Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division First Semester 2014-2015 Course Handout Course No. : BITS ZC471/CM ZC471/HHSM ZC471 Course Title : Management Information Systems Instructor: S Kannan Course Description Introduction to Information Systems; Concepts of management, concepts of information, systems concepts; Information Systems and Organizations; Securing the Enterprise and Business Continuity; decision making process; planning, designing, developing and implementing information systems; future developments and their organizational and social implications; decision support system and expert systems; alignment of IT to business strategy; Impact of IT on enterprises, users, and environment, Scope and Objectives «This course demonstrates how information technologies can give business a strategic advantage. «This course aims at diffusing the basic concepts related to system analysis and design to help students conceptualize the need and development an effective management information systems capable to support business decisions. © To understand basic operational, tactical and strategic applications of IT in modern organizations. ‘© To leam and appreciate the importance of information systems in business for competitive situations. Prescribed Text Book Ti. Turban, Efraim & Volonino, L. “Information Technology for Management: Transforming Organizations in the Digital Economy”, Wiley Student Edition, 7" Edition, 2009. Reference Books RI. O’Brien, James A., “Management Information Systems, TMH, 5" Edition, 2002. 2. Laudon and Laudon, Management Information Systems, Pearson Education, 9" Ed., 2004. 3. _Effy OZ, Management Information Systems, Thomson India Education, 5" Ed., 2007.BITS ZC471/CM ZC471/HHSM ZC471 Course Handout First Semester 2014-2015 Page 2 e Plan of Self Study S.No. | Topic(s) to be | Learning Objectives Chapter Covered Reference 7 T ‘Supports | Describing characteristics of digital economy and digital | Tl: Ch Organizational | enterprises; defining information systems, computer based /| Performance in | Information System and information technology; Relationships 7 | Turbulant Business | between performance, environmental pressures, organizational Environments | responses, and information technology; describing adaptive enterprises; functions and impacts of social computing and social networking: Importance of learning about information technology. 2 [Information Basics and Types of Information Systems; Transaction Processing | TT: Ch2 Technologies: Vs. Functional Information Systems; Major enterprise internal Concepts, Types, | support systems and relate them to managerial functions: Support and IT Support | IT provides to business processes and supply chain; Information Infrastructure and Architecture; Web Based Information Systems: Emerging information technologies, innovative and futuristic IT systems and applications e 34 [Networks and | Describe Networks, network standards, and compatibility issues; | TI: Ch.4 Collaboration as | Impacts of collaboration on business performance; Fixed, wireless, Business Solutions | and mobile network infrastructures; Fundamental principles and capabilities of group work technologies. Various Issues Involved in Network Computing, messaging and collaboration. 3” | Securing the | Recognize the business and financial value of information security, | TI: Ch. 3 Enterprise and | IS vulnerabilities, threats, attack methods and cybercrime Business Symptoms, factors that contribute to risk exposure and methods to Continuity mitigate them; Key methods of defending information. systems, networks and wireless devices; intemal control and fraud and related legislation; understanding business continuity and disaster recovery planning methods; role of IT in defending critical infrastructures. © | E-Business and E- | E-Commerce, Scope of E-Commerce, benefits, limitations and | TI: Ch. 6 Commerce types; B2C, B2B, B2E and C2C E-Commerce Applications; What is E-Governance? Some of E-Commerce Support. Services; portance and activities of online advertising; ethical and legal issues relating to e-commerce. 7 | Mobile Commerce | Characteristics, attributes, and drivers of mobile computing and | TI: Ch. 7 mobile commerce (M-Commerce); Applications of M-Commerce in Finance, Advertising, Marketing and Content Providing; Applications of M-Commerce within organizations (mobile enterprise, intra-business); B2B and supply chain applications (inter-organizational) of m-commerce; Consumer and_ personal applications. of m-commerce; Location based commerce; major inhibitors and barriers of mobile computing and m-Commerce. 3 | Transaction Relate functional areas and business processes to the value chain | TT: Ch. 9 Processing, model; Defining functional management information systems and Functional list it’s characteristics; Understand Transaction Processing System; Applications and |IT and web support to Production/OM, Logistics, Accounting, Integration Finance, HRM; — Integrating Functional Information Systems: Benefits and Issues. 7] Review Session "Syllabus for Mid-Semester Test (Closed Book): Topics in S. No. 1109BEES EE e eee oer oe oP e ee epee eee eee e BITS ZC471/CM ZC471/HHSM ZC471 Course Handout First Semester 2014-2015 Page 3 Plan of Self Study S.No. | Topic(s) to be | Learning Objectives ‘Chapter Covered Reference 10 | Enterprise Systems: | Understand the essentials of enterprise systems and computerized | T1: Ch. 10 Supply Chains, | supply chain management, Major problems of implementing supply ERP, CRM, and | chains and some innovative solutions; Need for integrated software KM and how ERP (Enterprise Resource Planning) does it; Describe CRM and KM and their relationship to IT. TI-12[Tnter= Describe Inter-organizational activities, particularly order organizational, fulfillment; Define and classify inter-organizational information Large-Scale, and | systems and global information systems; Identify major issues Global Information | surrounding global information systems; Present demand-driven Systems networks and RFID as supply chain facilitators; inter-organizational integration issues and solutions; understand Partner Relationship e ‘management and its relationship to collaborative commerce. 13 [Business dentify factors influencing adoption of business intelligence (BI) | TI: Ch. 12 Intelligence and | and business performance management (BPM); Key considerations Decision Support | for IT support of managerial decision making. Understand Systems, managerial decision making processes, decision process, and types of decisions; Describe decision support systems (DSSs), benefits, and structure; importance of real-time BI and decision support for various levels of information workers; automated decision support, its advantages, and areas of application. 14 /TT Strategy and [Importance of aligning the business strategy and how this | TI: Ch. 13 Planning alignment is achieved: challenges in IT-business alignment and how to address them; Critical strategic role of IT within organizations; how IT is providing value to businesses; IT strategic planning within organizations; major reasons for outsourcing; how to manage outsourcing and off- shoring opportunities. TS | Managing TT | Understand the concept of the technology adoption lifecycle; the | TI: Ch. 14 Projects, Process | five stages of adoption lifecycle; Understand the impact of Improvement, and | technology, task, individual, organizational, and environmental organizational characteristics on the adoption of new technologies; typical causes ‘Change for IT implementation failures; challenges associated implementing IT projects; Understand concept of business process management (BPM) and how it can be used to enhance effectiveness in an organization; Steps in creating an effective BPM strategy; Role of change management in systems implementation. 16-17 [Impact of IT on [Recognize trends in IT that are affecting business processes, | TI: Ch. 15 Enterprises, Users, | competition, and workers; Describe ways that IT can help conserve and the | natural resources and protect the environment; Understand green Environment business practices and data center designs; understand the complexity of the effects of technological progress on labor markets and individual employees; impact of IT on the quality of life and interpersonal relationships. 18 | Review Session Syllabus for Comprehensive Exam (Open Book): All topics given in Plan of Self StudyPreece ee eee eee eee BITS ZC471/CM ZC471/HHSM ZC471 Course Handout First Semester 2014-2015 Page 4 Evaluation Scheme: EC] Evaluation Duration Weigh- | Day, Date, Session,Time No. | Component & tage ‘Type of Examination EC-i_| Assignmen/Quiz ¥ To be announced 15% __| * To be announced EC-2 | Mid-Semester Test 2 Hours 35% | Sunday, 14/09/2014 (FN) (Closed Book) 10 AM~ 12 Noon. EC-3 | Comprehensive Exam 3 Hours 350% | Sunday, 09/11/2014 (FNy (Open Book) 9AM - 12 Noon * For details of EC-1 Assignment/Quiz please check the WILP LMS Taxila web site ‘www.taxila.bits-pilani.ac.in by July 26, 2014 AN: AfterNoon Sessions FN: ForeNoon Session Closed Book Test: No reference material of any kind will be permitted inside the exam hall, ‘Open Book Exam: Use of any printed / written reference material (books and notebooks) will be permitted inside the ‘exam hall, Loose sheets of paper will not be permitted. Computers of any kind will not be allowed inside the exam hall Use of calculators will be allowed in all exams, No exchange of any material will be allowed. Ne It shall be the responsibility of the individual student to be regular in maintaining the self study schedule as given in th course handout, attend the online/on demand lectures as per details that would be put up in the BITS LMS Taxi website www.taxila.bits-pilani.ae.in and take all the prescribed components of the evaluation such as Assignment (Course Page on LMS Taxila), Mid Semester Test and Comprehensive Examination according to the Evaluation Scheme given in the respective Course Handout. If the student is unable to appear for the Regular Test/Examination due to genuine exigencies, the student must refer to the procedure for applying for Make-up TesvExamination, which will be available through the Important Information link on the BITS WILP LMS Taxila website www-taxila.bits- pilani.ac.in on the date of the Regular TesvExamination. The Make-up Tests/Exams will be conducted only at selected exam centres on the dates to be announced later. es Instructor-in-Chargelotes for CHAPTER 1 IT Supports Organizational Performance in Turbulent Business Environment Enterprises that use computers and information systems (IS) to perform or support their activities are known as digital enterprises. They use converged communication and computing technology to improve business processes and performance. Two major features of a digital enterprise are E-commerce and Networked Computing. ‘These digital enterprises operate in a digital economy. Digital economy is an economy based on digital technologies whose members are better informed and able to communicate because of IT and the resulting information stimulates e-commerce, online transactions and organizational changes. The digital economy provides unique opportunities to business owners and managers to do business without physical storefronts and borders. This economy comprises of the following products and services: ‘¢ Information and entertainment products that are digitized (documents, graphics, audios, videos, software) * Symbols, tokens and concepts (tickets and reservations, financial instruments) © Processes and services (government services, electronic services, social networks, etc.) ‘The new economy brings not only digitization, but also the opportunity to use new business models. A business model is a method of doing business by which a company can generate revenue to sustain itself, A comprehensive business model comprises of 6 elements: Products and services Business process Customers Resources ‘Supply chain and business partners Financial viability ayer Information System (IS) collects, processes, stores, analyzes and disseminates information for a specific purpose. It processes the input using technology and produces the output to be sent to users via electronic networks. Although, not all IS are necessarily computerized but the ‘computerized systems include hardware, software, data, a network, procedures and people. Information Technology (IT) is a collection of computing systems used by an organization. It includes the technological side of an IS. It includes the hardware, software, dara and database, networks and other electronic devices. IT is a subsystem of an IS. Business Performance Management 1. Decide on desired performance levels 2. Determine how to attain these levels3. Monitor performance 4, Adjust performance and/or goals Green IT is the effort made by organizations and individuals by preventing the damages caused to the physical environment by potential improvements and savings that can be made in the IT industry. It is a growing movement and a permanent fixture in the IT world. Green software, a software product, will help companies save energy or comply with EPA requirements. A strategy is the component that defines how to attain goals and objectives. Porter’s competitive force model has been used to develop strategies for companies to increase their competitive edge. The five major forces of the model that affect the degree of profitability are: ‘Threat of entry of new competitors Bargaining power of suppliers Bargaining power of buyers Threat of substitutes Rivalry among existing firms yaepe Porter’s Value Chain Model: The activities conducted in any manufacturing organization can be divided into primary activities and support activities. Primary acti Inbound logistics Operations Outbound logistics Marketing and sales Services paege Primary activities are supported by (1) The Firm's Infrastructure, (2) Human Resource Management, (3) Product and Technology Development and (4) Procurement. Adaptive Enterprises are organizations that can respond in a timely manner to environmental changes and to be agile they must also have a flexible IT architecture. To be adaptive, IT needs to be synchronized with business processes. Social Computing is computing that is concerned with the intersection of social behavior and ISs. E.g. Blogs, instant messaging, social network services, etc. It concentrates on improving collaboration and interaction among people. Leaming about IT is essential because the role of IT is increasing rapidly in support of organizations. Over the years, we have become dependent on IT and the same would continue in the coming future. Also, IT related jobs with high salary packages have been made available.memory and that typically reside within the organization in an unstructured manner. Also known as intellectual capital, that implies financial value to knowledge. Extraordinary leverage and increasing returns Fragmentation, leakage and the need to refresh Uncertain value Uncertain value of sharing Rooted in time ‘Types of knowledge 1 Explicit knowledge: It deals with more objective, rational and technical knowledge (data, policies, procedures, software, documents, etc) Tacit knowledge: It is in the domain of subjective, cognitive and experiential learning; it is highly personal and difficult to formalize. The need to integrate explicit and tacit knowledge gives rise to Knowledge Management Systems (KMS) that make use of moder information technology. The two basic components of KMS are communication and collaboration technologies and storage and retrieval technologies. To systematize, enhance and expedite intra and inter firm knowledge management To help an organization cope with turnover, rapid change and downsizing To maintain a well informed productive workforce To help large organizations provide a consistent level of customer service Retain knowledge about departing employees To capitalize on the knowledge and experience of employees worldwide Knowledge Management System Cycle vee Create Knowledge Capture Knowledge Refine Knowledge Store Knowledge Manage Knowledge Disseminate Knowledge KMS Implementation An employee submits a question into the ELS (Expert Location System) The software searches its database for an answer to that question already exists or not. If not, then searches for an expert The system asks for him to respond to that question and submit his response Response is reviewed for accuracy and sent back to the user124 Pte Pon Ad, My 5 ot ae lh eng | Somme 7 tne ep fermenter En eerata mes mther ane, ogee te epee te Sipohinnranrareres {Strona lg Tomy ctinhnd aah cee "epee ot nh nt on Lets Rate a er a Da SO a mt nan ein BS eel = een tt ear soo ow eg he aac i vrs nd iy acu ee he al tne Te fr st ot J rocrn yt Coniston a BOJepes SSEuIsng snquiyMX OSE‘esa jmumesa se stunned aape 2 in i a Me smasmuseenonmme tunduue whee Meuwnf oa ot ‘bw “ienacesrane sm eas ‘rr fen Lo ee ‘me Sr nOM RAN We oeenemed ME ADM eE HON ‘acre murn wma ead 9c ean ea (meteaavtir num wormmapaesag anes ‘uevntsrty Phi Smunjthonet uw sicaie me nature Retna aL eve rc Tenconswarete semua ene pot ‘oitometanauoene enya args ety wh re tintarsanstae tems stata unin gy PRR a scans tt oe ‘eaten Saves ‘prerimntagatanet mica tng P00 8 ndraburpoe ae feminine oar mc St soreur puoi tanya ee Seaman. oarieny sate seta mien aan sow ‘mconitonion Srepnae wana acon ss A wl KO 3Prepared by Nirankush Dutta (Research Scholar) Contents Opening Case Mini Case... Wireless Mesh Networking Adds Real-time Monitoring to the Plant Floor...Opening Case High-Performance Green Computing at Nano-Scale Centre 1. Why was it necessary for the Nano-Scale Centre to build high performance computer cluster? Ans. (1) To ensure proper infrastructure to meet future needs (2) To meet its eco-friendly vision and plan (3) To minimize costs and power consumption (4) To accommodate more researchers simultaneously 2. Why do you think green computing is necessary? Ans. (1) To reduce environmental impact of business (2) To project the company as a leader in environmental consciousness and create a benhmark (3) To gain better word-of-mouth and more customer loyalty (4) To comply with existing and future rules and regulations (5) To reduce long term costs Mini Case Wireless Mesh Networking Adds Real-time Monitoring to the Plant Floor 1. Why would real-time monitoring be important to Accent’s manufacturing processes? To their quality control? To their customer relationships? Ans. (a) To reduce downtime of machines (b) To stop over-produetion (©) To prevent wastage of materials (d) To reduce inventory (c) To supply products to customers on time 2. Identify the benefits of a wireless mesh network over a non-mesh wireless network. Also identify a disadvantage of wireless mesh networks, Ans. Advantages:(a) Lower cost from not having to run wire to connect the real-time monitoring sensors to production machines. (b) It may cover a larger area (©) Easy to set up (@) Good method to connect two local networks (©) Self-management of loads to avoid clogging Disadvantages: When transmission conditions are less than ideal, a more robust modulation or error correcting codes should be employed to restore the reliability of a link at the expense of bandwidth. 3. Explain why overrunning jobs is a major problem. That is, why would jobs get overrun instead of stopping when the necessary quantity was reached? Ans. (a) Wastage of resources (labour, money and time) (b) More inventory cost Jobs may get overrun because of manual or machine-related errors. 4, What is the value of the visual cues provided by the various colours and types of light signals from atop the poles? What is one disadvantage of this system? Ans, Flashing green > job running at expected pace Blue> Job running faster than expected Red-> Job running slower than expected Amber-> Machine is down People may get used to too much visual clues and start neglecting the information sent by wireless network. Hence, if the lights stop working at any time, they may simply overlook the issue at hand,Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division ‘Second Semester 2006-2007 Comprehensive Examination (EC-2 Regular) Course No. : BITS Zc471 Course Titie MANAGEMENT INFORMATION SYSTEMS Nature of Exam +: Open Book Weightage 0% Duration 3 Hours No. of Questions = 7 Date of Exam 01/0472007_(AN) Not 1 2 3 4. Qi Q2 Q3 as Qs Please follow all the Instructions to Candidates given on the cover page ofthe answer book, All parts of a question should be answered consecutively. Each answer should start from afresh page. Mobile phones and computers of any kind should not be brought inside the examination hall. Use of any unfair means will result in severe disciplinary action ‘An information system is a business application of the computer. List four business applications that you come across in everyday life. (8) Make atist of the systems that use POS data and the uses that are made ofthat data, yok 2 18h ‘The government is greatly exercised by setting targets, monitoring performance against those targets and then finding excuses when the target is not achieved. Further and higher education is rot exempt from this process. Areas where targets have been set include recruitment from less privileged backgrounds (by various ethnic and socio-economic categories) and the dropout rates of students after they start their courses (at each stage of the course). Your college or university ‘wants to monitor the achievement of these targets across all its departments. Choose one of these target areas and sketch an analysis, Key target and exception report for the requirement (make up some target figures if you need to). Assess the appropriateness of each report to the management information requirement. [8] Explain why human decision-making is satisficing rather than rational and discuss the consequences of this for MIS, DSS and EIS [3] Define the concept of an IS development method and a project management method. Give an example of each. (8)BITS ZC471 (EC-2 REGULAR) _ SECOND SEMESTER 2006-2007 "AGE 2 Q6 Q6 (a) 26 (b) Case study: “Chip Maker Reengineers Procurement Process” ‘Advanced Micro Devices, Inc. (AMD) was founded in 1969 and today is a global supplier of integrated circuits for personal and network computers and communications markets. AMD manufactures processors for Microsoft Windows-compatible PCs, flash memories, products for communications and networking applications, and programmable logic devices. AMD has nearly 13,000 employees, with ‘manufacturing facilities in the United States, Asia, and Japan, and sales offices throughout the world, Recent annual revenues were $2.4 billion AMD conducts microchip technology research and development at its Submicron Development Center (SDC) in Sunnyvale, California, This advanced wafer fabrication facility is also used for new product prototyping and production testing. There ate three additional fabrication facilities in Austin, Texas, including the state-of-the-art Fab 25 facility, which cost $1.5 billion. These fabrication sites perform high-volume manufacturing of many kinds of logie integrated circuits, such as the AMD-K6 processor, programmable logic devices (PLDs), subscriber line interface circuits (SLICs), and the SLACTM. {amily of subscriber line audio-processing circuits. ‘The AMD-K6 processor is an advanced Windows-compatible processor that competes with the Pentium Il processor. AMD also manufactures flash memory for control storage applications ranging from wireless communications to consumer products. Production capacity for flash memory is provided by the AMD-Fujitsu joint venture in Aizu-Wakamatsu, Japan. The AMD Dresden Microelectronics Center, including AMD's first European manufacturing facility, Fab 30, is currently under construction in Dresden, Germany. The facility will include a design center and an 85,000- square-foot wafer fabrication area for AMD's next-generation processors and other advanced logic products. Production is expected to commence in 1999. AMD designs, tests, analyzes and/or assembles products in Penang, Malaysia, Bangkok, Thailand, and ‘Singapore. An additional test and assembly facility, now under construction in Suzhou, China, is planned to begin production in early 1999. Quality control organizations are located in Sunnyvale, California, and in Frimley, England, In an effort to reduce costs, AMD began using the Internet to reengineer its entire purchasing function in May 1997. In a pilot project, AMD moved onto the Web its procurement of photo masks used in chip making. (A photo mask is a glass plate inserted into a machine that lets semiconductor engineers imprint an image of a circuit onto a silicon wafer). The new purchasing process is based on operating resource management (ORM) software from start-up software vendor Ariba Technologies. Under Previous procurement procedures, engineers had to e-mail an AMD buyer and then the buyer wrote a ppurchase order that was sent to the supplier. Not only was the old approach time consuming, it resulted in lots of invoice discrepancies that took even more time to resolve. Using the Ariba software, authorized engineers are able to order photo masks directly from DuPont and Photronics. The streamlined purchasing process is intended to dramatically reduce processing and transaction costs, as well as free purchasing managers to allow them to negotiate better deals with suppliers. ‘The corporate director of supply management was not concerned about reengineering the procurement process based on software that was not yet proven in the marketplace. Ariba did not officially launch its product until two months after AMD began is pilot. As one of Ariba Technologies’ first customers, AMD gets a generous discount from the $750,000 to $4 million price tag. AMD believes that the Ariba solution is the procurement method in the twenty-first century. It allows AMD to focus more resources on supply management and strategic alignment with key suppliers. AMD expects to generate at least a 3 percent savings on several hundred million dollars in expenditures as a result of the Ariba implementation, Can you identify potential issues that might arise as AMD expands use of the Internet procurement process from its corporate offices to worldwide? What actions would you take to avoid these potential problems? (5) Why has AMD built fab facilities and research centers worldwide? Wouldn't it be easier to ‘manage the business if all facilities were located in the United States? (5)BITS ZC471 (EC-2 REGULAR) _ SECOND SEMESTER 2006-2007 PAGE 3 Q7 a7 a7) ‘Case study2: “GAF Materials Corp. - Financial MIS” GAF Materials Corp. (GAFMC) began modestly in 1886 as the Standard Paint Company, with 18 people working in a remodeled sawmill. Today it is one of the most fully-integrated roofing ‘manufacturers in the U.S. with sales over $1 billion and 3,300 employees working in 26 plants across the country (its plants are dispersed because of the high cost of shipping shingles). GAFMC markets its diverse building materials products to contractors and distributors throughout the U.S. and in selected areas of the world. Its professional customer service representatives are trained t0 assist customers and coordinate a range of services. GAFMC has built its success on the diverse range of its building materials products along with key corporate acquisitions, research and development, and customer service. Its integrated operations and self-sufficiency are the mainstay of the Company's future growth. Until recently, GAFMC lacked a financial management information system. It was unable to obtain a consistent view of key financial measures such as production rates and labor utilization ‘actoss its 26 plants. The problem was a lack of consistent standards for capturing and reporting data. Instead, GAFMC had 26 different ways of measuring production. As a result, plant managers and executives at the company’s headquarters were unable to compare the manufacturing operations. ‘When a new chief financial officer came on board, he led an effort to standardize GAFs plant production data. The new financial system is based on the use of a database using Applix’s TMI software and was implemented at a cost of $2 million. The database ties the reporting systems of all the plants to one another and to the corporate offices in Wayne, NJ. ‘The financial database receives input from many sources. Cost data is captured from various accounting systems including payroll (labor hours and costs), accounts payable (cost of raw materials and services), inventory control (stock counts and usage data). In addition, factory floor supervisors enter production statistics into workstations atthe end of each shift. Each plant’s data is kept on a Windows NT server running the TMI software, and the data is copied weekly to a central NT midrange computer. With the new consistent data and improved data reporting capabilities, plant managers can view shift-by-shift manufacturing efficiency, costs, machine downtime, and other Key indicators of plant operations. This enables them to see why another plant is doing something well and they're not. Production managers can view shift-by-shift production data broken down to the machine level. This enables them to determine which machines are responsible for production downtime and enable them to take action to fix the problems. Buyers can review the cost of raw materials used in the shingles, insulation, vents, and other roofing products made by GAFMC. They can. quickly determine whether materials cost less in different regions. ‘The company expected that the full cost to develop the system will be recovered within 18 months. ‘What is the relationship between transaction processing systems and management information systems? 