Chapter 2 Personal Productivity

1
Chapter 2Personal Productivity
The Strategic Management of Information Systems
2
Transaction Processing System
Input
Process
Output
Systems Development
Communication
Information
3
CHANGES IN THE MARKETPLACE

• The quality imperative
• Consumer computing
• Deregulation of some major industries
• Crossing industry boundaries
• Traditional customers are leaving
• Crossing national boundaries
• Production is becoming global
• New product and service development cycles are
  shortening

4
TWO CONCEPTS OF THE CORPORATION SBU OR CORE
COMPETENCE
5
PROTOTYPING

• User requirements
• Input, output, and transactions
• Databases
• Controls
• Technology
• Applications

6
SYSTEMS MAINTENANCE PHASE

• Systems Plan Report
• Systems Analysis Report
• General Systems Design Report
• Systems Evaluation and Selection Report
• Detailed Systems Design Report
• Systems Implementation Report

7
PERSONAL COMMUNICATION NETWORKS

• Permit person-to-person rather than
  location-to-location. Each person will have his
  or her own personal phone number associated with
  a lightweight telephone that he or she carries
  around. People will not only transmit telephone
  conversations but also computer-based
  information, voice mail, electronic messaging,
  call screening, and other personal from anywhere.
  They will unlock levels of freedom we dont yet
  know, and they will be important for special
  events, such as political conventions and
  sporting events, as well as for emergencies, such
  as those caused by natural disasters.

8
PDM

• Productivity
• Differentiation
• Management

9
PROCEDURE-BASED VS. GOAL-BASED INFORMATION
ACTIVITIES

• Procedure-Based Activities
• Tend to consist of high volumes of transaction in
  which each has relatively low cost or value.
• Are based on well-defined procedures (or
  algorithms) where the outputs are well-defined
  too.
• Are based on the handling of data.
• Goal-Based Activities
• Tend to handle fewer transactions of higher value
  or cost.
• Are based on ill-defined processes (or
  heuristics) and the outputs are less defined as
  well.
• Tend to focus on defining the problems and the
  end results or goals with effectiveness stressed
  in achieving them.
• Are based on the handling of concepts.

10
OSIs SEVEN LAYERS

• The Physical Layer
• The Data Link Layer
• The Network Layer
• The Transport Layer
• The Session Layer
• The Presentation Layer
• The Application Layer

11
NETWORK ARCHITECTURE

• A network architecture is not a diagram or a set
  of diagrams, nor is it one utopian solution for
  all network problems. It is a set of policies,
  principles, and guidelines that will lead to more
  widespread connectivity.

12
THREE COMPONENTS OF THE MARKETING MODEL

• A set of technologies that represent products,
  developed by the systems department in an
  organization
• A set of users of the technology who we can view
  as customers for these products
• A delivery mechanism for developing, delivering,
  and installing these systems that is analogous to
  marketing activities

13
KEENS PROJECTIONS FOR THE MID - 1990s

• Every large firm in every industry will have from
  25 percent to 80 percent of its cash flow
  processed on-line
• Electronic data interchange (EDI) will be the
  norm
• Point-of-sale and electronic payments will be
  core services
• Image technology will be an operational necessity
• Work will be distributed and reorganization will
  be commonplace
• Work will increasingly be location-independent
• Electronic business partnerships will be standard
• Reorganizations will be frequent, not exceptional

14
GOAL OF LINKAGE ANALYSIS PLANNING

• Examining the links that organizations have with
  one another with the goal of creating a strategy
  for utilizing electronic channels
• Understand waves of innovation
• Exploit experience curves
• Define power relationships
• map out your extended enterprise
• Plan your electronic channels

15
SYSTEMS DEVELOPMENT LIFE CYCLE CONSISTS OF SIX
PHASES

• Systems Planning
• Systems Analysis
• General Systems Design
• Systems Evaluation and Selection
• Detailed Systems Design
• Systems Implementation

16
MAIN PURPOSE OF EACH OF THE THREE GROUPS IN
MEADS CURRENT INFORMATION RESOURCES ORGANIZATION

• Information Resources Planning and Control
  Department - the corporate perspective for
  information systems planning to ensure that
  Meads information resources plans meshed with
  business plans, and acted as planning coordinator
  to help various groups and divisions coordinate
  their plans with corporate and information
  resources plans.
• Information Services Department - computer
  operations, development of corporate-wide
  systems, provided technical services, and
  furnished all the telecommunications services to
  the company
• Decision Support Applications (DSA) Department -
  all end user computing support for the company

17
MURRAYS EIGHT PHASES TO TRULY DISTRIBUTED SYSTEMS

• Phase 1 The first phase is characterized by
  host-based, real-time query and update. This
  phase is traditional on-line information system
  processing, where dumb terminals access
  host-based applications to view and update data
• Phase 2 The second phase provides additional
  query capabilities through file transfers to PCs.
• Phase 3 The third phase adds batch updating form
  PC data. This phase reverses the philosophy of
  Phase 2 by making the PC database the master.
• Phase 4 The forth phase enables real-time query
  and update from either host or PC. This phase
  extends the capabilities of the PCs by allowing
  them to update the host on-line.
• Phase 5 The fifth phase introduces homogeneous
  cooperative processing without two-phase commit,
  that is, like databases run on the same hardware
  and system software platforms. This phase adds
  true distributed databases, across similar or
  identical platforms.
• Phase 6 The sixth phase moves to heterogeneous
  cooperative processing without two-phase commit,
  that is, databases run on a mix of platforms.
  This phase extends the previous one by permitting
  distributed databases across mixed platforms.
• Phase 7 This seventh phase adds the
  all-important two-phase commit capability (to
  homogeneous databases), going a system a true
  distributed database.
• Phase 8 This phase extends Phase 7 to
  heterogeneous databases.

18
PORTERS FIVE COMPETITIVE FORCES

• The threat of new entrants into ones industry
• The bargaining power of customers and buyer
• The bargaining power of suppliers
• Substitute products or service
• Rivalry among competitor

19
According to Naisbitt and Aburdene, changes are
occurring in traditional environments

• Many organizations are emphasizing teams to
  accomplish major tasks and projects.
• Information workers are increasingly mobile.
• Organizations are examining what they should do
  internally, and what should be done by some other
  organization.
• Corporations are shifting their emphasis from
  financial capital to human capital.
• New forms of self-managing groups are appearing.
• A coming labor shortage will result in more jobs
  for women, part-time older people, and the poor
  and disadvantaged.

20
FEDERAL EXPRESS USING IT TO COMPETE ON QUALITY

• The program started at the top of the corporation
• They track actual failures rather than
  percentages of success
• Their measures are from a customer perspective
• Everyones compensation is based on quality
  improvement
• Solving root causes of failures

21
INFORMATION ENGINEERING METHODOLOGY (IEM)

• Systems Planning
• Systems Analysis
• Systems Design
• Systems Construction and Implementation

22
SYSTEMS DEPARTMENTS FIVE ROLES IN BUSINESS
REENGINEERING, ACCORDING TO THE INDEX FOUNDATION

• Systems directors will be influences
• To participate on multidisciplinary teams, which
  will be the change agents
• Build more flexible systems faster
• Introduce process-supporting technologies
• Be the custodian of the firms technical
  architecture

23
WHAT REENGINEERING PRINCIPLES DOES MICHAEL HAMMER
RECOMMEND?

• Organize around outcomes, not tasks
• People who use the output should perform the
  process
• Include information processing in the real work
  that produces the information
• Treat geographically dispersed resources as if
  they were centralized
• Link parallel activities rather than integrate
  them
• Let doers be self managing
• Capture information once and as its source

24
ELEMENTS OF A GOOD ANALYSIS

• Financial/Strategic Analysis
• Implementation/Methodology
• Measurable/Expected Results
• Future Growth/Continual Development
• HR Implications/People
• Core Competencies/Critical Service Factor
• Target Market Segment

25
TWO GUIDING FRAMEWORKS FOR DISTRIBUTED SYSTEMS

• An Organizational Framework -
• The top three levels
• corporate, regional, and site
• The bottom three levels
• department, work group, and individual
• A Technical Framework - Migration of computer
  power to end users will be the driving force for
  network-based information systems. Four
  components processors, networks, services, and
  standards.

26
FOUR FORCES CAUSING MANAGEMENT TO SERIOUSLY
CONSIDER REENGINEERING HOW THEIR BUSINESS WORKS

• The pressures of the 1990s are forcing companies
  to focus on new competitive strategies - quality,
  cycle time, customer service, and niche markets.
• Enough failures in the 1980s in using IT to gain
  competitive advantage to force management to
  rethink their strategies for achieving this goal.
• Companies are being forced to cut operating
  expenses so significantly that traditional
  methods no longer work.
• The cost/performance of computer hardware and
  telecommunications has dropped so dramatically
  that IT has become practical for a far wider
  variety of uses than a few years ago.

27
FOUR TYPES OF DOCUMENTATION PREPARED

• Systems Documentation
• Software Documentation
• Operations Documentation
• User Documentation

28
Increased Pressures on Information Technology

• Globalization/new competitors
• Pressure on IT to focus even more strongly on
  businesses that are revenue-generating
• Faster business cycles
• Pressure on IT to focus on the increasing need to
  support revenues and decreasing fixed/semi-fixed
  costs
• Outsource
• non-revenue-generating functions
• Rapidly Changing Markets
• reinforce the need for flexibility in
  staff/operations and shorter product life-cycles
  and responsiveness.

29
Desire to Minimize

• Economies of scope
• Want one vendor to manage multiple functions
  
• Economies of Scale
• Leverage expertise and methodologies
• Reduce need to invest in expensive
  state-of-the-art technologies
  
• Take process-oriented approach
• Management time devoted to one vendor
• Leverage Expertise
• Use non-revenue-generating areas to
  provide multiple
  methodologies and functions
• Investment in expensive technologies
• Emphasize process-oriented approach