CIT 3013 Exam 1 Information MONDAY

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CIT 3013 Exam 1 Information MONDAY WEDNESDAY,
September 19 21, 200510AM Section - Dr. Segall

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Overall Exam 1 Information

• Worth 150 points total.
• Closed Book Part worth 70 points.
• Open Book Open Notes Part worth 80 points.
• Covers Chapters 1, 2 and 3.

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Open Book Open Notes Part Monday, September
19, 2005

• Worth 80 points total.
• 20 TRUE/FALSE from Chapters 1, 2, and 3. Each
  worth 2 points each.
• Probably 6 or 7 TRUE/FALSE from each chapter.
• 20 MULTIPLE CHOICE from chapters 1, 2, and 3.
• Worth 2 points each.
• Use your PowerPoint handouts and text.
• YOU NEED TO STUDY FOR OPEN BOOK PART AS YOU WILL
  NOT HAVE TIME TO SEARCH 108 pages of text plus 4
  (e.g. Value Chain) PowerPoint handouts for
  ANSWERS!!!

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Closed Book Part Wednesday, September 21, 2005

• Worth 70 points.
• 2 Essay Questions _at_ 35 points each.
• Be prepared to provide essays of contents worth
  35 POINTS !!!
• The 2 Essays Questions on Exam 1 will be 2 of
  the 3 Essay Candidates presented in this handout
  !!!

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Closed Book Part Possible Essay 1

• (i.) Discuss the transformation of the business
  enterprise and the rise of the information
  economy.
• --------------------------------------------------
  ----------------------------
• (ii.) Explain how The Emerging Digital Firm
  has created a new role of information systems in
  organizations.
• --------------------------------------------------
  -----------------------------
• (iii.) Describe the Dimensions of Information
  Systemsand provide EXAMPLES of each.
• --------------------------------------------------
  -----------------------------
• Clearly label in your essay your answers to each
  part (i.),(ii.)and (iii.).

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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?

• Location independence
• Low transaction and coordination costs
• Empowerment
• Collaborative work and teamwork

Transformation of the Business Enterprise
(Continued)
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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?
Globalization

• Management and control in a global marketplace
• Competition in world markets
• Global workgroups
• Global delivery systems

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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?

• Knowledge and information-based economies
• New products and services
• Knowledge as a central productive and strategic
  asset

Rise of the Information Economy
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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?
Rise of the Information Economy (Continued)

• Time-based competition
• Shorter product life
• Turbulent environment
• Limited employee knowledge base

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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?
The Growth of the Information Economy
Source U.S. Department of Commerce, Bureau of
the Census, Statistical Abstract of the United
States, 2003, Table 615 and Historical
Statistics of the United States, Colonial Times
to 1970, Vol. 1, Series D, pp. 182-232.
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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?
Emergence of the Digital Firm

• Digitally enabled relationships with customers,
  suppliers, and employees
• Core business processes accomplished using
  digital networks
• Digital management of key corporate assets

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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?

• Agile sensing and responding to environmental
  changes
• Seamless flow of information within the firm, and
  with strategic partners

Emergence of the Digital Firm (Continued)
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Management Information Systems Chapter 1 Managing
the Digital Firm
WHY INFORMATION SYSTEMS?
The Emerging Digital Firm
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Management Information Systems 8/e Chapter 1
Managing the Digital Firm
TOWARD THE DIGITAL FIRM
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Management Information Systems Chapter 1 Managing
the Digital Firm
PERSPECTIVES ON INFORMATION SYSTEMS
Dimensions of Information Systems

• Three Important Dimensions of Information Systems
  
• Organizations
• Managers
• Technology

You will need to understand and balance these
dimensions of information systems in order to
create business value.
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Management Information Systems Chapter 1 Managing
the Digital Firm
PERSPECTIVES ON INFORMATION SYSTEMS
The Organizational Dimension of Information
Systems

• People
• Structure
• Business processes
• Culture
• Politics

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Management Information Systems Chapter 1 Managing
the Digital Firm
PERSPECTIVES ON INFORMATION SYSTEMS
The Management Dimension of Information Systems

• Managers are
• Sense makers
• Decision makers
• Planners
• Innovators of new processes
• Leaders set agendas

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Management Information Systems Chapter 1 Managing
the Digital Firm
PERSPECTIVES ON INFORMATION SYSTEMS
The Management Dimension of Information Systems
(Continued)
Managers who can understand the role of
information systems in creating business value
are the key ingredient to success with systems,
and cannot easily be replicated by your
competitors.
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Management Information Systems Chapter 1 Managing
the Digital Firm
PERSPECTIVES ON INFORMATION SYSTEMS
The Technology Dimension of Information Systems
Information technology is one of the tools
managers use to cope with change

• Hardware Physical equipment
• Software Detailed preprogrammed instructions
• Storage Physical media for storing data and the
  software

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Management Information Systems Chapter 1 Managing
the Digital Firm
PERSPECTIVES ON INFORMATION SYSTEMS
The Technology Dimension of Information Systems
(Continued)

• Communications technology Transfers data from
  one physical location to another
• Networks Links computers to share data or
  resources

Managers need to know enough about information
technology to make intelligent decisions about
how to use it for creating business value.
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Closed Book Part Possible Essay 2

• (i.) Discuss the corporate pyramid as it relates
  to the types of information systems. Draw a
  figure and explain the different kinds of
  systems and functional areas.
• --------------------------------------------------
  ---------------------------------------
• (ii.) Describe the four (4) MAJOR types of
  Systems by providing for each their inputs,
  processing, outputs, users and an example.
• --------------------------------------------------
  --------------------------------------
• (iii.) Redraw the corporate pyramid with The
  Four Major Types of Information Systems showing
  to which level each type of information system
  belongs and with several examples for each.
• --------------------------------------------------
  --------------
• Clearly label in your essay your answers to each
  part (i.),(ii.) and (iii.).

