T1
Figure 1-4 Contemporary approaches to information systems
Technical
Approaches
Computer
Science
Management
Science
Psychology
Operations
Research
MIS
Sociology
Economics
Behavioral
Approaches
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T2
Figure 1.6 Interdependence between organizations & information systems
Hardware
Business
Strategy
Software
Database
Rules
Procedures
Telecommunications
Organization
Information System
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Ostrożnie z prognozami:
„Wiek XXI będzie inny niż jego
liczne teraz przewidywania,
wysadzane klejnotami
dziwacznych pomysłów”
[Stanisław Lem w Bombie megabitowej]
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T3
Figure 1.7 The widening scope of information systems
Information
Systems
Information
Systems
Information
Systems
Technical
Changes
Managerial
Control
Institutional
Core Activities
Time
1950s
1960s
1970s
1980s
1990s
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T4
Figure 1.9 A virtual organization
Manufactoring Company
CORE
COMPANY
Sales and Marketing Company
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Logistics Company
Finance Company
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T5
Figure 1.11 Electronic commerce and electronic business in the networked enterprise
Factories
•Just-in-time production
•Continious inventory replenishment
Business partners
Remote officies and work groups
•Joint design
•Communicate plans and policies
•Outsourcing
•Group collaboration
•Electronic communication
•Production planning
•Scheduling
ELECTRONIC
ELECTRONIC
BUSINESS
COMMERCE
The Firm
Suppliers
Customers
•Built-to-order products
•Procurement
•On-line marketing
•Customer service
•Supply chain management
•On-line sales
•Sales force automation
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T6
Figure 1.12 The information architecture of the firm
Coordination
INFORMATION
ARCHITECTURE OF
THE
ORGANIZATION
Strategic
Systems
Management
Systems
Functional
Business
Applications
Knowledge
Systems
Operational
Systems
Sales and
Marketing
IT
Infrastructure
Hardware
Manufacturing
Finance
Software
Accounting
Human
Resources
Data and
Storage
Technology
Networks
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T7
Figure 2.1 Types of information systems
KIND OF INFORMATION SYSTEM
GROUPS SERVED
Strategic
Level
Senior
Managers
Management
Level
Middle
Managers
Knowledge
Level
Knowledge and
Data Workers
Operational
Managers
Operational
Level
Sales and
Marketing
Manufacturing
Finance
Accounting
Human
Resources
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T8
Figure 2.2 The six major types of information systems
TYPES OF SYSTEMS
Executive Support
Systems (ESS)
Strategic-Level Systems
5-year sales 5-year
5-year
Profit
trend
operating budget
plannig
forecasting plan
forecasting
Manpower
planning
Management Information
Systems (MIS)
Sales
managemnt
Management-Level Systems
Inventory
Annual
Capital investment Relocation
control
budgeting analysis
analysis
Decision- Support
Systems (DSS)
Sales region
analysis
Production
scheduling
Knowledge Work
Systems (KWS)
Enginneering
workstations
Office Automation
Systems (OAS)
Word
processing
Machine control
Cost
analysis
Pricing/profitability
analysis
Knowledge-Level Systems
Graphics
workstations
Contract
cost analysis
Managerial
workstations
Document
imaging
Electronic
calendars
Operational-Level Systems
Securities trading Payroll
Compensation
Transaction
Order tracking Plant scheduling
Accounts payable Training & development
Processing Systems
Order processing Material Movement Cash management Accounts receivable Emplyee record keeping
(TPS)
control
Sales and
Marketing
Manufacturing
Finance
Accounting
Human
Resources
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T8
Table 2.1 Characteristics of Information Processing Systems
Type of System
Information Inputs
Processing
Information Outputs Users
ESS
Aggregate date;
external, internal
Graphics; simulations;
interactive
Projections; responses
to queries
Senior managers
DSS
Low-volume data or
massive databases
optimized for data
analysis; analytic
models and data
analysis tools
Interactive;
simulations, analysis
Special reports;
decision analyses;
responses to queries
Professionals; staff
managers
MIS
Summary transaction
data; high-volume
data; simple models
Routine reports; simple
models; low-level
analysis
Summary and
exception reports
Middle managers
KWS
Design specifications;
knowledge base
Modeling; simulations
Models; graphics
Professionals;
technical staff
OAS
Documents; schedules
Document management; scheduling;
communication
Documents;
schedules; mail
Clerical workers
TPS
Transactions; events
Sorting; listing;
merging; updating
Detailed reports;
lists; summaries
Operations personnel;
supervisors
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Figure 2.6 How management information systems obtain their data
Transaction Processing Systems
Order
processing
systems
Order
file
Materials
resource
planning
system
Production
master file
Management Information Systems
MIS FILES
Sales
data
Unit
product
cost data
MIS
Reports
Managers
Produkt
change
data
General
ledger
system
Accountig
files
Expense
data
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T11
Figure 2.10 Interrelationships among systems
Executive
support
systems
(ESS)
Management
systems
(MIS)
Management
systems
(DSS)
Knowledge
systems
(KWS and
OAS)
Transaction
processing
systems
(TPS)
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Figure 2.13 Business-level strategy
Business-Level Strtegy
Vendors
Customers
The Business Firm
Supply Chain Management
Intra Firm Strategy
Efficient Customer Response
Stockless inventory
Product differentiation
(IT products)
Point-of-sale systems
Continuous replenishment
Just-in-time delivery
Datamining
Focused differentition
(Datamining)
Low-cost producer
