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Googles social strategy was outdated and lacked focus so they introduced Google+
o Location data allowed people to see where friends are and what they like
o Opt-in to allow access to location (privacy)
o Info systems, therefore, help businesses compete and are something that will help
maintain competitive advantage.
Polaroid had an advantage, didnt continue to innovate almost died out!
o BUT Polaroid released a GoPro alternative that would make it easier for normal people
to use action cameras, and a different retail plan
Two way relationship between information systems and organizations, with mediation factors
like environment, culture, structure, politics, etc.
Organizations are social structures taking in resources from environment, and spits them out via
processing
o Legal entity with internal rules/procedures.
Behaviourally, organizations = collection of rights/privileges/obligations/responsibilities,
balanced over period of time through conflict/resolution
o Basically, OB stuff.
Technical view = combining inputs changes with tech changes
Behavioural view = info systems change balance of rights/obligations/responsibilities
o MOST of the cost is in behavioural change
Organizations feature processes, politics, culture, environments, structure
o Divergent political viewpoints = struggle, competition, conflict, and resistance, which
might hamper change.
o Culture = assumptions that define goal and product
o Environments = reciprocal relationship w/ org.
The Info System in question should align with the Organization and help it, along with help it
compete.
Organizations have to deal with Governments, Competitors, Customers, Culture, and Financial
Institutes which will screw up any given plan.
Disruptive technologies = technologies making sweeping changes to business and society in
general (Personal Computers, Internet, iPod will do that to you!)
o First movers innovate, Fast followers integrate
Different types of structures:
o Entrepreneurial (Small start-up, simple structure)
o Machine bureaucracy (Mid-sized manufacturing, slow moving environment with
standard products)
o Divisionalized bureaucracy (large firms w/ product/service divisions, several Machine
Bureaucracies.)
o Professional bureaucracy (Knowledge-based)
o Adhocracy (Responds to rapidly changing environments, larger groups of SPECIALIZED
workers)
IT changes are always relative to costs of capital and costs of information, and are factors of
production
o Repetitive tasks are now replaced with IT, reduced transaction costs.
Transaction theory = transaction costs [buying what cannot be made on your own] are reduced
and firms can start doing more with each other rather than spending on building internally
Agency theory = Firm is nexus of contracts, they experience agency costs of supervision and
management, IT can reduce these agency costs.
o Like flattening an organization
Change toward post-industrial organizations = COMPETENCE AND KNOWLEDGE over
FORMALIZED POSITIONS
Resistance to Change is the main reason of failing.
Info systems now have to match the companys ideals and fit, culture/structure/environment
must be considered, same with groups using the system, and the tasks being done
o Firms can also get competitive advantages based off these systems
Porters Five Forces (SEE MARKETING)
Each strategy offers different strategies for approaching info systems
o Low-Cost vs Product differentiation vs Niche focus vs Customer focus
Value Chain = series of activities adding value to products/services
o Highlight the activities where strats can be best applied
o Each stage can likely be improved via info systems to increase operational efficiency,
and improve customer and supplier intimacy
o Primary activities directly go towards the product
o Support activities help manage the primary workers
o Extending this concept: think about the value chains of suppliers.
Virtual company uses networks to ally with other companies, like an aggregator or a network
medium
Business ecosystems = industry sets of firms
o Keystone firms = dominator of the ecosystem, niche firms rely on this firm
Starbucks Case Study
o Blah blah customer intimacy
o Allows customers to pay for things with their phone
o More efficient, reduce waste, time saved for better customer service
o Free Wifi is used to improve customer service and increase manager efficiency
Tracking of user preferences and basing recommendations is more indicative of a differentiation
strategy, NOT Low Cost Leadership
Examples of disruptive technology: Digital Photography
o Means that disruptive tech MUST change the scope of fields
How does technical view fall short of understanding complete impacts of info systems?
o It sees inputs and outputs as infinitely malleable
Mintzbergs classification of professional structures would be a professional bureaucracy
Costs incurred when buying what it cannot make are referred to as transaction costs [out of
Transaction Cost Theory]
o Procurement encompasses too little, Agency is interior to the firm, Switching cost is
about prevention of churning
Network Economics = interaction with each other, more is good!
