MBA508

Lesson - 2 Organizations, Management and the Network Enterprise

Autumn 2011
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CH1: IS in Global Business Today

What is an information system? A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization Dimensions of information systems Organizations An organization is a social group which distributes tasks for a collective goal. Management Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Technology Information Technology is one of the many tools manager use to coop with changes. ( e.g.. Software, Hardware, Data Management Technology, Networking and telecommunication technology.) Figure 1-5
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CH1: IS in Global Business Today

How information systems are transforming business and what is their relationship to globalization? Software Enterprise System Supply Chain Management System The Interdependence Between Organizations Customer Relation Management System and Information Technology Knowledge Management System Hardware Data Management System Telecommunication System Email Video Conferencing VOIP Internetwork

Figure 1-2

CH1: IS in Global Business Today

The Role of Information Systems in Business Today
Operational excellence

New products, services, and business models

Customer and supplier intimacy

Improved decision making

Competitive advantage

Survival

CH1: IS in Global Business Today

Contemporary Approaches to Information Systems
Technical approach:
Emphasizes mathematically based models, physical technology, and formal capabilities of systems

Behavioral approach:
Studies issues arising from development and maintenance of systems, such as business integration and utilization

CH2: E-Business: How Business use IS

Business Processes and Information Systems
A Business process is a logically related set of activities that define how specific business tasks are performed, and it represents a unique way in which an organization coordinates work, information and knowledge.

The Order Fulfillment Process

Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
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CH2: E-Business: How Business use IS

Types of Business Information Systems

Functional Perspective : Sales and marketing systems Manufacturing and production systems Finance and accounting systems Human resources systems

Constituency Perspective: Transaction processing systems Management information systems and decision-support systems Executive support systems

Relationship of systems to one another

Overview of an Inventory System
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CH2: E-Business: How Business use IS

Types of Business Information Systems

TPS ( Transaction Processing Systems): A TPS is a computerized systems that performs and records the daily routine transactions necessary to conduct business such as sales order entry, hotel reservations, payroll, employee record keeping and shipping DSS ( Decision Support Systems): A DSS is a computerized system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. ESS ( Executive Support Systems): A ESS help senior management make these decisions. ESS address non routine decision requiring judgment, evaluation, and insight because there is no agreed on procedure for arriving at a solution.

Interrelationships Among Systems

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CH2: E-Business: How Business use IS

Systems That Span the Enterprise

Enterprise Applications : Enterprise applications automate processes that span multiple business
functions and organizational levels and may extend outside the organization.

Four Major Type of Enterprise Application Enterprise systems: Also known as enterprise resource planning (ERP) systems solve this problem
by collecting data from various key business process in manufacturing and production, finance and accounting, Sales and marketing , human resource and storing the data in a single central data repository.

Supply chain management systems : Also known as SCM which helps businesses manage
relationships with their suppliers. SCM systems are one type of inter-organizational system because they automate the flow of information across organization boundaries.

Customer relationship management systems : Also know as CRM system which help firms
managing their relationships with their customers. This system provide information to coordinate all of the business processes that deal with customers in dales, marketing and service to optimize revenue, customer satisfaction and customer retention

Knowledge management systems: This will enable organizations to better manage processes for
capturing and applying knowledge and expertise.
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CH2: E-Business: How Business use IS

Enterprise Application Architecture

Enterprise applications automate processes that span multiple business functions and organizational levels and may extend outside the organization.
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CH2: E-Business: How Business use IS

Systems That Span the Enterprise
Supply Chain Management System

Customer orders, shipping notifications, optimized shipping plans, and other supply chain information flow among Haworths Warehouse Management System (WMS), Transportation Management System (TMS), and its back-end corporate systems. 11

What is the difference between software engineering and computer science?

Computer Science
 theory  fundamentals

Software Engineering
  the practicalities of developing delivering useful software

is concerned with

System Engineering is concerned with all aspects of computer-based

systems development including hardware, software and process engineering.

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What is a software process?

A set of activities whose goal is the development or evolution of software. Generic activities in all software processes are: Specification - what the system should do and its development constraints Development - production of the software system Validation - checking that the software is what the customer wants Evolution - changing the software in response to changing demands. CASE (Computer-Aided Software Engineering) :Software systems which are intended to provide automated support for software process activities, such as requirements analysis, system modelling, debugging and testing
Upper-CASE Tools to support the early process activities of requirements and design Lower-CASE Tools to support later activities such as programming, debugging and testing

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What are the attributes of good software?

The software should deliver the required functionality and performance to the user and should be maintainable, dependable and acceptable. Maintainability
Software must evolve to meet changing needs (scalable);

Dependability
Software must be trustworthy (reliable, secured and safe);

Efficiency
Software should not make wasteful use of system resources;

Acceptability
Software must accepted by the users for which it was designed. This means it must be understandable, usable and compatible with other systems.

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What are the key challenges facing Software Engineering?

Heterogeneity
Developing techniques for building software that can cope with heterogeneous platforms and execution environments;

Delivery
Developing techniques that lead to faster delivery of software;

Trust
Developing techniques that demonstrate that software can be trusted by its users. Reliable, Secured and Safe.

