Lecture 3- IT Trends

Time to time, day to day information technology is developing. Development of the information technology new concepts come up to the industries and with the development of information technology organizational work has become much efficient and faster. 

Theory and Application:

MIT 90 Framework:

Figure 1: MIT 90 Framework (Science Direct, 2012)

As mentioned in heacademy (2012) MIT 90 framework was developed by Michael S Scott Morton in the early 1990s. This was used by the University of Strathclyde as the basis for structuring its approach to bench marking e-learning. Afterwards in 1996 Venkatrama did initiative developments for MIT 90 framework. Level 1 and level 2 which are localized exploitation and internal integration are called evolutionary levels and level 3, 4 and 5 following business process redesign, business network design and business scope redefinition are called as revolutionary levels.At the first stages for organization it incurs low cost as well in the other hand organization gain low benefit. When goes up to the level by level the cost as well as the benefits get increased and the 5th level get highest benefits as well it incurs high amount of cost. Which means at the top levels develops high level of information systems with high technology for this it incurs high cost as well organization get high benefits.

Localized Exploitation: 
As explained by Zee (2008) In level 1 mainly focuses on the improvements in the process or business functions. Such as, human resource,  finance etc. This is the introductory level for information systems. In this level most of the changes in individual activities happen but not that much of organizational changes. These changes or adjustments leads to more efficiency and the accuracy. In this level cost as well the benefits for the organization is in a very low level.

Internal Integration
According to Zee (2008) The main task of this level is to interconnect all business activities into the correct direction. In this stage minor adjustments will be done in the working process. But in the business functional division run the process without any large changes. The benefits of this level are  improve the efficiency of departments and build up the effectiveness and  reduction of throughput time within the business process.

Business Process Redesign 

Zee (2008) described this level as This is the level of fundamental rethinking of changing the strategy of  a business. Redefining of business processes are take place in this level (new business processes develop) to gain the maximum use from the information technology aligning with the business processes and people. Compare to level 1 and 2 efficiency wise, improvements wise and beneficiary wise this level is in much higher level.

Business Network Redesign

As stated by Zee (2008) at this level organization changes the nature and the degree of inter relationship within the industry. Any business or representative who can change the collaboration and make the business process effective and this can affect on transactions with customers and suppliers in a positive way. At this level IT is the main contributor in communication, working process reducing boundary barriers , time and other barriers that can affect on the business. The main benefit organization gain from this level is adopt the strategic nature to the organization.

Business Scope Redefinition

As per Zee (2008) at this level there is a possibility of enlarging the scope,vision and mission of the organization.At this stage company seeks for opportunities in order to improve the organization work flow and make the work faster and efficient and give a effective out come for customers. At this level the usage of supply chain management comes in to the role in organizations. 

Reflection:

Any company starts the business in small way. Even the companies that make billions and billions have a tough time in their history. Organizations get develop step by step. Organizations use different types of strategies to come up defeating competitors. Information technology runs a main role in strategies. Information technology help organizations to come up with the new strategies. At the earlier stage not many organizations understood the usage and benefits of information technology. The organizations understood the importance and the benefits of the information technology introduces IT to their organizations and make their work more efficient and faster. Some of the organizations able to get competitive advantage using information systems like supply chain management system.

MIT 90 framework explains about how the organizations adopt IT/IS to their business and the effectiveness of it. In the 1st two levels which are belong to evolutionary level are not getting that much of benefits to there organizations and they did not incur huge cost since the implementation of I/IS not take part on those levels. From the beginning of revolutionary level the cost as well as the benefits that organizations gain are increase because implementation of IT/IS take part and strategic nature is being used in the revolutionary level.

References:

heacademy. (2012). MIT 90s. [Online]. Available at: http://www.heacademy.ac.uk/assets/documents/tla/MIT90s.pdf [Accessed: 7th November 2012].

Science Direct. (2008). MIT 90 Framework. [Online]. Available at: http://ars.els-cdn.com/content/image/1-s2.0-S0925527302004486-gr1.gif [Accessed: 7th November 2012].

Zee, H.V. (2008). Trends Leading Towards Business Transformation.[Online]. December 2008. Available at: http://be.atos.net/NR/rdonlyres/DC39FE5E-2189-434D-B81D-DCDA435336CB/0/View_dec_2008.pdf .[Accessed: 7th November 2012].

Lecture 2- Strategic Role of Information Systems

Information systems rely on information technology. Information system is a subset of a information technology and with the development with the information technology, information systems also go align with it and developing day by day.

Theory and Application:

As stated by Ward and Peppard (2002) information technology has become must or very essential because the effectiveness of the business depends on the  information technology . As an example industries like telecommunication, media, entertainment where the products have already digitized and the existence of the organization highly depend on the effectiveness of the application of information technology.

From above mentioned paragraph can see the importance of the information technology for now a day organizations. Now it has become a must to organization like organizations cannot survive without the information technology. Information technology fills the gap between software and hardware and help to do most of the organizational works in an efficient way.