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Figure 2.14 The competitive forces model
Substitute
products and
services
New market
entrants
The firm
Suppliers
Traditional
competitors
Customers
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T14
Figure 3.1 The two-way relationship between organizations and information technology
Mediating Factors
Environment
Culture
Structure
Organizations
Standard Procedures
Information
Technology
Business Processes
Politics
Management
Decisions
Chance
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T15
Figure 3.2 The technical microeconomic definition of the organization
(A)
Organization
Inputs from the
environment
Outputs to the
environment
Production process
(B)
K1
Capital
K2
Q
L1
L2
Labor
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T16
Figure 3.4 Environments and organizations have a reciprocal relationship
The Organization and Its Environment
Environmental Resources
and Constrains
The Firm
Governments
Competitors
Customers
Financial Institutions
Culture
Knowledge
Technology
Information Systems
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T17
Figure 3.9 The systems development process
EXTERNAL
INTERNAL
Institutional factors
Environmental factors
Values
Uncertainties
Norms
Opportunities
Interests
System development
Adoption
Utilization
Management
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Figure 3.13 Organisational resistance
Task
Technology
People
Structure
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T19
Figure 4.1 The Evolution of Management Theory
Technical-Rational
Reengineering
Total Quality Management
Value chain analysis
Administrative/Bureaucratic School
Scientific Management
Sensemaking
Classical
Contemporary
Postmodern
1880 1900 1920 1940
1960
1980
2000
The learning
organization
Human Relations
User acceptance
Structuration
theory
Cognitive
Knowledge-based firms
Datamining
Systems Structural
Strategic IS
Behavioral
Network organizations
Virtual organizations
Organizational knowledge
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Figure 4.3 The Knowledge-Based View of the Firm
Environment
Knowledge
Information
Chaos
Information-and-knowledge processing structures
Existing stock of explicit
organizational information +
and knowledge
Origins
Tacit information and
knowledge; Know-how
Learning
Organizational knowledge
= base: routines, structures, ACTIONS
alliances, behavior
Consequences
Utilization
THE ORGANIZATION
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Fiugre 4.4 Diffrent kinds of information systems at the various organizational levels
ORGANIZATIONAL LEVEL
TYPE OF
DECISION
Structured
Operational
Management
Strategic
Electronic
scheduling
Production
cost overruns
OAS
MIS
Accounts receivable
TPS
Semistructured
Knowledge
Budget
preparation
Project
scheduling
KWS
Unstructuredl
Product design
Key:
TPS = Transaction processing system
OAS = Office automation system
KWS = Knowledge work system
DSS
Production
facility location
ESS
New products
New markets
MIS Management information system
DSS = Decision-support system
ESS = Executive support system
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Figure 4.5 The Decision-making Process
Is there a problem?
What are the alternatives?
Which should you choose?
Is the choice working?
Intelligence
Design
Choice
Implementation
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Tabele 4.3 Models of Organizational Decision Making
Name
Basic Concept
Inference Pattern
Rational actor
Comprehensive
rationality
Organizations select goals, examine all alternatives and consequences, and then
choose a policy that maximizes the goal or preference function.
Bureacratic
Organizational output Goals are determined by resource constrains and existing human and capital
resources; SOPs are combined into programs, and programs into repertoires;
Standard operating
these determine what policies will be chosen. The primary purpose of the
procedures
organization is to survive; uncertainty reduction is the principal goal. Policies
are chosen that are incrementally different from the past
Political
Political outcome
Organizational decisions result from political competition; key players are
involved in a game of influence, bargaining, and power. Organizational outcomes
are determined by the beliefs and goals of players, their skills in playing the
games, the resources they bring to bear, and the limits on their attention and
power.
Garbage can
Nonadaptative
organizational
program
Most organizations are nonadaptative, temprary, and disappear over time.
Organizational decizions result from interactions among streams of problems,
potential actions, participants, and chance.
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Figure 5.1 The relationship between ethical, social, and political issues in an information society
Information
Rights and
Obligations
Political Issues
Property Rights
and Obligations
Social Issues
Ethical Issues
Accountability
and Control
Information
Technology
and Systems
System Quality
Indyvidual
Society
Polity
Quality of Life
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Table 5.2 Federal privacy laws in the United States
1. General Federal Privacy Laws
Freedom of Information act, 1968 as Amended (5 USC 552)
Privacy Act of 1974 as Amended (5 USC 552a)
Electronic Communications Privacy Act of 1986
Computer Matching and Privacy Protection Act of 1988
Computer Security Act of 1987
Federal Managers Financial Integrity Act of 1982
2. Privacy Laws Affecting Private Institutions
Fair Credit Reporting Act of 1970
Family Educational Rights and Privacy Act of 1978
Right to Financial Privacy Act of 1978
Privacy Protection Act of 1980
Cable Communications Policy Act of 1984
Electronic Communications Privacy Act of 1986
Video Privacy Protection Act of 1988
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LOGO
T26
Figure 5.2 Who owns the pieces?