15] How can management information systems be used to support the objectives of the business organization? (31Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division First Semester 2007-2008 Comprehensive Examination (EC-2 Regular) Course No. BITS 20471 Course Title : MANAGEMENT INFORMATION SYSTEMS Nature of Exam : Open Book Weightage 60% No. of Pages Duration +3 Hours No. of Question Date of Exam 3009/2007 _(AN) Note: 1. Please follow ll he Fnsructions to Candidates given onthe cover page ofthe answer book 2. All pans of a question should be answered consecutively. Each answer should start Trom afresh page. 3. Mobile phones and computes of any kind should not be brought inside the examination hall. '4_Use of any unfair means will eslt in severe disciplinary action ace ab? QI Discuss the changing role ofthe IS Function - Traditional Major IS Functions. (3° (6) \ Q2 Discuss the value chain model and its significance in performing a company 9, ae analysis (6) 3° Discuss the different types of biometric controls. How will you implement 1¢ bro biometric controls for a knowledge process outsourcing firm operated by you? (61 Q4 Describe four new business models enabled by Intemet related technologies. Give one example firm for each of the business four models. eck. Jaye! [6] Q5 Why would a computer user decide to use a fourth-generation language over a third-generation one? Discuss the merits of each. >" 4» 2k 508) T2Ile (6) Q6 Why do most organizations favor the yelational database model over the network and hierarchical database models? Hye hott i ty (6) Q7 Create a simple database for an automobile distribution firm, showing the tables and fields for each of the tables (say, customer details, customer order, products details) created. Also show the different reports you would generate for use by the manager of the firm. (15) Page 1 of 2BITS ZC471 (EC-2 REGULAR) _ FIRST SEMESTER 2007-2008 PAGE 2 Qs Case Study: Whirlpool Implements Automated Pricing System Whirlpool! Corporation is the world’s leading manufacturer and marketer of major home appliances, with headquarters in Benton Harbor, Michigan. Its 60,000 employees manufacture fine appliances in 13 countries and market them under 11 major brand names in approximately 140 countries around the world. Recent revenues exceeded $8.5 billion annually Responding to a competitive price change used to take a lot of effort for Whirlpool. When one of its competitors dropped price, a flurry of faxes and overnight packages flew ‘out of Whirlpool’s headquarters to match them. Yet, it was often weeks before Whirlpool ‘could adjust its prices. A price increase also created major problems. Customers, ranging from mega-retailers such as Sears Brand Central to little mom-and-pop stores, became understandably upset when they ordered a product and received an invoice with a higher price when the product arrived. Whirlpool had to issue a credit forthe difference, but this created extra paperwork and worse yet, dissatisfied customers, Under this system, changing pricing on every product each quarter took over three months and was error prone. Performing the quarterly pricing required calculating new prices, reviewing them, printing them, reviewing them again, and feeding them into a mainframe- based computer system. After that, the new price lists were mailed, faxed, and sent by ‘overnight delivery to trading partners and regional sales representatives. To break free of the cumbersome pricing system, Whirlpool implemented a new system ‘and streamlined work processes to make it quicker to respond to market changes or to launch a special promotion of its own. Now sales agents access a centralized pricing database for quick reference when making their calls. The new system consolidates pricing and order entry systems the entire company and halves the time it takes to re-price Whirlpoot’s entire product line of more than 2,000 models. The result is that itis easier to do business with Whirlpool Whirlpoot’s information technology overhaul is spreading to other systems also. Not only is the company implementing a new corporate pricing system, it is also undergoing a massive reorganization to streamline all its business functions, Why is this necessary? To enable Whirlpool to compete with major companies such as General Electric, Maytag, Electrolux Corp. and Amana. Questions: a, How are companies using information technology to improve services, lower costs, and become more competitive? (61 b. What are the fundamental components associated with a successful information system? G1 eensBirla Institute of Technology & Science, Pilani Distance Learning Programmes Division ‘Second Semester 2007-2008 ‘Comprehensive Examination (EC-2 Regular) Course No. : BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam ‘Open Book Weightage 0% No. of Pages Duration 3 Hours No. of Questions =7 Date of Exam 30/03/2008_(AN) Note: 2 3, 4 Qu Q2 Q3 Q4 Qs Q6 Please follow all the Instructions 10 Candidates given on the cover page of the answer book. Al part of a question should be answered consecutively. Each answer should star from a fresh page. Mobile phones and computers of any kind should not be brought inside the examination hall, Use of any unfair means will result in severe disciplinary ation Distinguish between ERP and SCM software and in what ways do they complement each other. Describe the logic of integrating ERP and SCM software. [5+5=10] Describe the enabling role of IT in BPR. Some people say that BPR is a special case of a strategic information system, whereas others say that the opposite is true. ‘Comment, ‘watht 545=10) ae dace ack 5 3, Describe GIS ail GPS ‘Why is the combination of GIS and GPS beComing so ve popular? Examine some applications. (242+ 10) Discuss various methods of protection. Why are authentication and authorization important in E-commerce? [4+6= 10} Give two examples that show how IT can help a defending company reduce the impact of the five forces in the Porter's model. [10} Explain how operational, managerial, and strategic activities are related to various TT support systems. What has been the impact of Internet on Porter's competi forces model? [5+5=10]BITS ZC471 (EC-2 REGULAR) SECOND SEMESTER 2007-2008 PAGE 2 Q7 Carefully analyze the case given below and answer the questions given at the end of the case: Two Faces of J.C. penney In 2000, Dallas retailer JC Penney (JCpenney.com) enhanced its e-retail position in time for the holiday rush by adding homegrown site features that let customers more quickly locate and pay for merchandise. With JCPenney.com, the company unveiled express checkout services that let customers zip through a purchase in as few as two clicks. It also inaugurated electronic gift certificates that can be redeemed online, plus improved order tracking to give customers more accurate delivery estimates. These features followed the early November 2000 launch of Mercado Search, a search engine that lets shoppers prow! IC Penney's site by product category and receive results ranked according to relevance. In 2001, the company rolled out specialized sites dedicated to name-brand merchandise, making it easier for customers to find certain products. Alll these steps were designed to boost the company’s online strategy. ‘The success of JCPenney.com, in large measure, is a result of a customer service and logistics infrastructure built to support a multibillion-dollar catalog business that has been extended online. JCPenney.com broadened its appeal by launching speciality sites to promote high margin brands, including Sony, Levi Strauss, Nike, and Kitchen Aid (appliances). The idea is to drive purchases of name-brand merchandise by providing more detailed information on those products, as well as direct links to the manufacturers. IC Penney is also conducting auctions on its Web site. ‘The company boasts strong integration between its Web site and its offline infrastructure that helps the site reach its aggressive sales targets. Anything purchased online can be picked up or returned at any JC Penney or Eckerd store. JC Penney has 14 customer- service centers nationwide that handle catalog and phone inquiries, and employees have been cross-trained in e-mail. United Parcel Service (UPS) delivers most merchandise ordered online within 24 to 72 hours. JC Penney serves customers via three sales channels - stores, catalogs, and the Web site. Integrating these three channels will eventually play off, according to Forrester Research analyst Seema Williams "As the number of on-line shoppers grows, the impact from multiple channels will be felt much more on JC Penney's bottom line," Williams said. Despite the strong Web performance, e-commerce alone most likely cannot turn around a company of JC Penney's size. "The Web is such a small part of their business; there's no way it's going to tum around the company,” said an expert. "The Web is icing on the cake, but the biggest pad of the company, by far, is struggling.” Questions: (a) How does a search engine help JC Penney to do a better job in customer service? (6) (b) Does its existing legacy system help JCPenney.com accomplish its goal promoting its online business? Can any of the emerging technologies be used to further improve the situation? (6] (©) What kind of information technologies can be used to help JC Penney to promote its business and to accomplish its business strategies? (3)Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division First Semester 2008-2009 ‘Comprehensive Examination (EC-2 Regular) Course No, BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam : Open Book Weightage 160% Duration 3 Hours Date of Exam 28/09/2008 (AN) Note: Please follow all the Instructions to Candidates given on the cover page of the answer book. 2. All parts ofa question should be answered consecutively. Each answer should stat from fresh page. 3. Leave about one inch margin space on all four sides ofthe answersheet. 44. Mobile phones and computers of any kind should not be used inside the examination hall Q.1 Define and discuss the four-stage model of IT planning. (2+24+242=8] Q2 Explain with diagram and example, the Tjan’s portfolio strategy for choosing applications portfolio for e-commerce. [5+5=10] Q3(a). Define explicit knowledge. Why itis also called leaky? GB+l=4) Q3(b). Define tacit knowledge. Why it is also called sticky? B+i=4] Q4 Explain each of the following - (a) Data Mart () Turing Test (© SOAP (@)_— Metcalfe’s Law (©) Cracker B+343+3+2=14) Q5 Read the case study given below and answer the questions at the end of the case. ERP Helps Improve Productivity - Established in 1981 in Waterloo Ontario, Canada, Northern Digital Inc. (NDI) is a leading supplier of 3D/6D measurement products used in industries as diverse as image guided surgery, robotics, aeronautics and biomechanics. The company employs 90 and generates over $20 million in annual revenue. The Challenge NDI faced a challenge when rapid growth and aging technology threatened to stand in the way of company goals. Instead of enabling operational improvements, NDI's existing systems were impeding progress. Existing technology was causing missed deliveries and creating a high number of back orders, Inventory control was poor, and the planning was inaccurate, With some customers expecting shipment in as much as nine months and others expecting shipment in as little as nine days or even less, more sophisticated and accurate planning was critical. Customer satisfaction was at risk and internal morale was slipping. The management team at NDI decided it was time to actin order to save its reputation, BITS ZC471 (EC-2 REGULAR) Page | of 2BITS ZC471_(EC-2 REGULAR) FIRST SEMESTER 2008-2009 PAGE 2 The Solution ‘The decision to invest in a new system was not undertaken lightly. With almost twenty years in business, NDI has firmly established a reputation for high quality, high performance products. The company is a past winner of the Canada Export Award and the Global Traders Award. They are also ISO9001 registered. NDI’s selection of Intuitive ERP™ from Intuitive Manufacturing Systems was based on factors that directly supported corporate ‘objectives. Intuitive ERP provided a level of system functionality that could immediately improve inventory ‘management and the expandability and flexibility to support NDI’s growth. Equally important was the system's level of ease of implementation and ease of use. Northern Digital’s Results ‘After implementing Intuitive ERP, Northern Digital has experienced continued success in improving inventory management and increasing revenue. Prior to implementation, the company struggled to achieve even two inventory tumovers per year. Inventory tumovers have now more than doubled and expectations are that the company will better that in the near future. Since implementation, Northern Digital's revenue has increased from $10 million to over $20 million with little increase in inventory value. In addition, the company has reduced the order eycle time for ther flagship product from four months to four weeks, an improvement of almost 80 percent. This was the result of improved planning capabilities due to the ERP. Improvements in production control and inventory management have had a direct impact on customer delivery. ‘The Material Requirements Planning and Forecasting capabilities of Intuitive ERP have allowed Northern Digital to better service their customers. The addition of better planning capabilities had an immediate impact on labor and materials, “We were able to better understand what was in stock, what we were buying and what was needed,” said Tom Kane, Production Manager. “Improved planning has made a huge difference in improving delivery.” Ease of use and system scalability has been important in utilizing Intuitive ERP to improve operations When the system was first implemented, only five user seats were required. As the company grew, that number increased to twenty-five, Significantly increasing the number of users, and doing so without a lot of training, allowed the company to expand without worrying about putting constraints on their business infrastructure, supporting the growth strategy. “For ease of use and ease of learning, there is nothing better on the market,” said Kane. Northern Digital was interested in upgrading their operations by leveraging Intuitive ERP"s standard functionality but also had some unique conditions that required modification of the system. With a relatively small IT staf, it was important that modification and customization could be done with limited resources. According to Robin Smith, Systems Administrator for Northern Digital, Intuitive ERP's “ability to customize easily” made the implementation process go smoothly. “The system is easy to modify and customize to make it work for your business.” added Production Manager Tom Kane, For Northern Digit improving operations is. @ ‘more than just a way to reduce expenses. With the implementation of Intuitive ERP, the company has found a way to increase the value they provide to customers while also improving financial performance. “Intuitive ERP \was instrumental in assisting NDI to achieve the growth that we have seen over the past three years,” said Kane. (a) Fora small company like NDI, why is an ERP better than SCM applications? (6 (b) Identify the supply chain segments that the ERP supports; be specific. (31 (©) Relate this case to Porter's value chain and to its competitive model. Show the ERP's contribution. [5] (d)__ Relate this case to business planning and strategy. ia) BITS ZC471 (EC-2 REGULAR) Page 2 of 2Institute of Technology & Science, Pilani Distance Learning Programmes Division ‘Second Semester 2008-2009 Comprehensive Examination (EC-2 Regular) Course No. : BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam ‘Open Book Weightage 60% Duration 3 Hours Date of Exam (05/04/2009_(AN) Note: 1. Please follow all the Instructions to Candidates given on the cover page ofthe answer book, 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3. Mobile phones and computers of any kind should not be used inside the examination hall, 4._Use of any unfair means will result in severe disciplinary action, Qu Q2 Q3 Q4 With the help of an example of your organization or any organization you are familiar with explain how IT is an important BPR enabler. 0) Make a list of all the knowledge management methods used by your organization (any other organization you are familiar with), Which are the most effective and the least effective ones? [7+3=10] ‘The three phases that Simon defined are the intelligence phase, where managers identify and define a problem; the design phase, where they construct models to be used and apply different scenarios; and the choice phase, where they select a solution to be applied in the real world situation, In light of the above statement in structured problem(programmed) the intelligence, design, and choice are all finite, known variables. In unstructured problems, none of the three phases are structured, requiring the use of intuitive thought processes. Give one example of each structured and unstructured problems in the following three areas: finance, marketing, and personnel administration. [54+5+5=15] Read the given case and answer the questions given below: Federal Express ‘Redefines Its Services to Maintain Competitive Advantage Federal Express (FedEx) with headquarters in Memphis, has a fleet of 40,000 ground vehicles and 600 airplanes. It generates annual revenues in excess of $11 billion. The firm also has an impressive information system architecture that is driving FedEx’s transformation from a package delivery company to a strategic provider of E-commerce, logistics, and other supply-chain services. FedEx knows that building and leveraging its information systems and networks is key to its success in the 21" century. As a result, it spends about $1 billion a year on information technology. FedEx is not only reorganizing its intemal operations around a more flexible technology infrastructure, but it’s also attracting new customers and in many cases locking in existing customers with an unprecedented level of technology integration, BITS ZC471 (EC-2 Regular) Page | of 2BITS ZC471 (E¢ Regular) ‘Second Semester 2008-2009 e2 Although FedEx pioneered Web package-tracking capabilities, these have now become ‘an industry norm rather than a competitive advantage. All major transportation and delivery companies, from United Parcel Service to Ryder System, are making major investments in information technology. Where FedEx is different is that it is using information technology to transform itself from a delivery service to a vital link in today's networked and increasingly electronic economy. FedEx seeks to become a fully integrated corporate partner that picks up, transports, warehouses, and delivers all of a ‘company’s finished goods from the factory floor to the customer's receiving dock — with status data available every step of the way. Large companies such as National Semiconductor Corp. have hired FedEx to handle most of their warehousing and distribution operations. Today, virtually all of National Semiconductor's products, manufactured in Asia by three National Semiconductor factories and three subcontractors, are shipped directly to a FedEx distribution warehouse in Singapore. National Semiconductor’s order-processing application, running on an IBM mainframe in Santa Clara, California sends a daily batch of orders directly to FedEx’s inventory-management system running on a Tandem computer in Memphis. At this point, FedEx takes over — the orders are forwarded to the FedEx warehouse ‘management application in Singapore, where they are fulfilled in a FedEx warehouse and shipped directly to customers via FedEx. Except for receiving a confirmation that the order was filled, National Semiconductor is done with the order transactions. National Semiconductor has gained significant benefits: the average customer delivery time has been reduced from four weeks to seven days, distribution costs have been cut from 2.9% to 1.2% of sales. In addition, seven regional warehouses in the United States, Asia, and Europe were closed saving National Semiconductor costs for warehouse space and employees. ‘The tight information technology links between FedEx and National Semiconductor exemplify FedEx’s strategy of technology integration with its corporate customers. FedEx stores the product, operates the warehouse, and processes the order and then hands it off to the carrier — which, of course, is FedEx. FedEx is not alone in using information technology to move beyond package delivery. UPS, which has spent $9 billion on IT since 1986, has already formed five alliances to help disseminate its logistics software among E-commerce users with UPS providing order-entry, catalog, and inventory management. Ryder System has formed an alliance with IBM and Andersen Consulting to deliver logistics services to customers. IBM will lend technology expertise and Andersen its consulting personnel to Ryder projects worldwide, Discussion Questions 4.1. Explain strategic competitive advantage with the help of the above case. [10] 4.2. How has information technology helped the company to gain and maintain a strategic competitive advantage? 15] eens BITS ZC471 (BC-2 Regular) Page 2 of 2Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division Second Semester 2013-2014 Mid-Semester Test (EC-2 Regular) Course No. : BITS ZC471 Course Title : MANAGEMENT INFORMATION SYSTEMS Nature of Exam Closed Book Weightage 35% Duration 2 Hours Date of Exam 16/02/2014 (FN) Note: |. Please follow all the /nstructions to Candidates given on the cover page of the answer book. 