Chapter 12: IT

• Two general roles of information systems

  • Processing and storing information
  • Support management activities like decision making, planning, performance management, and control
• Companies need information systems to capture and generate information
• Information systems can also improve communication
• Knowledge


  The application of a process that it becomes useful
• Types of knowledge


  • Tacit Knowledge
  • Explicit knowledge
• Tacit Knowledge


  Knowledge that you have but can't use
• Explicit knowledge


  Knowledge that you know of and can use
• IT systems that create information

  • Transaction processing systems (TPS)
  • Knowledge work systems (KWS)
  • Office automation systems (OAS)
• IT systems that share knowledge across business functions

  • Management information systems (MIS)
  • Decision support systems (DSS)
  • Executive information systems (EIS)
  • Expert systems
  • Enterprise-wide systems (EWS)
  • Knowledge management systems (KMS)
  • Customer relationship management systems (CRMS)
• Transaction processing systems (TPSs)


  Perform and record routine systems for anything transactions related
• TPS applications across different business functions

  • Sales/marketing (TPS Major function) – Sales management, market research, promotion pricing, new products
  • Operations (TPS Major function) – Scheduling, purchasing, shipping/receiving, engineering, operations
  • Finance (TPS Major function) – budgeting, ledger, billing, management accounting
  • HR (TPS Major function) – Personal records, benefits, salaries
• Knowledge work systems (KWS)


  Creating and integrating new knowledge into company
• Office automation systems


  Computer systems designed to improve the productivity of data and information workers
• Management information systems


  Converting data from interal sources into information so management can make decisions
• Decision support systems


  Combining data and analytical models to support decision making
• Decision support systems are used for things which have a high level of uncertainty and they also have the most analytical power
• Executive information systems


  Pools data from internal AND external sources and makes information available to senior managers
• Expert systems


  A form of DSS which allows users to benefit from expert knowledge
• Conditions for an expert system to be used

  • Problem is reasonably well defined
  • Expert can define rules
  • Problem can't be solved conventionally
• Enterprise-wide systems


  Designed to co-ordinate all business functions wherever geographically
• Knowledge management systems


  Record and store knowledge held within an organisation
• Customer relationships management systems


  CRM systems are software applications which specialise in providing information concerning an organisation's products, services and customers
• The role of IT in change?

  
  

  1. because of technological changes, products may change
  2. the way products are made
  3. the way workers work
  4. the way products are delivered
• Virtual teams


  People who can work from anywhere due to advancements in IT
• For virtual teams to be effective, they must be able to

  • Share information and tasks
  • Make joint decisions
  • Work together
• Problems of virtual teams

  • Hard to form bonds
  • Harder to share knowledge
  • Hard to set clear goals
  • Hard to lead teams
  • Decrease in moral because of loneliness
• Information systems can act defensively or offensively against potential entrants

  Defensively – IT systems can increase the likes of economies of sales so its harder for new companies to enter

  Offensively – This is when you use information systems to overcome any barriers
• Ways the bargaining power of suppliers can be eroded

  • Increase competition between suppliers
  • Suppliers powers can be shared
  • Suppliers can be integrated
• Virtual companies


  A collection of separate companies who work together and share expertise
• Virtual supply chains


  Supply chains enabled through e-links like the web
• Cost benefit analysis


  Done before development to determine whether it's worth developing a new information system
• Cost benefit review


  Done after development to determine whether it's worth developing a new information system
• Costs of an information system

  • Development costs
  • Implementation costs
  • Running costs
• Types of implementation costs

  • Direct (Big bang)
  • Parallel running
  • Pilot operation
  • Phased or modular changeover
• Direct (Big bang)


  The old system is completely replaced in one go. This is risky but cheap.
• Parallel running


  Both the old and new system are run together, which makes it safer but costly.
• Pilot operation


  The new system is used in different areas, and if they like it then they remove old system.
• Phased or modular changeover


  This is when you directly change certain aspects of the old system until the end.
• Types of cyber-attack


  • Phishing
  • Pharming
  • Hacking
  • DDoS
  • Webcam manager
  • File hijacker/ransomware
  • Keylogging
  • Screenshot manager
  • Ad clicker
• Types of cyber-security


  • Access control
  • Firewalls
  • Malware protection
  • Patch management
  • Secure configuration