Escolar Documentos
Profissional Documentos
Cultura Documentos
Represent facts
Recorded by observation or research
Not organized to convey specific meaning
#Example: 0209130900
INFORMATION : Sub- set of data that means something to the person or system receiving it
-
Processed
Contextually relevant
Meaningful and useful to human recipients.
#Example: the previous number is associated with the location of an information post in a free way
KNOWLEDGE Property of people that encourages them to act in a particular way. It is the addition of the
skills + experience + accumulated learning + judgment that an individual develops over time and changes
as people receive new information. Knowledge is needed for:
- Understanding information
- Use insights to make decisions that allow to make better use of resources
Companies need to coordinate people and resources in order to satisfy customer needs. IS deal with isolated
aspects of these process ( ex: online payments) improving efficiency and thereby increasing organizations
profits.
There is an increasing amount of information being stored everywhere( information age). As a result
companies have to deal with an overwhelming amount of information. IS sort this problem by
Reducing need for information processing
o Create buffers. A buffer contains data that is stored for a short amount of time, typically in the
computer's memory (RAM). The purpose of a buffer is to hold data right before it is used thereby
improving data access
However, to have an efficient IS it should be properly managed. Companies must keep in mind that IS consists
of IT, people and organization. If those elements are not integrated IS would not work. An example of a failure
in IS is the terrorist attach of 11s.
Economic importance
LECTURE 2: IS STARTEGY
2.1 INTRODUCTION
Boing case
Boeing Chicago-based aerospace company, has been a major player in the global economy for almost a century.
But now the company is undertaking a far-reaching transformation as it uses cutting-edge materials and
electronics and high-level technology for the design and assembly process of its new passenger plane the
Boeing 787. The new plane, nicknamed the Dreamliner, is Boeings bid for market leadership in competition
with Airbus. The new midsize passenger jet will have an outer shell and about half of its parts made of carbonfiber-reinforced plastic, which will make it lighter and give it better fuel economy.
The previous state of the art in aviation manufacturing was to have global partners work from a common
blueprint to produce parts-actually, whole sections of the airplane-that were then physically shipped to a Boeing
assembly plant near Seattle to see if they fit together. Prior to the 787, wood mock-ups of planes would be
constructed to see if parts built by partners around the world would really fit together. When the process failed,
the cost in time and production was extreme.
To overcome those problems, Boing formulated a completely new business strategy. The new business model
takes Boeing from manufacturing to a high-end technology systems integrator. The company established a
closer relationship with fewer suppliers through the creation of a virtual integrated network. Now parts are
designed from concept to production concurrently by partners (including companies in Japan, Russia, and Italy)
and assembled in a computer model maintained by Boeing outside its corporate firewall (CAD/CAM). These
changes in business model allowed Boing
Outsource part of the manufacturing and engineer processes, now carried out by suppliers. It implied a
reduction in costs and a transfer of business and financial risk
Achieve a substantial breakthrough innovation in manufacturing and SCM processes
Key idea: Boing case is a clear example of how IS can help a company to reach competitive advantage.
2.2 STARTEGIC VALUE OF IS
2.2.1 ASSESMENT OF STRATEGIC VALUE
Porters five forces model enable us to access the impact of IS on competitiveness, as firms can use it to
strengthen one or more of this forces. Conversely, it may represent a competitive threat if other organization use
IS more effectively.
THREATS FROM POTENTIAL ENTRATNS
IS raise barriers to entry: good IS make business process more efficient and improves customer
relationships. Smaller companies or potential entrants are deterred by the relatively high costs of
implementing those systems.
Is offers the possibility to enter markets that were not previously accessible. #Example: internet
IS can be used to differentiate companys products and services. #Example: Harley Davidson creates
online communities in order to improve communication with customers and create products adapted to
their requirements
Suppliers can increase their power by using IS to track more closely the cost of providing services to
customers. #Example: CRM systems enable companies to track customers requirements accurately
Customers can also use IS to strengthen their power at expense of suppliers. #Example: Covsint
system ( page 113)
#Example: wall- mart : use modern technologies to make electronic links with their suppliers. Thus, a
supplier that is unwilling or unable to joint into that system is likely to lose business
Decreasing costs:
- Inventory systems and e-procurement
- Transfer operations to web site, which in turn, makes easier for new suppliers to bid for
a share, make costs more transparent and improves the administrative efficiency of the
supply process
Make management more effective
Likewise, the strategic value given to IS would depend on the strategy a company chooses to apply. In that
sense, Teracy and Wiersma offers a framework that distinguishes between the following three strategic focus:
NAME
OPERATIONAL
EXCELLENCE
FOCUS OF COMPETITVE
ADVANTAGE
reliable and fluent
operational processes
IS EXAMPLES
COMPANIES
Dell
Ikea
Easyjet
Macdonalds
Apple
philips
Amazon
IBM
Van Lanchot
PRODUCT
CUSTOMER
Entreprise resource
processes (ERP)
Supply chain
management (SCM)
Workflow
E commerce
Knowledge
management (KM)
systems
SCM collaboration
tools
CAD/CAM
CRM
E-commerce
Business analytics
2.1.3 ALIGNEMENT
Strategic alignment
plans
business
startegy
IS strategy
IS alignment
Business
Alignment
business
structure
information
systems
current
structures
Structural alignment
Alignment between plans and current structures is crucial to ensure success. We can differentiate between four
different kinds of alignments:
In relation with IS strategy formulation strategic alignment is a crucial issue to address. It has been shown that
organizations are more effective when there is a match between information processing requirements (business
strategy) and capacity (IS strategy).
When formulating IS strategy managers can choose between the following three approaches:
Business alignment approach: managers shape the strategy of the firm and then ensure that investment
in information system support that strategy. #Example: A supermarket to reduce its inventory costs and
implement IS systems.
Business impact approach: IS systems can offer a company new strategic possibilities. #Example: a
company sells its product through a website
Interaction model: companies look for ways in which they can use IS to support their strategies. In
doing so, they develop their ability to manage IS and can then use this expertise to reach a new set of
customers. That has changed their context and is the starting point for a new strategy
2.3 IS STRATEGY
2.3.1 STEPS
1. Determine approach: ( alligment, impact, interaction)
2. Determine scope:
Corporate IS strategy?
IS strategy for parts of the organization?
3. Determine objectives. There are two main kinds of objectives
General : involve the organization as a whole. Example: improve organizations business in general
Specific : turn general goals into different functional areas. Example: develop new policies in the IS
department
Business environment
IS/IT environment
5. Strategic definition
6. Strategic implementation
Strategy
Information resources & flows
Employees
Technological infrastructure
The X axis represents impact of the project on achieving future strategic objectives
The Y axis represents the impact of the project on operational performance. Projects that are high on
this axis have a great impact in the efficiency or quality of our existing systems and business processes.
REMARKS!
