Description
Information & Decision Support Systems for Business and Application of Business Intelligence
Information & Decision Support
Systems for Business and Application of
Business Intelligence
Lecture-3 & 4
Changing Business Environment
•Companiesaremovingaggressivelyto
computerized support of their
operations=>BusinessIntelligence
•Business Pressures–Responses–
Support Model
–Business pressures result of today's
competitivebusinessclimate
–Responsestocounter thepressures
–Support to better facilitate the
process
Business Pressures–Responses–
Support Model
The Business Environment
The environment in which organizations
operate today is becoming more and
morecomplex, creating:
opportunities, andproblems
Example: globalization
Businessenvironment factors:
markets, consumer demands, technology,
andsocietal…
Business Environment Factors -
Markets
?Strongcompetition
?Expandingglobal markets
?Blooming electronic markets on theInternet
?Innovativemarketingmethods
?Opportunities for outsourcing with IT
support
?Needfor real-time, on-demandtransaction
Business Environment Factors – Consumer
demand
?Desire for customization
?Desire for quality
?diversity of products
?speed of delivery
?Customers getting powerful and less loyal
Business Environment Factors -
Technology
? Increase in wireless technology use,
Web sites
? Increased business use of Web 2.0
technologies
? Cloud computing, mobile digital
platform allow more distributed work,
decision-making, and collaboration
Business Environment Factors -
Societal
?Growing government regulations and
deregulation
?Workforce more diversified
?Increasing social responsibility of companies
?Greater emphasis on sustainability
Organizational Responses
• Be Reactive, Anticipative, Adaptive, and Proactive
• Managers may take actions, such as
•Employ strategic planning
•Use new and innovative business models
•Restructure business processes
•Participate in business alliances
•Improve corporate information systems
•Encourage innovation and creativity
•Automate certain decision processes
– Improve decision making by employing analytics
Closing the Strategy Gap
• One of the major objectives of
computerized decision support is to
facilitate closing the gap between the
current performance of an organization
and its desired performance, as
expressedin its mission, objectives, and
goals, andthestrategytoachievethem
Understanding Information Systems: A Business
Problem-Solving Approach
• Few business problems are simple or
straightforward.
• Most business problems involve a number of
major factors that can fall into three main
categories:
• Organization
• Technology
• People
The Problem The Problem--Solving Approach Solving Approach
• Problem solving: four-step process
1. Problem identification
2. Solution design
3. Choice
4. Implementation
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
1. Problem identification includes:
• Agreement that problem exists
• Definition of problem
• Causes of problem
• What can be done given resources of firm
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Typical organizational problems
• Outdated business processes
• Unsupportive culture and attitudes
• Political in-fighting
• Turbulent business environment, change
• Complexity of task
• Inadequate resources
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Typical technology problems
• Insufficient or aging hardware
• Outdated software
• Inadequate database capacity
• Insufficient telecommunications capacity
• Incompatibility of old systems with new
technology
• Rapid technological change
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Typical people problems
• Lack of employee training
• Difficulties of evaluating performance
• Legal and regulatory compliance
• Work environment, ergonomics
• Poor or indecisive management
• Lack of employee support and
participation
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
2. Solution design
• Often many possible solutions
• Consider as many as possible to understand
range of solutions
3. Choice: Factors include
• Cost
• Feasibility given resources and skills
• Length of time needed to implement
solution
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
4. Implementation
• Building or purchasing solution
• Testing solution, employee training
• Change management
• Measurement of outcomes
• Feedback, evaluation of solution
• Problem solving is a continuous process, not a
single event
• Sometimes chosen solution doesn’t work or
needs adjustment
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Problem Solving Is a Continuous Problem Solving Is a Continuous
Four Four--Step Process Step Process
During implementation and
thereafter, the outcome
must be continually
measured and the
information about how well
the solution is working is fed
back to the problem solvers.
In this way, the identification
of the problem can change
over time, solutions can be
changed, and new choices
made, all based on
experience.
• Without critical thinking, easy to jump to
conclusions, misjudge a problem, and
waste resources
• Critical thinking:
• Sustained suspension of judgment with
an awareness of multiple perspectives
and alternatives
The Role of Critical Thinking in The Role of Critical Thinking in
Problem Solving Problem Solving
• Four elements of critical thinking:
1. Maintaining doubt and suspending judgment
2. Being aware of different perspectives
• Including technology, organization, and people
perspectives
3. Testing alternatives and letting experience guide
4. Being aware of organizational and personal
limitations
The Role of Critical Thinking in Problem The Role of Critical Thinking in Problem
Solving Solving
• When firms cannot achieve
business objectives these
objectives become challenges.
• Information systems often present
solutions, partially or fully, to these
challenges.