Artists, design firm,
or Web site publisher
TEXTUAL CONTENT
Writer or newspaper
publisher
ARTICLE EXCERPT
BUSINESS
Writer or newspaper
publisher
Stock exchanges,
write service, or
database publischer
COLUMN
PHOTOGRAPH
Writer, syndication
service, or newspaper
publisher
Freelance photographer,
wire service, photo
agency, photo library, or
newspaper publisher
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Table 5.4 Internet crime and abuse
Problem
Description
Hacking
Hackers exploit weaknesses in Web site security to obtain access to proprietary data such as
customer information and passwords. They may use „Trojan horses” posing as legitimate
software to obtain information from the host computer.
Jamming
Jammers use software routines to tie up the computer hosting a Web site so that legitimate
visitors can’t access the site.
Malicious software
Cyber vandals use data flowing through the Internet to transmit computer viruses, which can
disable computers that they „infect” (see Chapter 16)
Sniffing
Sniffing is a form of electronic eavesdropping by placing a piece of software to intercept
information passing from a user to the computer hosting a Web site. This information can
include credit card numbers and other confidental data.
Spoofing
Spoofers fraudulently misrepresent themselves as other organizations, setting up false Web sites
where they can collect confidential information from unsuspecting visitors to the site
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Figure 6.1 Hardware components of a computer system
Central Procesing Unit (CPU)
•Arithmetic-Logic Unit
•Control Unit
Input Devices
Secondary Storage
•Keyboard
•Magnetic disk
•Computer mouse
•Optical disk
•Touch screen
•Magnetic tape
•Source data automation
Buses
Output Devices
Communication
Devices
•Printers
•Video Display terminals
•Plotters
•Audio output
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Table 6.1 Examples of ASCII and EBCDIC Codes
Character or Number
ASCII-8 Binary
EBCDIC Binary
A
01000001
11000001
E
01000101
11000101
Z
01011010
11101001
0
00110000
11110000
1
00110001
11110001
5
00110101
11110101
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Table 6.2 Time and Size in the Computer World
Time
Milisecond
1/1000 second
Microsecond
1/1,000,000 second
Nanosecond
1/1,000,000,000 second
Picosecond
1/1,000,000,000,000 second
Storage Capacity
Byte
String of eight bits
Kilobyte
1000 bytesa
Megabyte
1,000,000 bytes
Gigabyte
1,000,000,000 bytes
Terabyte
1,000,000,000,000 bytes
a Actually
1024 storage positions
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T31
Figure 6.4 The CPU and primary storage
Central Processing Unit (CPU)
Primary Storage
Arithmetic-Logic Unit
1
8
22 + 11 = 33
T
9 < 10
#
U
4
Control Unit
Primary
storage
address
Data Bus
Address Bus
Control Bus
Input
Devices
Output
Devices
Secondary
Storage
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Figure 6.9 Types of client/server computing
SERVER
Data
Data
Data
Logic
Logic
Logic
Data
Data
Interface
Data
Interface
Interface
Logic
Logic
Logic
Interface
Interface
Interface
CLIENT
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Figure 6.10 Disk pack storage
11 disks
20 recording surfaces
3500 RPMs
Read/write heads
”fly” over disk
surfaces
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T34
Figure 7.1 The major types of software
SYSTEM SOFTWARE
Operating System
Schedules computer events
Application software
System software
Allocates computer resources
Monitors events
Language Translators
Hardware
Compilers
APPLICATION SOFTWARE
Programming languages
Assembly language
FORTRAN
Interpreters
Utility Programs
Users
Routine operations (e.g., sort, list, print)
Manage data (e.g., create files, merge files)
COBOL
BASIC
PASCAL
C
4th-generation” languages and PC software tools
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Figure 7.2 Single-program execution versus multiprogramming
Traditional system with
no multiprogramming
Multiprogramming
environment
Program 1
Operating
system
Program 1
Operating
system
Program 2
Program 3
Unused memory
Unused memory
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Figure 7.4 The language translation process
Other object
code modules
Source
code
program
Compiler
Object
code
Linkage
editor
Load
module
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Figure 7.9 Fourth-generation languages
Oriented toward end users
PC
tools
Lotus 1-2-3
WordPerfect
Internet Explorer
Access
Oriented toward IS professionals
Query
languages/
report
generators
Graphic
languages
Application
generators
Application
software
packages
Very high-level
programming
languages
SQL
RPG-III
Systat
FOCUS
AVP Sales/Use Tax
APL
SAS Graph
Natural
People Soft HRMS
Nomad2
Power Builder
SAP R/3
Microsoft FrontPage
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Figure 7.13 Class, subclasses, inheritance, and overriding
Nonsalaried
Name ID
Hourly rate
Pay
Employee
(Class)
Name ID
(Class variables)
Pay
(Methods)
(subclass of Employee)
Temporary (subclass of Nonsalaried)
Name ID
Hours
Pay - OVERRIDE
Salaried (subclass of Employee)
Name ID
Base pay
Pay - OVERRIDE
Permanent (subclass of Nonsalaried)
Name ID
Hours Overtime
Pay - OVERRIDE
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T39