E-Commerce, sites are intensely cheap now which lowers barriers to entry
CASE: Groupon
o Large # of competitors, social shopping trend
o Has to get big quick to build a brand fast, localization+Social networking to generate
business
1995, E-Commerce was born!
ALL E-Commerce has to compete with everything online
E-Commerce is easy to access, easy to interact with, universal standard, and has lots of rich
information.
It only takes 7 people to connect with everyone in the world at some point
Information Asymmetry = sellers know more than buyers
o Internet cuts down on asymmetry
Menu costs = replacing tags, having to change the price on your menus, so on, so forth
Allows for dynamic pricing with perceived increases in quality for a functionally equivalent
product
Disintermediation = cuts out the middle man
Digital goods = new category of market, one copy = billions of sales based on the one copy.
Content providers = iTunes, Community providers = Facebook, Portal = Google,
Service provider = cloud computing and the like
o All of them generate revenue via advertisement, selling things, or forcing you to
subscribe on a freemium model
o Some sites can use a transaction (or house-cut based) model or affiliate (or click-based)
model
WALMART VS AMAZON VS EBAY Case Study
o Walmart is a traditional competitor, but Amazon/eBay competes in the substitute
product/services thanks to auctions and merchandising AND have more in their value
web (different companies add value to each other)
o Amazon is an e-tailer (uses mostly GM to make money), eBay is an online auction house
and e-tailer, Walmart uses brick-and-mortar combined with e-tailing
o Amazon and Ebay are already standard e-tailers, Walmart has to catch up, but they have
easier times returning purchases.
Behavioural marketing tracks the user and stuff, and uses the information to tailor experiences
Social Commerce allows for sign-on to track, collaborative shopping makes it easy to make
reviews, Network notifications, Social search also helps with recommendations
Levis brand: Levis Guy personality
o Makes a personal connection with customers and showed what friends liked
Best Buy has a team of twitter responses to respond to questions and complaints effectively,
then uses Data Mining to convert the data via word processing
o Helps with containing spread of negative word of mouth
Mrs. Meyers cleaning: Allowed viewers to expose facebook wall posts and the like promoting
Meyers.
Advertising: Twitter sells promoted tweets and trends, more prominence vs a tweet.
Brand Building: 500K Likes and contacts by sharing jeans.
Market Research: Wriggleyville Sports uses twitter posts to announce promotions and leverage
their following
Click-tracking = NORA style parsing of information to generate upselling online
Some campaigns can expose flaws in an organization which will negatively impact everyone.
Research shows that VIRAL MARKETING should start in a SMALL city thanks to easy spreading
Platforms can be used to analyze unstructured data and find out good/bad products in
addition, it can help small companies make decisions to improve customer service.
o If you cant handle it, dont do it of course.
B2B E-Commerce changed from having EDI (lines connecting companies like phones) to private
exchanges and marketplaces
o EDI basically connected suppliers and firms via shipping/payment/production data
o Private networks web-out and then are connected to firms.
M-Commerce [mobile commerce] like applications and mobile banking services are great!
o Games/Entertainment with ADS!
o Location-based like Yellow Pages and Yelp!
In-House system or Outsourcing the information?
o To be able to do a lot of objectives like providing better customer services, you need the
right system AND the right info to do it.
Tie Together
Usage of time, customer intimacy, and improved efficiency = reasons to use info systems
o All done through the idea of Input->Throughput->Output
o Understanding the dimension of information systems (matching the right system to the
right person will work more efficiently.)
Info systems are only good if youre able to take advantage of it, used as a COMPLEMENTARY
asset
Best practice processes are used and can be taught using info systems
ESS-like systems present data but people make the data useful.
o DSS and MIS feed into the ESS and provide data for lower level managers, TPS fuels
everyone
Because Info-Systems are used to manipulate environmental inputs into outputs, you have to
take into account interior systems like processes and the structure of your company
o Usually, flatter companies mean easier times using Info Systems
o Corporate culture will affect the assets usefulness.
o Technology can help secure competitive advantages for a specific company by
interacting with customers/suppliers better than new entrants and substitute
companies
o Competitive advantages also arise from low-cost leadership, differentiation, market
niche
NORA Technology allows you to look at people who purchase your product to obtain NON-
OBVIOUS RELATIONSHIPS and make more money off you
Enterprise Systems merges everyone of the same company together, pick a function.
