Syifa Raihana (1401160198) MB-40-INT-3 Assignment MIS


1. Businesses today use information systems to achieve six major objectives including operational excellence. Mention and give example the other five major objectives!

  1. Operational excellence

• Improvement of efficiency to attain higher profitability

• Information systems, technology an important tool in achieving greater efficiency and productivity

• Walmart’s Retail Link system links suppliers to stores for superior replenishment system

– Example: Where customers value cost over choice, which is often the case for mature, commoditized markets where cost leadership provides a vehicle for continued growth. Leaders in the area of operational excellence are strongly centralized, with strong organizational discipline and a standardized, rule-based operation.

  1. New product, service, and business models

• Business model: describes how company produces, delivers, and sells product or service to create wealth

• Information systems and technology a major enabling tool for new products, services, business models

Examples: Apple’s iPad, Google’s Android OS, and Netflix

  1. Customer and supplier intimacy

• Serving customers well leads to customers returning, which raises revenues and profits.

– Example: High-end hotels that use computers to track customer preferences and used to monitor and customize environment

• Intimacy with suppliers allows them to provide vital inputs, which lowers costs.

– Example: JCPenney’s information system which links sales records to contract manufacturer

  1. Improved decision making

– Example: Verizon’s Web-based digital dashboard to provide managers with real-time data on customer complaints, network performance, line outages, and so on

  1. Competitive advantage

• Delivering better performance

• Charging less for superior products

• Responding to customers and suppliers in real time

– Examples: Apple, Walmart, UPS

  1. Survival

• Information technologies as necessity of business

• Industry-level changes

– Example: Citibank’s introduction of ATMs

• Governmental regulations requiring record-keeping

– Examples: Toxic Substances Control Act, Sarbanes-Oxley Act

2. Describe the characteristics of Decision Support System and Management Information System!

DSS:

Facilitation. DSS facilitate and support specific decision-making activities and/or decision processes.

Interaction. DSS are computer-based systems designed for interactive use by decision makers or staff users who control the sequence of interaction and the operations performed.

Ancillary. DSS can support decision makers at any level in an organization. They are NOT intended to replace decision makers.

Repeated Use. DSS are intended for repeated use. A specific DSS may be used routinely or used as needed for ad hoc decision support tasks.

Task-oriented. DSS provide specific capabilities that support one or more tasks related to decision-making, including: intelligence and data analysis; identification and design of alternatives; choice among alternatives; and decision implementation.

Identifiable. DSS may be independent systems that collect or replicate data from other information systems OR subsystems of a larger, more integrated information system.

Decision Impact. DSS are intended to improve the accuracy, timeliness, quality and overall effectiveness of a specific decision or a set of related decisions.

MIS:

Understandable:

Since information is already in a summarized form, it must be understood by the receiver so that he will interpret it correctly. He must be able to decode any abbreviations, shorthand notations or any other acronyms contained in the information.

Relevant:

Information is good only if it is relevant. This means that it should be pertinent and meaningful to the decision maker and should be in his area of responsibility.

Complete:

It should contain all the facts that are necessary for the decision maker to satisfactorily solve the problem at hand using such information. Nothing important should be left out. Although information cannot always be complete, every reasonable effort should be made to obtain it.

Available:

Information may be useless if it is not readily accessible ‘ in the desired form, when it is needed. Advances in technology have made information more accessible today than ever before.

Reliable:

The information should be counted on to be trustworthy. It should be accurate, consistent with facts and verifiable. Inadequate or incorrect information generally leads to decisions of poor quality. For example, sales figures that have not been adjusted for returns and refunds are not reliable.

Concise:

Too much information is a big burden on management and cannot be processed in time and accurately due to “bounded rationality”. Bounded rationality determines the limits of the thinking process which cannot sort out and process large amounts of information. Accordingly, information should be to the point and just enough – no more, no less.

Timely:

Information must be delivered at the right time and the right place to the right person. Premature information can become obsolete or be forgotten by the time it is actually needed.

Similarly, some crucial decisions can be delayed because proper and necessary information is not available in time, resulting in missed opportunities. Accordingly the time gap between collection of data and the presentation of the proper information to the decision maker must be reduced as much as possible.

Cost-effective:

The information is not desirable if the solution is more costly than the problem. The cost of gathering data and processing it into information must be weighed against the benefits derived from using such information.

3. Name and give example five primary activities from the value chain model!

  • Inbound Logistics: arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores
  • Operations: concerned with managing the process that converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services).
  • Outbound Logistics: is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user
  • Marketing and Sales: selling a product or service and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
  • Service: includes all the activities required to keep the product/service working effectively for the buyer after it is sold and delivered.

4. List and describe five steps in ethical analysis!

  1. Identify and clearly describe the facts.

Find out who did what to whom, and where, when, andhow. In many instances, you will be surprised at the errors in the initially reported facts, andoften you will find that simply getting the facts straight helps define the solution. It also helps toget the opposing parties involved in an ethical dilemma to agree on the facts.

