A – The Role of Information System
- The role of information systems in organizations
- Data and information
- Types of information systems
- Emerging trends in information systems
- IT enabled transformation
- IT and new forms of organization
- Privacy and security
B – Systems Implementation and Business Strategy
- System Implementation
- Information technology and change management
- Introducing the change
- System evaluation
- System maintenance
- System outsourcing
- Aligning systems with business strategy
1) The role of information systems in organizations
a. Recording transactions – documentation of transactions can be used as evidence in case of dispute. There may be a legal requirement to record transactions (i.e. accounting and audit purposes)
b. Decision Making – to make informed decisions
c. Planning – requires a knowledge of, available resources, possible time-scales for implementation and the likely outcome under alternative scenarios
d. Performance Measurement – comparisons against budget or plan which involves the collection of information (i.e. costs, revenues, volumes, time-scale and profitability)
e. Control - information is required to assess whether it is proceeding as expected
2) Data and information
Data – consists of raw, unprocessed facts and figures
Information – data that has been processed in a way that makes it meaningful for planning or decision making
Stages:
- Data collection
- Data evaluation
- Data analysis
- Interpretation
- Reporting
a. Internal data and information – held within the organization’s own files (APAT)
P – Personal records
A – A production data
T - Timesheets
b. External data and information (PEST)
Economic – affect an organization’s finances such as availability of loans or sales levels
Social – Society’s view may put pressure on how the organization is run, like pressure to reduce environmental pollution
Technological – allow the development of new products and services which were not previously possible
Environmental Scanning – process of gathering external information from a wide range of sources
c. The qualities of information (ACCURATE)
C – Complete, information should include everything relevant to the decision being considered. It should be consistent
C – Cost Beneficial, it should not cost more to obtain the information that the benefit derived from its use
U – User targeted, the needs of the user are paramount
R – Relevant, all significant information that is relevant o the decision being considered should be included
A – Authoritative, the source of the information should be a reliable one
T – Timely, the information should be available when it is needed and in time for required action to be effective
E – Easy to use, information should be understandable. It should be clearly presented, not excessively long, and sent using the right medium and communication channel
3) Types of information systems
a. Information systems at different organizational levels
Information system – general concept that refers to the people, data and activities, both computer-based and manual, that effectively gather, process, store and disseminate information
b. Transactions Processing System (TPS) – performs and records routine transactions. This is used for the routine task in which data items or transactions must be process so that operations can continue. This is sometimes referred as Data Processing Systems (DPS)
c. Management Information Systems (MIS) – convert data from mainly internal sources into information. This information enables managers to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible
Characteristics of MIS (RILES)
I – Internal focus
L – Little analytical capability
E – Existing operations
S – Structured Decisions
d. Executive Information systems (EIS) – pools data from internal and external sources and makes information available to senior managers in an easy-to-use form, which will help to make strategic, unstructured decisions.
e. Decision Support Systems (DSS) – combine data and analytical models or data analysis tools to support semi-structured and unstructured decision making
DSS have more analytical power than other systems, enabling them to analyze and condense large volumes of data into a form that aids managers’ decision making
f. Knowledge Work Systems (KWS) – information systems that facilitate the creation and integration of new knowledge into an organization
Knowledge Workers – people whose jobs primarily involve creating new information and knowledge.
KWS help knowledge workers create new knowledge and expertise. Examples include:
- Computer Aided Design
- Computer Aided Manufacturing
- Specialized financial software that analyses trading situations
g. Office Automation Systems (OAS) – computer systems designed to increase the productivity of data and information workers
h. Expert systems – form of DSS that allow users to benefit from expert knowledge and information.
i. Intranets and Extranets
Intranet – mini version of Internet. Organization members use networked computers to access information held on server.
Extranet – intranet that is accessible to authorized outsiders using a valid username and password.
j. Databases – collection of data organized to service many applications.
Database Management System (DBMS) – software that centralizes data and manages access to the database. It enables numerous applications to utilize the same files.