Figure 8.1 The data hierarchy
Example
Student Database
Hierarchy
Course File
Database
Financial File
Personal History File
File
NAME
Course File
COURSE
DATE
GRADE
John Stewart
Karen Taylor
Emily Vincent
IS 101
IS 101
IS 101
B+
A
C
NAME
Record
COURSE
John Stewart IS 101
F99
F99
F99
DATE
GRADE
F99
B+
Field
John Stewart (Name field)
Byte
01001010 (Letter J in ASCII)
Bit
0
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Figure 8.5 Traditional file processing
Master file
Data elements
A to Z
Derivative files
Users
Application
program 1
A
B
C
D
Application
program 2
A
B
D
E
Application
program 3
A
B
E
G
Application
program 4
A
E
F
G
ACCOUNTING
Users
FINANCE
Users
SALES AND
MARKETING
Users
MANUFACTURING
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Figure 8.6 The contemporary data environment
INTEGRATED HUMAN
RESOURCES DATABASE
Employees
Name
Personnel
application
programs
Address
Social security number
Personnel
department
Position
Marital status
Payroll
Hours worked
Pay rate
Gross pay
Database
management
system
Payroll
application
programs
Payroll
department
Fed tax
State tax
Net pay
Benefits
Life insurance
Benefits
application
programs
Benefits
department
Pension plan
Health care plan
Retirement benefit
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Figure 8.10 A hierarchcal database for a human resources system
ROOT
Employee
FIRST
CHILD
SECOND
CHILD
Compensation
Performance
Ratings
Salary
History
Job
Assignments
Pension
Benefits
Life
insurance
Health
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Figure 8.11 The network data model
Course 1
Student 1
Student 2
Course 2
Student 3
Course 3
Student 4
Student 5
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Figure 8.12 The relational data model
Table
(Relation)
ORDER
PART
SUPPLIER
Columns (Field)
ORDERNUMBER
1634
1635
1636
ORDERDATE
02/02/99
02/12/99
02/13/99
PARTNUMBER
137
145
152
PARTDESCRIPTION
Door latch
Door handle
Compressor
SUPPLIERNUMBER
1125
2038
4058
DELIVERYDATE
02/22/99
02/29/99
03/01/99
SUPPLIERNAME
CBM inc.
Ace Inc.
Bryant Corp.
UNITPRICE
26.25
22.50
70.00
PARTNUMBER
152
137
145
PARTAMOUNT
2
3
1
ORDERTOTAL
144.50
79.70
24.30
Rows
(Records,
Tuples)
SUPPLIERNUMBER
4058
2038
1125
SUPPLIER- ADDRESS
44 Winslow, Gary IN 44950
Rte. 101, Essex NJ 07763
51 Elm, Rochester NY 11349
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Figure 9.1 Components of a telecommunications system
Communications
channels
Minicomputer
Host
computer
Terminals
Front-end
processor
Multiplexer
Modems
Remote
Installation
Modem
Multiplexer
Terminals
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Radio Wave
105
T46
Figure 9.3 Frequency ranges for communications media devices
Microwave
InfraVisible
Ultra- X-Ray
red
Light
violet
108
1010
1012 1013
1014 1015
Gamma and
Cosmic
1016 1017 1018 1019 1020
1022
UHFTV
AM
Radio
Cellular
phones
ShortWave
Radio
RAM
Mobile
Data
FM
Radio Cordless
and
Phones
VHF-TV
Paging
Radar
Microwave
Satellite
Remote
Controls
Wireless
Fiber
Optics
PCS
Industrial
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Terminal 1
T47
Figure 9.5 A star network topology
Computer 1
Computer 2
Computer 3
Host CPU
Terminal 2
Terminal 3
Printer
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Figure 9.6 A bus network topology
Computer 1
Computer 2
Computer 3
Terminal
Printer
Computer 4
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Figure 9.7 A ring network topolgy
Computer 1
Computer 2
Computer 5
Computer 3
Printer
Hard disk drive
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Figure 9.12 Electronic data interchange
SELLER
CUSTOMER
Purchase orders
Payments
Computer
Shipping notices
Computer
Price updates
Invoices
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Table 10.1 Major internet capabilities
Capability
Functions Supported
E-mail
Perso-to-person messaging; document sharing
Usenet newsgroups
Discussion groups on electronic bulletin boards
LISTSERVs
Discussion groups using e-mail mailing list servers
Chatting
Interactive conversations
Telnet
Log on to one computer system and do work on another
FTP
Transfer files from computer to computer
Gophers
Locate information using a hierarchy of menus
World Wide Web
Retrieve, format, and display information (including text, audio,
graphics, and video) using hypertext links
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Figure 10.5 Model of an extranet
Customer
Databases
Client
Customer
Client
Internet
Supplier
Firewall
Server
Client
Client
Business
partner
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Table 10.3 Internet business models
Category
Description
Examples
Virtual Storefront
Sells physical goods or services on-line instead of through a physical storefront or retail outlet
Delivery of nondigital goods and services takes place through traditional means
Amazon.com
Network Bank
Marketplace Concentrator
Concentrates information about products and services from multiple providers at one central
point. Purchasers can search, comparisonshop, and sometimes complete the sales transaction
Internet Mall
InsureMarket
Information Brokers
Provide product, pricing, and availability information. Some facilitate transactions, but their main
value is the information they provide.
