02/10/10

1. 02/10/10 Next week Reminder about the take-home final exam Avoiding pitfalls in emerging technology paper Database continuation Work system details vs. work system characteristics More on case studies from 2/3, new cases from 2/10 More on databases, metrics, aspects of technology JIT, “lean,” and supply chain Static view vs. how work systems change over time

2. Next week: • Emerging technology paper • Hard copy and electronic • Presentation • Email before class to avoid wasting time • work system snapshot #3 • Possible topic for work system analysis paper • Bring WSM because we will look at Chap. 5 while discussing the work system analysis paper • Use laptops to look at template

3. Avoiding pitfalls on the emerging technology paper Does it use the required template? Main question for grades : How would I evaluate it as a first cut analysis in a business setting? Is it convincing? Is it internally consistent? Does it contain “red flags” … indicators of sloppy work or sloppy thought?

4. Typical indicators of sloppy thought and superficial analysis Hype: endless possibilities, unlimited impacts, etc. Unclear timeframe: “The future will be great.” Unclear overarching definitions and themes. Lack of connection between sections, paragraphs, sentences Poorly chosen examples

5. 3.1. Cash for Clunkers Who are the participants? Where does the process start and end? Metrics?

6. 3.4 Work system details vs. work system strategies • Work system details (graphical representations) • Work system snapshot • Flow chart – Fig. 10.1 • Swimlane diagrams – Fig. 10.2 • Data flow diagrams – Fig. 10.3 • Database schema • Entity relationship diagram • Design issues/ characteristics/ strategies • Big picture issues: amount of structure, complexity, rhythm, treatment of exceptions and errors, etc.

7. Group exercise: USF’s decision process for admitting undergraduates • Extent of work system • Starting point: USF receives applications for freshman undergraduate admission • End point: USF makes initial decision: accept, reject, or wait list • Your task: List the steps in the decision process. Also, identify metrics and estimate their current and desired value.

8. Group exercise, Part 2 • Look at Table 10.1 on pp. 136- 137. • Identify 5 design characteristics/ strategies that might be relevant for thinking about your USF admissions process • For each one, describe how your work system would be different if it moved in one direction or another as shown in Table 10.1, • E.g., more structured or less structured • E.g., more complex or less complex

9. Database ideas (again) • Define the database in advance • Build in rules to support desired transaction logic • Minimize redundant data • E.g., Company name and product name appear only once in the database, but can be displayed on many forms and queries. • Use existing database information to maintain integrity of new information • Define queries and reports • Reuse queries and reports • Create new queries and reports

10. Structure of a (relational) database • Tables of information • Customers, supplies, employees, orders • Relationships • An order has one customer • A customer may have multiple orders • A product has one supplier. • A supplier may supply multiple products.

11. Keys • Primary Key is a field or combination of fields that uniquely identify each record in a table. • No two records in a table can have the same value in the primary key field. Records are automatically sorted based on the primary key. • Foreign key: A data field in one table that refers to a primary key in another table. • Customer ID is the primary key of the Customer Table • Customer ID is a foreign key in an order table because it refers to the customer ID in the Customer table.

12. Cases for 2/3: Success stories and problems • 2.1. Apple’s App Store • 2.3. Cirque du Soleil • 2.4. Harrah’s • 2.5 TradeBot • 2.6 Seven Eleven ----- • 2.7 Jet Blue • 2.8 Autopilot problems • 2.9 IT’s Hardest Puzzle (plus CRM intro)

13. 2.1. Apple’s App Store is a reminder of issues related to infrastructure • Assume that a work system uses iPhones for important activities. • What infrastructure does the work system rely upon?

14. 2.4. More on Harrah’s database and customer loyalty • What is Harrah’s database? … What info does Harrah’s collect about customers? • Source data vs. derived information • What is the source data from the loyalty cards? • How can we think of that as a relational database? • What is the derived information for management? • Backward looking analysis • Customer segmentation • Correlations of customer segments and preferences • Forward looking analysis • Experiments

15. 2.6. More on Seven Eleven • What are the key metrics for • Seven Eleven as a company? • Seven Eleven’s distribution centers? • Seven Eleven’s stores? • How do information systems help Seven Eleven achieve metrics at all three levels?