Characteristics of database system (SFC)
F – Flexibility. The database system should provide for the needs of different users
C – Controls to preserve the integrity of the database
D – Duplication. Avoidance of unnecessary duplication of data brings time and efficiency savings and reduced storage costs
W – Whole. Data is looked upon as serving the organization as a whole, not just for individual departments
A – Analyze data. The installation of a database system encourages management to analyze data, relationships between data items, and how data is used in different applications
R – Responsibility. Programmer is not responsible for the file organization
F – Flexibility. Data on file is independent of the user programs that access the data.
S – So Consistent. Because data is only held once, the possibility of departments holding conflicting on the same subject is reduced
Disadvantages of database system (uomfh)
U – Unauthorized access. There are problems of data security and data privacy. There is potential for unauthorized access to data.
O – One set of data. It is essential that the data should be accurate and free from corruption
M – Maintenance. There may be disputes over who ‘owns’ the data so has the right to decide how it is maintained
F – System Failure. Since data is held once, but its use is widespread, the impact of system failure would be greater
H – High initial development Cost. If an organization develops its own database system from scratch, initial development cost is high.
4) Emerging trends in information systems
a. Enterprise-wide systems – designed to coordinate all business functions, resources and information.
- Each business areas is provided with a system that fulfills its needs, however each module shares a common database
- Individual locations have their own specific data processing capability via a direct link to the central database (DDP)
b. Knowledge management systems – record and store the knowledge held within an organization.
- Information held on a KMS is easily accessed and shared by employees
- Primarily of benefit to knowledge based organizations, such as those involved in R&D or providing services such as legal advice
Benefits: (SPAR)
P – Valuable data is preserved
A – Duplication is avoided
R – Reduce the time they need to spend training
c. Customer relationship management systems – are software applications which specialize in providing information concerning an organization’s products, service and customers
- Based on database which stores data about customers such as their order history and personal information
d. Web 2.0 and e-commerce
Web 2.0 Applications – second generation internet based services like blogs, rss feeds, wikis and youtube. Social media like Facebook and Twitter are part of this
e-Commerce – selling goods or services over the internet
5) IT enabled transformation – information technology maybe the driving force or trigger of organizational change. Even when IT is not a significant factor in the actual change, it can play an important part in the change management process. (TUM CASE)
U – Source of unity and structure
M – Way the products are made
C – Enable change
A – Aid communication and co-ordination
S – Way in which services are provided
E – Way in which employees are mobilized
6) IT and new forms of organization
a. Virtual organizations
- Virtual teams – groups of people who aren’t based in the same office or organization but share information and task, make joint decisions and fulfill the collaborative function of a team.
- Virtual Company – collection of separate companies, each with a specific expertise, who work together, sharing their expertise to compete for bigger contracts/projects than would be possible if they worked alone
- Virtual Supply Chain – supply chain that is enabled through e-business links, for example the web and extranets
b. Advantages of virtual operations (FIL)
I – Injection of market forces into all the linkages in the value chain
L – Low investment in assets and hence less risk involved
c. Disadvantages of virtual operations (CQRV)
C – Organizations must complement each other and form close relationships if the venture is to succeed
Q – Quality may be a problem owing to a loss of control
R – Resources may also be available to rival operations
V – Customers may recognize the virtual characteristics and this might negatively affect customer perceptions of the service or product
7) Privacy and security
a. Risk
- Hackers and Eavesdroppers – attempt to gain unauthorized access to computer systems. They may attempt to damage a system or steal information.
- Viruses – small piece of software which performs unauthorized actions and which replicates itself
- Hoaxes - hoax virus warnings
- Denial of service attack – organized campaign to bombard a site with excessive volumes of traffic at a given time, with the aim of overloading the site
b. Minimizing privacy and security risk (SAD FACE)
A – Authentication
D – Dial-back security
F – Firewall
A – Anti-virus software
C - Computer
E – Encryption
B – Systems Implementation and Business Strategy
1) System Implementation (IT SFC)
I – Installation – installing a mainframe computer or a large network is a major operation that is carried out by the manufacturer/supplier
T – Testing – a system must be thoroughly tested before implementation, to prevent the system ‘going live’ with faults that might prove costly
- Strategy approach – should be formulated that details the approach that will be taken to testing
- Test Plan – states what will be tested
- Test Design – the logic and reasoning behind the design of the test should be explained
- Performing tests – detailed procedures should be provided for all tests.