In developing a strategic grid analysis outcomes shall not been generalized. That is because
companies face different environments, employ different strategies and have different management
styles. Thus, the fact that IS play a particular role in one company does not mean that it can be
transferred to another different company
situation in time x may not be the same as situation in time y
EXTERNAL
Analyzing the external IT environment involves paying attention to:
Technological trends
Business opportunities
Used by other comparable organizations
Used by competitors
The MC strategic grid can also be used for studying the external IT environment although companies must take
into account their limitations (do not generalize)
LECTURE 3: IS TECHONOLGY
3.1 TECHONOLGY BASIS
Layered approach:
3.1.1 HARDWARE
DEFINITION:
Computer Hardware consists of physical parts within a computer aimed at accomplishing the following
functions
Collection of information: it filters and cleans up information
coming from external sources
Store and retrieve(obtain): hardware technology stores and
retrieves information for further processing
Process data by combining, calculating and extracting files
when needed
Disseminate (propagar) information to an output source
COMPONENTS
Before describing hardware parts, distinction shall be made between the different kinds of computers
mobile devices
Personal computer (PC)
Workstation :appropriate for advanced design or engineering works requiring powerful graphics
Server: optimized to support a network of computers
Mainframe: large capacity, high performance computer than can process large amount of data rapidly
Supercomputer: used for tasks requiring extremely rapid and complex calculations.
Grid computing: involves connecting geographically remote computers into a single network to create a
virtual supercomputer by combining the computational power of all computers on the grid
Central Processing Unit (CPU): is the hardware within a computer that carries out the instructions of
a computer program by performing the basic arithmetical, logical, and input/output operations of the
system.
Primary storage: is a storage location that holds memory for short periods of times while the computer is
running. For example, computer Random acces memory (RAM) and cache are both examples of a primary
storage device.. Example: when you open a program data is moved from the secondary storage (hard drive)
into the primary storage
Secondary storage: does not have access to computers CPU. It consists of a set of devices coming from
outside the computer that allows to transfer and store a limited capacity of data. The principal storage
technologies are:
Magnetic discs
o Hard drives:
o Floppy disks
o USB
Optical discs:
o Compact disc read only (CD-ROOM)
o Digital video discs (DVD)
o Blue ray discs
magnetic tape (disco antiguo)
Networking : modem, network card,wirless transiver, optical interface
Input devices : gather data and convert them into electronic form for use by the computer.
KB, mouse tablet, touch screen, audio in
Output devices: display data after they have been processed
Monitor, printer
Numerical control machines, robots
METRICS TODAY (faltan diapos 13,15)
In relation with metrics evolution, attention shall be given to Moores law. Gordon Moore, co-founder of Intel,
observed that the number of transistors per square inch on integrated circuits had doubled every year since the
integrated circuit was invented.
Moore predicted that this trend would continue for the foreseeable future. In subsequent years, the pace slowed
down a bit, but data density has doubled approximately every 18 months (Moores law)
Additionally, another potential trend in computer technology is quantum computing. Quantum computing is a
new computing technology based on the laws of quantum physics. Its application would enormously raise
processing power through the ability to be in multiple states, and to perform tasks using all possible
permutations simultaneously. Technically it implies:
- Change from bit to Qubit
- Use of atoms, ions, photons, electrons ( quantum physics measures)
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STORAGE GROWTH
Data storage has become a major management issue. The amount of data to be stored within the world double
every 12 to 18 months and the average growth rates are about 50-70 % per year.To manage these Big data
organizations may choose between different options:
Local storage: Hard drives are directly connected within the server or as direct-attached storage (DAS),
which are disk arrays directly attached to the server.
Centralized storage: Storage is external from the server.
Additionally, a company may choose to create a storage networking system. A SAN connects multiple storage
devices on a separate high speed network dedicated to storage. The result is the creation of a pool of storage that
can be rapidly accessed and share by multiple servers.
DATA REPRESENTATION:
Layout of main units:
The layout showed before is the result of an historical evolution in hardware and data representation
At the beginning, hardware was mainly constituted by big electronic machines that worked based on electrical
and current voltage. The language used to proceed data was the binary digit (BIT). A BIT can have only one of
two values (commonly 0 or 1), and may therefore be physically implemented with a two-state device or
represent two opposite values such as:
o
o
o
o
o
Positive negative
Present/ absent current (on/off)
North/south magnetic polarization
Reflective/ absorptive surface
Light/dark
This initial unit of information limited the processing of information to a world with only two states. An
extension was needed in order to proceed more state such as images, color, sounds, alphabet text. Then complex
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units for processing information started to come up with propose of struggling with the
increasing information needs.
Therefore, Hardware technology has evolved from a room of equipment that could do
simple calculations to the last developments that include:
o
o
o
o
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Star : each individual piece of a network is attached to a central hub. All traffic that
traverses the network passes through the central hub. The hub acts as a signal
repeater that sends information to the intended recipient
o An extended star has one or more repeaters between the central node (the
'hub' of the star) and the peripheral or 'spoke' nodes
Tree/hierarchical: This particular type of network topology is based on a hierarchy of nodes. The
highest level of any tree network consists of a single, 'root' node, this node connected either a
single (or, more commonly, multiple) node(s) in the level below by (a) point-to-point link(s).
These lower level nodes are also connected to a single or multiple nodes in the next level down.
Mesh/maze:
SCALE
Local area networks (LAN): designed to connect personal computers and other digital devices
within 500 meter radius.
Wide area networks (WAN) : it involves a transcontinental or global area (example internet)
Metropolitan area network (MAN): network that spans a metropolitan area, usually a city or
suburb
Campus area network (CAN): connect devices up to 10.000 meters such as college campus or
corporate facility
Home area network (HAN): network to connect digital devices present inside or within the close
vicinity of a home
Personal area network (PAN): is a computer network organized around an individual person.
Personal area networks typically involve a mobile computer, a cell phone and/or a handheld
computing device such as a PDA.
o Twisted wire
o Coaxial cable:
Wireless: based on radio signals of various frequencies.
Optical:
ARCHITECTURE
Centralized : uses a dedicated server to manage all computers in the network
Distributed : uses many servers to manage many different clients within a network
Peer-to peer : treats all processors equally and is used primarily in small networks with 10 or
fewer computers.
- PHYSICAL CONSIDERATIONS
SIGNALING
There are two ways to communicate a message through the network:
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Analog signal: continuous wave form that passes through a communication network( voice
communication
Digital signal is a discrete, binary waveform which communicates information as strings of two
different states: one bit and zero bits which are represented as an on-off electrical pulses. Computers
use digital signals and require a Modem to convert these digital signals into analog signals that can be
sent over (or received from) telephone lines, cable lines or wireless media that use analog signals.
Electromagnetic impulses:
-Electricity
-Light
-EM waves
- NETWORK COMPONENTS/DEVICES
ACCESS DEVICES:
Network interface card (NIC) (wired or wireless): is a computer hardware component that
connects a computer to a computer network. Every device on a network that needs to transmit
and receive data must have a network interface card (NIC) installed. They are usually installed
into one of the computer's expansion slots. The NIC includes a transceiver that allows a device
to transmit and receive data via the transmission medium.
Access point (AP): is a device that allows wireless devices to connect to a wired network
using Wi-Fi, or related standards. The AP usually connects to a router (via a wired network) as a
standalone device, but it can also be an integral component of the router itself.
Modem : device used to convert digital signals into analog signals that can be sent over (or
received from) telephone lines, cable lines or wireless media that use analog signals ( ADSL,
telephone,cable)
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INTERCONNECTION DEVICES
Hub : very simple devices that connect network components sending packed data to all other
connected services
Bridge : can be used to connect two or more LAN segments of the same type (e.g. Ethernet to
Ethernet). Bridges reduce the amount of traffic on individual segments by acting as a filter,
isolating intra-segment traffic
Switch has more intelligence than a hub and can filter and forward data to a specified
destination in the network
*remark: bridges are used to extend the distance capabilities of the network while minimizing
overall traffic, and switches are used to primarily for their filtering capabilities to create
multiple, smaller virtual LAN's out of one large LAN for easier management/administration.