Chapter 6: Databases
Chapter 13
Systems Development
Analysis = needs, what do we need from our program?
Design = what can we do to fill needs? (Outsourcing = you only participate as user)
Programming = can we build it?
Testing = does it work for our needs?
Conversion = good user documentation, conversion method, and training for the system user
o Cutover = Old, then new
o Parallel = Old and New overlap for a bit completely
o Pilot = use Old and new for a little bit together, then cut off
o Phased = using old less and less
Operative changing, Evaluation of the functionality of the system, and modification of the
system
o Adaptive changing = adding functionality
o Corrective = fixing things to make sure the thing works properly
o Perfective = fixing a functionality to make it better
o Preventative = fixing potential problems
Modification = usually change management deals with it
o Things will get prioritized accordingly
o Always about prioritizing what is important
Finding errors early = way cheaper than finding them late
Structured Methodologies for development of systems = where does all the data go?
o Data flows throughout the system and you know what data needs to be accessed
o High level data flow can be broken down into processes
High level structure charts = another methodologies
o What needs to be done? -> Find what gets done -> how are those individual things
done?
Object-oriented methods = designed around objects which encapsulate knowledge
o Relations with one-another will help build the system
o Classes of objects help define relationships
Hierarchy of objects
Highest class is likely an entity, the rest would define the entity
Employees are defined by salaries, hours worked, and if they are temp workers
An object can contain multiple processes
o Communicates between each other
o Attributes = properties of a thing
o Behaviour = methods of a thing
CASE tool = computer aided software engineering
o Will automate, help with documentation about processes, coordination between
programmers, and will help workflow
The life cycle is like the waterfall method, but expensive and long winded
o Thanks to no feedback loop, if the requirements stay stable, you should be good to go,
but anything complex will likely bump into snags
o Prototyping will allow for user feedback because of users actually using the system, but
more expensive
o End-User development or open source
Simple programs will be good, but hard to get good quality things or for them to
consider security
Rapid application development, and other methods are more agile and stuff
With Agile alliances, theres a lot of people working on one thing, with teams working to reach
one goal
o Early Access has some functionality, but full functionality usually comes later (though
usually the early access is fully working for all intents and purposes)
o Built around individuals who wanted to work on specific things and motivated to do so
o Clustered and bursty building, with very fragmented leadership
o Autonomy within groups, and evolution through reflection
Short informal processes
o Component-based (Object orientation)
o Objects or added functionality onto a working app
o Web services = embedded on the internet so the software isnt on the hard drive
Mobile app development
o Interface considerations like interaction with device (harder to input because of a lack of
keyboards, but easier to scroll through)
o Screen size is a huge change as well
o App vs Mobile site vs full site (apps are fully mobile, mobile sites can be put on both but
are less complete, and full sites are clunky on mobile but work best on non-mobile)
o Screen adaptation would work the best by designing responsively
What is a project?
o Aside from daily operations, projects are temporary and are mostly goal oriented
o Management = application of knowledge, tools, skills, techniques to complete a project
o Project success usually defined on being on time, on budget, and completing the project
satisfactorily (being on scope)
Importance of management = successful when used well
o Runaway projects and time slippage, cost overruns, technology shortfalls, and benefits
being forgotten
o Success in waterfall method was questionable, but agile programs are more successful
and less likely to be cancelled, both of them are still challenged often
o Failure is due to poor planning most of the time, but lack of resources, change in
business, lack of support, are also important
If people are changing goals and are not backing the project, you probably have
a bad manager
o Project management is evolving because of tracking resources, industry changes,
expectations, organizational changes, SDLC, so on, so forth
Life cycle: Initiate the idea -> Plan it -> make it -> close it
o Most of the effort is in performing
o Ideas are formed and a charter is formed during as a result of initiation
o Baseline plans are made as planning is done
o Identify need, problem, opportunity when initiating, definitely about signing off the
thing
Rationale, project objective, expected benefits, requirements of use and
conditions of use (All parts of a project charter, sales pitch)
o Planning = project scope accomplishment
How do we get there?