  1. Define the conflict or dilemma and identify the higher-order values involved.

Ethical, social and political issues always reference higher values. The parties to a dispute all claim to be pursuing higher values (e.g., freedom, privacy, protection of property, and the free enterprises ystem). Typically, an ethical issue involves a dilemma: two diametrically opposed courses ofaction that support worthwhile values. For example, the chapter-ending case study illustrates two competing values: the need to improve health care record keeping and the need to protect individual privacy.

  1. Identify the stakeholders.

Every ethical, social, and political issue has stakeholders: players inthe game who have an interest in the outcome, who have invested in the situation, and usually who have vocal opinions. Find out the identity of these groups and what they want. This will be useful later when designing a solution

  1. Identify the options that you can reasonably take.

You may find that none of the options satisfy all the interests involved, but that some options do a better job than others. Sometimes arriving at a good or ethical solution may not always be a balancing of consequences to stakeholders.

  1. Identify the potential consequences of your options.

Some options may be ethically correct butdisastrous from other points of view. Other options may work in one instance but not in othersimilar instances. Always ask yourself, “What if I choose this option consistently over time?”

5. Eexplain what is storage area network (SAN)

A Storage Area Network (SAN) is a specialized, high-speed network that provides block-level network access to storage. SANs are typically composed of hosts, switches, storage elements, and storage devices that are interconnected using a variety of technologies, topologies, and protocols. SANs may also span multiple sites. A SAN moves storage resources off the common user network and reorganizes them into an independent, high-performance network. This allows each server to access shared storage as if it were a drive directly attached to the server. When a host wants to access a storage device on the SAN, it sends out a block-based access request for the storage device.

6. Define database management system and describe how it solve the problem of traditional fie environment

A database management system (DBMS) is system software for creating and managing databases. The DBMS provides users and programmers with a systematic way to create, retrieve, update and manage data.

Database

– Serves many applications by centralizing data and controlling redundant data

Database management system (DBMS)

– Interfaces between applications and physical data files

– Separates logical and physical views of data

– Solves problems of traditional file environment

• Controls redundancy

• Eliminates inconsistency

• Uncouples programs and data

• Enables organization to central manage data and data security

Problems with the traditional file environment (files maintained separately by different departments)

Data redundancy:

• Presence of duplicate data in multiple files

Data inconsistency:

• Same attribute has different values

Program-data dependence:

• When changes in program requires changes to data accessed by program

Lack of flexibility

Poor security

Lack of data sharing and availability

7. Explain what is the meaning of convergence in Networking and Communication Trends!

Convergence is the coming together of two different entities, and in the contexts of computing and technology, is the integration of two or more different technologies in a single device or system. A good example is the convergence of communication and imaging technologies on a mobile device designed to make calls and take pictures – two unrelated technologies that converge on a single device.

Convergence is considered a new trend because technological capabilities were only recently established to allow for cheaper and widespread implementation. The simple concept of convergence allows multiple tasks to be performed on a single device, which effectively conserves space and power.

For example, rather than carrying separate devices – like a cell phone, camera and digital organizer – each technology converges on a single device, or smartphone. Another good example is surfing the Internet on a high-definition TV (HDTV)

8. How do CRM help firms achieve customer intimacy?

Define customer relationship management and explain why customer relationships are so important today.

Customer relationship management ( CRM) systems integrate and automate customer- facing processes in sales, marketing, and customer service, providing an enterprise- wide view of customers. Companies can use this customer knowledge when they interact with customers to provide them with better service or to sell new products and services. These systems also identify profitable or nonprofitable customers or opportunities to reduce the churn rate. The major customer relationship management software packages provide capabilities for both operational CRM and analytical CRM. They often include modules for managing relationships with selling partners ( partner relationship management) and for employee relationship management.

Customer relationship management: A business and technology discipline that uses information systems to coordinate all of the business processes surrounding the firm’s interaction with its customers in sales, marketing, and service.

Importance of customer relationships: Globalization of business, the Internet, and electronic commerce have put more power in the hands of customers. Companies realize that their only enduring competitive strength may be their relationships with their customers. Some say that the basis of competition has switched from who sells the most products and services to who “owns” the customer, and that customer relationships represent the firm’s most valuable asset. (Learning Objective 9.3: How do customer relationship management systems help firms achieve customer intimacy? AACSB: Analytical thinking, application of knowledge.)

9. IT organization revolution, from call center to profit center

The Internet-generation customer wants to communicate with businesses through different channels at different times. If they send an email or web-enquiry, then phone to follow it up, they correctly expect the company to respond to the overall enquiry. However, typically the call centre handles only the phone calls, separate email management system handles email enquiries, and a content management system handles the web content. There is often no assurance that the customer and their information is being handled cohesively or feel as though they have a single point of contact with their supplier. A recent Gartner research note has found that up to 75% of the information required to fully meet customer and enterprise needs is not resident in a single system or interface.

If organisations do not integrate their communication channels, any interaction with a customer through email is totally separate from an interaction with the same customer through the telephone. The result is that customers become annoyed and frustrated at having to repeat the information detailed in a previous communication and customer retention drops rapidly.

