Kevor Mark-Oliver, ICT Dept

Kevor Mark-Oliver ICT Department

Me first.............. Kevor Mark-Oliver 26 years old BSc Electrical/Electronic Engineering MSc ICT Areas of Interest: Information Systems Development & Acquisition, Knowledge Management, Information Security, Industrial Automation, IT Project Management, etc

What is your name? Age? Background? Special Interest.............? Relate to Information Systems

Information Systems in Business Strategic Decision Making Ethics and Information Security Supply Chain Management ERP and Collaboration Systems Systems Development Project Management and Outsourcing

Describe the functional areas of an organization. Explain Information Technology Role in Businesses and how success is measured. Compare IS and IT and define relationships among people, IT and Information. Compare the responsibilities of CIO and IT Directors. Explain Why competitive advantage are typically temporary. Use porters five forces to analyse industry Compare porters three generic strategies Describe the relationship between business processes and value chain analysis

DATA

INFORMATION

KNOWLEDGE

INTELLIGENCE Forms of Information Human Information Sources NOT ALL SEEN AS A COST, BUT USE AS ASSET??

(Data -- Information Intelligence Knowledge (Implicit/tacit) INNOVATION

As a business Supporter

As a business Enabler

As a business Driver

The Value Chain is the series or chain of activities that provides some product or services of some value to a consumer or customer. These activities are grouped into business functional areas/units

NEED

OWNER/SHAREHOLDER (price of company stock)

Organization EMPLOYEES
SUPPLIER

Transformation process

WINDOW OF OPPORTUNITY

CUSTOMER

Value chain

Data Unstructured facts about events, objects and/or people Information Structured data to create meaning for the recipient Knowledge Accumulated information useful to effectively execute a task

System A set of components interacting with each other to form a whole Subsystems are systems of systems Information System A system which assembles people, processes and delivers information to an organisation in such a way that it is accessible and useful to the recipient. Information Technology A contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image & voice networks)

CIO is responsible for gathering and using information to gain competitive advantage over other organizations. CIO is a strategic Management position IT Director is responsible for taking care of the Organization ICT Infrastructure( Software, Hardware, Network) IT Director is a Middle Management position

It is a product or service that an organizations customers place a greater value on than similar offerings from a competitor. May be obtained through Environmental scanning. Competitive Advantage is not sustainable! Why? Duplication! Always take the first-mover advantage!

Five Forces Model Three Generic Strategies Value Chain Analysis

Threat of new Entrants

Supplier Power

Industry Competition

Customer Power

Threat of Substitute Products

Its High when buyers have many choices

Loyalty programmes can be used to reduce buyer

power. This can be done efficiently using IS

Low when Choices are few

High when buyers have few choices Low when choices are many Reduce supplier power by locating several suppliers. This can be done using webenabled reverse auction.

Suppliers

Organization

Customers

Low Supplier Power

High Supplier Power

High When there are many alternatives to a product or service. Low when there are few alternatives Create competitive advantage by using switching costs.

Presbyterian University College to donate ChurchPro to the Presbyterian Church of Ghana. Telecom Companies provide free telephones to consumers to sign 1-2year contracts. Consumers gain more power when businesses remove switching costs.

High when it is easy for new competitors to enter a market. Low when there are significant entry barriers. An entry barrier is a product or service feature that customers have come to expect from organizations in a particular industry and must be offered by an entering organization to compete and survive.

High when competition is fierce Low when competition is complacent Trends shifting towards competition in all industries even though some industries are more competitive than others.

Three Generic Strategies

Cost Leadership Differentiation Focus

How does IS impact on these competitive strategies?