- Documentation – it must be clear how the result of tests are to be documented
- Re-testing – re-test procedure should be explained
Stages of Testing
- System logic – before any programs are written, the logic devised by the systems analyst should be checked
- Program testing – processing test data through all system programs
- System Testing
• Unit Testing – means testing one function or part of a program to ensure it operates as intended
• Unit Integration Testing – involves testing two or more software units to ensure they work together as intended
- User acceptance testing – carried out by those who will use the system to determine whether the system meets their needs.
Types of test
- Realistic – involve using the system in the way it will be used in reality – actual environment, users, and types of data
- Contrived - designed to present the system with unusual events to ensure these are handled correctly, for example that invalid data is rejected
- Volume – present the system with large numbers of transactions to see how the system copes
- Acceptance – undertaken by users to ensure the system meets user need
S – Staff training – this is essential if the system is to meet its full potential. Training should be provided to all staff that will use the system.
Training methods (ACCES)
C – Classroom course – the software could be used in a classroom environment, using dummy data
C – Computer-based training (CBT) – Training can be provided using CDs, DVDs over an Internet or via an interactive website
E – Exercise and case studies – regardless of how training is delivered, it is likely that material will be based around a realistic case study relevant to the user
S – Software reference material – Users may fin on-line help, built-in tutorials and reference manuals useful
Training factors (STUFF)
T – Time available
U – User skill levels
F – Facilities available
F – Factor on budget
F – File conversion – converting existing files into format suitable for the new system
Ensure accuracy of the conversion process through various controls: (COBS)
O – One-to-one checking between records on the old and new systems
B – Built-in data validation routines in automated conversion processes
S – Sample checking – This is used if there are too many records to check individually
C – Changeover
Four Approaches to System Changeover (BOMP)
Advantage:
Cheap and convenient
Disadvantage:
Risky for system or program corrections are difficult while the system has to remain operational
Used where there is: CLOC
C – Complete confidence in the new system
L – Let the old system go
O – Objection from staff will not happen because the implementation already happened
C – Cost or convenience grounds to avoid running two systems
O – Pilot Operation – involves selecting part or parts of an organization to operate the new system in parallel with the existing system
Advantage:
Cheaper and easier to control than running the whole system in parallel
It provides a greater degree of safety than a direct changeover
P – Parallel running – the old and new systems are run in parallel for a period of time. They both process current data which enables cross checking to be made.
Advantage:
Provides a degree of safety should there be problems with the new system
Disadvantage:
If there are differences between the two systems, cross-checking may be difficult or impossible
Plan on running the system should include: (LACE)
L – Limited time on parallel running
A – Any major problems, instructions on how to report and act should be prepared
C – Cross-checking procedures should be detailed
E – Errors should be known how to deal with
P – Phased or modular changeover – involves selecting a complete section of the system for a direct changeover, eg in an accounting system the payables ledger.
2) Information technology and change management
a. How change affects individuals
Physiological – both as the natural product of development, maturation and ageing, and as the result of external factors
Circumstantial – involve letting go of things, perhaps, ‘unlearning’ old knowledge, and learning new ways of doing things
Types of change experience (Torrington and Weightman) – IAGC
C – Creativity – The individual instigates and controls the change process – Excitement
I – Imposition – Initiated and driven by someone else – Resistance
G – Growth – A response to opportunities – Delight
Reactions to proposed change (AIPA)
I – Indifference – usually where the change does not directly affect the individual; apathy, lack of interest, inaction
P – Passive resistance – refusal to learn, working to rule
A – Active resistance – deliberate spoiling, go slows deliberate errors, sabotage, absenteeism or strikes
John Hunt’s responses that may not look like resistance: SIWID
I – Pleas of ignorance
W – Withdrawal or disowning of the change
I –Display of various personal insecurities
D – Delayed judgment
b. Problems in the design stage – Insufficient user involvement when establishing requirements for the new system
Common causes of dissatisfaction CAR PUL
A – A lack of monitoring and control
R – Resourcing and timetabling are poor.