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3._Assumptions made if any, should be stated clearly at the beginning of your answer. Qu. Q2. Q3. Qa. Qs Q6. In spite of efforts put in by organizations to implement/upgrade to newer IT systems, there have been many failures. Explain how the implementation failure of SCM system at Nike and upgrade failure of CRM system at AT&T Wireless affected these organizations. Explain their experiences, each, in about 100-120 words. [4] Classifying information system within an organization helps to manage the information flow and also helps in restricting access to systems. Explain how information systems, in an organization, can be classified according to organizational levels. At least five levels should be explained, in about 50-70 words each. 15] An intemational investment bank DrKW (division of Dresdner Bank) has innovatively used Web tools such as Wikis, Blogs and Chats for collaboration. (@) Explain the need for multiple channels of communication (60 words) [0.5] (b) Which social enterprise software was chosen by DrKW and reasons behind it? (100 words) 1.5] (©) How use of Wiki increased employee productivity? What type of waste does it reduce? (100 words) 2] To improve collaboration, organizations share their information with their suppliers. This is particularly so in collaboration between retailers and their suppliers. Elaborate on the collaboration between (a) P&G and Wal-Mart (80 words) ri] (b) Asda Corporation & its suppliers (100 words) i) Providing proper security to IT assets in the organization is important. It is also equally important that in case of a failure (in spite of all security precautions), the organization should be able to recover quickly from a disaster. Share the experience of Watson Wyatt recovery (from a disaster) in about 200 words (4) Many organizations such as Toyota, Dell, etc. have exploited the power of internet and Web technologies to advance their business. In a similar way, a wine producing co., Stormhock Vineyards (SV) exploited the power of Web 2.0 to promote its business. (a) For what purpose(s) SV used Web 2.0 technologies? (80-100 words) [1.5] (b) State, at least, five Web 2.0 technologies that were used by SV with purposes for which they were used. 125] BITS ZC471 (EC-2 Regular) Second Semester 2013-2014 Page 1 of 2 10BITS ZC471 (EC-2 Regular) Second Semester 2013-2014 Page 2 Q7. Location based commerce is a concept that will become more & more relevant and important in the coming days. (a) What are the five key concepts that are central to L-commerce? 12.5) (b) To implement L-commerce successfully, technologies are needed. State and explain five important location-based and network technologies that are needed. (each about 40-50 words) (5) Q8. Relevance and usefulness of advanced information systems in any organization is obvious. But it is not the case with TPSs, though TPSs are the base to all other information systems in an organization. TPSs handle the routine but core processes of any organization. Many organizations have proved that modemizing the TPSs can cut time and/or save money, Explain, in what way, each of the following companies proved it (each about 60-80 words): (a) Domino's Pizza (b) Kinko's (FedEx co.) (©) Camival Line (15+15415=4.5] see BITS ZC471 (EC-2 Regular) ‘Second Semester 2013-2014 Page 2 of 2\\ Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division First Semester 2013-2014 Mid-Semester Test (EC-2 Regular) ‘Course No. : BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam Closed Book Weightage 35% Duration 2-Hours Date of Exam 08/09/2013 (AN) Note: LL Please follow all the Instructions to Candidates given on the cover page of the answer book, 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3.__Assumptions made if any, should be stated clearly atthe beginning of your answer. Qu. IT has changed the way businesses are managed. Business models are undergoing change to take into account the role of IT. What are the four major representative business ‘models of digital age? Explain each in about 50 words. [4] Q2(a) For efficient use of IT resources, an organization should have a good Information infrastructure. What does Information infrastructure consists of and what are the five ‘major components of Information infrastructure? (60 words) BI Q2(b) What is Business Intelligence (BI) and what are the four major components of BI? (60 words) (+253) Q3(a) Team work is the preferred mode of operation. With the emergence of IT, virtual team work is a possibility. What are the five major challenges associated with managing virtual teams? Explain from the experience of Sabre Inc. (60 words) [2.5] Q.3(b) State, at least, four benefits of converged networks (80 words) (2] Q3 (©) _ Explain the relevance of search technology in an enterprise (80 words) 01.5] Q4. To provide a proper security to the organization, it is necessary that management and ‘managers understand different types of issues/attacks. Explain the following briefly: (a) Programming attack (b) DoS attack (c) Malware (4) Phishing (160 words) [4] QS. The rise & success of Dell is a classic example of how IT can shape a business model. State and explain, at least, three E-Commerce initiatives of Dell (200 words) [2+2+2=6] Q6. Explain how ITs were put to use to avoid traffic congestion by Swedish Road Administration and the results of its efforts (about 200 words) 4] Q7. In any organization, TPSs are indispensable systems, (a) Justify the importance of TPSs in business organizations (80 words) (1.5) (b) What are the primary objectives of TPSs? (80 words) (1.5) (©) Give two examples of TPSs (30 words) o) (@)_— What are the two ways in which data are processed? (30 words) 1)Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division ‘Second Semester 2012-2013 Comprehensive Examination (EC-3 Regular) Course No. BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam Open Book Weightage 50% Duration 3 Hours Date of Exam 07/04/2013 (AN) Note: 1. Please follow all the Instructions to Candidates given on the cover page of the answer book, 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3.__Assumptions made if any, should be stated clearly atthe beginning of your answer. Qu. A leading petrochemical industry is planning to revamp its IT infrastructure. The organization has half a dozen oil refinery plants and about 500 sales & distribution centres. The reason for the new plan is mainly due to changing environments around the world and new threats that emerge from change. Existing systems are mostly built by the organization and are not standardized across divisions and SBUs. You are entrusted with the responsibility of advising the organization on the matter of suggesting suitable technologies to achieve the following objectives (At least two information technologies, for each objective, with their purposes) (do not write FISs, MISs) (a) Managing at SBU levels 21 (b) Managing at organization level (2) (©) Managing all sales & distribution centres from a central system at HQ I Q.2._ Piper Aircraft (PA) is planning to invest in IT to increase productivity and efficiency in its production and assembly operations. Of late, PA is facing stiff competition in the industry. ‘There have also been delays in meeting contracts with clients. One of the major problems faced by the organization is tracking of components, tools actoss the entire organization. PA has implemented process improvement projects involving RFID to track parts inside warehouses, during transit to assembly plant, and as they are assembled into aircraft as well as to track how and where tools are used for other operations. ‘The new IT infrastructure facilitates information exchange among employees and also integrates with RFID data with business systems such as ERP system. The system can also manage data from bar codes as bar-codes are still being used for some purposes. RFID is mainly used in rolling cages, pallets, cases and high cost parts. i.e. in entities which are moved around. RFID usage is (usage is) being planned to extend to other areas of (areas of) management in (management in) future. (@) What are the drivers of RFID/IT project? (at least 4 drivers) 141 (>) What are reasons for using RFID when bar codes are available? (at least 2) [2] (©) How would you advice on using RFID on other areas of management? (100 words) 21 BITS ZC471 (EC-3 Regular) Second Semester 2012-2013 Page 1 of 3BITS ZC471 (EC-3 Regular) Second Semester 2012-2013 Page 2 Q3. Q4. Q5. Retail product manufacturers compete for shelf space in retail marts, Proctor and Gamble (P&G) is well known for this with operations in more than 80 countries. P&G sells more than 300 brands worldwide. Demand variability, particularly in beauty division is very high. Fashion trends call for new products continuously. Major retail outlets such as Wal-Mart and Target compete fiercely on all aspects. In response to such pressures P&G started search for suitable IT solution. P&G supply chain consists of thousands of suppliers, manufacturing facilities and markets. Even a small change in any part of the supply chain (SC) may have significant impact on all other participants. Larger the SC, higher the chance of making a mistake. P&G has decided to move from mere inventory optimization to multi-echelon inventory optimization meaning to include inventories in which products are located in a variety of locations along their path to distribution, some of which are at different echelons or tiers of the enterprise distribution network. Synchronizing the demands is a major issue in such inventories. P&G has selected PowerChain Suite from Optiant Inc. This was implemented as a pilot project for beauty care division (most profitable division) where SC is most complicated. If the project is successful in this division, then it can be extended to any other division. The implementation was a success resulting in trimming of inventory by 3 to 7 per cent and maintaining a service level of 99%. (a) Why large SCs are difficult to manage? List five reasons [2.5] (b) Why is SC management essential to P&G"s beauty care division for its success? List five reasons [2.5] (©) Relevance of multi-echelon inventory optimization in a small business unit, Explain with supporting arguments.(not more than 60 words) 2) KM systems are getting popular by the day. Organizations find KM systems to be very useful. (a) Why would an organization need a KM system? List at least three purposes [15] Now relate the discovery, search and customized delivery capabilities of IT. (b) List four IT tools that offer such capabilities (21 (c) Relate each IT to its use in building a KM system within the enterprise (each not more than 60 words). [4] For the following types of organizations list at least two initiatives that can be done under e-CRM (a) A transport/courier organization (2) (6) Hotel chain rea] (©) How this can be extended to m-CRM and location based CRM 2) BITS ZC471 (EC-3 Regular) ‘Second Semester 2012-2013 Page 2 of 3BITS ZC471 (EC-3 Regular) Second Semester 2012-2013 Page 3 Q6. Q7. Qs A medial organization (MO) was getting into clinical data management services as an extension of existing management services. This created need for an integrated web enabled solution for clinical data management. Given the critical nature of information handled, compliance solution will have to be implemented. IT team of MO identified SAS PheedIT as the solution. SAS PheedIT, a web based solution, offers all required components for implementation. It provides a robust data entry portal, integrated with the ability to handle data transformation, imports and exports of data, analysis and reporting. It also provides decision support capabilities. It was a flexible management solution which enabled any kind of sharing of web based information. It offers an easy to use application for GPs, nurses, decision makers, project managers, and others with specific access rights. It also allows users to carry out retrospective studies with import and export of data from the system. It supports analysis-friendly database. This in tum used by PheedIT’s report engine to generate various reports, graphs which can easily be used by internal and external statisticians who are given access to the system. The system also meets all adherence requirements worldwide such as standard of conduct, FDA requirements. The solution enabled MO’s network of more that thousands of investigators conducting clinical research to work on a common integrated web based platform in a broad number of therapeutic areas like oncology, infectious diseases, vaccines, paediatrics, immune dysfunction, cardiology, endocrinology, etc. (a) List all the capabilities of SAS PheedIT. [2] (b) List all (List all) the users of SAS PheedIT (2) (c) SAS PheedIT can be considered to be a decision support system. Support or refute the statement with at least three arguments. (3) Iridium Communications (IC) is a satellite based telecom provider. Almost bankrupt in 2000, it bounced back with a new business model, In the initial stages, the IC phones were too bulky and charges were too expensive for the mass market. Worse issue was phones need line-of-sight connection which prevented indoor usage. After the buyout IC placed itself as a telecom provider offering reliable service in remote areas where cell phones and landlines won’t work (deserts, earth pole regions, deep forests, isolated areas and harsh environments). Under the new ownership, IC has collaborated with hundreds of partners to find new business uses and niches for IC in industries from mining, manufacturing, oil and gas exploration, forestry, etc. IC services are not confined to handsets. It can be through machine-to-machine ‘communications using a sensor device about the size of a deck of playing cards attached to a vehicle, container, ship, ete. The device can send and receive short bursts of communications data to a satellite wherever it is on earth. IC nowadays boasts of providing a lifeline where no other (telecom) device can be used. (a) Explain, at least, four reasons behind failure of initial strategies of IC (2) (b) How the failure was reversed? List, at least, three new strategies of IC [2] (©) What should be the USP (unique selling proposition) of IC? tu) Relate emergence of new technologies at a faster rate to the problems conceming pollution and global warming. (100 to 150 words) B.5] BITS ZC471 (EC-3 Regular) ‘Second Semester 2012-2013 Page 3 of 3Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division Second Semester 2012-2013 ‘Mid-Semester Test (EC-2 Regular) Course No. : BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam + Closed Book Weightage 235% Duration :2 Hours Date of Exam 10/02/2013 (AN) Note: | Please follow all the Instructions to Candidates given on the cover page of the answer book. Qi (a) What are the major objectives of using IT in a digital enterprise? (maximum70 words) Q.1(b) Discuss the five steps involved in making an organization an adaptive organization (90 words) [15+2.5=4] Q.2(a) One of the recent additions to information technology is RFID. Explain what is RFID and its major (at least four) benefits in business. (120 words) G3) Q2(b) Elaborate on RFID deployment & usage in Nokia. (100 words) (2 Q3. Qa. Qs. Q6. Q7. Q8. Web and Intemet have many applications. (a) Distinguish between intemet and Web. (30 words) (0.5] (b) State and explain the three major categories of internet application with examples. (120 words) (3) (©) What is the difference between intranets and extranets. (30 words) (0.5) Collaboration is a key driver of business performance. Information technologies can assist in improved collaboration. (@ State, at least, six information technologies that assist in virtual collaboration. Explain use of each technology very briefly. (130-150 words) (3) (>) What is the e-collaboration arrangement between P&G and Wal-Mart (40-50 words) ty IT security is becoming an essential need in any organization. There is a model for Implementation of enterprisewide information security and internal control, State & explain the four steps involved in implementing the model. (200-220 words) (51 Extailing (ie. e-retailing) is gathering momentum as more and more information technologies evolve. But there are few major issues related to e-tailing. State and discuss any four of the major issues. (200-220 words) (4) We all know that M-commerce is emerging as nextgen commerce. But L-commerce is expected to overtake M-commerce, in future. (a) State and briefly explain five key concepts involved in L-commerce. (50-70 words) 251 (b) State at least three L-commerce technologies. (30-50 words) U5] Dartmouth-Hitchcock medical centre has implemented a wireless inventory management system, Discuss about implementation under following sections: (@) Problems that prompted the study. (30-40 words) 0) (b) Solutions considered. (30-40 words) oy (©) Solution arrived at and implemented. (80-100 words) 2) (a) Benefits achieved (at least four). (40-50 words) aaie Birla Institute of Technology & Science, Pilani : Work-Integrated Learning Programmes Division First Semester 2013-2014 Comprehensive Examination (EC-3 Regular) Course No. BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam Open Book Weightage 50% Duration Hours Date of Exam :10/11/2013 (AN) Note: 1. Please follow all the Instructions to Candidates given on the cover page of the answer book. 2. All parts of a question should be answered consecutively. Each answer should start froma fresh page. 3.__ Assumptions made if any, should be stated clearly at the beginning of your answer. Q.L. In one of the cities in US, to improve efficiency in operations, the city's police department has decided to replace existing system with new Windows based touch sereen software system. It will be installed in every patrol car. It is designed to receive orders, send messages, write reports and receive maps using GPS for location details. But the management has failed to consult the users (field police officers) on @ the new system, Users felt that their lives depended directly on software's performance. There was difficulty in using Code 99 command used when the user is in danger and needs immediate help. Earlier method of single key stroke mechanism ‘was replaced with two-key stroke due to too many false alarms. Users felt finding the two-key-stroke combination of touch-pad keys on a 12-inch display screen when under fire was difficult. Another problem is about locating information quickly about a suspect they have in hand, Even license plate verification was taking a longer time. Users also complained that the training was insufficient. Two days after the system went live, it crashed. Even after modifications to the software, there were many bugs. Elder users were resistant to new Window based software system as they were not comfortable with new technology. Problems of delay were faced by dispatchers too. (a) _ Clearly the problems encountered by users are mainly due to software. State, at least, three problems due to software and three problems that are not due to software (3) e (b) What/who are the real reasons behind unsuccessful implementation of new system? Give, at least, six reasons with supporting arguments. 6) (©) If you were the chief of Software Co. how would you have gone about developing the new system? State five activities that you would have carried out to ensure success. {5} Q2. MMC Inc., a medium sized business, has offices in US and Germany. For successful operation, MMC relies on its networks of IT systems. MMC has been progressing at a good pace. The network connectivity is presently provided by a third party and the network is prone to crashes, When the time came to renew the contract, MMC has decided to look for a better network solution provider. MMC wanted a solution that is reliable, scalable, secure, economical and responsible. Based on study, MMC has decided to award the contract to Hi-Link Corp (HLC). Immediately, HLC has taken up a study of present network system and interviewed management about business BITS ZC471 (EC-3 Regular) First Semester 2013-2014 Page I of 5goals and requirements, HLC has suggested a secure VPN foundation connecting .""» CT's sites, BITS ZC471 (EC-3 Regular) First Semester 2013-2014 Page 2 Q3. Q4. ‘The new recommended system is a self-managed network system. It took merely a week to deploy all the networks. The benefits of new system include: avoiding network congestion; improved bandwidth, reliability and security; eliminating downtime; and costing less in longer duration. (a) List five most important factors contributing to MMC’s success with its new system. [2.5] (b) What are self-managed networks and what are externally managed networks? Explain each in 50 words (21 (©) Which type of network management would you advice to medium business firms who transact important information? Support your choice with, at least, three reasons, [4] Collaboration with the help of IT is the “in-thing” in business world and is rapidly being adopted in other areas too. Name collaborative IT products from: Cisco, Oracle, IBM & Microsoft 21 ChevronTexaco (CT) faced two problems: running out of gasoline at individual pumps (run-outs), and a delivery being aborted because a tank at the gas station is too full (retain). In general, supply chains of oil companies are larger both in physical and time magnitudes. The time frame for the entire supply chain may take several months to years depending on locations, means of transportation, etc. It is quite difficult to match the three parts of supply chain, namely, oil acquisition, processing and distribution, In addition to owning oil fields, CT also purchases in spot markets, an added complexity. There are hundreds to thousands of participants along the entire supply chain. CT always looks for improving its operations wherever possible and is not averse to adopting newer ITs. Also, CT has decided to move from push strategy to pull strategy. CT has installed in each tank an electronic monitor. The monitor transmits real time information about the oil level, through a cable, to the station’s IT-based system. The system, in turn, transmits the information via satellite to the main system at CT's main office. There, an advanced DSS based planning system processes the data to help refining, marketing and logistics decisions. This DSS also includes information collected at transportation companies, CT's major customers. Using an ERP and Business Planning System, CT determines how much to refine, how much to buy in sport markets, and when and how much to ship to each retain station, To combine all the data, supply and demand information systems were integrated using ERP, The data are used by planners at various points of supply chain who process and share data constantly. Data processing and sharing are provided by various information systems. Recent IT projects include the NetReady initiative that enables the operations of 150 e-business projects, Global Information Link (GIL2) that enables connectivity throughout the co., e-Guest project that shares information with BITS ZC471 (EC-3 Regular) First Semester 2013-2014 Page 2 of 5business partners, a global human resource management system, and an e-dashboard 2 — system to help executives to quickly access supply chain and production information to enable decision making BITS ZC471 (EC-3 Regular) First Semester 2013-2014 Page3 of 5BITS ZC471 (EC-3 Regular) First Semester 2013-2014 Page 3 Qs. Q6. Q7. (a) Why CT started looking for i at least, four reasons. 21 (b) List, at east, three reasons as to why managing CT’s supply chain is complex plementing new IT projects and systems? State, [1.5] (c) _Listall the IT systems and IT initiatives that were taken up by CT ie} (@) Given the choice of implementing new IT initiatives in CT, list at least four new TT initiatives you would undertake. Give supporting reasons for each IT (4) ‘A healthcare centre serves both urban population and rural population. Rural population is offered consultancy and medicines at a nominal fee while others are charged according to market rates. To minimize on the total operating costs, nurses themselves are taking care of ordering and maintaining inventory of medicines. There fare many constraints against which the healthcare centre operates. For example, the distances are a discouraging factor for the rural patients. ‘The healthcare centre understands that the services it offers to both segments can be enhanced to a great extent by using suitable ITs. The centre would like to focus on the following three objectives, namely (a) Reaching and engaging patients, in general (b) Reaching the rural patients to minimize their time and money spent on traveling, to healthcare centre (Healthcare centre is aware that government funding is available for such noble causes) (©) Boosting employee productivity, and (@)___ Improving operating efficiency For each objective: suggest a suitable IT, its technical capability, and the benefit expected out of it. +2 +24+2=8] A telecommunication company implemented a software application that automated the directory assistance and other information-assistance. The company spent more than a million dollars and when the system was implemented, telephone operators simply refused to accept and use the system. Their complaint was that they were not consulted about their needs. Due to this failure the company has fired the project, ‘manager and three other managers associated with the project. In this example, the company wanted to automate processes so that employees can work more efficiently and organization's productivity can be improved. If you were to implement the automation project, state six activities that you will carry out to manage the implementation and the consequent change in organization. (61 With newer ITs emerging at an almost exponential rate, there are benefits and there are few problems associated with them. In what ways would ITs cause excessive burden ‘on companies in future so as to challenge their survival? State five ways in which ITs may cause excessive burden and explain how the problems can be solved (each 40-50 words) (5) BITS ZC471 (EC-3 Regular) First Semester 2013-2014 Page 4 of 5Birla Institute of Technology & Science, Pil Work-Integrated Learning Programmes Division Second Semester 2009-2010 Comprehensive Examination (EC-2 Regular) Course No. BITS ZC471 Course Title : MANAGEMENT INFORMATION SYSTEMS Nature of Exam : Open Book Weightage 60% Duration 3 Hours Date of Exam (40472010 (AN) Note: 1. Please follow all the Instructions 10 Candidates given on the cover page ofthe answer book. 2. All parts of a question should be answered consecutively. Each answer should stat from a fresh page. 3. Mobile phones and computers of a kind should not be used inside the examination hall 4._Use of any unfair means will result in severe disciplinary action Qu. Q2 Q3. Q4, Qs. Q6. Q7. Q8. Why is wireless mobility perceived as being able to increase EC applications? [5] istinguish between interorganizational information systems (IOS) and electronic markets. (61 Why Web-based call centers are critical for suecessfuul CRM? Discuss. 