Explain the difference between transactional Information and analytical information Define TPS,MIS, DSS, EIS and explain how organizations can use these systems to make decisions and gain competitive advantage. Identify the types of AI Systems Describe the four basic components of SCM Explain CRM and the benefit it can provide an organization. Define ERP and its importance to an organization Identify how an organization can use BPR to improve its business

Transaction Information encompasses all of the information contained within a single business unit of work and supports the performing of daily operational tasks. Analytical Information encompasses all organizational information and supports managerial analysis tasks

OnLine Transaction Processing is the capturing of transaction and event information using technology to
Process information according to defined

business rules. Store the information Update existing information to reflect the new information

OnLine Analytical Processing is the manipulation of information to create business intelligence in support of strategic Decision making. A Transaction Processing System(TPS) is the basic system that serves the operational level in an organization
E.g Payroll, Order entry, GPA, etc

Executive Information System(EIS) Decision Support System(DSS)

Transaction Processing System(TPS)

Analytical

Coarse

OLAP

Processes

Granularity

Processing

Transactional

Fine

OLTP

IS that supports Middle level Management with decision making. Three quantitative models available include
Sensitivity Analysis What-if analysis Goal-seeking

It is a specialized DSS that support senior level executives within the organization. EIS differs from DSS because an EIS can also include environmentally scanned information

Consolidation Involves the aggregation of information and features simple roll-ups o complex groupings of interrelated information Drill-down Enables users to view details, and details of details, of information. Slice-and-Dice The ability to look at information from different perspectives.

TPS Order entry data

DSS

Order Processing System

sales data

Inventory data

Inventory Transaction

Production data

DSS

Managerial Reports

Shipping Data

Distribution System

Transportati on data

Artificial Intelligence simulates human intelligence such as the ability to reason and learn. Intelligent System are various commercial applications of AI. AI Systems can learn from experience, make sense of ambiguous or contradictory information, and even use reasoning to solve problems and make decisions effectively. The Ultimate aim of AI is to build a system that can mimic human intelligence.

At Manchester Airport, an AI Robot Cleaner Alerts passengers to security and nonsmoking rules as it scrubs about 65600 sq feet daily. Shell Oils Smartpump keeps drivers in their cars on cold, wet winter days. Courier robot navigates hospital hallways delivering patient files, X-ray films and medical supplies.

Computerized advisory programs that imitates the reasoning processes of experts in solving difficult problems. Human expertise is transferred to the expert system, and users can access the expert system for specific advice. Most Expert Systems reflect expertise from many humans and can therefore perform better analysis than any single expert.

The system has a knowledge base containing various accumulated experiences and a set of rules for applying the knowledge base to each particular situation. The best known expert system is used to play chess and assist in medical diagnosis. The best most commonly used form of AI to fill gaps where experts are difficult to find, retain or too expensive.

Also Called Artificial Neural Network Type of AI that attempts to emulate the way the human brain works. Makes decisions involving pattern or image recognition because a NN can learn from the information it processes. NN analyse large quantities of information to come out with patterns or characteristics where the logic or rules are unknown.

The finance industry is a veteran in the NN industry. Used to Review loan applications to approve or deny. Used to detect credit card fraud Uses FUZZY LOGIC

An AI System that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem. It is essentially an optimizing system: It finds a combination of inputs that gives the best output. Genetic algorithms are best suited to decision making environments in which thousands or perhaps millions of solutions are possible.

Business executives use genetic algorithms to help them decide which combination of projects a firm should invest in, taking complicated tax considerations into account. Investment companies use genetic algorithms to help in trading decisions. Telecom companies can use genetic algorithms to determine the optimal configuration of fibre optic cable in a network that may include as many as 100,000 connection points

Agents are special-purpose knowledge based IS that accomplishes specific tasks on behalf of its users. Intelligent Agents use their knowledge base to make decisions and accomplish tasks in a way that fullfills the intentions of a user. Intelligent agents usually have a graphical representation such as Sherlock Holmes for an information search agent.