Travelocity
Auto-by-Tel
Transaction Brokers
Buyers can view rates and terms, but the primary business activity is to complete the transaction
E*Trade
Electronic Clearinghouses
Provide auction-like settings for products where price and availability are costantly changing,
sometimes in response to customer actions
Bid.com
OnSale
Reverse Auction
Consumers submit a bid to multiple sellers to buy goods or services at a buyer-specified price
Priceline.com
Digital Product Delivery
Sells and delivers software, multimedia, and other digital products over the internet
PhotoDisc
Content Provider
Creates revenue by providing content. The customer may pay to access the content, or revenue
may be generated by selling advertising space or by having advertisers [pay for placement in an
organized listing in a searchable database.
Wall Street Journal
Interactive
On-line Service Provider
Provides service and support for hardware and software users.
Cyber Media
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Figure 10.6 The benefits of disintermediation to the customer
Cost/
Sweater
Manufacturer
Manufacturer
Manufacturer
Distributor
Retailer
Customer
$48.50
Retailer
Customer
$40.34
Customer
$20.45
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Figure 10.9 Intranet linking supply chain functions
Maketing
and sales
Production
planning
Procurement
Customer
service
Intranet
Accounting
and finance
Inventory
Customers
Shipping and
distribution
Production and
manufacturing
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Table 11.1 Information systems plan
1.
Purpose of the Plan
4.
Overview of plan cntents
New system projects
Changes in firm’s current situation
Progress reports
Business rationale
Current business organization
Implementation plan
Anticipated difficulties in
implementatinon
Project descriptions
Firm’s strategic plan
New capabilities required
Management strategy
2.
6.
New Developments
Hardware
7.
Strategic Business Plan
Software
Current situation
Database
Requirements
Current business organization
Telecommunications
Potential savings
Changing environments
Major goals of the business plan
Budget Requirements
Financing
5.
Management strategy
Acquisition cycle
Aquisition plans
3.
Current systems
Milestones and timing
Major systems supporting business functions
Organizational realignment
Major current capabilities
Internal reorganization
Hardware
Management controls
Software
Major training initiatives
Database
Personnel strategy
Telecommunications
Dificulties meeting business requirements
Anticipated future demands
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Figure 11.2 Using CSFs to develop systems
Manager A
CSFs
Manager B
CSFs
Manager C
CSFs
Manager D
CSFs
Aggregate + analyze
indyvidual CSFs
Develop agreement
on company CSFs
Define company
CSFs
Define DSS
and
databases
Color Transparencies
Use CSFs
to develop
information
systems
priorities
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Figure 11.3 Organizational change carries risks and rewards
Paradigm Shifts
High
Reengineering
Risk
Rationalization
Low
Automation
Low
High
Return
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Table 11.5 New process design options with information technology
Assumption
Technology
Option
Examples
Field personnel need offices Wireless communication
to receive, store and transmit
information
Personnel can send and receive Manitoba Insurance
information wherever they are. Price Waterhouse
Information can appear only
in one place at one time
People can collaborate on the U.S. West
same project from scattered
Banc One
locations; information can be
used simultaneously wherever
it is needed
Shared databases
People are needed to ascertain Automatic identification
where things are located
and tracking technology
Things can tell people where
they are
Businesses need reserve
Communications networks Just-in-time delivery and
inventory to prevent stockouts and EDI
stockless supply
United Parcel Service
Schneider National
Wal-Mart
Baxter International
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Figure 11.5 The system developmeny process
System
Analysis
Organization
System
design
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Figure 12.1 The lifecycle methodology for system development
STAGES
END PRODUCTS
Project
definition
Project proposal report
System
study
System proposal report
Design specifications
Design
Programming
Program specifications - code
Installation
System performance tests
Postimplementation
Post-implementation audit
OPERATIONS
Milestone 1
Project
initiation
Milestone 2
Design solutin
decision
Milestone 3
Design
specification
sign-off
Year 1
Milestone 4
Produstion
decision
Year 2
3-8 Year Life Span
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Figure 12.2 The prototyping process
Identify basic requirements
Step 1
Develop a working prototype
Step 2
Use the prototype
YES
Step 3
User satisfied?
