Management Information Systems: Solving Business Problems with Information Technology Part One: Business Operations

1. Management Information Systems: Solving Business Problems with Information Technology Part One: Business Operations Chapter Three: Networks and Telecommunications Prof. Gerald V. Post Prof. David L. Anderson

2. The New Business Order The New Business Order

3. Distinctiveness of Loyola University

7. EDI

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14. Strategic Leverage Paradigm Change the Game Change the Game Competitive Position Competitive Position Nature of Conflict; Terms of Competition Strategic Leverage Objectives Strategies Tactics

15. Systems DevelopmentLifecycle Obsolete Solution Problem to be Solved Planning New, Related Problem or Requirement Analysis Support New implementation Alternative or Requirement Implementation Error (bug) Problem Understanding and Solution Requirements Implemented Solution Design Implementation Acceptable Solution Statement

16. Systems Planning Elements • People • Users, Management, Information Specialists • Data • How it is captured, used, and stored • Activities • Automated and Manual • Business and Information Applications • Networks • Where data is stored and processed • How data is exchanged between different locations • Technology • hardware and software used

17. Information SystemBuilding Block Systems Owners Systems Users Systems Designers Systems Builders

18. Differentiation versus Cost Leadership T1 Cost Differentiated Player Sustainable Premium Technology Curve Cost Leader Minimum or Market-Required Quality Quality

19. Is Cost Leadership Sustainable? T1 T2 Cost Differentiated Player Sustainable Premium New Technology Curve Old Technology Curve Cost Leader Minimum or Market-Required Quality Quality

20. Industry/Company Relationships Industry Structure & Competitive Position Freedom of Maneuver Long-term Objectives, Strategic Direction Detailed Strategies and Tactics

21. Break-Even Point Total Revenue Revenue and Costs Profit Profit Total Costs Fixed Costs Fixed Costs Sales Break-Even Volume

22. Decision Trees Probability Decision Point

23. Efforts to Categorizethe Unknown Uncertainty Complexity Instability

24. Barriers to Entry Sources • Economies of Scale • Economies of Scope • Product Differentiation • Capital Requirements • Cost Disadvantages • Independent of Size • Distribution Channel Access • Government Policy

25. Four Generic Approaches Lose Win Win/Win Win/Lose or Cooperative Equilibrium Win Lose Win/Lose or Cooperative Equilibrium Lose/Lose

26. Structure Defines the Industry War Lose/Lose • Total Industry Profits are Very Low, Zero, or Negative • Industry Revenues are Declining, or, at best, steady • Product Technology is at or past its peak

27. Win/Win • Total Industry Revenues and Profits are Growing Rapidly • Numerous Players of All Sizes • Products and Services are not Standardized

28. Win/Lose • Total Industry Revenues and/or Profits are Constant or are Growing very Slowly • Significant Economies of Scale in Production, Distribution, and/or Promotion • Number of Firms Participating in the Industry is Limited and Stable • Individual Participants have, or can obtain, Information Regarding the Relative Positions of the Players

29. Structure Defines the Terms of Competition • Wasting Resources • generic advertising rather than focusing on specific market segments • Precipitating Unwanted Warfare • Causing a full-scale price war when only brand repositioning was necessary • Failing to Anticipate and Adapt to Changes • Following historical patterns • Underspending on Advertising

30. Structure Defines Maneuver • Standard or Dominant Product Emerges • Distribution Channels Limit Firm’s Ability to Determine which Channels to Select • Target and Market Niches Become More Difficult to Defend • Substitutes Limit Price Increases which Requires Increase in Advertising Expenditure

31. Project Management • Set of Principles, Methods, Tools, Techniques • For the Effective Management of Results-Oriented Work • Utilized in the Context of a Specific and Unique Organizational Environment

32. Variables Cost Time Risk

33. Goals • Critical Path/PERT Charting • Progress Presentation Reports • Clients and Management • Dependencies/Prerequisites/Linkages • Variance Analysis • Resource Assignments

34. MSProject Program Linkages • Suite: Lotus/Microsoft/WordPerfect • Spreadsheet • Presentation • word processing • Database • Notes • Flowcharting (AllClear or ABC) • Risk Analysis Tool

35. Project Management Issues • Learning Curve Requires Understandable Training Program • Drown in Data Entry • Loose Perspective in Extent of Project Captured • Management Commitment • Critical Mass • Required Rollups • Discipline in Monitoring/Using Plan

36. Project Management Terms • Schedule From: • Project Start Date • Project Finish Date • Duration Type: • Resource Driven • Fixed Duration • Constrain Task • Date

37. Project Management Terms • Priority • High • Medium • Low • Risk • High • Medium • Low

38. Project Management Terms • Relationship with Predecessor: • Finish-to-Start (FS) • Start-to-Start (SS) • Finish-to-Finish (FF) • Start-to-Finish (SF)

39. Project Management Terms • Tasks: • Noncritical • Critical • Milestone • Summary • Project Summary

40. MIS Risks • Creeping User Requirements 80% • Excessive Schedule Pressure 65% • Low Quality 60% • Cost Overruns 55% • Inadequate Configuration Controls 50%

41. Systems Software Risks • Long Schedule 70% • Inadequate Cost Estimating 65% • Excessive Paper Work 60% • Error-prone Modules 50% • Canceled Projects 35%

42. Commercial Software Risks • Inadequate User Documentation 70% • Low User Satisfaction 55% • Excessive Time to Market 50% • Harmful Competitive Actions 45% • Litigation Expenses 30%

43. Military Software Risks • Excessive Paperwork 90% • Low Productivity 85% • Long Schedules 75% • Creeping User Requirements 70% • Unused or Unusable Software 45%

44. Contract or Outsourced Risks • High Maintenance Costs 60% • Friction between Contractor and Client 50% • Creeping User Requirements 45% • Unanticipated Acceptance Criteria 30% • Legal Ownership of Software 20%

45. End-User Software Risks • Non-Transferable Applications 80% • Hidden Errors 65% • Unmaintainable Software 60% • Redundant Applications 50% • Legal Ownership of Software 20% • Deliverables

46. Risk Prevention and Control • Creeping User Requirements • Schedule Pressure, Long Schedules, and Excessive Time to Market • Cost Overruns • Low Quality and Error-Prone Modules • High Maintenance Costs

47. Risk Factors Resistant to Control • Excessive Paperwork • Inadequate User Documentation • Low User Satisfaction • Friction Between Clients and Contractors • Legal Issues and Litigation Expense

48. Serious Software Risks • Inadequate Metrics • Inadequate Measurement • Excessive Schedule Pressure • Management Malpractice • Inaccurate Cost Estimating • Silver Bullet Syndrome • Creeping User Requirements • Low Quality • Low Productivity • Canceled Projects

49. Risk Factors to Define • Definition • Severity • Frequency • Occurrence • Susceptibility and Resistance • Root Causes • Associated Problems

50. Risk Factors to Define • Cost Impact • Methods of Prevention • Methods of Control • Product Support • Consulting Support • Education Support • Publication Support • Periodical Support • Standards Support