A Shopping bot is a software that will search several retailer web sites and provide a comparison of each retailers offerings including price and availability. Increasingly agents handle a companys internet buying and selling. Agents handle processes such as finding products, bargaining over prices and executing transactions. Agents Also Environmental Scanning

Supply Chain Management Enterprise Resource Planning Customer Relationship Management

List and describe the components of a typical supply chain. Define the relationship between ICT and the supply chain. Identify the factors driving SCM Compare operational and analytical CRM Explain the formula an organization can use to find its most valuable customers. Compare various CRM technologies. Compare core and extended ERP components

A supply chain consists of all parties involved directly or indirectly in the procurement of a product or raw material. SCM involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

Materials flow from suppliers and their upstream suppliers at all levels. Transformation of materials into semifinished and finished products-the organizations own production processes. Distribution of products to customers and their downstream customers at all levels

Coca cola Co. Ltd has several distribution points and sales points. How does coca cola knows where and when to replenish inventory? Unfortunately no better way now-through guess work and calls from customers. Distribution is inefficient! Why?

Dell keeps zero inventory (2hours inventory in its factories) Sells directly to customers Can bypass retailers Communicates constantly with suppliers

Suppliers Supplier

Upstream

Custome rs Custome r

Suppliers Supplier

Supplier

Manufac turer

Distribut or

Retail er

Custo mer

Custome rs Custome r

Suppliers Supplier

Downstream

Custome rs Custome r

Plan

Source

Make

Deliver

Return

This is the strategic portion of the supply chain Management. A company must have a plan for managing all resources that go towards meeting customer demands for products or services. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high quality and value to customers.

Companies must carefully choose reliable suppliers that will deliver goods and services required for making products. Develop a set of pricing, delivery, and payment processes with suppliers. Create metrics for monitoring and improving the relationship

Companies manufacture their products or service. This include scheduling activities necessary for production, testing, packaging, and preparing for delivery. This is the most metric-intensive portion of the supply chain, measuring quality levels, production output, and worker productivity.

This is referred to as logistics. Logistics is the set of processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers. Companies must be able to receive orders from customers, fullfill the orders through a network of warehouses. Pick transportation companies to deliver the products, and implement a billing and invoicing system to facilitate payments.

Typically, the most problematic step in the Supply Chain. Companies must create a network for receiving defective and excess products. Support Customers who have problems with delivered products.

Companies evolving into extended organization. Roles of supply Chain partners are changing
Suppliers involved in product design Distributors acts as consultants in brand

marketing

Creating the integration or tight process and information linkages between functions within a firm and between firms, which allow the smooth, synchronized flow of both information and product between customers, suppliers, and transportation providers across the supply chain

Example: Use of Supply Chain Integration Software over the Internet to synchronize planning. Internet based supply chain collaboration software help to reduce inventory and lead times.

SCM

Ability to view all areas up and down the supply chain. It is important to create real time visibility. Organization may experience bullwhip effect with distorted information. IT allows increased visibility. Electronic information flows allow managers to view their suppliers and customers chains. Organizations have gained competitive advantages with increased visibility.

Consumers will leave if a company does not continually meet their expectation. Demand planning Software generates demand forecasts using statistical tools and forecasting techniques. This can enable companies respond faster to changing customer demands.

Supply Chain Planning which depends on information upstream. Supply Chain Execution which execute the processes in the supply chain.

For the past decade, competition has focused on speed. New forms of servers, Telecoms, wireless applications, and software are enabling companies.

CRM involves managing all aspects of a customers relationship with an organization to :

Increase customer loyalty

Increase customer retention

Organizations profitability

Companies shifting from product focus to customer focus. Customers seen as experts without which business does not exist.

Option in situations where product differentiation is difficult. Good for companies to embrace CRM to make it harder for competitors to steal loyal and devoted customers.

Using the RFM Formula Recency, Frequency, Monetary This initial CRM information is gathered and trends identified. Example: Send a special offer to Mr. Jesse during off season if Mr. Jesse frequently buys in Christmas.

The Case of Barclays UK

Has over 10million personal customers, 9.3m

credit cards in circulation and 500000 small business partners. Barclays decides to invest in CRM technologies to help it gain valuable insights into. Barclays managers are now able to predict accurately the financial behaviour of individual customers. Reasonable interest rate can be charged based on individual risk assessment.