Router communication processor used to route packets of data thorough different networks,
ensuring that the data sent gets to the correct address
Gateway : provides communication to a remote network or an autonomous system that is out of
bounds for the host network nodes. Gateways serve as the entry and exit point of a network; all
data routed inward or outward must first pass through and communicate with the gateway in
order to use routing paths.
*remark: router is used to connect similar network ( ex: two networks using TCP protocol)
whilst gateway is used to link dissimilar services.
PROTOCOLS, STANDARDS
Protocols and standards are common languages used for communicate different networks. Worlwide internet
policies are defined by a number of professional organizations and government bodies among which we find
o International Organization for Standardization (ISO): is the worlds largest developer of voluntary
International Standards. International Standards give state of the art specifications for products, services
and good practice, helping to make industry more efficient and effective
o Institute of Electrical and Electronics Engineers (IEEE): is a professional association that is dedicated to
advancetechnological innovation and excellence. The IEEE fosters the development of standards that
often become national and international standards
o International Telecommunication Union (ITU): is a specialized agency of the United Nations that is
responsible for issues that concern information and communication technologies. The ITU coordinates
the shared global use of the radio spectrum, promotes international cooperation in assigning satellite
orbits, works to improve telecommunication infrastructure in the developing world, and assists in the
development and coordination of worldwide technical standards.
o Internet Engineering Task Force (IETF): develops and promotes Internet standards, cooperating closely
with the W3C and ISO/IEC standards bodies and dealing in particular with standards of the Internet
protocol suite (TCP/IP) It is an open standards organization, with no formal membership or membership
requirements
o World Wide Web Consortium (W3C): is the main international standards organization for the World
Wide Web. It is made up of member organizations which maintain full-time staff for the purpose of
working together in the development of standards for the World Wide Web
A protocol is defined as a set of rules and procedures governing transmission of information between two points
in a network. Among different types of protocols and standards we must emphasize the following:
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TCP/IP : internet
It uses a suit of protocols, the main ones being:
Transmission control protocol(TCP): establishes a connection between computers, sequences
the transfer of packets, and acknowledges the packets sent.
Internet protocol (IP): is responsible for the delivery of packets and include disassembling and
reassembling packets during transmission
ETHERNET: WIRED
Ethernet is a family of computer networking technologies for local area networks (LANs). Ethernet was
commercially introduced in 1980 and standardized in 1985 as IEEE 802.3. The Ethernet standards
comprise several wiring and signaling variants of the OSI physical layer. The original Ethernet used
coaxial cable as a shared medium. Later the coaxial cables were replaced with twisted pair and fiber
optic links in conjunction with hubs or switches. Data rates were periodically increased from the
original 10 megabits per second to 100 gigabits per second.
WIFI- WIRLESS INTERNET :WIFI is the 802.11 set of standards for wirless LANs and wirless
internet acess. There are different versions ranging from leter a,b,g,n to other letters in the alphabet.
Speeds range from a minimum of 1.5 Mbps to a maximum of 600 Mbps.7
BLUETOOTH : it is the popular name for 802.15 wirless networking standard useful for creating small
personal area networks(PANs). It links up to 8 devices within a 10 meter area using lower- power, radiobased communication.
UNIVERSAL TELECOMMUNICATIONS SYSTEMS(UMTS). Two main types
3G: speeds up to 7.2 MBs
4G:
o It is currently being rolled out
o It may reach a mobile transmission speed of 100 MBps, which can reach 1GB in optimal
conditions
o Seamless roaming(itinerancia) worldwide
o all IP packet switched network
RFID: Radio frequency identification (RFID) uses tiny microchips containing data about an item plus
other information associated with it such as its location, where and when it was made or its status in the
production. It is commonly used to track goods within a supply chain. Following parts and process of RFID are
explained:
1) Tag : a microchip that holds data including an identification number. The rest of the tag is an
antenna that transmits data to the reader using radio waves. There are two main kinds of tags
Active: are powered by internal battery and typically enable data to be rewritten and modify.
16
Passive: do not have their own power source. They obtain their power from the radio
frequency emitted by the RFID reader.
2) RFID reader: Has an antenna that constantly transmits data. When it senses a tag, it wakes it up,
interrogates it and decodes the data. Then it transmits the data to a host system over wireless or
wired connection.
3) Host computer: process the data from the tag that has been transmitted to the reader
METRICS. In measuring network performance the following variables are taken into account
Transmission speed: bits per second, kilo, mega
Latency (delay) : it is usually miliseconds
Reliability
Availability
Security
From the providers point of view , it also has to be taken into account
- DEVELOPMENTS IN NETWORKING:
Currently, we are moving from standalone information devices to mobile multimedia information and
communication devices. Widely speaking, the main developments are:
Increase incapacity (transfer speed)
o Infrastructure (from copper to fibre)
o Protocols (smarter)
Raise in interconnectedness : Examples: Internetworking, standardization
Increase in mobility
Increase in diversity and complexity
Higher Combination of multiple networks and devices
3.1.3
SOFTWARE
System software: controls the computer system as it performs tasks for the end user by acting as a
bridge between the hardware and application software. We can differentiate three main types of systems
software
Operating systems: manages and controls computers activities such as providing location in
primary memory for data programs, controlling input and output devices or coordinating the
schedule of work in various areas of the computer. Examples of operating systems are windows,
google chorme, android, linux..
17
Application software: software programs used by business users to support their work. There three
main kinds of application software:
Enterprise systems: provide support across the organization for key processes such as sales
finance, logistics, for both events/ transactions and record or document management. Examples:
ERP systems, Document/record management
Departmental applications: support specialist applications within an organization such as data
analysis or modeling within finance or marketing department. Examples: business conos
(analytical tools, sap) and cognos
Personal productivity and group working: used to support individuals when performing a tasks
or working as a team.
SOFTWARE CHOICE
When choosing a software solution the following consideration shall be taken into account:
Advantages
It is free to use, distribute, and modify
Open source is not dependent on the company or author that originally created it. Even if the
company fails, the code continues to exist. Also, it does not have the problem of incompatible
formats that exist in proprietary software.
Companies using open-source software do not have to think about complex licensing models and do
not need anti-piracy measures like product activation or serial number.
Disadvantages
Their understanding requires effort and training
There is a shortage of applications that run both on open source and proprietary software; therefore,
switching to an open-source platform involves a compatibility analysis of all the other software used
that run on proprietary platforms. In addition, there are many ongoing parallel developments on open
source software. This creates confusion on what functionalities are present in which versions.
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3.2 IS BASICS
3.2.1 IS CLASSIFICATION
There are many different ways to classify an IS. The following criteria are considered the most important ones:
Operational: IS are introduced to process routine transactions in an uniform, efficient and reliable way.
Examples: payroll, order entry, administrative systems (university)
Monitoring: check the performance of activities, functions or people at a regular intervals. It allows
business to forecast changes and act promptly to change a plan to suit new conditions. Example:
university in Netherlands use student trail system to advise the government when the grades of a
particular student fall below the minimum required to obtain a scholarship
Decision support: help managers to value different alternatives and make a decision. Example: Business
use DSS to calculate the financial consequences of investments
Communication: make easier to pass information around and between organizations. Examples: E-mail,
im, groupware workflow, SCM
BY MANAGEMENT LAYER
3.2.2
Individual systems aimed at managing individual professional work. Example: word processing ,
spreadsheets
Local or departmental: support people within the same unit or department that perform different tasks
Companywide systems/ enterprise: integrate departments and people throughout the organization.