More and more companies are recognizing how powerful Internet technologies can be as a customer service vehicle, and are exploiting the web for real-time customer service and support, and help manage multi-channel customer enquiries. Referred to as eService, this is a combination of software deployment and management practice that enables the call center to take advantage of real-time information through the same Web interface and common knowledgebase everyone in the organization uses. These solutions include applications for web self-service, e-mail response management, web chat and collaboration, and service analytics as well as online data capture. The cultural change is as important as the technology; an over-arching commitment to serving the customer regardless of which touch point they use has to underpin any IT investment to achieve value.

Companies who have implemented eService solutions are beginning to see significant improvements in terms of cost reduction and increased customer satisfaction. The cost advantage of web-based customer service provides one of the most compelling reasons to implement an eService solution. Research by Forrester has calculated that the average cost of a telephone call is £20.46, live web chat costs £4.87 and web self-service costs just £0.52. By reducing costs, call centres have the time, manpower and available budgets to expand operations, such as making outbound sales and marketing calls, to become ‘profit centers’.

Making the transition to a profit center does not need to be a difficult process or disrupt the customer service operation. Agents can still answer calls, reply to emails and launch web chat sessions requested by site visitors. The difference lies in the fact that the data from multiple customer contact points is integrated into a central knowledgebase, which underpins the whole system, providing agents with a complete view of customers and their behavior. The integration of the channels takes place on 2 levels; firstly tracking and reporting of each contact and providing histories of these, and secondly, providing a common knowledgebase to underpin the system.

This contrasts with the current reality, which is that most call centers have processes of some sort for monitoring and tracking customer contacts but without email management systems being widely deployed, with slow response times or unanswered emails all too common.

For example: High Street Bank X has many branches nationwide, several call centers and an Internet presence. Customer A goes online to enquire about a personal loan, but unable to find the information on interest rates they require, sends an email instead. Unfortunately, the call center agents do not access the information collected via the email system because they don’t have a common database, so the email goes unanswered. Fairly dissatisfied, customer A rings the call centre and their question is answered, so they visit their local branch to take out the loan. But as the bank doesn’t have a central knowledgebase underpinning its system, the call centre agent has given inaccurate information on the interest rates, leading to a rather irritated customer decides to take out a loan with a competing bank.

This would not have happened if Bank X had an effective eService system. If the customer had been unable to find the interest rate information, they could have accessed the self-help facility, which provides answers to commonly asked questions. If they still required further assistance they could have utilised the live web-chat service, where they’d have engaged with an agent in a text-based conversation to find the answer to the question quickly and correctly. Finally, if they still had their question unanswered, they would have been escalated to a telephone call. Then, armed with accurate information, they could complete an online loan application, or visit their branch without hurrying to the competition.

The main points are this: firstly, the eService system is underpinned by a central knowledgebase that means all information is accurate and answers will be consistent. Secondly, the system monitors all customer contact, to ensure that no query goes unanswered and all bank employees – call center agents or branch staff – can see previous communications with the customer. Finally, as the knowledgebase is a constantly growing database of information, the customer would have found the information required through self-help, so saving them time, and the bank money, by avoiding an expensive telephone enquiry handling cost.

10. Find out about key performance indicators (KPI)

A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.

A KPI is only as valuable as the action it inspires. Too often, organizations blindly adopt industry-recognized KPIs and then wonder why that KPI doesn’t reflect their own business and fails to affect any positive change. One of the most important, but often overlooked, aspects of KPIs is that they are a form of communication. As such, they abide by the same rules and best-practices as any other form of communication. Succinct, clear and relevant information is much more likely to be absorbed and acted upon.

In terms of developing a strategy for formulating KPIs, your team should start with the basics and understand what your organizational objectives are, how you plan on achieving them, and who can act on this information. This should be an iterative process that involves feedback from analysts, department heads and managers. As this fact finding mission unfolds, you will gain a better understanding of which business processes need to be measured with KPIs and with whom that information should be shared.

11. Find out about Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation passed by the U.S. Congress to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures. The U.S. Securities and Exchange Commission (SEC) administers the act, which sets deadlines for compliance and publishes rules on requirements.

The Sarbanes-Oxley Act was enacted in response to a series of high-profile financial scandals that occurred in the early 2000s at companies including Enron, WorldCom and Tyco that rattled investor confidence. The act, drafted by U.S. Congressmen Paul Sarbanes and Michael Oxley, was aimed at improving corporate governance and accountability. Now, all public companies must comply with SOX.

The Sarbanes-Oxley Act not only affects the financial side of corporations, but also IT departments charged with storing a corporation’s electronic records. The act is not a set of business practices and does not specify how a business should store records; rather, it defines which records should be stored and for how long. SOX states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." The consequences for noncompliance are fines, imprisonment or both.

IT departments are increasingly tasked with creating and maintaining a corporate records archive in a cost-effective fashion that satisfies the requirements put forth by the legislation. Section 802 of Sarbanes-Oxley contains the three rules that affect the management of electronic records. The first rule deals with the destruction, alteration or falsification of records, and the resulting penalties. The second rule defines the retention period for records storage. Best practices indicate that corporations securely store all business records using the same guidelines set for public accountants. The third rule refers to the type of business records that need to be stored, including all business records and communications, including electronic communications.


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