Strategic Information System Planning

                                        Table 1: The Three Era Model of IS (Pant and Hsu, 1995)

Above table illustrated of the development of the information systems. It explains how the information used during different time period. Information technology helps to capture, create and use in communication in information system. Information system store data for future use. This called information processing. In previous post has discussed about 5 Cs which involves in data processing in information system.

Information System has main five components. They are, people, data, software,hardware and telecommunication.

People- end users, stakeholders

Data- internal and external

Software- Value addition, conversion (transformation for productivity and efficiency)

Hardware- Hardware depends on software

Telecommunication- voice, data and multimedia

Before implementing systems to companies first need to look at the objectives, goals etc. (Strategic planning) in the organization and align to those need to implement systems to the organization. Which means need to have a basic knowledge of internal and external behavior of the company.

Figure 1: Strategic Planning Process (Strategic Scenarios, 2011)

Above figure illustrates about strategic planning process in an organization. Which are mainly vision, mission, objectives. 

Vision:

 As mentioned in University of Washington States (2012) vision has defined as " The end result of what you want to have done.  It’s a future oriented, detailed description of outcomes you want to accomplish.  Ideally what you want to exist, or have happen as a result of your efforts".

Vision of Coca-Cola

As stated in Coca-cola (2012) "Our Road map starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference."

Vision statement is a long term achievement of an organization. In a vision statement it defines the company end goal and by seeing at a vision statement anyone would be able to get an idea of where is this organization heading to.

Mission:

As per University of Washington States (2012) mission statement is "a statement of why you exist (organization) or what you want to be (person)."

Mission Statement of Coca-Cola

As stated in Coca-cola (2012)"Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization".

Mission statements supports the vision of an organization. It describes how to achieve the vision by completing the mission of the company.

Objectives:

Smaller steps need to follow in order to achieve the mission and vision. Objectives are short terms achievements. By achieving short terms achievements the organization able to achieve mission and vision of the company in a very effective way.

Application:

Laptops Market

Table 2: Preliminary worldwide vendor Unit Shipment Estimates for 1Q12 (Gartner, 2012)

Above table illustrates of the market share of popular laptops in worldwide. The first place has got by HP which is 17.2 % and second and third places has gone to following Lenovo and DELL percentage of 13.1 % and 11.0%. The main reason for HP is being first place is the technology that they use in their laptops, the price and varieties they have. HP launch laptops for reasonable price and it always able to fulfill the customers needs. 

Reflection:

Day by day information technology get developed. As same as the development of the information technology the information systems also get developed. The main reason for this is information systems run the help of information technology. Information systems cannot survive without the information technology. Now technology has developed to the level of decision making in the standard of artificial intelligence. which means without any human interaction system able to take decisions by itself. 

Three era of information systems clearly shows the development of information systems. Any information system consists of main five components such as people, data, software, hardware and telecommunication.  These components fulfill the 5Cs of the process of information. But these components slightly differ in some information systems and some information systems have six components like in MIS, DSS database also has included as a components. Because for these information systems mainly does help to make decisions. For that these systems need to have a database in-order to give support facts to a decision. 

Strategic planning process of an organization clearly defines of the future of the organization. By defining objectives which are short term achievements help organization to achieve defined values. These are organizational small steps. From achieving these small steps organizations able to achieve long term plans which are vision and mission. These process the reflects the success of the organization. If the organization can achieve organization defined objectives which means  organization is on the right track and able to to have successful way.

References:

Coca-Cola. (2012). Vision and Mission.[Online]. Available at:http://www.coca-colacompany.com/our-company/mission-vision-values [Accessed 1st November 2012].

Gartner. (2012). Preliminary worldwide vendor Unit Shipment Estimates for 1Q12. [Online]. Availabel at:  http://lowendmac.com/newsrev/12mnr/0413.html [Accessed 1st November 2012].

Pant, S & Hsu, C. (1995). The Three Era Model of IS.[Online]. Available at: http://www.mis.boun.edu.tr/tamers/mis524/strpaper.pdf  [Accessed 1st November 2012].

Strategic Scenarios. (2011). Strategic Planning Process. [Online]. Available at: http://futurata.com/strategicscenarios/strategic_planning_process.jpg [Accessed 1st November 2012].

Ward, J & Peppard, J. (2002). The evolving role of information systems and technology in organization: A strategic perspective.[Online].Chichester: John Wiley and Sons. Available at: http://books.google.lk/books?id=YdjKt6DaV8C&printsec=frontcover&dq=strategic+information+systems+planning+by+ward+and+peppard&hl=en&sa=X&ei=bjqfUJnWGoyGrAeh84D4BA&ved=0CC8Q6AEwAA [Accessed 1st November 2012].

Washington States University. (2012). Definitions of Vision and Mission. [Online]. Available at: http://dsa.csupomona.edu/osl/studentmanual/files/Definitions_of_Vision_Mission_and_Goals_294.pdf [Accessed 1st November 2012].

Lecture 1-Introduction to the Module ISS

The module Information Systems Strategy module mainly focuses on information systems and the strategies that has been taken in business industry. 

Theory and Application:

Information systems run a main role in most of the companies. The reason for this is now a day most of the companies based on automated systems and office day to day work involve with systems. 