6] Discuss why RFID may completely revolutionize the management of supply chains. Can it solve the bullwhip problems? If so, how? (6) Explain how even an intelligent system can fal. (5) Why is it important to align the IT’ plan with org or could not happen if those plans are not aligned’ ational strategies? What could [6] Discuss the advantages of leasing an IT application over purchasing one. (6 Please Read the case study given below and answer the questions at the end of the case. When Dr. John T. Finnell, an attending physician in the ER of Wishard memorial Hospital in Indianapolis, needed medical records for a 40-year-old woman who ‘was rushed to the emergency room suffering from an unknown condition, he used information from her driver's license to pull up an electronic record detailing recent hospital visits. Within 30 seconds, he discovered that she had a seizure disorder and had not been taking her medication. Without immediate access to the patient's medical record, Finnell would have had to administer drugs to temporarily stop her breathing, insert a breathing tube, and order a battery of blood work. Her paper file, he says, could have taken hours (or even days) to locate, and the procedures would have put her at risk for brain damage and other complications. “When you're in an emergency and you can’t find information about a patient, everybody suffers,” Finnell says, Page 1 of 3BITS ZC471 (EC-2 Regular) Second Semester 2009-2010 Page 2 ‘The patient was saved in that situation because Wishard Memorial and the city of Indianapolis are at the head of a national effort to link medical records electronically, and to allow doctors and other health-care providers to. share medical data that had been virtually hidden from view. In Indianapolis, the five major hospital's emergency rooms share patient data using an electronic network. The area also has electronic messaging service, which more than 1,300 doctors use to share patients’ laboratory results and other clinical information. Hospitals, clinics, and doctors’ offices around the country are trying desperately to implement such systems to connect patient medical records electronically between health-care organizations. All across the country, efforts are being made to create such regional health information networks. Not only can linking medical data improve patient safety, it can lower health-care costs as well. After linking up to a pilot electronic medical network, three of the hospitals in Indianapolis began to save $26 per ER visit. As health-care organizations increasingly adapt the medical data-sharing system, the central Indiana region could save $562 million per year in health-care costs, says Dr. Marc Overhage, CEO of the nonprofit Indiana Health Information Exchange (IHIE). Overall, an estimated $78 billion a year could be saved by moving to electronic medical records (EMRs), reported a recent article in the journal Health Affairs. The effort to share data between hospitals in Indianapolis began in 1997, when the city’s five major hospital groups transferred all the information from their computers to a citywide medical database that would enable emergency rooms to share. patient data. That initial collaborative effort, the Indianapolis Network for Patient Care, allowed emergency room doctors to easily locate information on patients who had visited any one of the area hospitals. Last year, the [HIE implemented a system that allows data from 13 specific-care hospitals and dozens of medical practices to be shared, so the scope is reaching beyond emergency rooms. Dr. Overhage and others involved with the IHIE say they gained support for the system by involving doctors in the effort and moving slowly. EMRs are used by only 20 percent of the doctors, so the IHIE developed a process enabling delivery of the information over the Intemet or by fax for those who do not yet use the Internet. Dr. Finnell has been using EMRs in the emergency room for nearly three years, ever since he came to Indianapolis and says the system has completely changed the way he performs his job. For example, if Finnell sees a new patient who has diabetes, he can find out from the EMRs about recent tests, blood sugar levels, and hospitalization. Before EMRs, hours would have been spent quizzing the patient about information that may have been forgotten and trying to obtain patient files from a variety of locations. The added time would have caused treatment to be slower, potentially less effective, and more costly. BITS ZC471 (EC-2 Regular) Second Semester 2009-2010 Page 2 of 35 fo BITS ZC471 (EC-2 Regular) Second Semester 2009-2010 Page 3 ‘One way to advance EMRs, says Dr. Mare Pierson, a vice president on the executive team at PeaceHealth St. Joseph Hospital in Bellingham, Washington, is for medical information exchanges to prove their value before asking for money. Pierson took this approach in Whatcom County, Washington, where he oversees a health information network that links 300 doctors, by allowing caregivers to use the system for three years without any cost. After the three years, doctors began paying $71 per month for the service that allows them to share medical data and receive lab information online. Pierson reports that the system worked so well that only three of the 300 doctors who tried the system for free dropped out once they were charged. Over the next several years, Dr. Overhage predicts a continued push towards a national health network that will allow patient data sharing for hospitals and physicians across the country. This year, he is looking to expand the current e clinical messaging system in Indianapolis to a greater number of doctors throughout the state of Indiana. He is also expecting expansion of the system itself to include more types of needed data and information. For example, when patients are in need of flu shots or routine checkups, doctors could start receiving electronic “clinical reminders” to inform them of this. “People are seeing that with the continuing crisis in health-care costs, we have to do something,” Overhage says. “Sharing our data looks like the best bet.” (@)__ In. what ways is an electronic medical records system a KM system? [5] (b) What are some of the challenges in creating a national health network system? (5] (© How effective are electronic medical records systems if they are shared within only a single health-care network, and not nationally? 15] e (d) What are the major issues in terms of the KM processes of knowledge creating, sharing, storing, and transferring that you think would be challenging for a national health network system? (5) BITS ZC471 (EC-2 Regular) Second Semester 2009-2010 Page 3 of 3Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division First Semester 2009-2010 ‘Comprehensive Examination (EC-2 Regular) Course No. BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam : Open Book Weightage 60% Duration 3 Hours Date of Exam 25/10/2009 _(AN) Note: 1. Please follow all the Instructions to Candidates given on the cover page of the answer book. 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3. Mobile phones and computers of any kind should not be used inside the examination all. 4. Use of any unfair means will result in severe disciplinary action. Q.1. Read the Case carefully and answer the questions given below. Quantum Corporation Streamlined Its Supply Chain Quantum Corporation is a major U.S. manufacturer of hard disk drives and other high- technology storage components. Quantum faced two challenges in its manufacturing process ‘The first challenge was streamlining its component supply process in order to reduce on- hand inventory. Quantum’s traditional ordering process was labor-intensive, involving ‘numerous phone calls and manual inventory checks. To ensure that production would not be interrupted, the process required high levels of inventory. Quantum needed a system that would automate the ordering process to increase accuracy and efficiency, reduce needed inventory to three days supply, and provide the company’s purchasing agents with more time for non-transactional tasks Quantum second challenge was to improve the quality of components data in its material requirement planning system. Incomplete and inaccurate data caused delays in production. Quantum’s solution of manually reviewing reports to identify errors was labor intensive and occurred too late; problems in production were experienced before the reports were even reviewed. Quantum needed a technology solution that would enable it to operate proactively to catch problems before they caused production delays. The solution that quantum chose to automate its components supply process was an interenterprise system that automatically e-mails reorders to suppliers. Initiated in 1999, the system uses innovative event detection and notification solution from categoric software.It scans Quantum’s databases twice daily, assessing material requirements from one application module against inventory levels tracked in another. Orders are automatically initiated and send to suppliers as needed, allowing suppliers to make regular deliveries that match Quantum’s production schedule. The system not only notifies suppliers of quantity of components required in the immediate orders , but also give the supplier a valuable window into the amount of inventory on hand and future weekly requirements. BITS ZC471 (EC-2 Regular) First Semester 2009-2010 Page 1 of 4BITS ZC471 (EC-2 Regular) First Semester 2009-2010 Page 2 The system also provided other improvements. It enabled Quantum to tap into multiple data sources to identify critical business events. To elevate data quantity, Quantum implemented Categoric Alerts to proactively catch any data errors or omissions in its MRP database. The systems notifications are now sent whenever any critical data fall outside the existing operational parameters. ‘The system has produced the desired results. For, example, the estimated value of the improved ordering process using the new system is millions of dollars in inventory reductions each year. The buyers have reduced transaction costs, and both Quantum and its buyers get a lot more information with a lot less work. Before the implementation of Categoric Alerts, Quantums analyst would search massive reports for MRP data errors. Now that the new system is implemented, exceptions are identified as they occur. This new process has freed the analyst from the drudgery of scanning reports and has greatly increased employee satisfaction. Data integrity of MRP increased from 10 percent to almost 100percent, and Quantum is now able to quickly respond to changing customer demand. The system paid for itself in the first year. 1.1 Identify the internal and extemal parts of the supply Chain that were enhanced with the system, 1.2 _ Explain how purchasing was improved, 1.3 Describe how Quantum’s customers are being better served now. (3x4=12) Q.2. Read the Paragraph and answer the questions given below. Marketing Dining Certificates Online Restaurants.com was founded in 1999 as an all purposing e-dining portal with menus, online video tours, and a reservation feature. Like other dot-coms, the company was losing money. Not too many restaurants were willing to pay fees in order to put their ‘webpage on the Restaurants.com site. The company was ready to pull the plug when its owner learned that CitySpree, which was selling dining certificates (coupons) online, was for sale in a bankruptcy auction. Realizing the Restaurants.com might have a better ‘model for selling dining certificates online than did CitySpree, the owner purchased CitySpree. This enabled him to change the company from just another dining portal to a gift certificate seller. Here is how the new business model works: Restaurants are invited to place, for free, dining certificates at Restaurants.com, together with information about restaurant, menu, parking availability and more. The dining certificates traditionally had been found in newspapers and newspaper inserts. Placing them online is free to restaurant owners, some use the online coupons to replace the papet coupons and others supplement the paper coupons with the online version, Restaurants.com sells these coupons online and collects all the fees for itself, The restaurants get broad visibility since Restaurants.com advertises on Orbitz, Yahoo, and MSN, it even auctions certificates to eBay. BITS ZC471 (EC-2 Regular) First Semester 2009-2010 Page 2 of 4BITS ZC471 (EC-2 Regular) First Semester 2009-2010 Page 3 The certificates offer 30-50 percent off the menu price, so they are appealing to buyers. By using a search engine, you can find a restaurant with a cuisine of your choice, and you can look for certificates when you need them. Although you pay $5-$15 to purchase a certificate, you get usually a better discount than is offered in the newspapers. You pay with your credit card, print the certificate; you get usually a better discount than is offered in the newspapers. You can pay your credit card, print the certificate, and are ready to dine. Customers are encouraged to register as members, free of charge. Then they can get e-mails with promotions, news and so on. In their personalized accounts customers can 'w their past purchases as well, Customers also purchase gift certificates to be given to others. And bargains can be found: for e.g. a $50-off-regular price certificate to New ‘York City’s Manhttan Grille was auctioned for only $16. The business model worked. By going to eBay, the world’s largest virtual mall, Restaurants.com found an audience of millions of online shoppers. By e-mailing coupons to customers it saves the single largest cost of most conventional coupon marketers- printing and postage. Finally, the model works best in difficult economic times, when price conscious customers are looking for great deals. ‘The financial results are striking: Revenues doubled during the first five months of operation (2001). The company has been profitable since third quarter of 2003, by 2003, is selling over 80,000 certificates a month, grossing over $5million in 2002, and expecting about $10 million in 2003. 2.1 Relate the term “lessons from failures” with this case. 2.2 Why was it necessary to purchase CitySpree? 2.3 What motivates restaurants to participate in the new business model when they refused to do so in the old one? en that anyone can start a competing business, how can Restaurants.com protect its position? What are some of its competitive advantages? [4x3=12] 24 Q.3. Discuss how a community of practice is developed / can be developed in your organization. How do these COPs influence the successful implementation of KMSs in your organization? 02) Q4. Read the Paragraph and answer the questions given below. Argot International (a fictitious name) is a medium-sized company in Peoria, Illinois, with about 2,000 employees. The company manufactures special machines for farms and food-processing plants, buying materials and components from about 150 vendors in six different countries. It also buys special machines and tools from Japan. Products are sold either to wholesalers (about seventy) or directly to clients (from a mailing list of about 2,000). The business is very competitive. ‘The company has the following information systems in place: financial/accounting, marketing (primarily information about sales), engineering, research and development, and inventory management. These systems are independent of each other, although they are all connected to the corporate intranet. BITS ZC471 (EC-2 Regular) First Semester 2009-2010 Page 3 of 4BITS Z.C471 (EC-2 Regular) First Semester 2009-2010 Page 4 Argot is having profitability problems. Cash is in high demand and short supply, due to strong business competition from Germany and Japan. The company wants to investigate the possibility of using information technology to improve the situation. However, the vice president of finance objects to the idea, claiming that most of the tangible benefits of information technology are already being realized. ‘You are hired as a consultant to the president, Respond to the following: 4.1 Prepare a list of ten potential applications of information technologies that you think could help the company. 4.2. From the description of the case, would you recommend any portals? Be very specific. Remember, the company is in financial trouble. 4.3 How can Web services help Argot? Bx4=12) Q.5. Read the Paragraph and answer the question given below. 7 Bleven stores improved its competitive position by wringing more value out of its customer database. This company’s early growth and strategy has been based on fuce-to- face relationships with its customers and intimate knowledge of exactly what they wanted to purchase. As the company grew over time, it was no longer able to discern customer preferences through personal face-to-face relationships. A new IS helped obtain intimate knowledge of its customers once again by gathering and analyzing customer purchase transactions. Porter's model identifies the forces that influence competitive advantage in the market place. Of greater interest is the development of a strategy aimed at establishing a profitable and sustainable position against these five forces. 5.1 Inthe above paragraph identify and describe the strategy for competitive advantage ziven by Porter.Discuss the role of information system in using the above strategy. (12) peeeeeneee BITS ZC471 (EC-2 Regular) First Semester 2009-2010 Page 4 of 4Qu. Q2. Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division Second Semester 2012-2013 Mid-Semester Test (EC-2 Regular ~ Closed book) BITS/CM/HHSM ZC471 MANAGEMENT INFORMATION SYSTEMS, Date: 10/02/2012 Duration: 2 Hours Answer all the questions Max Marks: 35, (a) What are the major objectives of using IT in a digital enterprise? [1.5 M] (maximum 70 words) (b) Discuss the five steps involved in making an organization an adaptive organization [2.5 M] (90 words) Answer: a) A digital enterprise uses IT to achieve one or more of the following three objectives: i, To reach and engage customers more effectively. One can extend up to the level of having an enterprisewide CRM (customer relationship management). (0.5 M) ii, To boost employee productivity. Nowadays organizations have an enterprisewide ‘systems such as ERM (employee relationship management) (0.5M) iii, To improve operating efficiency and performance. Systems such as SCM (supply chain management) help in improving the efficiency and performance of organizations. (05M) b) There are five major steps involved in making an organization an adaptive organization. i, Organization should be able to recognize environmental and organizational changes as quickly as possible. Preferably even before they occur (0.5 M) Organization should deal with changes properly and correctly. (0.5 M) i. Organization should not wait for the competitor to introduce changes. Be the prime mover and get prime mover advantage (0.5 M) iv. Have a scalable and appropriate IT architecture. It will help in meeting peak demand. (0.5 M) v. Develop an innovative culture. As focus is shifting towards R&D and innovation, it is necessary for an adaptive organization to have innovative culture. (0.5 M) ) One of the recent additions to information technology is RFID. Explain what is RFID and its major (at least four) benefits in business [3 M] (120 words) b) Elaborate on RFID deployment & usage in Nokia, [2 M] (100 words) Answer: a) RFID uses electronic tags to identify objects. Tags can be embedded in objects even in life forms. It uses radio waves to interact with the tag. It enables unique identification of the objects, transmission and/or storage of information about the ‘object, and location of the object. (1 M) ‘Some of the major benefits are: (at least four of the following should be stated) i, Quick tracking of where items are in real time ii, Finding detailed information about the items iii, Enabling quick inventory taking of items iv, Information can be read from much distances (10 meters) v. No line-of-sight is required vi. More information can be stored vii. More durable viii. Used in transportation, hospitals, libraries, supply chains, ... (2M)Q3. Q4. b) In Nokia, security guards carry a mobile phone handset with RFID tag. RFID tags are also installed at various points around the facility. At the start of a shift, guards use the phone to read their RFID enabled name badges. Then the guards can be on the move using handsets to read the various tags as they pass by them. The details about the RFID tags read, cell phone are transmitted to the network. Therefore the supervisors are given accurate information as to when a particular guard started and finished a shift, patrolling of required locations, location of guard at particular instant of time. (2M) Web and Internet has many applications. a) Distinguish between internet and Web [0.5 M] (30 words) (b) State and explain the three major categories of internet application with examples. (3 M] (120 words) (c) What is the difference between intranets and extranets [0.5 M] (30 words) Answer: (a) Internet is the backbone and it functions as the transport mechanism and the Web is an application that runs on the internet. (0.5 M) (b) Discovery: It includes browsing, finding and retrieving information. It can also involve querying, downloading, and processing information from databases. Software agents can help in automating discovery. Example: Google, Yahoo!, ... aM) Communication: It includes technologies such as podcasting, RSS, and micro blogging. These are extensively used in business communications and in social communications. aM) Example: Social networking sites, enterprise search, enterprise networking sites. Collaboration: this is about collaboration between individuals, groups and organizations using internet. A number of technologies are available ranging from online mettings with screen sharing to video conferencing and group decision support systems. Example: WebEx from CISCO, Lotus Sametime (UC2) from IBM, .... (1 M) Intranet; a network designed to serve internal informational needs of an organization ing internet tools (for internal purpose) Extranet: a private, company owned network that uses internet protocol technology to securely share part of a business information with business partners (located externally) such as suppliers, partners, customers, etc. (for external but restricted purpose) (05M) © Collaboration is a key driver of business performance. Information technologies can assist in improved collaboration. (a) State, at least, six information technologies that assist in virtual collaboration. Explain use of each technology very briefly [3 M] (130-150 words) (>) What is the e-collaboration arrangement between P&G and Wal-Mart [1 M] (40-50 words) Answer: (a) (any six of following) (each 0.5 M) (i) Email: One of the earliest known information technology. Helps in virtual collaboration between individuals, between groups and organizations. Of late couples with document sharing capabilities many emails (such as google) or used in collaboration, (ii) Video conferencing: this helps in real time collaboration between individuals, between groups and organizations. (iii) IM: With the advent of telecommuting and at-home working, it is IM, more than email that ties the employees together and supports distributed project teams.Qs. 26. (iv) Blogs: Started out as internet publishing medium but enterprises now use these systems to replace email and support collaborative work. (v) Podcasts: Podcasting is a way to distribute or receive audio and video files called pods over the internet (name pod from Apple’s iPod) (vi) RSS: Refers to various standards of Web feed formats particularly Really Syndication, It automates the delivery of intemet content. (vii) Wikis: Outcome of user-driven response to shortcomings of search engines. It is a server software that allows users to freely create and edit Web page content, (vili), VoIP: Advantage of VoIP stems from its use as a unifying platform for business applications that require flexible or intelligent voice communications. (ix) Web meetings: These are web based on-line meetings which can be conducted between individuals, groups and organizations. (x) Torrents: useful for sharing very large files ple (b) Wal-Mart provides P&G access to sales information on every item Wal-Mart buys from P&G. The information is collected by P & G on a daily basis from every Wal-Mart store and P&G uses the information to manage the inventory replenishment for Wal-Mart (iM) IT security is becoming an essential need in any organization. There is a model for Implementation of enterprisewide information security and intemal control. State & explain the four steps involved in implementing the model. [5 M] (220 words) Answer: Four steps are: i) Senior management commitment and support, ii) Security policies and training, iii) Security procedures and enforcement, and iv) Security tools: hardware and software. (iM) i) Senior_management_commitment_and support: In any organization, senor management's influence is needed to implement and maintain security, ethical standards, privacy practices and internal control. Internal control is defined as a process designed to provide reasonable assurance of effective operations and reliable financial reporting. (dM) ii) Security policies and training: This is the next step in building an effective IT security program. This is done to ensure that everyone is aware of and understands about the security policies. Better the understanding of how security affects all business processes the more security will be incorporated into all business practices. Most critical of the step is to arrive at an acceptable user policy (AUP) aM) iii) Security procedures and enforcement: Next step is to ensure the use of AUP. It is to implement monitoring procedures, training, and enforcement of AUP. Appropriate level of protection is arrived at by calculated either by (a) risk exposure model for digital assets, or (b) business impact analysis (BIA) (1 M) iv) Security tools: hardware and software: Last step in the model is to implement software and hardware needed to support the policy and enforce secure practices, Organizational security is an on-going process and should be kept up continuously. aM) E-tailing (ie. e-retailing) is gathering momentum as more and more information technologies evolve. But there are few major issues related to e-tailing. State and discuss any four of the major issues. [4 M] (200-220 words) Answer: (any four of the following five can be discussed) (each 1 M) 1. Resolving channel conflict: If a seller is click-and-mortar company and decides to sell directly online, then it may face a conflict with its regular distributors. ThisQ7. conflict could be intemal or external. Channel conflicts have forced some of the companies to limit their B2C efforts. Automobile companies do not sell online 2. Resolving _conflicts_within_click-and-mortar_organizations: when an established company decides to sell directly online on a large scale, it may create a conflict within its offline operations. It may arise in areas such as pricing of products and services, resource allocations, logistics provided by the offline activities to the online activities, etc. Such conflicts may increase expenses and reduce synergies. 