Example: hospital
Inter-organizational systems (IOS): enable firms to incorporate buyers, suppliers and partners in their
businesses processes in the hope of enhancing productivity, quality, speed and flexibility.
Community systems: blogs or Myspace. Although they are not related to the organization they are
significant for managers as customers may use them to exchange information about the company
Operational : people to perform standalone tasks more efficiently. Example: CAD (computer aided
design for architects)
Tactical :
Executive
IS IN ORGANIZATIONS
19
They refer to attempts to improve the way organizations create, acquire, capture, store, share and use
knowledge. This will usually relate to customers, markets, products, services and internal processes but may
also refer to knowledge about relevant information in the external environment. In the following table the
knowledge management process and the potential role of IS are shown:
KNOWLEDGE
KNOWLEDGE
MANAGEMENT
CREATION
PROCESS
SUPPORTING
Data mining
INFORMATION
Learning
TECHONOLOGIES
tools
IT ENABLES
Combining
new sources
of knowledge
Just in time
learning
KNOWLEDGE
KNOWLEDGE
STORAGE/RETRIEVAL TRANSFER
Electronic bulletin
boards
Knowledge
repositories
Databases
Support of individual
and organizational
memory
Inter-group knowledge
access
PLATAFFORM
TECHNOLOGIES
20
Discussion
forums
Knowledge
directories
More extensive
internal network
More
communication
channels
Faster access to
resources
KNOWLEDGE
APPLICATION
Expert
systems
Workflow
systems
Knowledge
can be applied
in many
locations
More rapid
application of
new
knowledge
through
workflow
automation
Event: An event is represented with a circle and denotes something that happens (compared with an
activity, which is something that is done). Examples:
-
- End
- Error
- Cancel
Activity: An activity is represented with a rounded-corner rectangle and describes the kind of work
which must be done. Examples are :
-
21
Start
Gateway: A gateway is represented with a diamond shape and determines forking and merging of paths,
depending on the conditions expressed. It represent points of making decisions.
CONNECTING OBJECTS: Flow objects are connected with each other by the connecting objects.
Connecting object types:
-
ARTIFACTS: They help include additional information to the diagram and make it more informative and
understandable.Artifact types are:
-
Data objects show what data is required by the activity and what data is produced by the
activity;
Group includes various objects but doesnt influence diagram flow;
Text Annotations used to detail elements meaning and increase information value of the
diagram.
SWIMLANES: Used to organize and categorize activities within a pool according to function or role, and
depicted as a rectangle stretching the width or height of the pool. They contain the flow objects, connecting
objects and artifacts.
BRANCH AND MERGE: It correspond to making decision of which path to choose among several control
flows.
Branch- may have one incoming control flow and two or more outgoing control flows. When the
condition is fulfilled, a branch activates exactly only one of the outgoing control flows and deactivates
the others
Merge- may have two or more incoming flows and one outgoing control flow. A merge synchronizes an
activated and the deactivated alternatives. The control will then be passed to the next element after the
merge
JOINT AND FORK: correspond to activating all paths in the control flow concurrently.
Joint- may have two or more incoming control flows and one outgoing control flow. A join
synchronizes all activated incoming control flows.
Fork- may have one incoming control flow and two or more outgoing control flows. When the
condition is fulfilled, a fork activates all of the outgoing control flows in parallel.
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Programdata dependence: When changes in program require changes to data accessed by program
Lack of flexibility since updates require changing data in many places
Poor security due to the lack standard access procedures
Lack of data sharing and availability
Solution: database
A database is a collection of data organized to serve many applications by centralizing data and controlling
redundant data.
A Database management system (DBMS) is software for creating, storing, organizing and accessing data from a
database. ( examples: Microsoft Access, Microsoft SQL). Those systems have the following capabilities:
Data definition capability- Specifies structure of database content, used to create tables and define
characteristics of fields.
Data dictionary- Automated or manual file storing definitions of data elements and their characteristics
Data manipulation language Used to add, change, delete, retrieve data from database
A DBMS:
Interrelate applications and physical data files
Relives the end user or programmer from the task of understanding where and how the data are actually
store by separating logical and physical views of data.
Logical view: presents data as end users or specialists would perceive them. Example: payroll
document
Physical view: shows how data are actually organized and structured on physical storage media.
Example: hardisc
Relational database
DATA ORGANIZATION
In a relational database, data is displayed as twodimensional tables called relations or files. Each table contains
data on:
Entity: generalized categories representing a person, place or thing on which we store and maintain
information. Example: Student
Attributes: specific characteristics of the entity: Studnr, Address, Courses, And Grades.
Within a table we can differentiate the following elements:
Rows- Records or tuples for different instances of an entity: Each student is a record
Fields (columns) -Represents attribute for entity
Primary key -Field that uniquely identifies each record in a table.
Foreign key- Field that is a primary key in another table, used for looking up records from that table and
links records together
#Example: suppliers and parts page 356. Remarks
The primary key cannot be duplicated (dont use name as primary key)
Split the data into the smallest elements as possible in order to make access easier
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All the attributes of a particular entity must be related with that entity.
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Data mining
Data mining finds hidden patterns and relationships in large databases and infers them to predict future
behaviors. Examples
Associations- occurrences linked to a single event: when chips are purchased cola is purchased 65%
of the times
Sequences- events linked over time: if a house is purchased a new fridge will be bought in 8 weeks
Classification- recognition of patterns that describe a group to which an item belongs: find
customers that are likely to live a company
Clustering: finding groups (customers)
Forecasting
4.6 ENTERPRISE RESOURCE PLANNING SYSTEM
Definition: A packaged business software system that lets an organization automate and integrate
the majority of its business processes, share common data and practices across the enterprise and produce
and access information in a realtime environment.
Main features
Defines / automates business processes
Implementation often involves business process redesign as well as data modeling
So ERP central database
Benefits:
Consistent, accurate, integrated data
Streamlined processes reduced cycletime and costs
Improved Maintenance, adaptability and scability
Risks:
Future
The scope of ERP has increased over the years:
Now they often include CRM, SCM and other IOS.
Referred to as Enterprise Systems or ERPII
Implementation still have to be improved:
Many horror stories about failed implementations
Too rigid, imposing best practices
Lack of fit with business processes o BPR or customize?
Recent developments:
more flexibility
Serviceoriented architecture, SaaS, BPM
More modular, adaptable, less rigid system
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1982: Introduction TCP/IP & Internet concept: With so many different network methods,
something was needed to unify them. The Defense Advanced Research Projects Agency (DARPA) in
collaboration with some US universities started to work on the development of a new protocol in the
70s. The result was the creation of the TCP/IP protocol that became only approved protocol on the
ARPANET in 1982.
1989: Global implementation of TCP/IP: Between 1984 and 1988 The European Organization for
Nuclear Research (CERN) began the installation and operation of TCP/IP to interconnect its major
internal systems. In 1989 CERN opened its first external TCP/IP connections expanded the European
portion of the Internet across the existing UUCP networks,. Similarly, in 1989 Australia and Japan also
adopted the TCP/IP protocol.
1990: ARPANET decommissioned:. In 1975, ARPANET was turned over to the Defense
Communications Agency ( also part of the Department of Defense) in order to run a communications
utility.