The plan is about: What needs doing? How will it be done? Whos going to do it?
How long is it going to take? How much will it cost? What risks are we taking?
Or, What can go wrong?
Like, what if they dont need it once were done? Checkpoints so they
know its useful
Control is about monitoring, communicating, and accomplishing
o Performing = lets get it done!
Includes allowing the team to get work done, monitoring them, correcting them
when needed, managing changes the customer wants
Ends when all goals of the customer are met
SLDC is just a subset of project management overall
Project management is about making decisions
o Either add more cost or reduce the scope if youre time restrained THE TRIANGLE.
o Project Priority Matrix: Constraining = keep it there, Enhance = make it better, Accept =
whatever comes our way
o Sociocultural vs Technical nature of management
How are projects chosen?
o Depends what direction we want to go in
o Usually driven by strategy, based from senior management/middle management who
then relay to project management.
o Portfolio analysis (risk/benefit)
o Key performance indicators
o Categories of projects: Problems, opportunities, directives
o Scorecard model: how good will something be?
Based off several separate parts of decision making
Allows for weighting of different aspects of a system differently
Info Systems Plan:
o Purpose (Direction) -> Strategic rationale (where are we going) -> What do we have now
and what do we need -> projects needed to bridge the gam -> strategy/implementation
plans -> the cost
o Cost savings + Intangibles vs Costs
Types of budgets
o Capital budgeting: Calculating NPV of project
o Real options pricing: less certainty? Invest in infrastructure to get services and just hope
things are done with it
o Models cant account for intangibles
Risk and its determinants
o Size = risk in most cases
o Structure = certainty of a project
o Experience with technology = more comfortable on software
Change management
o Implementation, both staff and end users will resist
o Communication and benefits will help
o User-designer gap, users see differently than designers when it comes to program usage
Users care about usage and portability
Designers care about space and demands on storage
o Internal and external integration
Cooperation and collaboration, whether it be with a team or with stakeholders
o Impact analysis is pretty important too
Voluntary vs involuntary changes (either not use it or use it poorly)
Counterimplementation (or fudging data to make the impact of the system
lessen so they switch back)
o Ergonomics = study of how people interact with machines and technology
Formal planning/control
o GANT/PERT charts will identify what the longest path is
o Critical path = longest path, how can we save time via those things?
Decisions made will also impact why you need to expand globally
o The environment influences strategies which influences structures which influences
business processes, which will ultimately impact your systems needed.
Global growth is driven by:
o Global markets (because of communication/transportation tech growing)
o Global production/operations (developing global culture requires more tact)
o Global coordination (global norms are starting to show)
o Global workforce (political instability prevents expansion in an area)
o Global economies of scale (knowledge bases are commonly globally accredited)
Challenges occurring are:
o Particularism, or regionalism, nationalism, and language barriers
o Social expectations from brand-name reputation
o Laws!
Growth through acquisition
o And therefore, multiple info systems that might not integrate well and require legacy
technology
Four main global strats:
o Domestic exporting (build stuff all in home country, export)
o Multinational (home country, but facilities around the world)
o Franchisers (home office is centralized, everything is duplicated across all franchises)
o Transnational (operates globally, doesnt think of themselves as in a country)
Centralized (one region, one policy), Duplications (multiple regions, one central policy),
Decentralized (one region, multiple policies), Networked (multiple regions, one mutually agreed
on policy)
Global strategies!
o Define your business processes (fundamental to success), then make sure your systems
can coordinate successfully and only choose whats VITAL to success
The bigger you go, the less you can afford to globalize (so far)
Principle management challenges:
o User requirements who needs what?
o Changes most costs are in getting people to use the system
o Coordinating app development
o Software release coordination
o Local users need to support the global system
Types of platforms
o Computing platforms, different pieces = different abilities to connect and integrate
o Connectivity, network availability is not the same for everyone
o Integration, Prioritization, and human interface