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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Types of Information Systems
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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Different Kinds of Systems
Three main categories of information systems
serve different organizational levels

• Operational-level systems support operational
  managers, keeping track of the elementary
  activities and transactions
• Management-level systems serve the monitoring,
  controlling, decision-making, and administrative
  activities
• Strategic-level systems help senior management
  tackle and address strategic issues

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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Major Types of Systems

• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision-Support Systems (DSS)
• Executive Support Systems (ESS)

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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
The Four Major Types of Information Systems
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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Management Information Systems (MIS)

• Management level
• Inputs High volume transaction level data
• Processing Simple models
• Outputs Summary reports
• Users Middle managers
• Example Annual budgeting

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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
Decision-Support Systems (DSS)

• Management level
• Inputs Transaction level data
• Processing Interactive
• Outputs Decision analysis
• Users Professionals, staff
• Example Contract cost analysis

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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS)

• Inputs Aggregate data
• Processing Interactive
• Outputs Projections
• Users Senior managers
• Example 5 year operating plan

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Management Information Systems Chapter 2
Information Systems in the Enterprise
MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS
EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued)

• Top Level Management
• Designed to the individual senior manager
• Ties CEO to all levels
• Very expensive to keep up
• Extensive support staff

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Closed Book Part Possible Essay 3

• (i.) Describe the following. Figures can be
  drawn but not necessary.
• (a.)Value Chain Model and
• (b.)Firm value chain the Industrial value
  chain.
• --------------------------------------------------
  ------------------------
• (ii.) How do firms create value?
• --------------------------------------------------
  -------------------------
• (iii.) How Dell Computer Corporation uses
  information systems to create value for its
  customers?
• --------------------------------------------------
  -------------------------
• Clearly label in your essay your answers to each
  part (i.),(ii.)and (iii.).

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3
Chapter
RECALL !!! CIT 3013 Instructors Notes on Value
Chains Chapter 3 INFORMATION SYSTEMS,
ORGANIZATIONS, MANAGEMENT, AND STRATEGY
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Management Information Systems 8/e Chapter 3
Information Systems, Organizations, Management,
and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model

• Digital firms
• Manage the supply chain by building efficient
  customer sense and response systems
• Participate in value webs to deliver
• new products and services

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Management Information Systems 8/e Chapter 3
Information Systems, Organizations, Management,
and Strategy
INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business Level Strategy and the Value Chain Model

• Value Chain Model
• (See page 90 bottom to top of page 91!)
• Highlights the primary or support
• activities adding a margin of value to
  products or services
• Helps achieve a competitive advantage

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Consumers and Businesses are value maximizers
What is Value?
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What is Value?
The bundle of benefits -The bundle of costs
e Value
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The bundle of BENEFITS

• Product/service (core benefit)
• Service after the sale
• Sales personnel
• Image

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The bundle of COSTS

• Monetary price
• Time costs
• Energy costs
• Psychic costs

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QuestionHow do firms create value?

• Answer Begin with Porters Generic Strategies
  from pages 99-100.

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Value Chain
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Margin
Inbound Logistics
Operations
Outbound Logistics
Marketing
Service
Porter
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Industry Value Chain(aka Industry Supply
Chain)Personal Computer Industry (B2B)
Components
Raw Materials
Production
Retailer
Business
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Dell Computer Corporation

• Delivers extreme value
• The best performing US stock in the 90s.
• 1995 - (1-1-95) 10,000 stock in
• 1999 - (12-31-99) worth 711,000

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The Dell Model (circa 1984, Michaels Dorm Room)
Chip
Dell
Customer
Housing
Retailer
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The Dell Model Today(aka The Direct Model)
Intel
Dell
Exxon
Sony
Data Linkage (EDI, Extranet)
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Lowering the bundle of COSTS

• captures retailers margin
• reduced inventory (JIT, work-in-progress)
• lowers sales costs
• lowers transaction costs simplifies customer
  purchasing
• no inspection of components (Sony drop- ships to
  Dell customers no inventory)
• Helps suppliers with their inventories

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Increasing the bundle of BENEFITS

• consultative selling (30 _at_ Boeing)
• pre-loaded software (mass customization)
• electronic register of customer computers
  (i.e.,extensive customer database - service)
• Online help
• customized extranets at Dell for top customers
• Becomes the customers IT department for PCs! (A
  powerful 11 relationship)

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How can I create value for my customers?

• Consultative selling - examine customers value
  chain
• Create data linkages with customers (extranets or
  Electronic Data Interchange EDI) that provide
  real-time sharing
• 11 relationships - customize your marketing mix
• Virtually integrate
• Bypass intermediaries channel conflict

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3
Chapter
CIT 3013 Instructors Notes on Value Chains
Chapter 3 INFORMATION SYSTEMS, ORGANIZATIONS,
MANAGEMENT, AND STRATEGY