Likewise, several other branches of the U.S. government, the National Aeronautics and Space
Administration (NASA), the National Science Foundation (NSF), and the Department of Energy (DOE)
became heavily involved in Internet research and started development of a successor to ARPANET
.NSF created NSFNET, to supported the NSF sponsored supercomputing centers. The NSFNET Project
also provided support for the creation of regional research and education networks in the United States
and for the connection of university and college campus networks to the regional networks. The
existence of NSFNET and the creation of Federal Internet Exchanges (FIXes) allowed the ARPANET to
be decommissioned in 1990.
Mid 1990's and onward: major impact on culture and commerce: In 1992, the U.S. Congress
passed the Scientific and Advanced-Technology Act which permited NSFNET to interconnect with
commercial networks.In 1995, was decommissioned and replaced by backbones operated by several
commercial Internet Service Providers which started to offer network access to commercial customers.
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27
1.
2.
3.
4.
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MARKUP LENGUAGES
Hypertext markup language (HTML): it is a W3C standard used for creating web pages and other
information that can be displayed in a web browser.
The main advantage is that is easy to use. However, there is not a full separation of contents and layout
and is hard to interpret by non-humans.
Extensive markup language( XML):
-
In the following picture, the different web protocols are shown according
to the layer in which they are actually used.
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30
Intranet:
Content (information)
- Communication (exchange)
- Collaboration (transactions, workflow, document
sharing,application sharing)
Extranet:
- All of the above but together with partner access
Internet:
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ORGANIZATIONAL CHALLENGES:
Implementing a successful CRM depends more on the strategy than on technology. It requires:
A clear customer strategy ; without it a CRM may lack of direction and disrupt relationships with
important customers
Integration of difference business processes and company departments in order to make them customer
oriented
Good management practices that makes easier to move from conventional ( finanal focused) to a
customer strategy
EXAMPLES
Tools:
Real time communication (Lyinc or spread Point)
Updated customer profile
Business intelligence tools
Benefits:
Reduction branch service times
Decrease customer churn
Reduce time to introduce new products
5.3.3 SUPPLY CHAIN MANAGEMENT
DEFINITION (IBA)
PORTER VALUE CHAIN
A value chain is a coordinated sequence of functional
activities to transform inputs into goods and service that
customer values and wants to buy. Porter differentiates
between two main kinds of activities within a value chain
Primary activities: the ones directly
involved in the production of goods
Support activities :support the
development of primary activities
BENEFITS
Supply chains are becoming larger and more complex. SCM enables the company
Increased efficiency
Reduced complexity
Improved data integration (less mistakes)
o VMI: vendor managed inventory. If stock sinks to a certain level, supplier can decide to refill it
automatically.
o CPFR: collaborative planning forecasting replenishment. Fill in the process together.
Reduced cost through outsourcing
Innovation
THE BULLWHIP EFFECT: Makes reference to the effects of changing demand in a supply chain that is not
properly managed ( bad forecast, lack of coordination within agents). Demand variability increases as one
moves up in the supply chain. Small variation in customer demand originate large variations in the orders
placed in the upstream. Eventually, the network can oscilate in very large swings as each organization in the
supply chain try to solve the problem from its own perspective ( bullwhip effect).
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E-Business and Supply chain management can allivate this problem to a large degree but requires from trust and
cooperation of different agents involved
5.3.4 INTERORGANIZATIONAL SYSTEMS
IOS coordinate processes across organizations and between organizations and customers
An IOS can be B2B, B2C, C2C or link an entire chain
Supply Chain Management (SCM) systems are just one type of IOS
Nowadays, many IOS are webenabled, using IP technology eBusiness
Rise of wireless tracking: RFID
IOS STAGES Interorganizational systems can have the following five stages:
1. Information : provide information ( EX: company website)
2. Interaction: customer or suppliers entering information about offers
and prices
3. Transaction: a customer actually buys a good or service through
suppliers website
4. Integration: a company links its own information systems and in
turn links them to customers and suppliers (example: as customer
place an order, this information moves to systems that control
sellers internal process and those of suppliers)
5. Transformation: a company uses IOS to transform its internal
operation as well as internal value chain. Example: creation of an Ebusiness
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UTILITY COMPUTING
Utility computing is the ability of companies to access computing services, business process and applications
from an utility-like service over a network ( comparable with electricity or water).
Utility computing is useful and preferable over traditional databases in the following cases
Demand is unknown in advance (Animoto case)
Organization that perform batch analytics: they can use the cost associativity of cloud computing to
finish computation faster: using 1000 machines for one hour costs the same as using one for one hour.
Demand of services varies with time: even if cloud pay-as-you-go pricing was more expensive than
buying and depreciating a service over the same period, it would still worth choosing the cloud due to the
benefits of elasticity and transference of risk
Elasticity: cloud computing can add or remove resources with a lead time of minutes rather than
weeks( as traditional service). That matches resources to workload much more closely.
Transference of risks. Especially :
o Overprovisioning: underutilization
o Underprovisioning: saturation
Hours purchased by cloud computing can be distributed non-uniformly on time, which prevents
the company for wasting capacity . There examples of those risks are following explained
Provisioning for peak per load
For many services the peak load exceeds the average usage by
factors of 2 to 10. Because capacity cannot be adapted to usage,
users provision capacity to cover the expected peak which
results in waste of resources when the demand is at nonpeak
times.
Underprovisioning
It occurs when the company underestimates the capacity needed
More realistic underprovisioning
A company starts to grow in users until it reaches and excess of
demand or saturation or capacity. Then, users start to desert until
the peak user per load equals the data centers usable capacity,
at which point users again receive acceptable service. ( case of
Friendster)
*Underprovisioning costs are more difficult to measure since
company can lose as a consequence loyal customers that never
come back
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No startup costs: companies avoid the initial cost of purchasing and running an internal server. With
cloud computing, they can start using small capacity and increase hardware resources only when there is
an increase in their needs
More scalability: cloud computing can add or remove resources with a lead time of minutes, thereby
eliminating the need for cloud computing users to plan far ahead for provisioning.
Negative implications
Uncertainty concerning business continuity and service availability: organizations worry whether
utility computing services will have adequate availability. Although existing SaaS products have set a
high standard on this regard, a cloud provider could also suffer outages for reasons beyond its control,
such as non-technical reasons like being out of business or being target of regulatory action. Solution:
use multiple cloud computing providers.
Performance unpredictably : there are several issues related with performance unpredictability
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Virtual machines can share CPUs and main memory surprisingly well in cloud computing but
network and disk input/output sharing is more problematic.
Data transfer bottlenecks: pulling apart applications from the cloud boundaries may generate
problems in data transport. One way of overcome high costs of internet transport is placing ship
disks
Scalable storage
Bugs(insect) in large scale distribution systems that cannot be offset without affection the whole
system. A solution may be use virtual machines
Scaling quickly?
Reputation fate sharing: one consumer bad behavior can affect others using the cloud. Solutions
are blacklisting IP address or make consumers liable and not service providers
Bad adaptability of software license to cloud computing
national agencies to access private data in case of suspected terrorist attacks. US patriot law has
implications for organizations namely :
o National security letters involving a gag order. That means that governments can ask companies for
information about customers without allowing them to know that. This law contradicts the EU data
protection directive which require organizations to inform users when personal information is
disclosed.
Additionally, in mass market cloud services are subject to take it or leave it service agreements.
Further possible solutions to solve price problems are:
Cloud broker- any entity that manages the use, performance and delivery of cloud services, and
negotiate relationships between cloud providers and cloud consumers
Use a private cloud either on premise (installed and run on company premises (building)) or off
premise.
Auditability could be added as an additional layer beyond the reach of the virtualized guest OS,
providing facilities arguably more secure than those built into the applications themselves and
centralizing the software responsibilities related to confidentiality and auditability into a single
logical layer.
6.2 BIG DATA AND BUSINESS ANALYTICS
6.2.1 WHAT IS BIG DATA AND BUISNESS ANALYTICS
Big data is a collection of data set so large and complex that it becomes difficult to process using on-hand
database management tools. Examples: Facebook handles more than 40 billions of photos from its user
database.
Currently, we live in a data-driven world. We can find examples of big data everywhere; from science and
medicine to commerce and entertainment. The reasons that explains the existence of such a big amount of data
is because we are able to get it thanks to automation processes and internet, we can kept it using a wide range of
devices and technology available and finally we can use it for specific purposes ( scientific breakthroughs,
business process efficiencies, realistic special effect, better health care..)
The amount of data in enterprises is doubling approximately every three years. As a consequence, organizations
are getting overwhelmed since they have to handle with a huge amount data in a lower time spam. Additionally,
the separation between all digital data available and sensemaking algorirthms is also increasing which makes
the understanding of information even more difficult.
Business analytics is aimed at solving this problem. Concretely, it refers to the set of practices, skills,
techniques and technologies that are employed by organizations to access report and analyze data, in order to
understand business performance and support decisions making processes.
A difference shall be made between reporting and analytics. Reporting is about providing information whilst
analytics is about using this information to forecast future trends. Additionally,we can find three main kinds of
business analytics:
Descriptive : analysis of past trends and outcomes. It helps company to understand the past in order to
gain better understanding of which approach to take in the future
Predictive: It provides an estimation regarding the likelihood of a future outcome. In order to do this, a
variety of techniques are used, such as machine learning, data mining, modelling and game theory.
Prescriptive: set of techniques aimed at forecasting what will happen and providing recommendations
how to act upon it in order to take advantage of the prediction. Examples are mathematical sciences,
business rule algorithms, machine learning and computational modelling.
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Enhanced insights
improved quality of information
Increased managerial productivity
improved efficiency and effectiveness
Provides support for achieving competitive advantage
Disadvantages:
Organizations have to adapt. It requires:
Hiring the right people
Using the right techonolgy
Establish an analytical culture. Analytics need to be embedded into the machinery of organizational
action. Needs to change the way of working.
Operational decision making: instead of intuition you need to base thoughts on data
Business processes: business processes need to be adjusted to it
Manager and employee behavior: managers & employees need other kind of skills, more
analytic
Customer expectations: what can/cant you do for your customer
Privacy concerns
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Wireless security challenges: wireless networks often do not have basic protections against war driving
in which eavesdroppers intercept wireless network traffic. An intruder that associated with an access
point with the correct service set identifier (SSID) is capable of accessing other resources in the network
Malicious software
Viruses: software program that attaches itself to other software programs or data files in order to
be executed without user knowledge or permission.
Worms: independent computer programs that copy themselves from one computer to another
over a network. Unlike viruses, worms can operate on their own without attaching to other
computer program files and relay less on human behavior in order to spread.
Trojan horse: software program that does not replicate itself but that offers a way for viruses and
other malicious code to be introduced into a computer system
SQL injection attacks: take advantage of vulnerabilities in a poorly coded web application
software to introduce malicious program code into a companys system and networks
Spyware: small programs that install themselves on computers to monitor user web surfing and
serve up advertising
Keyloggers: record every keystroke made on a computer to steal serial numbers for software to
lunch internet attacks, gain access to e-mail accounts, obtain personal information or passwords
Computer crime: it is defined by US law as any violations of criminal law that involve knowledge of
computer technology for their penetration, investigation or prosecution. Widely speaking, it includes
activities developed by a hacker (an individual who intends to gain unauthorized access to a computer
network). The most common are:
Spoofing: it may include a hacker attempting to hide their true identities by using fake e-mails
addresses or masquerading someone else, or, it also may involve redirecting a web link to an
address different from the intended one. A particular form of spoofing is phishing.
o Phishing consists of setting up fake webs or sending e-mail messages that look those of legitimate
businesses to ask users for confidential personal data (identity theft). Two phishing techniques
hard to detect are
Evil twins: wireless networks that pretend to offer trustworthy WIFI connections to Internet
with the intention of capturing password or credit card numbers of users who log on the network
Pharming: redirects users to a bogus webpage even when the individual types the correct Web
page into his or her browser
Sniffer: is a type of eavesdropping program that monitors information travelling over a network.
Distributed denial service attacks uses numerous computers to inundate and overwhelm the
network for numerous lunch points
Click fraud: occurs when an individual or computer program fraudulent clicks on an online ad
without any intention of learning more about the advertiser or making a sale ( competidores
clickan mucho en un anuncio para hacer aumentar costs)
Cyberterrorism and cyberwarafare :is a state sponsored activity designed to cripple and defeat
another state or nation by penetrating its computer or networks for the purposes of causing
damage and disruption
Internal threats: employees
Inside knowledge ; an employee can transfer companys confidential information to outside
Sloppy security procedures
User lack of knowledge ; they may introduce errors by entering faulty data or not following
proper instructions to proceed data and use computer equipment
Social engineering: tricking employees into revealing their passwords by pretending to be
legitimate members of the company that need information
Software vulnerabilities : programming and installing errors; unauthorized changes . A major problem
is the presence of hidden bugs or program code defects. The main source of these problems is the
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complexity of decision making code. The most common way of solving these errors is installing
patches. However, zero defects are not possible to achive in large systems
6.3.2 BUSINESS VALUE OF SECURITY AND CONTROL
Failed computer can lead to significant or total loss of business function
A security breach may cut into firms market value almost inmediatly
Inadequate security and controls may also lead forth issues of liability. ( information of customers and
partners disclosed)
6.3.3 HOW TO HANDLE IS VULNEARABILITIES?
They are three main actions :
Prevent:
Regulations: different legal obligations exist to protect personal information. Examples
o USA:
HIPPA (medical)
Gramm-leach Billey act ( financial insitiutions)
Sabanes oxley act (financial info into organizations)
o EU Data protection directive requires organizations to inform users when personal information is
disclosed
Information system controls there can be
o General controls: govern the design, security and use of computer programs and data throughout
the organizations information technology infrastructure
o Application controls: specific controls to unique to each computerized application (input ,
processing and output)
Security policy : it consists of statements ranking information risks, identifying acceptable security
goals and identifying mechanisms for achieving these goals. It drives other policies mainly
o Acceptable use policy: defines acceptable uses of firm information resources and computing
equipment
o Identity management: business processes and software tools for identifying the valid users of a
system and controlling their access to system resources (password, token(ID card), smart card,
biometric identification)
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Symmetric key encryption: the sender and the reciver establish a secure Internet session by
creating a single encryption key (both share the same key)
Public key encryption: uses two keys: one shared and another private. The sender locates the
recipients public key in a directory and uses it to encrypt a message. The message is sent in
encrypted from over internet or a private network. When the encrypted message arrives , the
recipient uses his or her private key to decrypt data and read the message
o Digital certificates: uses a trusted third party, known as a certificate authority to
validate users identity. Information is put into a CA server which generates encrypted
digital certificate containing owner identification information and a copy of the
owners public key. The certificate authenticates that the public key belongs to the
designated owner.