3. Organizing order fulfillment and logistics: E-tailers face a difficult problem of how to ship very small quantities to a large number of buyers. This can become more difficult when returned items have to be handled. 4, Determining viability and risk of online e-tailers: Many online e-tailers failed in 2000-02, result of problems with cash flow, customer acquisition, order fulfillment and demand forecasting. Competition became fierce due to the ease of entry to the marketplace, So newcomers face the problem of determining how long to operate while one still lose money and also how to finance them 5. Identifying appropriate revenue models: Initial dot.com models, which aimed to generate enough revenues from advertising to keep the business afloat until the customer base reached the critical mass, failed. Also another problem of (chicken and egg) sites not being able to get advertisers to come if they did not have enough visitors. Hence, itis essential to identify appropriate revenue models. ‘We all know that M-commerce is emerging as nextgen commerce. But L-commerce is expected to overtake M-commerce, in future. a) State and briefly explain five key concepts involved in commerce. [2.5 M] (50-70 words) ») State at least three I-commerce technologies. [1.5 M] (30-50 words) Answer: a) Five key concepts involved in I-commerce: (each 0.5 M) i) Location: Determining the basic position of a person or an object (including moving objects) ii) Navigation: Plotting (of finding) a route from one location to another iii) Tracking: Monitoring the movement of a person or object including vehicles along the route iv) Mapping: Creating digital maps of specific geographical locations v) Timing: Determining the precise time at a specific location b) Any three of the following technologies can be stated (no need to explain) (each 0.5 M) i) Position Determining Equipment (PDE): It identifies the location of the mobile device. This position information is sent to the mobile positioning centre. ii) Mobile Positioning Centre (MPC): MPC is a server that manages all the location information sent from different PDEs. iii) Location based technology: It consists of group of servers that combine the position, information with geographic and location specific content to provide an I-commerce service. It is provided via content centre via the internet. iv) Geographic content: It consists of digitized street maps, road maps, addresses, routes, landmarks, land usage, zip codes, etc. The information must be delivered in compressed form for speedy distribution over wireless networks. It is also provided via content centre v) Location specific content: It is used in combination with the geographic content to provide the location of particular services. It is also provided from the content centre. One can also state GPS GIsQ8. Dartmouth-Hitchcock medical centre has implemented a wireless inventory management system. Discuss about implementation under following sections: a) Problems that prompted the study [1 M] (30-40 words) ) Solutions considered [1 M] (30-40 words) c) Solution arrived at and implemented [2 M] (80-100 words) d) Benefits achieved (at least four) [1 M] (40-50 words) Answer: a) Problems that prompted the study: (1 M) DHMC is a large medical organization where nurses were handling inventory management. Being non-specialists, nurses tend to over order (resulting in over stocking) or wait till the last minute to order (resulting in shortages). b) Solutions considered aM) i) Transfer the inventory management activity to managerial personnel ii) A proper information technology to assist in supply chain management ©) Solution arrived at and implemented (Just points without explanation will do-2 M) It was decided to look for IT to help in inventory management (which is a part of SCM). DHMC decided to implement wireless inventory management as part of larger supply chain management. In this way, DHMC connected handheld devices with a purchasing and inventory management information system (i., both purchasing and inventory management are combined) through wireless network. Solution was from PeopleSoft. For each item in stock, a “par level” (re-order level) is maintained based on actual usage. Now nurses simply scan an item each time it is consumed and the software automatically adjusts the recorded inventory level. When re-order level is reached, an order to the supplier is generated automatically. Similar mechanism is implemented at each nursing station so that shipments can be arranged from central supply store room automatically. 4) Benefits achieved (any four of the following will do) (each 0.25 M) i) Reduction of inventory levels by almost 50 per cent ii) Material purchasing and management now are consistent across the organization. ) Last minute expensive ordering has been altogether eliminated iv) Time spent by nurses on ordering and tracking of materials has been reduced v) Access to current information has been improved vi) All these resulted in reduced costs and improved patient care.Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division Second Semester 2014-2015 Comprehensive Examination (EC-3 Regular) Course No. BITS ZC471 Course Title MANAGEMENT INFORMATION SYSTEMS Nature of Exam Open Book Weightage 250% No.of Pages =2 Duration 3 Hours No. of Questions = 8 Date of Exam 19/04/2015 (FN) Note: 1, Please follow all the Znstructions to Candidates given on the cover page of the answer book. 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3._Assumptions made if any, should be stated clearly atthe beginning of your answer. Qu Qa, BITS ZC471 (EC-3 Regular) ‘The car rentals and taxi segment in India is worth thousands of crores. TaxiforSure is the MakeMyTrip or RedBus of the Taxi Industry. ‘There were already many online taxi companies. Hence TaxiforSure was an ambitious plan in a crowded place. TaxiForSure was launched in June 2011 in Bangalore and recently launched a mobile application. They aggregate operators not drivers. This approach is different from a lot of mainstream companies who work with drivers. ‘Their approach increases availability. Taxi is a time and space complexity. When there is a cab request, all free cabs in a 5 kilometer radius are alerted. Taxis can bid for a trip and their bid resolution algorithm assigns @ taxi to a trip. The resolution is based on parameters like how long has the taxi been waiting, how much it has earned, customer feedback and the distance from the point of pick up. The technology costs are much lesser. On the back end, it works on a smartphone based application. It can be loaded onto an existing smartphone. The number of kilometers for a taxi is maximized so they make enough money. ‘This is elso an area where the demand far outstrips the supply. Use Porter’s competitive forces model to analyze this Industry. (0) .* Teddy's is a chain of gas stations. Teddy's want to make use of the intemet and establish e- commerce, What types of e-commerce opportunities, if any, are relevant to Teddy's? Could ‘Teddy's make use of any Internet business models for this opportunity? [4] Procter & Gamble (P&G) found it had excessively high inventories of its Pampers disposable diapers at various points along its supply chain because of such distorted information. Although ‘customer purchases in stores were fairly stable, orders from distributors would spike when P&G offered aggressive price promotions. Pampers and Pampers’ components accumulated in ‘warehouses along the supply chain to meet demand that did not. actually exist. (a) What is this SCM problem faced by P&G called? ty (b) Elaborate the causes of the problem. 2 (©) Identify methods to eliminate / solve this SCM problem. B) Sprint Nextel has the highest rate of customer churn (the number of customers who discontinue a service) in the cell phone industry, amounting to 2.45 percent. Over the past two years, Sprint has lost 7 million subscribers. Management wants to know why so many customers are leaving Sprint and what can be done to woo them back. Are customers deserting because of poor customer service, uneven network coverage, or the cost of Sprint cell phone plans? (@ How can the company use tools for online collaboration and communication to help find the answer? 3) () What management decisions could Le mode «sing information from these sources? [2] ‘Second Semester 2014-2015 Page I of 2BITS ZC471 (EC-3 Regular) __ Second Semester 2014-2015 _____ Page 2 Qs. Q6. 1 Q8 Toronto-based Mercedes-Benz Canada, with a network of $5 dealers, did not know enough about its customers, Dealers provided customer data to the company on an ad hoc basis. Mercedes did not force dealers to report this information, and its process for tracking dealers that failed to report ‘was cumbersome. There was no real incentive for dealers to share information with the company. How could CRM and partner relationship management (PRM) systems help solve this problem? (5) United Parcel Service (UPS) has been expanding its package delivery and logistics services in China, serving both multinational companies and local businesses. UPS drivers in China need to use UPS systems and tools such as it handheld Driver Information Acquisition Device for capturing package delivery data, UPS wants to make its WorldShip, CampusShip, and other shipping management services accessible to Chinese and multinational customers via the Web. What are some of the international systems issues UPS must consider in order to operate successfully in China? (4) ‘At a Wireless Café it is noticed that more customers are using wireless devices at their tables, using Instant Messaging, sending and receiving photos, looking up information during business lunches, as well as talking on the phone. The manager has shared this observation with you and asked you to identify ways the Wireless Café can attract more customers through ecommerce. 1. Identify the category (B2B, B2E, B2G, B2C), participants, and benefits of using ecommerce for the following activities: 5x5 =75] (@) Ordering food supplies (b) Financial reporting (city, province/state, federal) (©) _ Employee benefits management (@) Customer reservations (@) Job postings and appli 2. The Wireless Café offers continuous wireless connectivity to the Internet. Consider the different electronic payment methods and identify ones that are well-suited to the café’s wireless environment. Are there any advantages to these payments? 1+05=15] 3. If the Wireless Café implements e-payment systems so that customers may use e-money to pay restaurant charges, what are some possible ethical concems for customers and the customer data? 2 Blossoms is a florist engaged in the delivery of bouquet flowers and gifts business in India and abroad. It has implemented innovative information technologies within the organization to improve the business processes. Now the organization is planning to move to the next level. ie. to implement innovative mobile technologies to improve the business processes. ‘Suggest, at least, five mobile technologies to Blossoms. Clearly state the purpose for which each mobile technology can be used. (5) seeeeneesenease BITS ZC471 (EC-3 Regular) ‘Second Semester 2014-2015 Page 2 of 2tes for CHAPTER 2 (Please note that notes do not present text of the entire chapter but is aimed at providing a handy summary/reference document) Information Systems (IS) can be defined as one that collects, processes, stores, analyzes and disseminates data and information for a specific purpose. Furthermore, IS contains of smaller information systems referred to as ‘applications’. An Application Program is a computer program designed to support a specific task or a business process (such as execute the payroll) or in some cases, to support another application programs. Information systems are generally connected by means of electronic network; wire line and/or wireless. IS’s primary goal is to process data into information or knowledge. Data items are elementary description of things, events, activities and transactions that are recorded, classified and stored, but not organized to convey any specific meaning. A database consists of stored data items. Information is data that has been organized so that they have value and meaning to the recipient. Data is processed into information by means of application, Knowledge consists of data and/or information that have been organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity. Classification of Information System I. Based on Organizational Level: ‘a. Personal_and productivity system- small systems that are built to support many individuals b. Transaction processing system- supports the monitoring, collection, storage, processing and dissemination of the organization's basic business transactions ¢. Functional and Management Information System- designed to support functional activities and to provide periodic reports about operational efficiency, effectiveness and productivity. MIS supports management activities and provides reports that include summaries, comparisons and other statistics d. Enterprise information system- support business processes that are performed by two or more departments (Eg: CRM, KM, BI, etc.) e. Inter organizational systems- IS connects two or more organizations such as buyers and sellers f. Global information systems- connect companies located across the globe g- Very large and special systems- they are often global in nature that include many subsystems of the previous levels and are designed for only one industry Il. Based on Type of Support: Information systems can also be classified by the kind of support that they provide to managers, employees, workers, etc. Some examples of this type of classification are MIS,DSS, groupware, business intelligence, etc. These systems can also be integrated with each other and such integration provides extended functionalities, making them more useful. ‘Need of IT ~ To support day to day operations of an organization - To assist managers in short term planning and decision making - To help top management in strategic planning and implementation ~ Helps in finding and analyzing information ~ Evaluation of decision alternatives becomes easier ~ Communication and collaboration with employees and business partners ~ Helps in managing supply chains such as internal, upstream (between company and suppliers) and downstream (between company and customers) supply chain ~ IT supports other types of systems such as industry specific systems, E-commerce business models, online search, etc. Information Infrastructure consists of the physical facilities, services and management that support all shared computing resources in an organization. The IT infrastructure has five components; hardware, network and communication facilities, databases and data workers, and information management personnel. IT Architecture is a high level map or plan of the information assets in an organization, including the physical design of the building that holds the hardware. It is a guide for current operation and a blueprint for future directions. ‘Web based systems refer to those applications or services that are resident on a server that is accessible using a web browser and is therefore accessible from anywhere in the world via the web. Eg: Web based e-commerce systems, e-markets, etc. Emerging Computing Environment 1. Service Oriented Architecture use of services, such as reuse and reconnect existing IT assets, to support variety of business needs ) 2. Web Services software systems to support machine to machine interaction over a network 3. Software as a service (SaaS) an enterprise model in which computing resources are available to the user when needed 4. Utility Computing provides computing resources available on demand from providers around the globe 5. Grid Computing conventional networks designed to provide communication among devices 6. Cloud Computing a paradigm in which information is permanently stored in servers on the internet and cached temporarily on clients that include desktops, entertainment centers, notebooks, etc, 7. Mobile and Pervasive Computing to have a real time connection between a mobile device and other computing environmentVIRTUALIZATION 1k separates business applications and data from hardware resources. It allows companies to pool hardware resources-rather than to dedicate servers to application- and assign those resources to application as needed. Types of virtualization: 1. Storage virtualization - pooling of physical storage from multiple network devices 2. Network virtualization - combines the available resources in’a network by splitting the network load into manageable parts 3. Hardware virtualization ~ the use of software to emulate a hardware other than the one it is actually running in ‘Some of the most innovative information systems are those that are aimed at reducing traffic congestion and air pollution, eliminating accidents (Intelligent Traffic Control System). Predictive Analysis tools help determine the probable future outcomes for an event or the likelihood of a situation occurring. Innovative Health Care Wireless Predictive System is a remote medical monitoring system that helps in early diagnosis of a disease or illnessL3eyu Notes for CHAPTER 4 Networks and Collaboration as Business Solutions Network devices are devices that communicate with a network. It allows information to be rapidly collected, processed, shared and acted upon. Eg: laptops, PDAs, cell and smart phones, etc. Advances in networks, devices and wireless sensor networks are changing enterprise information infrastructures and business environment dramatically. IP based Network Technology forms the backbone that is driving the merger of voice, data, video and radio waves by digitizing content into packets; that can be sent via any digital network. An enterprise's network capability depends on proper planning, maintenance, management, upgrades and bandwidth of the network to insure that it has sufficient capacity and connectivity to link people, locations and data. Traditionally, various information services were transmitted using different protocols and carried on either packet switched or circuit switched networks, Internet Protocol Suite (standard used with almost any network service) and IP/TCP Architecture Benefits of the Internet Protocol © Cost saving ‘© Better operations Enables new applications Converged network is a powerful architecture that enables enterprise wide integration of voice, data, video and other information services. Benefits- improved collaboration along the supply chain, companies can improve their B2B, B2C and mobile commerce processes, technical barriers to collaborative work are eliminated. ‘The Internet (transport mechanism) and the Web (WWW) is a system with universally accepted standards or protocols for storing, retrieving, formatting and displaying information via client/server architecture. The internet supports application in the following categories: * Discovery- querying, downloading and processing information from databases ‘* Communication- development in internet based and wireless communication ‘* Collaboration- collaboration between individuals, groups and organizations in common In addition to the Internet and the web, there are a few other major infrastructures of network computing such as Intranet (network used to serve the intemal informational needs of a company), Extranet (company owned network that uses IP technology to securely share part of a business information). Information Portals- A portal is a web based gateway to files, information and knowledge on a network, ‘Types of information portals: 1, Corporate portals (private gateways to corporate) 2. Commercial portals (gateways to general information on the internet) 3. Publishing portals (intended for commodities with specific interests) 4. Vertical portals (target specific markets) 6Mobile or Wireless Infrastructures consists of the integration of technology, software, support, security measures and devices for the management and delivery of wireless communication. Wi-Fi is a technology that allows computers to share a network or internet connection wirelessly without the need to ‘connect to a commercial network. ‘There are general types of mobile networks: WAN (Wide Area Network), WiMax (Worldwide Interoperability for Microwave Access), LAN (Local Area Network). Key components of mobile and wireless infrastructures are wireless local area networks (uses high frequency radio waves rather than wires to communicate between computers or devices), WiMax (enables the delivery of last mile wireless broadband access as an alternative to cable and DSL) and VoIP (unifying platform for business applications that require flexible or intelligent voice communications), ‘A Mobile Enterprise is one that has the ability to connect and control suppliers, partners, employees, products and customers from any location. Trying to describe information on the Internet is like trying to describe the universe. The sheer endlessness of the information available through the intemet which seems like its major strength is also its greatest weakness. Search engines, directories, enterprise search engines and wikis help bring order to the chaotic internet universe. TECHNOLOGIES © Podcasting is a way to distribute or receive audio and video files called pods or podcasts over the internet. ‘* RSS (Radio Simple Syndication) automates the delivery of internet content, They are an easy way to receive newly released information customized to a person's interests or needs. «XML (eXtensible Markup Language) is a meta language for describing markup language for documents containing structured information. * XBRL (eXtensible Business Reporting language) is a version of XML for capturing financial information throughout a business's information processes. Collaboration is a key driver of overall performance in companies worldwide. Messaging and collaboration tools include older communication media such as e-mail, videoconferencing, and fax. Leading businesses are moving quickly to realize the benefits of e-collaboration (Virtual Collaboration). Some benefits of e-collaboration are as follows: Retailer-supplier collaboration Lower transportation and inventory costs Reduced stock outs Reduction of product development time Beye Despite the long history and benefits of collaborative work, groups are not always successful. A key reason is that collaborative work processes can be characterized not only by benefits but also by dysfunction:Notes for CHAPTER 5 the Enterprise and Business Cont Securit Information security was mostly a technical issue assigned to the IT department. Incidents were handled ‘ona case by case ‘cleanup’ basis rather than by taking a preemptive approach to protect ahead of the threats, Threats to info sec range from high-tech exploits to gain access to a company's networks and databases to non-tech tactics to steel laptops, etc. the following internal incidents could have been prevented if stringent info sec policies and defenses had been enforced. - Theft of a laptop - Credit and debit cards had been stolen by hackers = Tens of millions of dollars of fraudulent charges were made on the cards Medical data breaches exposed the personal data of many patients ‘The preceding examples illustrate info see breaches harm profitability and customer relations. The time- to-exploitation is the most sophisticated spyware and mobile virus today. It is the elapsed time between when a vulnerability is discovered and when it is exploited. New vulnerabilities are continuously being found in operating systems, applications, wired and wireless networks. With data resources available on demand 24x7, companies benefit from the opportunities for productivity improvement and data sharing with business partners in their supply chain. Government Regulations Data must be protected against existing and future attack schemes, and defenses must satisfy ever-stricter government and international regulations. Some of the antifraud regulations that force better business reporting and disclosure of GAAP (Generally Accepted Accounting Principles) violation are SOX (Sarbanes Oxley) act, GLB (Gramm-Leach-Bliley) act, FISMA (Federal Information Security Management Act) and USA Patriot act, etc. Industry groups imposed their own standards to protect their customers and their members brand images ‘and revenues. Some types of incidents are beyond a company's control. Uncertain events that can cause IS breakdown require disaster recovery and business continuity plans. Some of the incidents are cybercrimes, events like the 9/11 attack that lead to the loss of critical data, etc. such incidents illustrate the diversity of info sec problems