The Connection Between Business The Connection Between Business
Objectives, Problems, and Solutions Objectives, Problems, and Solutions
• Success in today’ s job market requires a
broad set of skills.
• Job candidates must have problem-
solving skills as well as technical skills so
that they can complete specific tasks.
• The service sector will account for 95
percent of the new jobs that are created
or open up by 2012
Information Systems and Your Career
• Accounting:
• Accountants increasingly rely on information systems
to summarize transactions, create financial records,
organize data, and perform financial analysis.
• Skills:
• Knowledge of databases and networks
• Online financial transactions and reporting
systems
• How systems are used to achieve accounting
functions
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Finance:
• Relationship between information systems and
financial management and services is so strong that
many advise finance majors to co-major in
information systems.
• Skills:
• Use systems for financial reporting, direct
investment activities, implement cash
management strategies
• Plan, organize, implement information systems
strategies for the firm
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Marketing:
• No field has undergone more technology-driven
change in the past five years than marketing and
advertising.
• Skills:
• Work with databases for tracking and reporting
on customer behavior, product performance,
customer feedback, product development
• Enterprise systems for product management,
sales force management, customer relationship
management
How Information Systems Will How Information Systems Will
Affect Business Careers Affect Business Careers
• Operations management in services and
manufacturing:
• Production managers, administrative service
managers, and operations analysts
• Skills:
• Hardware and software platforms for
operations management
• Use database and analytical software for
coordinating and optimizing resources
required for producing goods and
services
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Management:
• The job of management has been
transformed by information systems.
• Impossible to manage business today
without information systems.
• Skills:
• Use of information systems for each
function of job, from desktop
productivity tools to applications
coordinating the entire enterprise
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Information systems:
• Fast changing and dynamic profession because
information technologies are among most important
tools for achieving business firms’ key objectives
• Domestic and offshore outsourcing
• Skills:
• Uses of new and emerging hardware and
software to achieve six business objectives
• An ability to take a leadership role in the design
and implementation of new information systems
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Common requirements
• How IT helps achieve six business objectives
• Central role of databases
• Business analytics and intelligence systems
• Working with specialists and systems designers
• Ethical, social, legal environment and issues
• Use of IT to meet legal requirements
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
doc_865785790.pdf
Information & Decision Support Systems for Business and Application of Business Intelligence
Information & Decision Support
Systems for Business and Application of
Business Intelligence
Lecture-3 & 4
Changing Business Environment
•Companiesaremovingaggressivelyto
computerized support of their
operations=>BusinessIntelligence
•Business Pressures–Responses–
Support Model
–Business pressures result of today's
competitivebusinessclimate
–Responsestocounter thepressures
–Support to better facilitate the
process
Business Pressures–Responses–
Support Model
The Business Environment
The environment in which organizations
operate today is becoming more and
morecomplex, creating:
opportunities, andproblems
Example: globalization
Businessenvironment factors:
markets, consumer demands, technology,
andsocietal…
Business Environment Factors -
Markets
?Strongcompetition
?Expandingglobal markets
?Blooming electronic markets on theInternet
?Innovativemarketingmethods
?Opportunities for outsourcing with IT
support
?Needfor real-time, on-demandtransaction
Business Environment Factors – Consumer
demand
?Desire for customization
?Desire for quality
?diversity of products
?speed of delivery
?Customers getting powerful and less loyal
Business Environment Factors -
Technology
? Increase in wireless technology use,
Web sites
? Increased business use of Web 2.0
technologies
? Cloud computing, mobile digital
platform allow more distributed work,
decision-making, and collaboration
Business Environment Factors -
Societal
?Growing government regulations and
deregulation
?Workforce more diversified
?Increasing social responsibility of companies
?Greater emphasis on sustainability
Organizational Responses
• Be Reactive, Anticipative, Adaptive, and Proactive
• Managers may take actions, such as
•Employ strategic planning
•Use new and innovative business models
•Restructure business processes
•Participate in business alliances
•Improve corporate information systems
•Encourage innovation and creativity
•Automate certain decision processes
– Improve decision making by employing analytics
Closing the Strategy Gap
• One of the major objectives of
computerized decision support is to
facilitate closing the gap between the
current performance of an organization
and its desired performance, as
expressedin its mission, objectives, and
goals, andthestrategytoachievethem
Understanding Information Systems: A Business
Problem-Solving Approach
• Few business problems are simple or
straightforward.