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Generic Software Process Models

A simplified representation of a software process, presented from a specific perspective Examples of process perspectives:
Workflow perspective represents inputs, outputs and dependencies Data-flow perspective represents data transformation activities Role/action perspective represents the roles/activities of the people involved in software process

Generic process models

Waterfall Evolutionary development Formal transformation Integration from reusable components

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Engineering Example
Building a house: Land and finances garden, garage, you are used to age wine, enjoy to sit by the fireplace, lots of storage, dont like Bauhaus Architect will define number of floors and rooms, orientation of the driveway, size of the garage type of bricks, color of the walls, Construction Entering Living in the house Fixing minor problems, leaking in the roof
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The Waterfall Model

System Feasibility Plans + Requirements Validation

Waterfall Weakness
High risk for new systems because of specification and design problems. Low risk for well-understood developments using familiar technology. Usually requirements change, are incomplete or even not known ( Result: Thats not what I meant ! ( go back to last step ) WF-Model reacts very statically: Each stage must be completed before next one starts

Validation

Product Design

Verification

Detailed Design

Verification

Code

Unit Test

Too expensive Doesnt force to discipline

Integration Product Verification

Integration

System Test

Operation + Maintenance

Revalidation
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Evolutionary Process Model

Concurrent activities Initial version

Specification

Outline description

Development

Intermediate versions

Validation

Final version

Process Model Weakness: Prototyping

Low risk for new applications because specification and program stay in step. High risk because of lack of process visibility.

Transformational
High risk because of need for advanced technology and staff skills.
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Spiral Process Model

Determine objectives alternatives and constraints Evaluate alternatives identify, resolve risks Risk analysis Risk analysis Risk analysis Prototype 2 Risk analysis Prototype 1 Concept of Operation Prototype 3 Operational protoype

REVIEW Requirements plan Life-cycle plan

Simulations, models, benchmarks S/W requirements

Product design

Development plan Integration and test plan

Requirement validation Design V&V

Detailed design

Code Unit test

Plan next phase

Focuses attention on reuse options. Focuses attention on early error elimination. Puts quality objectives up front. Integrates development and maintenance. Provides a framework for hardware/software development. Contractual development often specifies process model and deliverables in advance. Requires risk assessment expertise.

Integration test Acceptance test Develop, verify Service next-level product

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CH4: Ethical and Social Issues in IS

Software engineering involves wider responsibilities than simply the application of technical skills. Software engineers must behave in an honest and ethically responsible way if they are to be respected as professionals. Ethical behaviour is more than simply upholding the law. Confidentiality Engineers should normally respect the confidentiality of their employers or clients irrespective of whether or not a formal confidentiality agreement has been signed. Competence Engineers should not misrepresent their level of competence. They should not knowingly accept work which is outside their competence. Intellectual property rights Engineers should be aware of local laws governing the use of intellectual property such as patents, copyright, etc. They should be careful to ensure that the intellectual property of employers and clients is protected. Computer misuse Software engineers should not use their technical skills to misuse other peoples computers. Computer misuse ranges from relatively trivial (game playing on an employers machine, say) to extremely serious (dissemination of viruses).
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CH4: Ethical and Social Issues in IS

The professional societies in the US have cooperated to produce a code of ethical practice. Members of these organisations sign up to the code of practice when they join. The Code contains eight Principles related to the behaviour of and decisions made by professional software engineers, including practitioners, educators, managers, supervisors and policy makers, as well as trainees and students of the profession.

PUBLIC CLIENT AND EMPLOYER PRODUCT JUDGMENT MANAGEMENT PROFESSION COLLEAGUES SELF

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CH4: Ethical and Social Issues in IS

PUBLIC Software engineers shall act consistently with the public interest. CLIENT AND EMPLOYER Software engineers shall act in a manner that is in the best interests of their client and employer consistent with the public interest. PRODUCT Software engineers shall ensure that their products and related modifications meet the highest professional standards possible. JUDGMENT Software engineers shall maintain integrity and independence in their professional judgment. MANAGEMENT Software engineering managers and leaders shall subscribe to and promote an ethical approach to the management of software development and maintenance. PROFESSION Software engineers shall advance the integrity and reputation of the profession consistent with the public interest. COLLEAGUES Software engineers shall be fair to and supportive of their colleagues. SELF Software engineers shall participate in lifelong learning regarding the practice of their profession and shall promote an ethical approach to the practice of the profession.
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CH4: Ethical and Social Issues in IS

Understanding Ethical and Social Issues Related to Systems
The Relationship Between Ethical, Social, and Political Issues in an Information Society

The introduction of new information technology has a ripple effect, raising new ethical, social, and political issues that must be dealt with on the individual, social, and political levels. These issues have five moral dimensions: information rights and obligations, property rights and obligations, system quality, quality of life, and accountability and control.

Figure 4-1
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CH4: Ethical and Social Issues in IS

The Moral Dimensions of Information Systems Information rights: Privacy and freedom in the Internet Age The European directive on data protection Internet challenges to privacy Technical solutions Accountability, liability, and control Computer-related liability problems

System quality: Data quality and system errors Quality of life: Equity, access, and boundaries Balancing power: Center versus periphery Rapidity of change: Reduced response time to competition Maintaining boundaries: Family, work, and leisure Dependence and vulnerability

Property rights: Intellectual property Trade secrets Copyright Patents Challenges to intellectual property rights

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CH4: Ethical and Social Issues in IS

The Moral Dimensions of Information Systems
How Cookies Identify Web Visitors

Cookies are written by a Web site on a visitors hard drive. When the visitor returns to that Web site, the Web server requests the ID number from the cookie and uses it to access the data stored by that server on that visitor. The Web site can then use these data to display personalized information.

Figure 4-3
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CH4: Ethical and Social Issues in IS

The Moral Dimensions of Information Systems
The Spamming Problem

This figure shows the major types of products and services hawked through spam e-mail messages and the industries that receive the most spam.
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Question???

Autumn 2011

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