Assess
Risk assessment: determines the level of risk to a firm if a specific activity or process is not properly
controlled. It determines
o Types of threat
o Probability of occurrence during the year
o Potential losses ( value of threat)
o Expected annual loss
Once the company know those figures, system builders will concentrate on the control points with the
greatest vulnerability and potential for loss.
Auditing: an audit develops the following functions
o Examines firms overall security environment
o controls governing individual information systems
o Reviews technologies, procedures, documentation training and personnel
o May even stimulate disaster to test response of technology IS staff or other employees
o Lists and ranks all control weakness and estimates probability of their occurrence
o Assesses financial and organizational impact of each threat
React
Disaster recovering planning: devises plan for restoration of computing and communication services
after they have been disrupted ( Example backup)
Business continuity planning: focuses on how the company can restore business operation after a
disaster strikes ( example elaborating plans)
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Effect of is on decision making structures: IS lowers the costs of flows and communication of remote
information. It will trigger the following process
1) Independent decentralized structures (Cowboys) are common when communications costs are high. As they
decrease
2) Centralized decision making (commander) becomes more desirable as they can integrate different kinds of
remote information efficiently. However, as information costs decrease even further
3) Companies would move from centralized decision making ( commanders) to decentralize connected
decentralized structure (cyber cowboys). The reasons are that thanks to these structures (1) Local decisions can
be improved by considering local information that is sticky or hard to communicate (2) Local decision makers
are more enthusiastic and creative when they have more autonomy in their work
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7.2.2 CONCLUSIONS
Will IS lead to more control or empowerment?
7.3 IS ARCHITECTURE
7.3.1 DEFINITION
IS architecture is the way in which IS assets ( hardware, software and infrastructure) are deployed and
connected in ways that they interact each other. Two remarks shall be made:
IS activities in one user department normally the one that makes most use of them (traditionally
finance and accounting).
o + : if users are concentrated in the same area they can build experience and expertise
o -: problems arise when other departments start to use IS
Decentralize IS architecture : the organizational units become responsible for their systems
o +: - emphasis on user needs
Flexibility to adapt changes
o -:
Lack of standardization and control over data system
Lack coordination between users to learn from experience or transfer technology
Duplication of technical staff
*only possible when units/departments are independent with little communication between them
Centralize IS architecture into a unit responsible of most of the computing activities.
o +: system integration, accessibility and concentrated expertise
o -: - inflexible
Remote to business departments that may have different information needs
*fits best with centralized organizations operating in an stable environment
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IS supply as a resource pool: they concentrate expertise while business units decide whether or not to
use them. This resource pools can be developed through either of the following processes
In house: as a part of the corporation
Outsourcing is the transfer of the management and/or the day to day execution of a business to
an external service providers
Offshoring is the transfer of IS to another country, regardless of whether the work is outsource
or remains within the same corporation
Multisourcing refers to large outsourcing agreements in which different parts of the client IS
will be outsourced from different suppliers
Advantages and disadvantages of outsourcing are:
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Customer
interaction (
virtual
encounter): new
challenges and
opportunities for
company-to
customer
interactions
Asset
configuration
(virtual
sourcing): how a
firm coordinates
resources and
activities within
a network
Stage 2: organization
Remote experience of
products and services:
creation of a website
Stage 3:Inerorganizational
Information gathering
and spreading customer
communities. Example:
Dell ideastrom allows
customers to with the
company and other users
to solve technical
problems and propose
new ideas
Resource coalitions
companies are not a
collection of physical
assets but a coalition of
resources (example: Sun
microsystems have a
corporate arrangement
with three transport
companies to manage its
logistics.)
Professional community
experts
Recent advances in
IT (COPs, NOps)
fundamentally enable
multiple experts from
different locations to
interpret simultaneously
the meaning of indistinct
events.
According to this view, managers should think about their relationships with other organization when it comes
to virtualize the organization. Three possibilities are offered
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Beliefs and values learned unconsciously. In turn values are defined as a set of social norms that identify
what is important to a group and how they interact each other
Practices,that is how we do things, knowledge than is learnt consciously.
Another important concept is organizational culture. Organizational culture defines how or what an
organization is. There is a wide range of definitions about organization culture. Two important are:
In determining different cultural types the competing values model is used. This model proposes that
organizations have inherent tensions along two dimensions: between flexibility and control and between the
internal and the external focus. Plotting these two tensions in a graph four different cultures appear
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Open systems (external,flexibility): people focus on the external environment seeing it as a vital
source of ideas, energy and resources that requires entrepreneurial, visionary leadership and responsive
behavior. Example: start ups
Rational goal (external, control): focused on efficiency in terms of production or economic goals that
meet familiar and stable external requirements. Example: large production or service activities in
established organization
Internal process (internal, control) : focused on internal efficiency. Goals are known, tasks are
repetitive and methods stress specialization, rules and procedures. Leaders tend to be conservative and
cautious. Examples: internal administrative departments.
Human relations (internal ,flexibility): emphasize the value of informal, interpersonal relations rather
than formal structures. They place high value on maintaining organization and the well- being of its
members and define effectiveness in terms of developing people and their commitment. Example:
internal support functions/ professional service firms
Defining which kind of culture has the company or department in which a new IS is to be implemented is an
issue of major importance. That would help to determine whether the IS is consistent with company culture and
which approach shall be taken in its formulation ( whether adapt the system to the culture or vice- versa)
8.1.3 FIT BETWEEN IS AND POLITICS
Power is the capacity to exert influence over others. Main sources of power are
Coercive : authority to give instructions with the threat of punishment or sanctions to back them up
Reward: ability to use financial and other organizational resources to bestow (otorgar) rewards or status
on others in return of their support.
Administrative expertise: power that the holder of a position has to create organizational policies that
bolster (reforzar) their influence. Example: decide IS team.
Technical expertise: power can arise if a person holds a position that gives access to information. They
can use their position, information and contacts that go with it to build the image as a competent person
and influence the direction of an IS project.
Referent: situations where managers can use their position to influence others by showing that what
they purpose is consistent with accepted values and culture of the organization
Within an organization
People compete for access and control over information, as it is a an important source of power
When stuff/employees are concerned with power, they will use the effect of IS on their power as an
evaluation criteria. Thus, resistance is more likely to arise.
8.1.4 CONCLUSIONS
However:
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People can affect performance, as an IS can add or dismiss their contribution to the attainment of
organizational goals
System usually fail because managers ignored human aspects
Design of the interface: it will affect how users react to an IS. An interface should be
Accessible
Visually pleasant layout
Enhance user friendless
Meet five criteria
o Naturalness: should seem a natural way to perform the task and reflect natural language
involved
o Consistency : same mechanisms and procedures
o Relevance : avoid redundant material and information
o Supportiveness : adequate information that allow the user to perform the task
o Acceptable degree of flexibility
USABILITY Jakob Nielsen defines usability as a quality attribute that assesses how easy user interfaces are to
use. Ten usability heuristics (indicators) are:
A user involvement example is prototyping. Different forms are ( by demonstration, by testing, cooperative,
user-lead)
8.2.2 USER MODEL
TECHONOLOGY ACCEPTANCE MODEL (TAM)/UTAUT
This theory predicts that the acceptance of an IS depends on two variables
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Perceived usefulness (PU): degree to which a person believes that using an IS would increase his/her job
performance
Perceived ease of use (PEU): degree to which a person believes that using a system would be free of
effort.
The initial research founded carried out by David founded that PU was considered more important that PEU.