NO
Operational prototype
Revise and enhance the
prototype
Step 4
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Figure 12.7 High-level structure chart for a payroll system
Payroll
process
Get valid
inputs
Get
inputs
Calculate
pay
Validate
inputs
Calculate
gross pay
Calculate
net pay
Write
outputs
Update
master
file
Write checks,
reports, and
output files
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Figure 12.8 Basic control constructs
A
Sequence
Action A
Action B
B
F
Selection
T
R
IF condition R
Action C
ELSE
Action D
ENDIF
C
D
Iteration
DO WHILE Condition S
Action E
ENDDO
E
S
T
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Figure 12.10 System flowchart for a payroll system
Time cards
Human
resources
data
Payroll
master
file
Load and
validate
Valid
transactions
Payroll
master
file
Compute
and update
Payroll
reports and
checks
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Direct
deposit
tape
General
ledger file
Updated
payroll
master
file
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Figure 13.1 Information system problem areas
Design
Operations
Information
system
Data
Cost
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Figure 13.3 Approaches and implementation stages in the implementation literature
APPROACHES
Actors’
roles
Strategy
Organizational
factors
IMPLEMENTATION STAGES
Adoption
Management
XXXX
XXXX
Routinization
XXXX
XXXX
XXXX
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Table 13.1 Actions and indications for succesful system
Support by local funds
New organizational arrangements
Stable supply and maintenance
New personnel classifications
Changes in organizational authority
Internalization of the training program
Continual updating of the system
Promotion of key personnel
Survival of the system after turnover of its originators
Attainment of widespread use
Source: Yin (1981)
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Figure 13.5 Factors in information system success or failure
User involvement
and influence
Management
support
Level of
complexity/risk
IMPLEMENTATION
OUTCOME
Design
Cost
Operations
Data
Management of
implementation
process
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Table 13.4 Strategies to manage projects by controlling risk
Project
Structure
1. High
Project
Technology Level
Low
2. High
Low
3. High
Project Size
Degree of Risk
Large
Low
Small
Very Low
High
Large
Medium
4. High
5. Low
High
Low
Small
Large
Medium Low
Low
6. Low
Low
Small
Very Low
7. Low
High
Large
Very High
8. Low
High
Small
High
Project Management Tool
High use of formal planning
High use of formal control
High use of formal control
Medium use of formal planning
Medium use of formal control
Medium use of formal planning
High internal integration
High external integration
High use of formal planning
High use of formal control
High external integration
High use of formal control
High external integration
High internal integration
High external integration
High internal integration
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Figur 14.1 A number of contemporary information systems are designed to give close-in support to info workers
Share
Knowledge
Group
Collaboration
Systems
Office Automation
Systems
•Groupware
•Desktop Publishing
•Intranets
•Imaging and Web
Publishing
Distribute
Knowledge
•Word Processing
•Electronic Calendaars
•Desktop Databases
Artificial Intelligence
Systems
•Expert Systems
•Neural Nets
•Fuzzy Logic
•Genetic Algorithms
Knowledge Work
Systems
•CAD
•Virtual Reality
•Investment
Workstations
•Intelligent Agents
Capture and Codify
Knowledge
Create
Knowledge
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Figure 14.3 Web publishing and document management
Text indexing
and searching
Author
Web
Page
Edit
and
Review
Web
Server
E-mail links
Links to other
Web pages
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Figure 14.5 The arificial intelligence family
Artificial
Intelligence
Natural
Language
Robotics
Perceptive
Systems
Expert
Systems
”Intelligent”
Machines
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Figure 14.9 How case-based reasoning works
1.
User describes
the problem
2.
System searches database for
similar cases
3.
System asks user additional
questions to narrow the search
4.
System finds closest fit and
retrieves solution
5.
System modifies the solution to
better fit the problem
NO
Successful?
Case
database
6.
System stores problem and
successful solution in the database
YES
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Table 14.4 Examples of intelligent agents for electronic commerce
Agent Product
Firefly
Description
Helps users find music or films of interest. Users send critiques of movies and
music to the Firefly Web site. When they want to select a new movie to see or a
CD to buy, they supply data on their personal favourites, and Firefly will
produce a list of similar items based on the critiques. The service is being
extended to books, restaurants, and mutual funds.
BargainFinder and BargainFinder does real-time comparison shopping among on-line participaLifestyleFinder
ting CD music stores and returns the names of vendors that offer the lowest
price. LifestyleFinder recommends Web sites to users based on information
they provide about their lifestyles
Jango
Automatically consults Web sites and prepares reports to users on prices and
other features of products such as books, clothing, wine and PCs
Smart NewsReader Windows application that provides access to Usenet newsgroups based on
interests specified by the user. It can read through an article and score each
thread of conversation based on the user’s past interests
AuctionBot
Allows sellers to set up their own auctions where buyers and sellers can
place bids according to the protocols and parameters that have been
established for the auction
Vendor
Agents Inc.
Andersen
Consulting
Excite
Intel
University of
Michigan
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figure 15.1 Overview of a decision support system (DSS)
External
Data
TPS
DSS
Database
DSS Software System,
Models, OLAP Tools,
Datamining Tools
User
Interface
User
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Table 15.1 Examples of decision support systems
Organization
DSS Aplication
American Airlines
Price and route selection
Equico Capital Corporation
Investment evaluation
General Accident Insurance
Customer buying patterns and fraud detection
Bank of America
Customer profiles
Frito-Lay, Inc.
Price, advertising, and promotion selection
Burlington Coat Factory
Store location and inventory mix
National Gypsum
Corporate planning and forecasting
Southern Railway
Train dispatching and routing
Texas Oil and Gas Corporation
Evaluation of potential drilling sites
United Airlines
Flight scheduling
U. S. Department of Defence
Defense contract analysis
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CDSS
T78
Figure 15.3 Customer decision support on the internet
Models
Data
Models
Newsgroups
Information
brokers
Serch engines
and directories
Models
Other customers
Customers
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Figure 15.6 Group systems tools
Brainstorming
Idea generation
Topic Commenter
Group Outliner
Session
manager
Idea Organizer
Idea Organization
Issue Analyzer
Group Writer
Vote selection
Session
Planning
Prioritizing
Alternative Eval.