and the substantial damage that can be done to organizations anywhere in the world. IT Security and Internal Control Mode! When senior management shows its commitment to IT security, it becomes important to the rest of the organization too. Users become aware that insecure practices and mistakes will not be tolerated. Therefore, an IT security and internal control model begins with:detection requires an effective monitoring system. Well executed internal fraud can damage a nation’s economy as a whole. Managing risk has become the single most important issue for the regulations and the financial institutions. Over the years, these institutions have suffered high costs for ignoring their exposure to risk. However, growing research and improvement in IT have improved the measurement and management of risk.Le Notes for Chapter 6 E-Business & E-Commerce Overview of E-Business & E-Commerce E-Commerce: Electronic commerce (EC or e-commerce) describes the process of buying, selling, transferring, serving or exchanging products, services or information via computer networks, including the internet. E-Business: E-business refers to a broader definition of EC, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning and conducting electronic transactions within an organization. Pure vs. Partial EC: EC can take several forms, depending on the degree of digitization- the transformation from physical to digital- involved. The degree of digitization can relate to: (1) the product (service) sold, (2) the process, or (3) the delivery agent (or intermediary). In pure EC all dimensions are digital. All others combinations that include a mix of digital and physical dimensions are considered EC (but not pure EC). If there is at least one digital dimension, we consider the situation partial EC, E.g. buying a shirt at Walmart Online or a book from Amazon.com is partial EC, because the merchandize is physically delivered by a shipper. But buying an e-book from ‘Amazon.com is pure EC, because the product, its delivery, payment and transfer agent are all done online. Note that some pure E-Commerce companies add some physical facilities. E.g. Amazon.com has physical warehouses and allows customers to pick up merchandize at physical locations. EC Organizations: Companies that are engaged in EC are considered virtual organizations. Click-and-Mortar organizations are those that conduct some e-commerce activities, yet their primary business is done in the physical world (e.g. Wal-Mart Online). The basic idea of E-Commerce is to automate as many business processes as possible. A process can be order initiation, order fulfilment, procurement of material, manufacturing parts (production), delivery or providing CRM. EC activities support selling, buying, and providing relationships as well as the internal and external transactions involved. This is done by EC mechanisms such as e-markets, e-procurement and e-CRM. History of EC: EC applications began in early 1970s with such innovations as electronic transfer of funds. But it flourished with the advent of electronic data interchange (EDI), which automated routine transaction processing ad extended EC to all industries. In the early 1990s, EC applications expanded rapidly, following the commercialization of the intemet and introduction of the web. A major shakeout in EC activities began in 2000 when hundreds of dotcom companies went out of business. Since 2003 EC has continued to show steady progress.EC Newcomers: Social Networking Sites are growing popularity and providing EC opportunities. Many of them target certain groups, such as teenagers, senior citizens, women or students. ‘The creation of a trend, known as Social Commerce on the internet today is brought about by the merging or Web 2.0 technologies, e-business opportunities and online communities. Social commerce is concerned with the creation of places where people can collaborate online, solicit advice from trusted individuals and avail themselves of goods and services. Business to Consumer Applications Electronic commerce offers a wider variety of products anytime and almost anywhere. Directories and hyperlinks from other websites and intelligent search agents help buyers find the best stores and products to match their needs. Two popular shopping mechanisms online are electronic storefronts (e.g. Home Depot, Godiva.com, Wal-mart, cdnow.com etc) and electronic malls (e.g. shopping.msn.com, cashbackstores.net efc.). Malls may be of two types- referral malls (e.g. Hawaii.com) or Mall organizer with the facility of a shopping cart (e.g. Yahoo). When retailing (sales of goods and/or services from many manufacturers to ‘many individual customes) is done online, it is called e-tailing. It offers customized products and services to individual customers at a reasonable price and fairly fast (e.g. Dell Computers, nike.com etc.). Online delivery of services saves considerable cost of the service providers.Electronic banking or cyber banking helps consumers to pay bills, apply for loans and do many more online transactions from the comfort of their home by using credit cards, debit cards etc. Securities, travel services and real estates are some other categories of products/ services which are frequently bought online. Business to Business Applications B2B comprises 85% of EC dollar volume. It covers applications that enable an enterprise to form electronic relationships with its distributors, resellers, suppliers, customers and other partners. By using B2B, organizations can restructure their supply chains and partner relationships. The major B2B business models are (1) Sell-side marketplace (selling products or services to other organizations from own private e-marketplace and/or from a third part site, where the buyer is expected to come to the seller's site, view catalogues and place order; e.g. dellauction.com), (2) buy-side marketplace (organizations attempt to buy needed products or services from other organizations electronically. Purchasing by using electronic support is referred to as e-procurement. This uses reverse auction, group purchasing (e.g. all- health.com) or desktop purchasing (appropriate for govt. entities and large companies). E~ Marketplace is the one in which there are many sellers and many buyers and where entry is open to all are called public exchanges, which can be classified in to four basic types: (1) vertical exchanges for direct materials, (2) vertical exchanges for indirect materials, (3) horizontal exchanges and (4) functional exchanges.Ethical & Legal Issues in E-Business E-commerce is taking new forms and enabling new business practices that may bring numerous risks, particularly to individual customers. Some of the ethical issues arise from concern for privacy (e.g. protection of buyer's identity), use of software for web-tracking, loss of jobs due to elimination of some company agents, brokers, or employees, disintermediation and re-intermediation. Legal issues may arise from fraudulent activities on part of the buyer or the seller. Managerial Issues Failures of EC initiatives are fairly common, mainly because of incorrect revenue model, lack of strategy and contingency planning, inability to attract enough customers, lack of funding, too much online competition in standard products, poor order fulfilment infrastructure and lack of qualified management. Some EC initiatives fail because of intra- organizational problems (e.g. Levi Strauss stopped online direct sales of its apparel after its ‘major distributors and retailers put pressure on the company not to compete with their brick and mortar outlets) or lack of demand in the marketplace (e.g. joint-venture between Intel and SAP to develop low cost solutions for SMEs). Still there are hundreds of success stories, Primarily in specialty and niche markets. EC can result in fundamental change in how business is done and resistance to change from employees, vendors and customers may develop. Education, training and publicity over an extended time period offer possible solutions to the problem. Integration of E-Commerce with the rest of the business involve planning, competition for corporate resources with other projects and interfacing EC with databases, existing IT applications and infrastructure. Lack of qualified personnel, who may decide on online marketing issues, is another managerial concern. Although outsourcing can solve the problem, it is difficult to decide what should be outsourced and what should not be. Because of the complexity and multifaceted nature of EC, it makes sense to prepare an implementation plan, which should include goals, budgets, timetables and contingency plans. It should address many legal, financial, technological, organizational and ethical issues. Another issue is regarding making profitable alliances. Choosing the company’s strategy towards e-commerce and justifying e-commerce by conducting a cost-benefit analysis are very difficult tasks.Information security was mostly a technical issue assigned t0 (he TT department. Incidents were handled von a ease by case “cleanup” basis rather than by taking a preempt” approach to protect ahead of the threats, Threats to info sec range from high-tech exploits 0 Bn ‘access to a company’s networks and databases to non-tech tactics to steel laptops, etc. the following internal incidents could have been prevented if stringent info sec policies and defenses had been enforced. - Theft of a laptop | Credit and debit cards had been stolen by hackers «Tons of millions of dollars of fraudulent charges were made On the cards ~ Medical data breaches exposed the personal data of many patients ‘The preceding examples illustrate info see breaches harm profitability and customer relations. The time: to-exploitation is the most sophisticated spyware and ‘mobile virus today. It is the elapsed time between viverra vulnerability is discovered and when itis exploited. New ‘vulnerabilities are continuously being ound in operating systems, applications, wired and wireless networks. With data resources available on demand 24x7, companies benefit from the opportunities for productivity improvement and data sharing with business partners in their supply chain. Government Regulations Data must be protected against existing and future attack schemes: and defenses must satisfy ever-stricter government and international regulations. Some of the antifraud regulations that force better business reporting and disclosure of GAAP (Generally ‘Accepted Accounting Principles) violation are SOX (Sarbanes Oxley) act, GLB (Gramm-Leach-Biiley) ach FISMA (Federal Information Security Management Act) and USA Patriot act, etc. Industry groups imposed their own standards to protect their customers and their members brand images and revenues. Some types of incidents are beyond a company’s control. Uncertain events that can cause TS breakdown require disaster recovery and business continuity plans. Some of the incidents are cybercrimes, events like the 9/11 attack that lead to the loss of critical data, etc, such incidents illustrate the diversity of info sec problems and the substantial damage that can be done to organizations anywhere in the world, 1 Security and Internal Control Model When senior management shows its commitment to IT security becomes important to the rest of the organization too. Users become aware that insecure practices and mistakes will not be tolerated. ‘Therefore, an IT security and internal control model begins with:Step_1: Senior management commitment and Support- Senior managers’ influence is needed to implement and maintain security, ethical standards, Privacy practices and internal control Step 2: Security policies and training- Develop Security policies and provide training to ensure that everyone is aware of and understands them Step_3: Security procedures and enforcement. Implement monitoring procedures, training and enforcement of the AUP (Acceptable Use Policy) Step 4: Security tools: hardware and software- Implementation of software and hardware needed to Support the policy and enforce the secure practices Unintentional Threats Unintentional Threats * Human errors: Errors that occur in the design of the hardware or Programming, testing, data collection, data entry, ete, * Environmental hazards: Natural calamities that may disrupt normal computer operations and result in long waiting periods and exorbitant costs while computer programs and data files are recreated. * Computer system failure: Occurs due to poor manufacturing, defective materials, outdated networks, etc. Intentional Threats They include theft of data, inappropriate use of data, theft of mainframe computer time, theft of cebaemient, malicious damages, ete. the intentional crimes caried Out on the internet are called cybererimes. People who indulge in such crimes are names hackers (someone who gains unauthorized Sccess {0 & computer system) or crackers (malicious hacker, who may represent a serious problem for a corporation). Methods of Attacks on Computing Facilities SENOS of Attacks on Computing Facilities Data tampering an attack when someone enters false, fabricated or fraudulent data into a computer, or changes or deletes existing data, Similarly, Programming attacks are popular with computer criminals ‘who use programming techniques to modify other computer Programs. A DoS (Denial of Service) attack Rau when a server or Website receives a flood of traffic much more traffic or request for services that it'can handle, causing it to crash,«Trojan horses They are referred to as backdoors because they give the attacker illegal access to a network or through a network port. ‘© RAT (Remote Administration Trojans) A class of backdoors that enable remote control over the ‘computerized (infected) machine. Computer crimes appear frequently and with novel names that quickly become very popular among people. IT has a key role to play in demonstrating good corporate governance and fraud prevention. Regulators took favorably on companies that can demonstrate good corporate governance and best practice operational risk management. IT Security Management Practices The objective of IT security management practices is to defend all the components of an information system; data, software applications, hardware and networks. In order to attain this objective, a defense strategy needs to be framed. The defense strategy and controls should be used depending on what needs to be protected and the cost benefit analysis. Objectives of defense strategies are: 1. Prevention and deterrence: prevent errors from occurring, deter criminals from attacking the system 2. Detection: the earlier the attack is detected, the easier it is to combat, and the less damage is done 3. Containment (contain the damage): to minimize or limit losses once the malfunction has occurred. 4, Recovery: how to fix a damaged information system 5. Correction: correcting the causes of damaged systems 6. Awareness and compliance: all organizational members must be educated about the hazards and must comply with the security rules and regulations ‘A defense strategy is also going to require several controls. There are basically two types of controls; general controls (established to protect the systems regardless of the specific application) and application controls (safeguards that are intended to protect specific applications). General controls include physical controls, access controls, biometric controls (thumbprint, retinal scan, voice scan, etc) and administrative controls. Network security measures involve three layers - Perimeter security (access): technologies used to protect against malware. It enforces an access control policy between two networks - Authentication: guards against unauthorized access attempts. Its main objective is the proof of identity - Authorization: permission issued to individuals or groups based on verified identity to do certain activities with a computer The internal control environment is the work atmosphere that a company sets for its’ employees. Internal Control (IC) is a process designed to achieve reliability of financial reporting, operational efficiency, compliance with laws, regulations and policies, and safeguarding of assets. SOX and the SEC are making it clear that if controls are ignored, there is no control, Therefore, fraud prevention anddetection requires an effective monitoring system. Well executed internal fraud can damage a nation’s economy as a whole. Managing risk has become the single most important issue for the regulations and the financial institutions. Over the years, these institutions have suffered high costs for ignoring their exposure to risk. However, growing research and improvement in IT have improved the measurement and management of risk.+ Notes for Chapter 7 POT TS ‘M-commerce Value Chain, Revenue Models and Justification Several types of vendors provide value-added services to m-commerce. These include mobile-portals, advertisers, software vendors, content providers, mobile portal, mobile network operators and more. The revenue models of m-commerce are: access fees, subscription fees, pay-per use, advertising, transaction fees, hosting, payment clearing and point-of-traffic. Mobile technologies not only provide convenience and efficiency benefits, but can lead in both core competencies and competitive advantage and impact entire strategies and business models. Wireless Local Area Networks and Wi-Fi A wireless LAN (WLAN) is like a wired LAN without the cables. WLANs transmit and receive data over the airwaves from a short distance in what is known as Wi-Fi. Mobile Applications in Financial Services Mobile Banking and Stock Trading: Mobile banking is generally defined as carrying out banking transactions and other related activities via mobile devices. Wireless Electronic Payment Systems: Wireless payment systems transform mobile phones into secure, self-contained purchasing tools capable of instantly authorising payments over the cellular network. Micropayments: Electronic payments of small purchase amounts are called micropayments. Mobile (Wireless) Wallets: An e-wallet is a piece of software that stores an online shopper's, credit card numbers and other personal information that the shopper does not have to re-enter that information for every online purchase. Mobile Shopping, Advertising & Content Providing Shopping from Wireless Devices: ‘An increasing number of online vendors allow customers to shop from wireless devices. E.g. mobile. yahoo.com Target Advertising: Knowing the current location of mobile users and their preferences or surfing habits, marketers can send user-specific advertising messages to wireless devices. Mobile Portals: ‘A mobile portal is a customer channel, optimized for mobility, that aggregates and provides content and services for mobile users. E.g. zed.comVoice portals: A voice portal is a web site that can be accessed by voice. Voice portals are not really websites in the normal sense because they are not accessed through a browser. Location Based Services & Commerce L-Commerce Technologies Providing location-based services requires the following location based and network technologies. ‘* Position Determining Equipment (PDE): This equipment identifies the location of the mobile device and the information is sent to the mobile positioning center. '* Mobile Positioning Center: The MPC is a server that manages the location information sent from the PDE. ‘* Location-based Technology: This technology consists of groups of servers that combine the position information with geographic- and location-specifie content to provide an I- ‘commerce service. ‘* Geographic Content: Geographic content consists of digitized streets, road maps, addresses, routes, landmarks, land usage, Zip codes and the like. It is provided via content centre. ‘* Location-specific Content: Location-specific content is used in conjunction with geographic content to provide the location of particular services. Global Positioning System: A global positioning system is a wireless system that uses satellites to enable users to determine where the GPS device is located anywhere on the earth. Geographical Information System (GIS): The location by GPS is expressed in terms of latitude and longitude. To make that information useful to businesses and consumers, it is necessary in many cases to relate those measures to a certain place or address. This is done by inserting the latitude and longitude onto a digital map, which is known as a geographic information system (GIS). Telematics & Telemetry: Telematics refers to the integration of computers and wireless communications in order to improve information flow. It uses the principles of telemetry, the science that measures physical remoteness by means of wireless transmission from a remote source (such as a vehicle) to a receiving station. Mobile Enterprise Applications Mobile Apps include the following: ‘Supporting salespeople while they are waiting on customers ‘* Supporting field employees doing repairs or maintenance on corporate premises or for clients ‘© Supporting executives, managers, or other employees when they are traveling or otherwise not at the corporate site ‘Supporting employees while they do work inside the enterprise at places where there is no easy access to desktop computers, for example, in a warehouse, at outdoor facilities, or in large retail stores. ‘© Supporting employees driving trucks while they are on the road.Pervasive Computing A world in which virtually every object has processing power with wireless or wired connections to a global network is the world of pervasive computing. (The term pervasive computing also goes by the names ubiquitous computing, embedded computing, or augmented computing.) Invisible Computing © RFID Tags © Active Badges * Memory Buttons Contextual Computing Context awareness is part of contextual computing, which refers to the enhancement of a user's interactions by understanding the user, the context, and the applications and information being used, typically across a wide set of user goals. Contextual computing is about actively adapting the computational environment for each user, at each point of computing. Inhibitors & Barriers of Mobile Computing © The usability problem ‘© Failures in mobile-computing & m- commerce * Ethical & legal issues ‘© Challenges in deploying ubiquitous systems Managerial Issues ‘* Comparing wireless to synchronised mobile devices * Time-table * Setting application priority © Choosing a system Reference for further study: hup://en.wikipedia.org/wiki/Mobile_ commerce hup://en.wikipedia.org/wiki/Mobile Banking http://en. wikipedia org/wiki/Mobile_marketing http://en.wikipedia.org/wiki/Mobile_web http://en. wikipedia org/wiki/Mobile_payment hutp://en.wikipedia.org/wiki/Electronic_ commerce http://en.wikipedia.org/wiki/Mobile_ticketing hutp://en. wikipedia.org/wiki/Ubiquitous_ computing www. parliament.uk/briefing-papers/POST-PN-263.pdf hutp://www.cs.cmu.edu/~aura/docdit/pesO1.pdtNotes for Chapter 9 in Processing, Functional Applications, CRM and Integration Transaction Processing Information Systems The transaction processing system monitors, collects, stores, processes, and disseminates information for all routine core business transactions. These data are input to functional information systems applications, as well as to decision support systems (DSS), customer relationship management (CRM), and knowledge management (KM). The TPS also provides critical data to e-commerce, especially data on customers and their purchasing history. Objectives of TPS The primary goal of TPS is to provide all the information needed by law and/or by organizational policies to keep the business running properly and efficiently. Specifically, a TPS has to efficiently handle high volume, avoid errors due to concurrent operations, be able to handle large variations in volume (e.g., during peak times), avoid downtime, never lose results, and maintain privacy and security. Specific objectives of a TPS may include one or more of the following: to allow for efficient and effective operation of the organization, to provide timely documents and reports, to increase the competitive advantage of the corporation, to provide the necessary data for tactical and strategic systems such as Web based applications, to ensure accuracy and integrity of data and information, and to safeguard assets and security of information. It also is important to remember that TPSs must closely interface with many IT initiatives, especially with e-payment, e-procurement, and e-marketing. Managing Production / Operations & Logistics The production and operations management (POM) function in an organization is responsible for the processes that transform inputs into useful outputs. In-House Logistics and Materials Management: Logistics management deals with ordering, purchasing, inbound logistics (receiving), and outbound logistics (shipping) activities. In- house logistics activities are a good example of processes that cross several primary and support activities in the value chain, Inventory Management: Inventory management determines how much inventory to keep. Overstocking can be expensive; so is keeping insufficient inventory. Three types of costs play important roles in inventory decisions: the cost of maintaining inventories, the cost of ordering (a fixed cost per order), and the cost of not having inventory when needed (the shortage or opportunity cost). The objective is to minimize the total of these costs. Many large companies (such as Wal-Mart) allow their suppliers to monitor the inventory level and ship when needed, eliminating the need for sending purchasing orders. Such a strategy, in which the supplier monitors inventory levels and replenishes when needed, is called vendor-managed inventory (VMI). ayPlanning Production/ Operations: The software that facilitates the plan for acquiring (or producing) parts, subassemblies, or materials in the case of interdependent items is called material requirements planning (MRP). A POM system called manufacturing resource planning (MRP I) adds functionalities to a regular MRP. It also estimates costs of labor, tools, equipment repair, and energy. Finally, it provides a detailed, computerized budget for the parts involved. Just-in-time (JIT) is an approach that attempts to minimize waste of all kinds (of space, labor, materials, energy, and so on) and to continuously improve processes and systems. Project Management: A project is usually a one-time effort composed of many interrelated activities, costing a substantial amount of money, and lasting for weeks or years. The ‘management of a project is complicated by the following characteristics. © Most projects are unique undertakings, and participants have little prior experience in the area. © Uncertainty exists due to the generally long completion times. © There can be significant participation of outsiders, which is difficult to control. © Extensive interaction may occur among participants. © The many interrelated activities make changes in planning and scheduling difficult. «© Projects often carry high risk but also high profit potential. Work management systems (WMS) automatically manage the prioritization and distribution of work. Computer-integrated manufacturing (CIM) is a concept or philosophy that promotes the integration of various computerized factory systems. CIM has three basic goals: (1) the simplification of all manufacturing technologies and techniques, (2) automation of as many of the manufacturing processes as possible, and (3) integration and coordination of all aspects of design, manufacturing, and related functions via computer hardware and software. Product Lifecycle Management is a business strategy that enables manufacturers to control and share product-related data as part of product design and development efforts and in support of supply chain operations. Managing Marketing & Sales Systems Channel systems are all the systems involved in the process of getting a product or service to customers and dealing with all customers’ needs. Customer Profiles & Preference Analysis: Consumer behaviour online can be tracked by cookies (small data files placed on a user's hard drive by a Web server). Then the consumer's online behaviour can be analysed and used for marketing purposes. Prospective Customer Lists and Marketing Databases: It is possible today to purchase computerized lists from several sources and then merge them electronically. Theseprospective-customer lists then can be analyzed and sorted by any desired classification for direct mailing, e-mailing, or telemarketing. Mass. Customization: Increasingly, today’s customers want customized products. Some manufacturers offer different product configurations, and in some products dozens of options are available, The result is mass customization. Advertising & Promotion: Online advertising, mainly via e-mail and banners, is growing rapidly. Innovative methods such as viral marketing are possible only on the Internet, Distribution Channels & In-store Innovations: New IT Supported Distribution «Improving Shopping & Checkout at Retail Channels Stores * Distribution Channels Management Marketing Management: Pricing of goods Sales Analysis & trends Sales personnel productivity New products, services & market planning Profitability analysis Web-based systems in marketing Managing the Accounting & Finance Systems Fig: Major activities of Accounting/ Finance SystemManaging Human Resources System Developments in Web-based systems increased the popularity of human resources information systems (HRISs) as of the late 1990s. Recruitment is finding employees, assessing them, and deciding which ones to hire. Companies are trying to find appropriate candidates on the Web, usually with the help of specialized search engines. Also, hundreds of thousands of jobs are advertised on the Web. Reference for further stud: Eh eran! ann Se rm on ere a Sater essere eset fea ga Sipe Se ya be Sapa cer (tgs me orn pt ome nt Sh cing deta =o SaremeceeneChapter 10 — Enterprise Systems: Supply Chain, ERP, CRM and KM (Prepared by research scholar Amrita Patwa) Enterprise Systems or processes that involve the entire enterprise or two or more departments of it, Example: ERP, Extended ERP, CRM, Knowledge Management, Partner Relationship Management, Business Process Management, Business Intelligence, etc, Supply Chain: It sis set of Relationship among suppliers, manufacturer, distributors and retailers that facilitate the transformation of raw material into final products. The flow of material, information, money and services from raw materials suppliers through factories and ware houses to the end consumers. Supply Chain Management is the efficient management of the supply chain end ~ to — end process that starts with design of the product or service and end when it is sold, consumed or used by the end consumer. Eg: Inventory Management Materials acquition and transformation, shipping and transportation etc. In today's competitive business environment, efficient, affective supply chains are critical to the survival of most organization and they are greatly dependent on the supporting information systems. IT support supply chain to function and implement the following issues: ‘© Procurement and Supply Decision * Production Decision © Distribution Decision * Information support Decision Material Flow Decision ‘© Cash Flow Decision When a supply chain is managed electronically, usually with web based software, itis refer to as a digital supply chain or an e-supply chain. Supply chains are composed of three major components: Upstream * Internal * Downstream Integrating Enterprise System: - Oracle is probably is the best example of a software vendor that buys software vendors with specialize enterprise system and integrates the systems together (such as ERP and CRM). Managing Collaboration:- Necessary since companies depend on each other, but do not always ‘work together. © Collaborative Planning (Collectively creates initial demand forecast, provide changes and share information) aye)* Vendor Manage Inventory (Manage Inventories for the manufacturer or buyers, reduces warehousing cost for suppliers) Advantages of Internet Utilization in SPM:- © Better Cost Performance © Enhance Customer Service © Improved Process Capabilities © Higher Productivity and Dependability © Shortened Cycle Time © Greater Flexibility © Shortened Supply Chain E-Business Activities:- * Collaborative Fulfillment Network ‘* Electronic Market Place (B2B Internet based Technologies) © EDI(Electronic Data Interchange) * Electronic Ordering and Fund Transfer * RFID (Managing Inventory) © E-Procurement Mobility and Wireless Solution:~ (i) _Iteliminate wasted time in business processes Gi) ‘Through mobility, computing power is moved from stationary desktop computer to a mobile computer. Business Value of SCM:- Reduce uncertainty and risk e Improved collaboration Decreasing Inventory levels and cycle time + Improving business processes and customer service ERP Systems: - To control all major business processes in real time with single software architecture, ERP systems are used. This software integrates the planning management and use of all of the resources in the entire enterprises. It comprises of sets of application that automate routine backend operations, Purpose and Advantages: ‘© To integrate all departments and functional information flows across a company onto a single computer system.Improving inventory management Availability of information to optimize production schedule Increases productivity and customer satisfaction, ERP can be integrated with SPM systems, E- commerce and CRM. Customer Relationship Management:- CRM is an enterprise wide effort to acquire and retain profitable customers, CRM focuses on building long term and sustainable customer relationships that add value for both the customer and the company. Classification of CRM Application:~ @ (i (iii) @) Customer facing application(Customer interacts with the company) Customer touching application(Customer interact directly with the application) Customer centric intelligence application(intended analyze the results of operational processing) Online networking application(Provide the opportunity to build personal relationships with a wide range of people in business) E-CRM: - When businesses started using web browsers, the internet and other electronic touch points to manage customer relationships. Levels and types of E-CRM:- @ 7) ii) Foundational service- Minimum necessary services such web site responsiveness, site effectiveness and order fulfillment. Customer centered service- service include order tracking configuration and customization, and security/trust. Value added service- Extra services such as online auctions and online training and development, loyalty programs. 7 Types of CRM Activities:~ @ (ii) (ii) Operational CRM(customer services order management sales/marketing automation and management, etc) Analytical CRM(capture, store, extract, process, interpret and report customer data) for analysis Collaborative CRM (communication, coordination and collaboration between vendors and customers) Customer's services on the WEB:~ i) Search and comparison capabilities Free products and services(ii) Technical and other information and services Customized products and services (w) Account or order status tracking ‘Tools or customers’ services:~ ‘© Personalized Web Pages FAQ's Email and automated response Chat and Live rooms Call Centers * Trouble Shooting Tools Enables employees to provide better service while they are at the customer's CRM Failures:- is 2 3. 4. Difficulty majoring and valuing in tangibles benefits Lack of active senior managements sponsorship Poor user acceptance Trying to automate properly define business process in CRM Business Value of CRM:~ Many organizations are adopting CRM system’s, with software to help acquire, managed and retain loyal customers. One of the biggest problems in CRM implementation is the difficulty of defining and measuring success. A formal business plan must be in place before the e-CRM project begins. The plan should include tangible net benefits (cost benefit analysis), intangible benefits and risk assessments (potential pitfalls). Risk of E-CRM:- e ‘© Taking on more than can be delivered © Getting over budget and behind solutions Poor user adoption Expensive maintenance and support Next isolation Garbage and in garbage out Failure to measure success Knowledge Management: A process that helps organizations identify, select, organize, disseminate and transfer important information and expertise that are part of the organization'sCHAPTER 11: Inter-Organizational, Large Scale and Global Information Systems (Prepared by Research Scholar: Amrita Patwa) On-demand enterprise is a concept based on the premise that manufacturing will start its operation only after an order is received. On-demand and real time implies that no productive step would be ahead or behind because the entire fulfillment cycle would be primed to respond to real time conditions. These two concepts have revolutionized the supply chain. For achieving them, companies must reengineer their supply chain. Inter-organization activities include: # Joint venture * Collaboration Buying and selling + Other activities (work jointly on standards, conduct research, etc.) Alll of the above include communication, collaboration and search using the support of IT. Order Fulfillment: Providing customers with what they have ordered and doing so on time and also providing all related customer services. An important concept related to order fulfillment is logistics. It can be defined as the process of planning, implementing and controlling the effective and efficient flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. The order fulfillment process: 1. Make sure the customer will pay- validity of each payment must be determined 2. Check for in-stock availability- inquiry needs to be made regarding stock availability 3. Amrange shipments- if the item is physical and it is readily available, packaging and shipment arrangement needs to be made Insurance- contents of a shipment needs to be insured Replenishment- if standard items are out of stock, they need to be produced or procured. In-house production Use suppliers- opt to buy products or subassemblies from suppliers Contacts with customers- sales representative need to keep contact with customers Return- the movement of return from customers back to vendors (reverse logistics) eenausr There are various problems and issues that are faced in the order fulfillment process such as, delays in transportation/shipment, human errors in information sending, over or under stocked inventories, slow or incorrect billing, etc. Inter-Organizational Information System (IOS) involves information flow among two or more organizations. Its major objectives are efficient processing of transactions and the support of communication and collaboration.Types of 10s: aYveenn B2B trading systems B2B support systems Global systems Electronic funds transfer (EFT) Groupware Shared databases IOS Infrastructure Technologies are: Global located Electronic Data Interchange (EDI)- the electronic movement of business documents between business partners Extranet- internet based, secure systems that link business partners via intranet XML- a companion or a replacement for EDI systems Web Services- integrating B2B and intra business applications Enterprise Application Integration- integrate systems internally, before they are connected to business partners Extended ERP- extended to suppliers, customers and other business partners Information Systems (GIS) are inter-organizational systems that connect companies in two or more countries. Examples of global systems are multinational companies (operate in several countries), international companies (do business with companies of other countries) and virtual global companies (business partners are | Benefit; Issues in ated in different countries) s of GIS: Effective communication at reasonable cost Standardize procedures and common languages Effective collaboration to overcome differences in distance, time, language and culture Access to databases of business partners and ability to work on the same projects while their members are in different locations in global IS design and Implementation: Cultural, economic and political differences and legal issues Design websites for a global audience (legal, cultural, language and other factors) Globalization and off shoring of software and other IT activities Globalization and personnel issues ‘There are certain problems that come along global supply chains such as, they are relatively longer and complex, interruption and uncertainties are likely to occur, legal issues, language and cultural differences, fast changes in currency exchange rates, ete.Demand Driven Supply Networks In contrast to the traditional supply chain driven by suppliers and producers, DDSNs are driven by customer demand. Instead of products being pushed to market, they are pulled to market by customers. Benefits: More accurate and detailed demand forecasting Lower supply chain costs Improved perfect order performance Reduced days of inventory Improved cash-to-cash performance Provides a customer centric approach Use of probabilistic optimization Provides for agility, adaptability and alignment Use of RFID to improve Supply Chain Automatic alerts can be sent within each company and between companies Visibility of inventories is provided to all business partners Rapid checkout at stores eliminates the need to scan each item ‘Transmit real-time information about the location of the merchandise ‘There are certain limitations of RFID such as for small companies the cost of an RFID system may be too high, there could be atmospheric interference and the fear of violating customers’ privacy. Partner Relationship Management (PRM) It is a business strategy and practice that recognizes the need to develop long-term relationships with business partners by providing each partner with the services that are most beneficial to that partner. Uses of PRM Connect companies with their business partners using web technologies to securely distribute and manage information Facilitates partner relationships Partner profiles and partner communications Management of customer leads Targeted information distribution Centralized forecasting, etc.Collaborative commerce refers to non-selling/buying electronic transactions within, between and among organizations. It implies communication, information sharing and collaboration done electronically by means of tools such as groupware, wikis and specially designed collaboration tools.Chapter 12: Business Intelligence and Decision Support Systems Prepared by Research Scholar: Amrita Patwa) Business Intelligence is an umbrella term that includes architecture, tools, databases and applications that have been implemented over several decades under different names by various researchers and vendors. Need for BI «Provide measurable business value to smaller companies as costs declined * Increased pervasiveness © Used as a feedback mechanism ‘© Improved data quality ‘© Fall visibility and real time excess to company data © Easy to create accurate, up to the minute report ‘© Informed , fast decision making ‘The major component of BI are data ware house and marts, predictive analysis, data mining, data visualization software and a business performance management system. Characteristic and Objectives of Data Mining: © The data are cleared and consolidated in the data warehouse ¢ Managing and synchronizing data to get the right result «The minors are empowered by data drill and other power query tool ‘© Readily combined with spreadsheet and other software development tool ‘© Massive search effort can be made for large amount of data Data mining techniques are well suited to analyze financial time series data to find patterns, detect anomalies and outliers recognize situation of chance and risk etc. Data mining tools are interactive, visual and understandable and work directly on the data warehouse of the organization, Data Mining Applications: ‘There are some applications whose intend is to identify the business opportunity in order to create a sustainable competitive advantage. Examples of such applications are retailing and sales, banking, manufacturing and production, healthcare, broadcasting and marketing. ISs have grown to support all managerial roles, particularly decisional role. It helps in the identification of problem and opportunity and in the decision of what to do about them. The two broad decision categories are problem solving and opportunity exploiting. ‘The need for IT support in managerial decision is basically to overcome certain issues such as. mye* Too many alternatives , scenarios and risk to consider © Time pressure * Increased fluctuation uncertainty in the environment * Decision maker and information can be indifferent location, Bringing them all together is difficult and costly + Need of an organization to conduct forecast Decision making process consist of four systematic phases Intelligence, Design, Choice and Implementation. There is a continuous flow of information from intelligent to design to choice but at any time there may be a return of information to a prior phase. This decision model is a simplified representation or abstraction of reality. The benefits of modeling in decision making are as follows: © Cost of virtual experimentation is much lower * Simulated compression of time Manipulating the model by changing variables is much easier Cost of making mistake during experiment is much lower Deals better with uncertainty and risk allows the analysis and comparison of a very large number of possible alternative solutions, * Enhance reinforced learning Decision making activities: Y Structured decision( for routine and repetitive problems) Y Unstructured decision (for problem having a lot of uncertainty) Y Semi structured decision (falls between the two mentioned above) Decision Support System (DSS) Combined model and data to solve semi structure and unstructured problem with intensive user involvement. It is an approach or philosophy rather than a precise methodology. Characteristics of DSS: * Makes a system flexible and adaptable to changing condition and to the varying requirement of different decision making situation * It allows user to enter their own data and to view how system will behave under varying circumstances * Itprovide better understanding of sensitivity analysis model of DSS: 1. Examine numerous alternative very quickly 2. Support forecasting 3. Provide a systematic risk analysis4. Be integrated with communication system and databases 5. Support group work Components of DSS: 1. Database (contain data from multiple sources) 2. Model Base (contain completed models and sets of rule) User Interface (covers all aspects of the communication between a user and the DSS) User (the decision maker) Knowledge base (provide the expertise to solve some part of the problem) yee The DSS components are all software’s, they run on standard hardware and they can be facilitated by additional software. One of the most popular tools for decision support is simulation. GDSS (Group DSS) is an interactive computer based system that facilitates the solution of semi structure and unstructured problems when made by a group of decision maker by concentrating on the process and procedure. Automated Decision Support (ADS) These systems are rule based system that automatically provides solution to repetitive managerial problems. ADSs are closely related to BI and business analytics. ‘* Business analytic models may be used to create and operate the business rules ‘* Business rule can be used to trigger the automatic decision in BI application Characteristics and Benefits of ADS: * Rapidly business rules to automate decision makers and deploy them into almost any operating environment ‘+ Inject predictive analytics into rule based application, * Combined business rules, predictive models and optimization strategy ADS Applicatio Product or service customization Yield or price optimization Routing or segmentation decision Corporate regulatory compliance and fraud detection Dynamic forecasting and SCM Operational control Customer selection loyalty and service Human Capital er ayrene <<>>Prepared by Nirankush Dutta (Research Scholar) Contents ‘Chapter 13: IT Strategy & Planning. (Chapter Note. Alignment of Business and IT Strategies... IT Strategy Initiation... IT Strategic Planning... Outsourcing, Offshore Outsourcing, and IT as SUDSIMY on Managerial Issues... yur"Chapter 13: IT Strategy & Planning Chapter Note Alignment of Business and IT Strategies Business strategy sets the overall direction for the business. The information systems strategy defines what information, information systems, and IT architecture are required to support the business. Based on the prioritization of needs, the information technology strategy indicates how the infrastructure and services are to be delivered. Information technology- business alignment refers to the degree to which the information technology division understands the priorities of the business and expands its resources, pursues its projects and provides information consistent with these priorities. IT business alignment includes two facets: (1) IT alignment and (2) IT strategic alignment, Governance Structure for IT-Business Alignment The governance structure within an organization should be designed to facilitate IT-Business alignment. The CIO oversees the IT division and is responsible for the company’s technology direction. Achieving IT-Business Alignment IT-Business alignment can be fostered within an organization by focusing on activities central to alignment. 1, Understanding IT and Corporate 5. Shared planned goal Plannin; S 6. Deep end user involvement 2. CIO is a member of senior management 7. Joint architecture / portfolio selection 3. Shared culture and good eee ee 8. Identity of plan factors 4, Deep commitment to IT planning by senior management Challenges in Achieving IT-Business Alignment The key to achieving IT-business alignment is for the CIO to attain strategic influence. CIOs must be both business and technology savvy. And have a more strategic role in (a) promoting collaboration between IT and organizational business units, (b) persuading senior ‘management about the importance of IT to the business, (c) contributing to strategic planning and business growth initiatives, (d) identifying opportunities for business process automationand improvement and (e) improving intemal and external user experience and satisfaction, Successful alignment also requires the development of a partnership between the IT division and business management, Another challenge to successful alignment is clearly defining IT's role in an organization, IT Strategy Initiation The Critical Strategic Role of IT. Companies must determine the use, value and impact of IT to identify opportunities and create value that supports the organization’s strategic vision. IT can add value to a company either directly by reducing the costs associated with a given activity or subset of activities or indirectly by increasing revenues. IT can also play a strategic role in a firm through enabling fa temporary or sustained competitive advantage. IT has the capability to contribute to improvements in many domains of business activity through technological resources, technical capabilities and managerial resources. The Value of IT to the the Business The CIO must communicate clearly the value of IT to the business so that the potential and role of IT are understood. Being able to explain how IT is providing value to the business is a critical skill that can be facilitated with an “Opportunity Matrix of Business Improvement with IT”, A Partnership between the IT Division & Business Management Inclusion of the CIO on the CEO’s senior management team promotes a partnership between the CIO and the CEO, The CIO must continually educate and update the other executives in the C-suite (chief executive) team about technological advances and capabilities relevant to the business needs. The partnership between the IT division and business management can extend to fuse with the business, wherein the CIO becomes responsible for managing some core business functions. Alternatively, the CIO can work directly with other top executives to influence strategic directions, suggest changes in internal business processes and lead a diversity of initiatives that encompass more than just technology projects. To realize the ‘greatest potential from IT, the business strategy must include the IT strategy and the use of IT must support the business strategy. IT Strategic Planning ‘A good IT planning process can help ensure that IT aligns and stays aligned within an organization. Because organizational goals change over time, IT strategy also has to be a continual process. The IT planning process may result in a formal IT strategy or may result in re-evaluation each year of the existing portfolio of IT resources to be developed. IT strategic planning is the organized planning of IT resources done at various levels of the organization,‘The IT Strategic Planning Process Strategie Business Plan (rl dren fhe ranance se The output from the IT planning process should include an evaluation of the strategic goals and directions of the organization and how IT is aligned, a new or revised IT vision and assessment of the state of the IT division, a statement of the strategies, objectives and policies for the IT division and the overall direction, requirements and sourcing of resources. Tools and Methodologies of IT Strategic Planning Most of the methodologies start with some investigation of strategy that checks the industry, competition, and competitiveness and relates them to technology. Others help create and justify new uses of IT. Some of the methodologies are: (1) Business Service Management (A) Critical Success Factors (2) Business Systems Planning Model (5) Scenario Planning (3) Balanced Scorcecard Outsourcing, Offshore Outsourcing, and IT as a Subsidy TT is an enabler only and it is complex, expensive and constantly changing. Since IT is difficult to manage for many companies, the most effective strategy for managing IT effectively may be outsourcing.Outsourcing Outsourcing is contracting work to be completed by an outside vendor. The major reasons for outsourcing are: (a) desire to focus on core competency, (b) cost reduction, (c) improved quality, (d) increased speed to market and (e) faster innovation. Outsourcing may be (a) transactional, (b) co-sourcing alliances, or (c) strategic partnership in nature. Outsourcing may lead to improved financial, technical, management, human resources, quality and flexibility related capabilities. But there are also disadvantages of outsourcing arising from (a) shirking, (b) poaching and (c) opportunistic reprising practices. Other losses may occur because of irreversibility of the decision, possible breach of contract by the vendor or its inability to deliver, loss of control over IT decisions, loss of critical IT skills, vendor lock-in, loss of control over data, loss of employee morale and productivity and uncontrollable contract growth, ‘The Offshore and Global Outsourcing Debate Offshore outsourcing is outsourcing with a vendor located in a country other than the one in which the client company is based. This trend is primarily due to global markets, lower costs and increased access to skilled labour. Offshore outsourcing can reduce expenditure in the long term and improve the quality of IT services delivered. But organizations must balance the risks and uncertainties involved, including (a)cost-reduction expectation, (b) data security and protection, (c) process discipline, (d) loss of business knowledge, (¢) vendor failure to deliver, (f) scope creep, (g) government regulation, (h) cultural differences, (i) turn-over of key personnel and (j) knowledge transfer. Evaluating Outsourcing. Outsourcing relationships are assessed on how well business value is delivered. Balanced scorecard is a useful tool in measuring the business value of outsourcing relationships in both single vendor as well as multi-vendor approach. Managerial Issues 4. Undertaking the IT Strategic 1. Aligning IT Strategy and Business Pienting Pieces Strategy 5. Dealing with Outsourcing and Off- 2. Organizing for Effective Planning cenine Initiating IT StrategyPrepared by Nirankush Dutta (Research Scholar) Contents Chapter 14; Managing IT Projects, Process Improvement, and Organizational Change 3 Chapter Note 3 Adopting IT Projects. BS 3 ‘A Framework for Adopting IT Projects Adoption Stages. ‘Technology Differences... Task Differences .. ® inividua Ditereos.. Organizational Differences . Environmental Differences Identifying Technology for Adoption, Implementing IT Projects. Creating an Implementation Roadmap ‘The Four P's of System Implementati Success and Failure of IT Implementations Factors that Impact Implementation Success ‘Managing the Implementation Project Business Process Management... ‘The Concept of Business Process Management... Creating a BPM Strategy Business Process Modelling Measuring Processes 6 Software to Support BPM. 6 6 ‘Change Management and Organizational Transformation... ‘Change Process Models. ‘Organizational Transformation...10 Principles of Change Management... ‘Managerial Issues.Chapter 14: Managing IT Projects, Process Improvement, and Organizational Change Chapter Note Adopting IT Projects Information systems are typically adopted to create value by enabling or improving one or more business processes or to contribute positively to faster and more effective decision making, Consequently, their planning must be aligned with the organization's overall business strategy and specific processes involved. A Framework for Adopting IT Projects ‘As per the model introduced by Everett Rogers in his book “Diffusion of Innovation”, there are four elements of adoption of any technology: (1) the technology itself, (2) the communication channels through which information is exchanged between potential adopters, (3) the speed at which the emerging technology is being adopted and (4) the social system into which the innovation is introduced that can be influenced by internal opinion leaders and external change agents. Adoption Stages (1) Acquire knowledge, (2) Persuade, (3) Decide, (4) Implement and (5) Confirm The adoption process is not linear, but cyclical in nature, While the adoption process is relatively predictable, we cannot assume that the process will be the same for the introduction of all types of technology introduced into different types of organizations, or even the same technology introduced into a different organization, or vice versa. ‘Technology Differences Every innovation has four basic characteristics: (a) compatibility, (b) complexity, (c) reliability and (d) relative advantage. All new systems are measured along these characteristics when they are being considered for adoption Task Differences Task-technology dependency is the ability of a technology to efficiently and effectively execute a task. It is an interesting and important feature to consider when assessing the adoption of different types of technology. i Individual Differences People fall into five different adopter categories: (a) innovators, (b) early adopters, (c) early majority, (d) late majority and (e) laggards. Understanding adopter categories helps ITmanagers, consultants and vendors understand that not all clients rush to adopt new technology. Once an organization understands the social system in which it is operating, it needs to assess how new or established technologies are already being used. To do this, the organization scans the environment. Organizational Differences All organizations cannot provide the same level of support to assist in the introduction of new technology. Planning for the changes that will be introduced into an organization by the adoption of a new system includes supportive ITT infrastructure, management support, and the presence of a champion (a person who will promote the benefits of the new system across different levels of the organization on an on-going basis). Environmental Differences Fostering and maintaining close vendor-champion alliances is a very beneficial tactic to take in adopting new technology. The successful adoption and implementation of an information system depends on the proper assessment of numerous individuals, technology, task, organizational and environmental factors. Identifying Technology for Adoption ‘The first step in adopting a new IT based system is to idemtify technologies that may be useful in improving or enabling business processes and assess how well they fit the organizational culture. Some useful tools for this purpose are: (a) The Hype Cycle, (b) Priority Matrix, (c) The Forrester Wave and (d) Research Reports, Implementing IT Projects Implementation is defined as all organizational activities involved in the introduction, management and acceptance of technology to support one or more organizational processes. Creating an Implementation Roadmap Organizations implement two broad categories of information systems: (a) IT infrastructure and (b) IT applications. Implementation of a new system typically involves a change in the way business is conducted. Thus it is very important to have an implementation roadmap before proceeding. The Four P's of System Implementation There are four approaches used to implement an IT-based system: (a) Plunge, (b) Parallel, (c) Phased and (d) Pilot. ‘Success and Failure of IT Implementations Reasons for failure of IT implementation may be (a) change in requirements of skill-set, (b) feeling of disenfranchisement of stakeholders, (c) failure to solve the problems for which it was developed and (d) lack of personnel with the required IT skills.Factors that Impact Implementation Success Some of the major factors are: (a) top management support, (b) level of risk, (c) training of users, (d) user acceptance of IT project, and (e) management of implementation process, Managing the Implementation Project Typical consequences of bad project management include: (a) cost overruns, (b) failure to meet deadlines, (c) system performance that fails to meet user expectations, and (4) missing functionality. It is possible through experience and the use of project management tools and. methodologies to anticipate potential problems and put in place effective strategies to increase system success. Project managers need to have strong technical and business knowledge and the ability to put the right people on the team. One should remember that the system belongs to and has been designed for the user and not the IT staff. One should learn lessons from the current project to help guide the next project. Business Process Management ‘The Concept of Business Process Management A business process is a collection of related activities that produce something of value to the organization, its stakeholders, or its customers. Business process management (BPM) is a popular management technique that includes methods and tools to support the design, analysis, implementation, management and optimization of operational business processes. It can be viewed as an extension of workflow management (WFM), where documents, information and activities flow between participants according to existing process models and rules. The BPM has its roots in business process reengineering, which is the radical redesign of an organization's business by simplifying the current process to increase its efficiency and create new processes. Creating a BPM Strategy Steps to create a BPM strategy are: 1. Align customer-focused, financial and operational goals with expectations of shareholders or owners 2. Conduct assessment of core strategic and operational processes 3. Link strategic and operational processes with organizational objectives 4. Develop a process performance plan 5. Prioritize processes based on potential impact on strategic objectives Business Process Modelling It includes techniques and activities used as part of the larger business process management discipline to create a blueprint of how the company work:Measuring Processes Before BPM initiatives can proceed and designers can identify those processes that are effective and those which are inefficient, they must be measured by techniques such as Six Sigma_(a methodology to manage process variations that cause defects, defined as unacceptable deviation from the mean or target, and to systematically work toward managing variation to prevent those defects through five phases consisting of (a)define, (b) measure, (c) analyze, (d) design and (e) verify), Total Quality Management (a management strategy aimed at embedding awareness of quality in all organizational processes so that greater consistency of effort is obtained through Plan-Do-Check-Act cycle) and ISO 9000. Software to Support BPM Some of the software are Word Processors, “Pure Play” BPM Tools, Business Process Management Suites and BPMS Bundle. Change Management and Organizational Transformation Change management is a structured approach to transition individuals, teams and organizations from a current state to a desired future state. In case of IT systems, it includes ‘managing change as part of systems development to avoid user resistance to business and system changes. Change Process Models The change process is a structured technique to effectively transition groups or organizations through change. German-born psychologist Kurt Lewin theorized a three stage model consisting of unfreezing, change and refreezing. Organizational Transformation ‘A major change in the way that an organization does business is typically referred to as organizational transformation, John Kotter theorized that this model consists of eight steps: 1. Establish a sense of urgency 6. Plan for and create short term wins 2. Form a powerful guiding coalition 7. Consolidate improvements and produce more change 8. Institutionalize the new approaches. 5. Empower others to act on the vision 10 Principles of Change Management 1, Address the “Human Side” of 2. Start at the top change systematically ee einai vs r4. Make the formal case 5. Create ownership 6. Communicate the message 7. Assess the cultural landscape Managerial Issues 1. Global and cultural issues 2. Ethical and legal issues 3. User involvement 8. Address culture explicitly 9, Prepare for the unexpected 10.Speak tothe _—_ individual 4, Change management 5. Risk managementee CHO Prepared by Nirankush Dutta (Research Scholar) Contents Chapter 15: Impact of IT on Enterprise, Users, and the Environment Chapter Note ‘New and Accelerating Trends in IT IT Delivery Models. Current Perspectives on the Enterprise Web 2.0... Freeform Enterprise 2.0. iPhone 3G and E 2.0. Presence, Location and Privacy... Free Speech via Wikis and Social Networks. Operating Greener Businesses and Eco-Friendly Data Centres. How to Operate Greener Businesses, Data Centres and Supply Chains tro ; e ‘Spam..... 4 my 2Chapter 15: Impact of IT on Enterprise, Users, and the Environment Chapter Note New and Accelerating Trends in IT The “Law of Accelerating Returns” states that the time interval between significant events grows shorter as time passes because technological change is exponential rather than linear, Evidence supporting this has been found in areas related to artificial intelligence and robotics. ‘The growth of internet, E-commerce, mobile technology (especially, telemedicine), and urban planning with wireless sensors also attest to the fact. Offshore outsourcing and Business Process Outsourcing have helped in rapid advancement in technology and service. IT Delivery Models Software as Architecture Storage as a Service Communication as a Service User-owned Devices. Business Process Utilities veers Current Perspectives on the Enterprise Web 2.0 Enterprise Web 2.0 is the application of Web 2.0 tecnologies in the enterprise. The enterprise Web 2.0 market, commonly referred to as Enterprise 2.0 or E 2.0, is the deployment of blogs, wikis, RSS and social networking within the enterprise. Freeform Enterprise 2.0 Enterprise 2.0 began in 2006 as a new way to collaborate using freeform social software platforms within companies or between companies and their partners or customers. Freeform software typically accepts many types of data from anyone. It is indifferent to formal organizational structure. Through this freeform approach, knowledge management becomes decentralized and democratic. iPhone 3G and E 2.0 Enterprises may look to exploit the opportunity provided by the iPhone 3G by equipping their mobile workers with the capabilities to improve productivity regardless of their location. Its E 2.0 supports * Salesforce Mobile * Oracle Business Indicators © Social Networkingo AM o Whnl © Loopt © Search * RSS ‘© Blogging and Publishing Presence, Location and Privacy Presence in the social networking world is not a reality, but is moving in that direction, Various Web 2.0 tools provide real time locational information. This may affect privacy, although it has potential to leverage locational status of the customer. Free Speech via Wikis and Social Networks Free speech and privacy rights collide in a world populated by anonymous critics and cyber- bullies. The nature of the internet ensures that we may become our own worst enemies personally and professionally, based on the content or images we post on blogs or the friends we keep on social networking pages. Operating Greener Businesses and Eco-Friendly Data Centres ‘The growing power consumption of computing technology and high energy costs are having a direct negative impact on business profitability. Green computing, the study and practice of eco-friendly computing resources, is now a key concern of businesses in all industries. At the heart of the “Next Generation Data Centre” strategy is the ability to deliver and support secure IT applications through virtualization, How to Operate Greener Businesses, Data Centres and Supply Chains Enterprises need to * Identify desktops to virtualize © Identify and tur off unused computers «Enable power management features © Replace old servers with new energy-efficient servers * Replace disk technology © Move old data to tape Green computing is a mindset that asks how we can satisfy the growing demand for network ‘computing without putting undue stress on the environment. There are also complex changes like greening the supply chain. A green supply chain includes procurement, manufacturing, warehousing, distribution, service and recycling in an environmentally friendly manner.Global Green Regulations Global regulations like RoHS in the EU, California’s Electronic Waste Recycling Act (EWRA) etc are influencing green business practices. Eco-friendly practices reduce costs and improve public relations in the long run. Electronic Product Environmental Assessment Tool (EPEAT) Maintained by the Green Electronics Council (GEC), the EPEAT is a searchable database of ‘computer hardware meets a strict set of environmental criteria. It rates computers and monitors on a number of environmental criteria, including energy efficiency, materials used, product longevity, take back programs and packaging. ‘The Field of Green Technology and Telecommuting Green technology focuses on reducing the harmful environmental impacts of computing and industrial processes and innovative technologies caused by the needs of the growing worldwide population. The objective is to minimize damaging the environment or depleting natural resources by creating fully recyclable products, reducing pollution and designing energy efficient or alternative technologies. Impacts of Too Much Information and Connectivity Although information is beneficial for individuals and organizations, IT's capability to introduce ever-growing amounts of data into our lives can exceed out capacity to keep up with the data, leading to information overload. Information Overload To be effective at solving the problem of information overload, information systems must differentiate between the data that can be safely summarized and the data that should be viewed in its original form, Information Quality Information quality is a somewhat subjective measure of the utility, objectivity and integrity f gathered information, To be valuable, both data and information must possess a number of essential characteristics, such as completeness, accuracy, recency, and consistency. Spam Spamming, the practice of indiscriminately broadcasting unsolicited messages via e-mail and over the internet, is one of the most widespread forms of digital noise. It lowers productivity, and wastes computing power. Impacts on Individuals The IT revolution may result in many changes in structure, authority, power and job content as well as personnel management and human resources management. The inereasing amountsof information and information technology use have potential impacts on job satisfaction, ‘dehumanization (feeling of los of identity) and information anxiety as well as impacts on health and safety. Managerial Issues Offshore IT and business process outsourcing ‘Managing and evaluating non-present workers Dealing with information overload Providing high quality information Displacement of employees with IT Use of electronic surveillance Social and ethical issues AAP eeePrepared by Nirankush Dutta (Research Scholar) Contents Mini Case. Raising Awareness and Recruiting Early Adopters for Dspace at MIT. AeMini Case Raising Awareness and Recruiting Early Adopters for Dspace at MIT 1. What tactics were used by developers of MIT's DSpace to successfully introduce the system into the organization? ‘Ans. (1) Ensuring support from key members from the academic community and opinion leaders (2) Positive word of mouth (3) Proper communication through effective use of different channels (4) Encouraging early adoption of the system (5) Identification of key policy makers to get their advice and support 2. What other tactics might have been effective? Ans. (1) Conducting user training programs (2) Involve more representative layers of people (3) Measuring success of the implementationPrepared by Nirankush Dutta (Research Scholar) Contents Opening Case. IT Strategic Alignment at Kimberly-Clark: The Innovation Design Studio.. Mini Case. ‘The Second Life Strategy of American Apparel.Opening Case IT Strategic Alignment at Kimberly-Clark: The Innovation Design Studio 1, What are the major benefits of the Innovative Design Studio developed by Kimberly- Clark? Ans. The Innovative Design Studio is driving innovation at K-C. new consumer product development initiatives, based on immediate consumer feedback from “shopping” in a virtual store, decreased the time-to-market for introducing new products by 50%. Retail customers are able to test alternative display design, without incurring the time and cost of physically constructing alternative layouts, displays, and shelving mock-ups to create the most effective display designs that will sell more K-C products faster. It also helps in image building of K-C as a technology innovator, fostering more open collaboration for a variety of initiatives. This studio is not only driving innovation, but also helping K-C become a better partner to consumers and to retailers. 2. How has Kimberly-Clark been able to strategically align Information Technology? Ans. It became possible as a result of four features. (a) R&D is an especially important functional area within which IT interaction and involvement is critical for on-going innovation, (b) The organizational structure of embedding senior level IT staffers within functional areas connects ad engages IT in the creation of business ideas. Directly reporting to the CIO integrates IT within business idea generation. (©) The embedded IT staffers are at the senior level within the organization, Such status provides them with a de-facto CIO role in interacting with executives within the functional areas, while reporting directly to the CIO who manages a portfolio of opportunities. (d) The portfolio approach, managed by the CIO, allows cross-functional opportunities to be evaluated, with worthwhile ideas moved forward to the CEO for funding approval. Mini Case The Second Life Strategy of American Apparel 1. Did American Apparel fail at its business strategy by closing the virtual store in Second Life? In your opinion, does a presence in an internet-based 3-D virtual world provide value to a company? Ans. No, American Apparel did not fail at its business strategy by closing the virtual store in Second Life. Since strategic planning is an on-going process to adopt to different changing scenarios, the company simply changed their strategy a little in order to derivemore benefit out of their online presence. For this reason, they opened their virtual store in MTV's Virtual Lower East Side. 2. How does the opening of store in Second Life support American Apparel's business strategy? Ans. The move to open a virtual store helped American Apparel to increase their brand visibility and ear more loyal customers. They also attained a good volume of sales from their online store. Thus they gained in terms of enhanced brand visibility, brand recognition and patronage as well as increased revenue. 3. What are the benefits to American Apparel opening a store in Second Life? Ans. (a) Increased brand recognition (b) Increased brand loyalty (©) Increased sales (d) More loyal customers 4. Do you believe the Second Life experience in the American Apparel store is an effective form of advertising? Ans, It is an effective advertising form, in this age of net-savvy customers. Study reveals that customers are paying more attention to company’s advertising efforts online and less to offline promotions. Hence, the strategy to open a store online by American Apparels makes sense. 5. In your opinion, do the Second Life user experiences develop a relationship between American Apparel and customers that result in increased customer loyalty? Ans. Yes, it increases loyalty, as customers find the company more innovative and vibrant. Emerging social computing networks of online communities sharing interests and activities hold the potential to redefine customer relationship management.