16. 2.7. JetBlue • What are JetBlue’s key metrics as airline? • What are key metrics for operational recovery at JetBlue? • How do information systems help JetBlue achieve metrics at both levels?

17. 2.8. Autopilots on airplanes • What are some of the problems? • What are the implications related to: • automated control of transportation? • automated decision making in general? • Identify several guidelines for situations in which automated decision making is justified, other things being equal

18. Read “Toyota and the Curse of Software” • How is this article about software in cars related to the autopilot article?

19. Next step in the autopilot example • How would you feel if you heard the following announcement from the flight attendant? • “Congratulations, you are on the first totally automatic flight from SF to LA. An autopilot will control the takeoff, flight, and landing. One of your flight attendants is a trained pilot who will take over if the autopilot detects any problems.”

20. Pull processing Perfect first-time quality Waste minimization Continuous improvement Flexibility Building and maintaining a long term relationship with suppliers Load leveling Production flow and Visual control. Typical principles of lean manufacturing

21. Ideals of the Toyota Production System • Defect free • Delivered one request at a time • Supplied on demand • Delivered immediately • Produced without waste • Produced in a safe, clean environment

22. Types of waste Unnecessary transportation of material Unnecessary inventory Unnecessary motion by people Waiting for the next production step Overproduction (production ahead of demand) Over processing (excess activity due to poor process or product design) Defects (resources wasted in inspection and correction) Manufacturing goods or services that do not meet customer demand or specifications

23. Just-in-time • Don’t do things before they are needed • Examples of how this would apply in the real world • Advantages and disadvantages of JIT • Operate near full capacity (very little slack)

24. 3.2 JIT/ lean approaches for inventory management in hospitals (?) • Many hospitals have a 30 day supply of drugs • Example: N95 hospital masks ran out during SARS scare • Metrics related to inventory? • What should hospitals do, i.e., what should be the rules of the replenishment systems hospitals use?

25. 3.3. Supply chain problems during the U.S. Army’s initial push toward Baghdad • What is a supply chain? • How is a supply chain a work system? • Supply problems encountered on the way to Baghdad? • Any relation to technology used in the supply chain?

26. Work System Framework • Static view of a work system: How it currently operates • Additional view: How work systems change over time • Work system life cycle model • Discussed in detail in Chap. 7

27. Work System Life Cycle Model Operation & Maintenance Initiation Development Implementation

28. 2.9. CRM – customer relationship management and “IT’s Hardest Puzzle” • What is CRM? • Is CRM fundamentally about customer relationship management? • What is the work system (or work systems) in the case study “IT’s Hardest Puzzle” ? • What went wrong in the story and what might have been done to avoid the problems discussed in the case? • See Figure 7.1 and 7.2

29. 3.5. The Cigna case: The Goal • Integrated system for enrollment, eligibility and claims processing so that customers would get one bill, medical claims could be processed faster and more efficiently and customer service reps would have single unified view of members

30. Important work systems in the Cigna case • Design specific insurance products; • Market insurance products to employers • Enrollment of employees • Receive claims and make reimbursements; • information exchange with hospitals, doctors and drug stores

31. Modifying the existing work systems • Build an AS400 infrastructure, • Hire CGEY to help implement the change management and business process involved. • Purchase Siebel software to handle call center function and select a Computer Sciences Package for claim processing. • Migration of data from the legacy system to the new platform. • Lay off customer reps and consolidate 20 primary and specialty service centers into nine regional centers. • Retest and improve the platform

32. Interpretation of the Cigna story • WSM, Chap. 7 • Work System Life Cycle Model in more depth • Figures 7.2, 7.3, 7.4, 7.5

33. 3.6 Propose practical, enforceable guidelines for web filters that the State of California could use for state employees. • What are appropriate metrics for evaluating the use of those guidelines (Hint: This can be viewed as a work system.)

34. 3.7 How could the State of California implement web filter guidelines? • Start with Figure 7.1

35. Reminder about take-home final exam • Think about the cases we have looked at • Identify some of the lessons • Start the draft of your take home final exam

36. Next week, 2/17: • Emerging technology paper • Hard copy and electronic • Presentation • Email before class to avoid wasting time • work system snapshot #3 • Possible topic for work system analysis paper • Bring WSM because we will look at Chap. 5 while discussing the work system analysis paper • Use laptops to look at template