Questionnaire
Group Matrix
Policy development
Policy Formation
Stakeholder Id.
Enterprise Analyzer
Graphical Browser
Group Dictionary
Brief Case
•Access to information
Organizational Memory
•Personal productivity
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Figure 16.1 Telecommunications network vulnerabilities
Radiation
TAPS
Radiation Crosstalk Radiation
TAPS
Crosstalk
Switching
center
Remote
consoles
User, Identification,
Authentication, Subtle
software
modifications
Access,
Attachment of
records, Bugs
Radiation
Radiation
Communication
lines
Processor
Files Thef
Copying
Unauthorized
access
Hardware, Imroper
connections
Systems programmer,
Disable protective
features, Reveal
protective measures
Operator, Replace
supervisor, Reveal
protective measures
Maintenance staff,
Disable hardware
devices, Use standalone utility programs
Hardware, Failure of
protection circuits,
Contribute to software
failures
Software, Failure of
protection features,
Access control,
Bounds control
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Table 16.2 Common computer viruses
Virus Name
Description
Concept
Macro virus that attaches itself to Microsoft Word documents and can be
spread when Word documents are attached to e-mail. Can copy itself from one
document to another and delete files
Form
Makes a clicking sound with each keystroke but only on the eighteenth day of
the month. May corrupt data on the floppy disks it infects
One_Half
Encrypts the hard disk so that only the virus can read the data there, flashing
„One_Half” on the computer screen when its activity is half-completed. Very
descructive because it can mutate, making it difficult to identify and eliminate.
Monkey
Makes the hard disk look like it has failed because Windows will not run
Junkie
A „multipartite” virus that can infect files as well as the boot sector of the hard
drive (the section of a PC hard drive that the PC first reads when it boots up),
May cause memory conflicts
Ripper (or Jack the Ripper)
Corrupts data written to a PC’s hard disk about one time in every thousand
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Figure 16.2 Points in the processing cycle where errors can occur
Data
preparation
Transmission
Conversion
Form
completion
On-line
data entry
Keypunching,
Optical scanning,
Other input
Validation
Processing/ file
maintenance
Output
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Figure 16.3 The cost of errors over the system development cycle
Estimate of the relative cost of repairing errors based on consultant reports and the popular trade literature
6
5
Costs
4
3
2
1
Analysis and
design
Programming
Conversion
Postimplementation
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Table 16.3 Effect of weakness in general controls
Weakness
Impact
Implementation controls
New systems or systems that have been modified will have errors or fail to
function as required
Software controls (program
security)
Unauthorized changes can be made in processing. The organization may not
be sure of which programs or systems have been changed
Software controls (system
software)
These controls may not have a direct effect on individual applications. Other
general controls depend heavily on system software, so a weakness in this area
impairs the other general controls
Physical hardware controls
Hardware may have serious malfunctions or may break down altogether,
introducing numerous errors or destroying computerized records
Computer operations control Random errors may occur in a system. (Most processing will be correct,
but occasionally it may not be.)
Data file security controls
Administrative controls
Unauthorized changes can be made in data stored in computer systems or
unauthorized individuals can access sensitive information
All of the other controls may not be properly executed or enforced
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Table 16.4 Important edit techniques
Edit Technique
Description
Example
Reasonableness checks
To be accepted, data must fall within
certain limits set in advance, or they
will be rejected
Characteristics of the contents (letter/
digit), length, and sign of individual
data fields are checked by the system
The computer compares input
reference data to tables or master files
to make sure that valid codes are being
used
If an order transaction is for 20,000 units
and the largest order on record was 50
units, the transaction will be rejected
A nine-position Social Security number
should not contain any alphabetic
characters
An employee can have a Fair Labor
Standards Act code of only 1, 2, 3, 4, or
5. All other values for this field will be
rejected
The computer checks whether a logical
relationship is maintained between data
for the same transaction. When it is not,
the transaction is rejected
A car loan initiation transaction should
show a logical relationship between the
size of the loan, the number of loan
repayments, and the size of each
installment
Format checks
Existence checks
Dependency checks
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Figure 17.1 International information systems infrastructure
Global Environment: Business
Drivers and Challenges
Corporate Global Strategies
Organization Structure
Management and Business
Procedures
Technology Platform
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Table 17.1 The global business drivers
General Cultural Factors
Global communication and transportation technologies
Development of global culture
Emergence of global social norms
Political stability
Global knowledge base
Specific Business Factors
Global markets
Global production and operations
Global coordination
Global workforce
Global economies of scale
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Table 17.2 Challenges and obstacles to global business systems
General
Cultural particularism: regionalism, nationalism
Social expectations: brand-name expectations; work hours
Political lows: transborder data and privacy laws
Specific
Standards: different EDI, e-mail, telecommunications standards
Reliability: phone networks not reliable
Speed: data transfer speeds differ, slower than United States
Personnel: shortages of skilled consultants
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Table 17.3 Global business strategy and stucture
Strategy
Business Function
Domestic Exporter
Multinational
Franchiser
Transnational
Production
Centralized
Dispersed
Coordinated