Later, this general model was enlarged including more variables leading to the Unified theory of Acceptance
and use of technology (UTAUT). The main variables defined in this model are :
Performance expectancy
Effort expectancy
Social influence: the degree to which individuals perceive that important others believe he or she should
use the model
o These three variables shape behavioral intentions: an individual positive/negative attitude towards
using the system
Extrinsic rewards: those outside the job and separate from performance ( salary)
Intrinsic values: those that the people receive from performing the task itself (sense of achievement)
According to the work design model five core job dimension that contribute to job motivational potential are:
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Skill variety
Task identity : whether a job involves a relatively complete and whole operation
Task significance (society)
Autonomy
Feedback
This theory argues that managers/staff can change increase motivation by changing identifiable elements of a
job so that they meet human needs more closely- especially intrinsic rewards. The following table summarized
measure that can be taken in relation to IS design.
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Implementing concept
Possible us in IS
Combining tasks
Vertical loading
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*Remember: such strict systems may lead to an excess of inflexibility and bureaucracy within the company
10.1.4 IS GOVERNANCE
Typically an internal IS department has four responsibilities (departments) as stated in the following figure.
IS strategy and management:
CIO
Operations: running and
maintenance of information
systems and computer facilities
in order to ensure they are
available and reliable
Acquisition development:
development and acquisition of
systems
Support: assist users by advising and training them when new systems are implemented. They also
operate help desks to receive calls for help or service, which sometimes pass to stuff in operations or
development department.
In IS governance the Chief Information Officer (CIO) is responsible for Information Management and IT
governance in an organization. CIOs role has shifted from a technology function to a strategic function. The
main roles of the CIO are
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Strategic function : the CIO is part of the broad of directors being in charge of leading the creation of
IS strategy, and implementing in a way in which alignment between IS and Business startegy is ensured
Structural function (IT leader) : managing IT organization
IT function: managing software, hardware and infrastructure
Acting as a broker: there is usually a conflicting of interests between theree main interests groups
dealing with IS namely the general management, users and IS management. CIO has the role of
reconciling those conflicting interests in order to ensure an efficient use of IS.
Application Portfolio .
Infrastructure Portfolio
Project Portfolio.
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10.3.1 COSTS
Costs of purchase
hardware
software (development)
Implementation:
Customer and staff communication and training
business process reengineering
decommissioning and disposing of existing systems
costs of parallel running during the roll out period
error correction and compensation for quality dip during the initial use
Ownership:
Support
Disaster recovery
Staff: recruiting and developing staff, training developers maintainers and users
Upgrades
obsolescence
maintenance
Change: such costs depend on how able is the IS department to adapt to changing conditions. In turn,
that depends on:
interoperability : extent to which the proposed hardware platform can operate with other platforms,
operating systems, networks and peripheral equipment
openness: extent to which software can be easily and cheaply modified or linked to other systems
10.3.2 BENEFITS
Tangible benefits
Cost savings: More accurate and timely distribution of work can decrease operator working time and
lead to efficiency increases
Quality improvements: reduce errors as it replaces a manual system
Avoiding cost increases: ie: as companies replace old PCs they avoid maintenance and repair costs
Revenue increases: new services, delivery channels, market penetration (difficutl to validate)
Staying in business: in a highly regulated environment new IS maybe necessary to continue in the
business.
Intangible benefits
Improved information flows staff , suppliers, customer , investors,
Motivation- improvements in individual work
Customer satisfaction
Reputation- positive signals to the market about commitment to innovation
Flexibility- react more quickly and easier to change in the environment
Product differentiation
Innovation / Knowledge /
Learning- lessons about current practices can be spread more widely; learning about external events; be
better placed to take benefit of new developments
10.3.4 PROBLEMS OF FORMAL RATIONALE METHODS
Formal rational techniques are based on the assumption that costs incurred in purchasing the system, and the
benefits obtained from it can be accurately estimated. However, in today fast-changing world it is difficult to
identify and value all costs and benefits of IS.
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Additionally, formal rationale techniques consider the size and the timing of costs and benefits but provide
insufficient fit with IS projects. That is because
IS are deeply integrated in organization
IS requires organizational change
IS involve wide range of factors; they not just affect the process to which they are applied but a wide
range of activities and stakeholders.
10.3.5 NEW APPROACHES: BALANCE SCORECARD
Focusing only on the financial perspective may lead to a dangerous short term perspective. Balance scorecard
seeks to solve the problems of the formal rationale techniques by developing an organization wide view of
performance based on an appropriate balance of four measures:
10.4 IMPLEMENTATION
10.4.1 DEFINITION AND CHALLENGES
IS implementation is both a technological and organization process. It consists of internal strategy formation,
project definition and activities aimed at introducing an IS to the users in an organization, with the aim of
removing resistance and stimulating optimal use of the IS.
In the implementation process companies sometimes face the following challenges:
IS systems are often too technologically advanced to be easily understood and implemented within
employees with regular IT knowledge
When they are introduced into a firm with a strong culture resistance are likely to arise
External condition likely to change during project ( new technology developments)
May involve links with other firms
Magic bullet expectations
IS implementation = organizational change
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The following chart summarizes the differences between the traditional and the new way of IS implementation
approach
Planning: reflects the assumption that planned change in organization unfolds in a logical sequence, that
people work to the plan and that they notice and correct deviations from the plan. It is technical focused and
easy to understand
Emergent: people taking this approach make plans but see them as a temporary and provisional , being
ready and able to adapt them as circumstances change and people learn more about the task
Participative: this approach emphasizes the benefits of establishing a sense of ownership of the change by
those whose support it will need or who will have to live with the change when it is implemented.
Political: this approach assumes that IS project inevitably affect people with different interest. Thus, power
is essential to get things done.
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Empirical/rational strategy: people act rationally and make their decisions on the basis of rational
considerations, taking their own interests into account. Methods:
User education and training
Communication between developers and users
Selection and deployment of suitable personnel for IS implementation ( external consultants)
Create realistic, optimistic expectations regarding the value of the application
Normative/re-educative: people are primarily geared towards satisfying needs and these needs are
dependent on the social and professional context within which people find themselves. Measures:
Facilitate and promote participation by establishing dialoging relationships
Influence attitudes (find opinion leaders) re-educate users with the intention of motivating them to a
favorable implementation
Create climate that is positive towards implementation
Give users opportunity to get acquainted with system (activate learning process ) installing a model
prototype in a given part of the organization
Creating an IS team or department with an organic structure that can easily cope with changing
affairs and conditions
Power/coercive strategy: Peoples behavior is affected by political o economic sanctions (positive or
negative). Methods:
Project leader with sufficient authority and resources
Identifying resistance and coopting users or groups resisting implementation
Reorganization of related reward systems
Experts or consultants
Establishing explicit IS objectives and elaborating a formal agreement process between departments
relating to IS implementation to prevent any arbitrary alteration of them.
System innovativeness: innovative is related to how profound and far reaching is a system in the
organization. The more innovative, the more changes are needed and thus the higher resistance may arise.
o Highly innovative = power/coercive or normative/re-educative
Top management support high: mobilization of resources required for IS implementation is facilitated
and attitude towards implementation tend to be positive. Implementers must take advantage of it and adapt
organizational structure, task procedures and reward system to make them more suitable for IS
implementation.
o power/coercive or normative/re-educative
Decentralized IS department: the more decentralized IS-related functions are the more necessary is to
coordinate the tasks of the department related to IS implementation and promote mutual understanding
o Empirical/rational, power/coercive
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