted his text into his trusty text editor, where he found out he

had written 170 characters

contd • Copied & pasted his text into his trusty text editor, where he found out

Design issues in UIs

Two problems must be addressed in interactive systems design

How should information from the user be provided to the computer

system?

How should information from the computer system be presented to the

user?

User interaction and information presentation should be integrated

Usability Mistakes - Examples

Passport Office – “Guess a Number”

When trying to report user‟s passport lost to the relevant UK Government

agency, user wrote his explanation in a box, only to be told that it could
agency, user wrote his explanation in a box, only to be told that it could
only be max 90 characters

Passport Office example contd

What principle has been broken?

If you‟re going to tell someone they‟ve done something wrong you have

the responsibility to tell them exactly what it is they‟ve done wrong, and

how they can remedy it most easily

you have the responsibility to tell them exactly what it is they‟ve done wrong, and how

21-Apr-13

Passport Office example contd

What could have been done better?

Office example contd What could have been done better? • There are several things the designers

There are several things the designers could have done to make this situation more manageable

Ideally, don‟t limit the maximum length for an important free-text input

like this to something so little as 90 characters.

If you do have technical or design limitations for space, don‟t give them a text area to do it. When I see a <textarea>, I think I have plenty of scope to write.

Show a Javascript-powered counter, saying "43 characters left".

• Don‟t let the user make a mistake in the first place, by limiting the max length parameter of a field

If you can‟t manage any of these, and I‟ve made a quantifiable “error”, at least give me specific feedback so that I can quantify by how far out I am, i.e. Tell me I‟ve written 170 characters, so I know I need to cut it down by

50%.

What they’ve done wrong

• They‟ve used a web convention (asterisk to denote required field), but in

the opposite way to its conventional use. (e.g. traffic signals)

In general print, you can use an asterisk to refer to a footnote or similar

additional minor comment, so in theory it can mean anything. You just

have to look at the comment.

But there are 2 problems here:

One is that the web convention is to use asterisks to denote required

fields.

To

make matters worse, the asterisk is also rendered in red, which is

the universal color for alert/ danger / important. Whenever user sees

a

red asterisk on a form, he/she assumes 100% that it means

“required”. Had it been black it would make users read again.

asterisk on a form, he/she assumes 100% that it means “required” . Had it been black
. Had it been black it would make users read again. Example 2 Customer Support What

Example 2

Customer Support

Example 2 Customer Support

What should they have done?

If you‟re going to use a convention, use it conventionally.

If they want to distinguish for their users which fields are required, show

the ones that are required, not the ones that aren‟t

to distinguish for their users which fields are required, show the ones that are required, not
Placing the buttons on the tabs themselves, confuses the users as to the consequence of

Placing the buttons on the tabs

themselves, confuses the users as

to the consequence of selecting

the buttons.

If the buttons are placed outside of

the set of tabs, the user can

correctly consider those buttons as

controlling the entire set of tabs.

outside of the set of tabs, the user can correctly consider those buttons as controlling the

21-Apr-13

Too much freedom is dangerous

Too much freedom is dangerous floating menu bar huge system tray How many users want these?

floating menu bar

Too much freedom is dangerous floating menu bar huge system tray How many users want these?

huge system tray

How many users want these?

Many users are intimidated by computers

Many users are intimidated by computers vs . vs . (no dialog) Which is better for

vs

.
.

vs

.

(no dialog)

Which is better for an intimidated user?

Don‟t tax the user‟s memory

Make objects, actions, and options visible

User should not have to remember (too much) information

memory • Make objects, actions, and options visible • User should not have to remember (too
memory • Make objects, actions, and options visible • User should not have to remember (too
memory • Make objects, actions, and options visible • User should not have to remember (too
memory • Make objects, actions, and options visible • User should not have to remember (too

Make explanations brief

• “Users don‟t read the manual” – Spolsky

May not have the manual (on airplane, demo version)

Too busy / distracted / impatient

• “Users don‟t read anything” – Spolsky

advanced / too busy

novice hope defaults are ok

in-between try to read but get confused

vs .
vs
.

Users can‟t control the mouse well

• What‟s the problem?

sub-optimal pointing devices

bad conditions (dirty, old, or cheap mouse; crowded desk)

medical disabilities (young, old, arthritis,

in a hurry

)

conditions (dirty, old, or cheap mouse; crowded desk) – medical disabilities (young, old, arthritis, – in

Some bad designs

adaptive

menu

Some bad designs adaptive menu office “assistant”

office

“assistant”

Some bad designs adaptive menu office “assistant”

21-Apr-13

Terrible Designs….

Terrible Designs….

Terrible Designs….
A smart solution!

A smart

solution!

21-Apr-13 Terrible Designs…. A smart solution! Too many tabs… 34
21-Apr-13 Terrible Designs…. A smart solution! Too many tabs… 34
21-Apr-13 Terrible Designs…. A smart solution! Too many tabs… 34