Coordinated
Finance/Accounting
Centralized
Centralized
Centralized
Coordinated
Sales/Marketing
Mixed
Dispersed
Coordinated
Coordinated
Human Resources
Centralized
Centralized
Coordinated
Coordinated
Strategic Management
Centralized
Centralized
Centralized
Coordinated
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Figure 17.2 Global strategy and system configurations
STRATEGY
SYSTEM
CONFIGURATION
Domestic Exporter
Centralized
Multinational
Networked
Transnational
X
X
Duplicated
Decentralized
Franchiser
X
X
X
X
X
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Figure 17.3 Agency and other coordination costs increase
Local
Business
Processes
Global
Global
Core
Core
Business
Processes Systems
Regional
Business
Processes
Local
Option
Systems
Regional
Coordinated
Systems
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Figure 18.1 Traditional view systems
Vendors
Vendors
Inbound
logistics
Business
processes
Inbound
logistics
Manufacturing
Business
processes
Manufacturing
Finance
Business
processes
Finance
Marketing
and sales
Business
processes
Marketing
and sales
Support
Business
processes
Support
Organizational Boundaries
Vendors
Organizational Boundaries
Business Value Chain
Customers
Customers
Customers
Business Systems
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Figure 18.2 Enterprise view of systems
Business Value Chain
Vendors
Vendors
Vendors
Inbound
logistics
Manufacturing
Finance
Marketing
and sales
Customers
Support
Customers
Customers
Business
processes
Business
processes
Business
processes
Inbound
logistics
Business
processes
Business
processes
Manufacturing Finance
Marketing
and sales
Support
Enterprise Business Systems
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Table 18.1 Basic concepts of enterprise computing
Concept
Measure
Key Questions
IT investment portfolio Benchmark competitors’
expenditures
Are we spending too much, or too
little on IT? Are we receiving a good
return on investment?
IT infrastructure
Lists of technical
capabilities
Do we have the technical capablity to
achieve our strategic objectives?
Business logic
Descriptions business
model and processes
How do we plan to make money and
what business activities and processes
should we emphasize
IT architecture
Descriptions of systems
that support business
model and processes
Do we have the right systems
environment and applications to
implement the business logic?
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Figure 18.3 Enterprise computing concepts
Business
Unit A
VENDORS
CUSTOMERS
The enterprise
Enterprise-Wide Business Processes
Firm
Information
Archtecture
Enterprise-wide systems and
applications
Business Unit C
Business Unit A
Business Unit B
Business processes
Business processes
Business processes
Systems applications
Systems applications
Systems applications
Firm infrastucture
Hardware Software envirmonment Shared applications Telecommunications
Firm IT
Infrastructure
Public infrastucture
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Figure 18.4 Industrial networks
Application Superstructure
Customer
Customer
Customer
Industrial
Networks
Extrnet
ES
ES
ES
Individuals Companies
and Enterprise Systems
ES
Inbound
Logistics
Intranet
Internet
Outbound
Logistics
Customer
Service
Value Chain
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Table 18.2 Business drivers of Enterprisesystems: changing environments
Business Driver
Impact
Market change
Globaliztion and increasing information intesity reduce margins in traditional
industries
Industry change
Mergers, acquisitions, and consolidations in traditional industries increase scale
economies and intensify industry competition
Firm-level change
Business process redesign efforts of the 1990s in traditional industries force
jettsoning legacy systems and highlight the need for enterprise-wide systems to
support the newly defined business processes
Product changes
The growth of information, knowledge, and high-tech-based products shortens
product cycle times; increasing information intensity of traditional products and
services shortens cycle times
Management process
thinking
From discrete business process focus toward a view of the firm as an integrated set
of processes; from neoclassical competition firm- based views of cooperation and
alliance
Management strategy
Growing belief that information architecture investments could lead to unique
knowledge that could not be purchased on input factor markets
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Table 18.3 Technological drivers of enterprise systems and industrial networks
Technology Driver
Nature of change
Relational database technology Relational technology approaches hierarchical database speeds but with greatly
enhanced flexibility
Reductions in storage costs
Storage devices double in capacity every six months
Expanded public network
infrastructure
Open Internet networking technologies cause network costs to plunge; digital
communication costs drop by a factor of 1000X in the 1990s; public switched
network and dedicated Internet trunk lines displace proprietary networks and
make transcompany information transfers commonplace; development of
common protocols-XML, HTTP, TCP/IP
Deployment of client/server
Client/server becomes the dominant mode of computing causing major drops in
information storage, processing, and distribution costs in the 1990s
Evolution of desktop
computing
Desktop computing becomes the dominant mode of information distribution and
60% of the labor force comes on-line at work, gratly increasing the role of
information in the firm
Enterprise software emerges with standardized applications in an integrated
environment that greatly reduces the costs of enterprise systems
Enterprise software
and crossware
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Figure 18.5 An ideal model for planning enterprise systems
Firm strategy and governence
Business model
Business processes
Firm information archtecture
Firm IT infrastructure
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Figure 18.8 The infrastructure governance model
Strategic group
Operational group
Business units/Regions
Legacy infrastructure
TPS
Functional groups/Process owners
Business model
Databases
Telecommunications
New architecture
Enterprise platform
Internet/intranet/extranets
Business processes
Wireless communications
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