According to Hardcastle (2008) the main role of the information system is to provide information to management in order to make decisions. In order to make decisions information is needed. Data i the first step of information, the out put of data is information. 

Data has three dimensions. They are,

• Time
• Form
• Content

In-order to process information data need to have above mentioned three dimensions.

As Tyran explained (2012) In information processing there are five components. They are called as 5 Cs in information Processing.

Figure 1: 5 Cs in Information System

Above has mentioned the 5 components involve in information processing. In information processing each and every component need to be include in-order to have an effective output. Below table has illustrates of the purpose and the technology that can use in each component.

                                                Table 1: Purpose and Technology in 5 Cs

Above mentioned purpose need to be fulfill by each components to called a proper information system.

Process of Information System:

Figure 2: Process of Information System (intranet.ibta, 2012)

Above mentioned figure illustrates about process of information system. The main three components of this process are, input, process and data. This process can expand more as below.

Figure 3: Process of Information System

 Above figure is expansion of  process of information system. Data is the input and data should have time, form and content. Then it goes through a process and get the put come. That is information. Information use to make decisions. Several decisions combine and make knowledge and this knowledge converts to an information system (wisdom). This information system help to find data, take decisions etc.

Information systems involve in most of the activities in organization. Any level of an organization use at least use a simple automated system which helps to work fast.

Figure 4: Organization Hierarchy (Khoil, 2012)

Above figure describes of different level in an organization, information systems that involve in each level and type of decision that made in each level. In operational level capturing, creating and converting data to information that helps to take decisions among the same level or in tactical management. In this level make decisions like how, when and what involves decisions. Ex:- How to increase sales?, How to make profit etc. For this use transaction processing systems. In this level make structured decisions which help to upper level management to take high risk decisions. In this level risk is less compare to other two levels in the hierarchy.  In tactical level communicating, storing related works take place. In tactical level management make semi structured decisions using management information systems. They mainly take medium term decisions. These decisions helpful to the strategic level management when they make decisions. The most top level strategic level only involves in communicating. They are the ones take long term decisions for the organization. In this level unstructured decisions be taken. The risk is very high in this level. Because whatever the decisions made by this level effect on the future of the organization. In this level use decision support systems which helps to senior management to make risk decisions.

Application:

In tire manufacturing company the manufacturing of tires and other procedures supervise by the supervisors that has appointed into each section. In manufacturing tires there are several steps to follow such as check raw materials, mix them etc. each process is supervised by the supervisors. Collected information from these processes make decisions and go ahead with current process and the report of the current process will hand over to the tactical level management. For this level managers for different department includes. Managers go through the current process and make decisions in monthly production and need raw materials etc to the tactical level and final report will send to the strategic level of the management. In this level directors, CEO includes they check for the reports like sales, production etc and take long term decisions like improvements need to be done to the company.

Reflection:

Information systems play a main role in organizations. Information system is a subset of information technology. Information system focuses on software and information technology focuses on hardware. In order to use systems need data. Data insert to the system and goes on process and as an outcome information comes out which helps to make decisions in many levels in organizations. In this process 5 Cs need to be perform in-order to make a proper information system.

The main reason for this is these systems help to reduce the most of the problems in manual procedures that took place in organizations. Mainly problems like data redundancy, data isolation inaccurate data etc. These problems leads to make wrong decisions in the organizations. For solution for these problems people came up with systems. From this it helps to store, create, update and manage data in accurate way. The information was more efficient which process from these systems. With the development of the technology information systems developed which helps to make most risky decisions in organizations. Ex:- Decision Support System.

Now information systems use in any level of the organization. These information systems save time, help to complete tasks more accurate way. From this it eliminates  unnecessary work force as well from this it affect company cash flow in a positive way.

References:

Hardcastle, E. (2008). Role of information system.  [Online]. Available at: http://www.promeng.eu/downloads/training-materials/ebooks/business-information-systems.pdf 

[Accessed 31st October 2012].

Intranet.ibta. (2012). Process of Information System. [Online]. Available at: http://intranet.ibat.ie/moodle/course/is_management/mis10e/images/img01_04.jpg - Process of information system [Accessed 31st October 2012].

Kohli, S. (2012). Organizational Hierarchy. [Online]. Available at: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGhKcc18O-Uy_adybZDX4wlmQAduDwKIJy4mH1Tq9IjVlJBzplKkawDrLTvBwUdb58VWXKmtMU2KWcvri0yUtr5QBTlvVjJPfDDn9CWIzIWA8Ps_eMnLcLmIiMJCf6-Qy2c1qV5y3Tsej5/s1600/Picture1.png [Accessed 31st October 2012].

Tyran, C. (2012). 5Cs in Information System. [Online]. Available at: 

http://www.google.lk/urlsa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CCwQFjAC&url=http%3A%2F%2Fwww.cbe.wwu.edu%2Fmisclasses%2Fmis320f10pencil%2FPresentations%2F03%2520Types_of_IS_post.ppt&ei=5tdUKuDCMryrQfl0IGgAQ&usg=AFQjCNHnd9e11gmdohM0SCHDBY_8F4LMvw&sig2=1r5qFpmdBoY5HgkS0uX_EA [Accessed 31st October 2012].