P – Poor or non-existent planning is recipe for disaster.
U – Unrealistic deadline
L – Lack of manager supervision and IS project consists of technicians only
c. Problems in the development process(PANCIT)
A – Analysis – insufficient resources; lack of consultation and user interest; insufficient time spent on planning the project
N – Needed Design – insufficient user input; lack of flexibility; failure to perform organization impact analysis
C – Conversion – insufficient time and money allocated to data conversion; rush to compensate for time overruns
I – Implementation – lack of user training increase the risk of system under-utilization and rejection; system maintenance provisions are inadequate
T – Testing – insufficient time and money allocated to testing; insufficient user involvement
d. Dealing with user resistance
Lewin/Schein: Unfreeze, Move Refreeze – learning also involves re-learning – not merely learning something new but trying to unlearn what is already known.
Unfreeze (existing behaviour) =>Move (attitudinal/behavioural change) =>Refreeze(new behavior)
Kotter and Schlesinger: Six methods of dealing with resistance to change (SAME PC)
A – Agreement and negotiation – compensating those who lose out may be appropriate in some instances
M – Manipulation and co-optation – this method involves the presentation of partial or misleading information to those resisting change or buying off the main individuals who are at the heart of the resistance
E – Explicit and implicit coercion – involves the use or threat of force to push through the change. A very last resort if parties are operating from fixed positions and are unwilling to move
P – Participation and involvement – where those affected by the change have the power to resist it, this method reduces the resistance by taking their views into account
C – Communication and education – this method is effective where the cause of the resistance is lack of information about the change.
3) Introducing the change
a. Pace, Manner and Scope
Pace – the more gradual the change, the more time is available for questions to be asked, reassurances to be given and retraining embarked upon.
Manner – the manner in which a change is put across or communicated is very important
Scope – extent of the change is important and should be reviewed.
b. Commitment, Co-ordination and Communication
Commitment – senior management must ensure adequate resources are provided to achieve change
Co-ordination – involves ensuring those involved in the process work in an efficient and effective way towards an agreed common goal. This requires planning and control.
Communication – the right people must communicate the right things at the right time and in the right way.
c. People-oriented, system-oriented, interaction
People-oriented – user-resistance is cause by factors internal to users as individuals or as a group
System-oriented – user-resistance is caused by factors inherent in the new system design, relating to ease of use and functionality
Interaction – caused by the interaction of people and the system
4) System evaluation
a. Cost-benefit review – similar to CBA but actual data can be used. This includes five headings of direct benefits, indirect benefits, development costs, implementation costs and running costs
b. Measuring system performance
Metrics – quantified measurements used to measure system performance.
c. Performance reviews – can be carried out to look at a wide range of systems functions and characteristics. (ERRORS)
R – Growth rates in file sizes and the number of transactions processed by the system.
R – Required staff of the system and whether they are more or less than anticipated
O – Output form the computer is being used for a good purpose
R – Running costs can be examined to discover any inefficient programs or processes
S – Security procedures are efficient
d. Post-implementation review establishes whether the objectives and targeted performance criteria have been met, and if not, why not and what should be done about it. (PETS)
E – Errors/queries
T – Throughput speed
S – Storage
5) System maintenance CPA
C – Corrective Maintenance – carried out when there is a systems failure of some kind for example a defect in processing or in an implementation procedure.
P – Perfective Maintenance – to perfect the software, or to improve it so that processing inefficiencies are eliminated and performances is enhanced
A – Adaptive Maintenance – to take account of anticipated changes in the processing environment
a. The causes of system maintenance
Errors
Poor Documentation
Changes in requirement
b. P
c. A
6) System outsourcing
7) Aligning systems with business strategy
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