• Most business problems involve a number of
major factors that can fall into three main
categories:
• Organization
• Technology
• People
The Problem The Problem--Solving Approach Solving Approach
• Problem solving: four-step process
1. Problem identification
2. Solution design
3. Choice
4. Implementation
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
1. Problem identification includes:
• Agreement that problem exists
• Definition of problem
• Causes of problem
• What can be done given resources of firm
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Typical organizational problems
• Outdated business processes
• Unsupportive culture and attitudes
• Political in-fighting
• Turbulent business environment, change
• Complexity of task
• Inadequate resources
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Typical technology problems
• Insufficient or aging hardware
• Outdated software
• Inadequate database capacity
• Insufficient telecommunications capacity
• Incompatibility of old systems with new
technology
• Rapid technological change
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Typical people problems
• Lack of employee training
• Difficulties of evaluating performance
• Legal and regulatory compliance
• Work environment, ergonomics
• Poor or indecisive management
• Lack of employee support and
participation
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
2. Solution design
• Often many possible solutions
• Consider as many as possible to understand
range of solutions
3. Choice: Factors include
• Cost
• Feasibility given resources and skills
• Length of time needed to implement
solution
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
4. Implementation
• Building or purchasing solution
• Testing solution, employee training
• Change management
• Measurement of outcomes
• Feedback, evaluation of solution
• Problem solving is a continuous process, not a
single event
• Sometimes chosen solution doesn’t work or
needs adjustment
A Model of the Problem A Model of the Problem--Solving Solving
Process Process
Problem Solving Is a Continuous Problem Solving Is a Continuous
Four Four--Step Process Step Process
During implementation and
thereafter, the outcome
must be continually
measured and the
information about how well
the solution is working is fed
back to the problem solvers.
In this way, the identification
of the problem can change
over time, solutions can be
changed, and new choices
made, all based on
experience.
• Without critical thinking, easy to jump to
conclusions, misjudge a problem, and
waste resources
• Critical thinking:
• Sustained suspension of judgment with
an awareness of multiple perspectives
and alternatives
The Role of Critical Thinking in The Role of Critical Thinking in
Problem Solving Problem Solving
• Four elements of critical thinking:
1. Maintaining doubt and suspending judgment
2. Being aware of different perspectives
• Including technology, organization, and people
perspectives
3. Testing alternatives and letting experience guide
4. Being aware of organizational and personal
limitations
The Role of Critical Thinking in Problem The Role of Critical Thinking in Problem
Solving Solving
• When firms cannot achieve
business objectives these
objectives become challenges.
• Information systems often present
solutions, partially or fully, to these
challenges.
The Connection Between Business The Connection Between Business
Objectives, Problems, and Solutions Objectives, Problems, and Solutions
• Success in today’ s job market requires a
broad set of skills.
• Job candidates must have problem-
solving skills as well as technical skills so
that they can complete specific tasks.
• The service sector will account for 95
percent of the new jobs that are created
or open up by 2012
Information Systems and Your Career
• Accounting:
• Accountants increasingly rely on information systems
to summarize transactions, create financial records,
organize data, and perform financial analysis.
• Skills:
• Knowledge of databases and networks
• Online financial transactions and reporting
systems
• How systems are used to achieve accounting
functions
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Finance:
• Relationship between information systems and
financial management and services is so strong that
many advise finance majors to co-major in
information systems.
• Skills:
• Use systems for financial reporting, direct
investment activities, implement cash
management strategies
• Plan, organize, implement information systems
strategies for the firm
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Marketing:
• No field has undergone more technology-driven
change in the past five years than marketing and
advertising.
• Skills:
• Work with databases for tracking and reporting
on customer behavior, product performance,
customer feedback, product development
• Enterprise systems for product management,
sales force management, customer relationship
management
How Information Systems Will How Information Systems Will
Affect Business Careers Affect Business Careers
• Operations management in services and
manufacturing:
• Production managers, administrative service
managers, and operations analysts
• Skills:
• Hardware and software platforms for
operations management
• Use database and analytical software for
coordinating and optimizing resources
required for producing goods and
services
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Management:
• The job of management has been
transformed by information systems.
• Impossible to manage business today
without information systems.
• Skills:
• Use of information systems for each
function of job, from desktop
productivity tools to applications
coordinating the entire enterprise
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Information systems:
• Fast changing and dynamic profession because
information technologies are among most important
tools for achieving business firms’ key objectives
• Domestic and offshore outsourcing
• Skills:
• Uses of new and emerging hardware and
software to achieve six business objectives
• An ability to take a leadership role in the design
and implementation of new information systems
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
• Common requirements
• How IT helps achieve six business objectives
• Central role of databases
• Business analytics and intelligence systems
• Working with specialists and systems designers
• Ethical, social, legal environment and issues
• Use of IT to meet legal requirements
How Information Systems Will Affect How Information Systems Will Affect
Business Careers Business Careers
doc_865785790.pdf