Three phases in the evolution of CRM

Reporting: help identify customers across other

applications. Analyzing: help segment customers into categories. E.g. best and worst customers. Predicting: help make predictions about the behaviour of customers. E.g. Which customers are likely to leave.

Front Office-Operational CRM Marketing Systems Customer Service Systems

Sales Systems

Collaborative CRM System

Data warehouse

Data Mining

Back Office-Analytical CRM

Operational CRM Supports traditional transactional processing for day-to-day frontoffice operations or systems that deal directly with customers. Analytical CRM supports back office operations and strategic analysis.

List generators Campaign Management Cross-Selling and Up-selling

Sales Management CRM System

Manage the sales process by automation

Contact Management CRM System Opportunity Management CRM System

Contact/Call center
Automatic Call distribution Interactive Voice Response(IVR) Predictive Dialling Emotion detectors etc

Web based Self Service

E.g. Fedex customers track parcels without CSR.

Call Scripting

Integrates all departments and functions throughout an organization into a single IT System so that managers and employees can make decisions by viewing enterprisewide information on all business operations. SAP is the leading ERP vendor with over 20,000 installations and 10m users worldwide.

ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses.
Inconsistencies The key word here is enterprise

ERP addresses the need for global information sharing and reporting. ERP is used to avoid the pain and expense of fixing legacy systems.

Core ERP Components are the traditional components included in most ERP systems and they primarily focus on internal operations. Extended ERP Components are the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations.

Accounting and Finance

Production and Materials Management

Human Resource

ERP Software

Business Intelligence

CRM

SCM

E-business

Accounting and Finance

Manage accounting data and financial processes

within the enterprise with functions such as

General ledger Accounts payable Accounts receivable Budgeting Asset management

Manage Credits Perform product profitability analysis

Production and materials management

Handles the various aspects of production

planning and execution such as

Demand forecasting Production sheduling Job cost accounting Quality control

Companies typically produce multiple products,

each of which has many different products.

Human Resource
Track employee information including Payroll Benefits Compensation Performance assessment Assures Compliance with the legal requirements

of multiple jurisdictions and tax authorities.

We have looked at CRM and SCM Lets look at BI and E-business

Business Intelligence
Describes information that people use to support

their decision making efforts. This component typically collect information used throughout the organization, organizes it and apply analytical tools to assist managers with decisions. Datawarehouses

E-business
Primary features include E-logistics and E-

procurement. Bad practice to deploy web presence before the integration of back office operations.

Component CRM SCM Financial Management HRM Service Automation Supplier Relations Mgt

PeopleSoft X X X X X X

Oracle X X X

SAP X X X X X

Ent Performance Mgt

BI Learning Mgt Order Mgt Manufacturing Marketing Sales

X
X X X X X X

Component CRM SCM Financial Management HRM Service Automation Supplier Relations Mgt

Oracle X X X X X X

SAP X X X X X

Ent Performance Mgt

BI Learning Mgt Order Mgt Manufacturing Marketing Sales

X
X X X X X X

Overall fit
Off the rack Off the rack and tailor it to fit Custom made

Proper business Analysis

Thorough business analysis results in a

documented list of the business processes at work. This can provide a basic tool that can measure vendor capability.

Solid Implementation Plans

Plan monitoring of quality objectives and

timelines Thorough implementation will transfer knowledge to the users

Example what to do when the system fluctuates!

ERP is just a tool

Benefits
Integrate financial information Integrate customer order information Standardize and speed up manufacturing

processes Reduce inventory Standardize HR Information

Risk(Cost)
Software cost Consulting fees Process Rework Customization Integration and testing

Training
Data warehouse integration and data conversion

Flexible to the changing needs of organizations. Modular and open Comprehensive Beyond the Company

The internet Customizable interphase Wireless Technology Open Sourcing

What is Open Systems? What is Proprietary Systems? Lets Discuss the Pros and Cons

Outsourcing Vrs Insource IS Implementation: Buy or Make? Ghana: favourite grounds for outsourcing? An analysis of the Telecommunication industry of Ghana: