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Managing Information Technology& With CEO, CIO & Managers
Lecture 1ICT applications in Business and
Management
nvthoan@ftu.edu.vnhttp://web.ftu.edu.vn/thoan
MIS 8.2011 – 6.2012 – 2013 – 10.2014 – 3.2016 – 8.2016
Before we start!
• We are going to study how to manage ICT applications in business and management, please:
• Bring your laptop, and smart phone• Get connected to Internet (Wifi, 3G, even use your
smart phone)• Remember your E-learning account & pass• Contribute to class is most important• Use email for class practice and assignments• Enjoy and Have fun!
CEO & CIOWhat are the TWO key benefits which CEO and other Cs (CFO, CHR, COO, CMO, CIO) consider most important in ICT application Projects?Benefit 1: …… ……. (2 words)Benefit 2: …… ……. (2 words)Others if any!
The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. Bill Gates
Managing IT in an E-WorldMIS = Make It Simple
Management Information Systems
Q1. Is it easy to apply ICT in Business and Management?
Great things in business are never done by one person. They're done by a team of people.Steve Jobs
Managing IT in an E-World
This “telephone” has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.
-Western Union internal memo, 1876
I think there is a world market for maybe five computers.
There is no reason anyone would want a computer in their home.
640K ought to be enough for anybody.
Dell has a great business model, but that dog won’t scale.
MISPREDICTIONS BY IT INDUSTRY LEADERS
-Thomas Watson, chairman of IBM, 1943But what [is a microchip] good for?
-Engineer at the Advanced Computing Systems Division of IBM, 1968
-Ken Olson, president, chairman, and founder of Digital Equipment Corp., 1977
-Attributed to Bill Gates, chairman of Microsoft, 1981
-John Shoemaker, head of Sun’s server division, 2000
What would I do? I'd shut [Apple] down and give the money back to the shareholders.
--Michael Dell, chief executive officer and founder of Dell Computer, 1997
Managing IT in an E-World
Q2. How many percent of Annual Investment is spent for ICT, MIS and Ecommerce in businesses and organizations?
Productivity is grounded in the PC. Where does the computing power come from? How would you run 'USA Today' without PCs? Run a hospital without PCs? People don't want products, they want solutions. Michael Dell
Managing IT in an E-World
• IT investments are important strategic decisions for many organizations
By the year 2000, more than half of capital expenditures by businesses in developed
countries were for IT purchases
Managing IT in an E-World
Q3. Why business leaders now can apply MIS much more easily than 10 years before? (2016 vs. 2000)
Management is doing things right; leadership is doing the right things.Peter Drucker
RECENT INFORMATION TECHNOLOGY TRENDS
• Computer Hardware: Faster, Cheaper, Mobile– Computers have become smaller and faster– Hardware prices have dropped– Trend over time is for more mobile computers
Microcomputers (1970’s)
IBM Personal Computer
(1981)
Personal Digital Assistants [PDAs]
introduced (early 1990s)
Laptop Computers
outsell desktops (2005)
Touch screen cell phones
introduced (2007)
Managing IT in an E-World
Q4. How can MIS and ICT help increasing business competitiveness and production capabilities?
One strategy: "We've had three big ideas at Amazon that we've stuck with for 18 years, and they're the reason we're successful: Put the customer first. Invent. And be patient."
New Ways of Competition
• ICT helps form new business models• Support all three ways in competition (Porter, 1980)
• Compete by being a low-cost producer of a good or serviceCost
• Compete by offering products or services customers prefer due to superiority with innovativeness, image, quality, or customer service
Differentiation
• Simultaneously focusing on low-cost and differentiation often within a specific market nicheBoth
Managing IT in an E-World
Q5. Not all businesses have the same demands for ICT application.How many levels of urgencies in ICT applications? Give examples?Put the companies in order of ICT application demands?Bank, Airlines, Hospital, Super markets, Tax, Customs, Schools, Street Shops
MIS - 2016. Publishing as Prentice Hall 13
Four levels of ICT applications
• Companies have different demands for ICT applications– The Denis et al. (2004) scheme:
Absolute Must
• A mandate due to security, legal, regulatory, or end-of-life-cycle IT issues
Highly Desired / Business-Critical
• Includes short-term projects with good financial returns and portions of very large projects already in progress
Wanted
• Valuable, but with longer time periods for returns on investment (more than a 12-month period)
Nice to Have
• Projects with good returns, but with lower potential business
Managing IT in an E-World
6. What and How to manage ICT in business and organizations?WHATHOWWHO
What and How to manage ICT Apps?
• Computer and communications infrastructure that enables information sharing over standard IT platforms
Technology Asset
• Established partnering relationships for joint IT-business decision-making
Relationship Asset
• Pool of IT people talent for needed mix of technology and business skills
Human Asset
Managing IT in an E-World
Q7. Who should be appointed as CIO?
Who should be appointed as CIO?
• IT Leadership Roles
• A firm’s high-level general IT manager with both technology and business leadership experience. Together with the organization’s executive management team the CIO ensures the alignment of IT resources with business goals and plans for integration of IT for strategic advantage
Chief Information Officer (CIO)
CEO
Business Unit #1
Business Unit #2
Business Unit # 3 CIO
VP (IT) Individual
VP (IT) Retirement
ServicesVP (IT) Group
Corporate Applications / Payroll / HR
Enterprise Architecture
Planning and Finance
Systems Operations
Managing IT in Organizations
• CIO position in Organization!
CIO - VN
• Who used to be the Top Leader of ICT applications in Vietnam?
CIO - VN
Nguồn: http://vietnamnet.vn/vn/cong-nghe-thong-tin-vien-thong/183048/tap-trung-phat-trien-manh-cntt-theo-4-tru-cot.html26/06/2014
• How many percentage of Vietnam companies and businesses has CIO or PIC of ICT application?
Top 100 CIOs
Nguồn: http://www.cio.co.uk/cio100/2014/top-100/26/06/2014
From PC to Super Computer
Q8. Make a proposal for a computer room using for internal training in your company, 100 PCs and related equipment. - How much?- List key equipments- List key configurations for PC
From PC to Super Computer
A8. BIDDING FOR PCS ROOM1. 1.500.000.000 VND2. 2.000.000.000 VND3. 1.000.000.000 VND4. 1.800.000.000 VND5. 1.200.000.000 VND6. 1.470.000.000 -----7. 1.150.000.000 -----8. 1.400.000.000 VND9. XXXXXXXXXXXXX10. 1.100.000.000
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Types of Computers
LAN and Internet
Q9. When you check mail on your smart phone, how information runs in the networks?OrWhen you withdraw money from ATM manchine, how information runs and how you receive the SMS in your smart phone?
26
How information is transmitted ?• OSI Model
– Developed by the International Organization for Standardization (ISO)to outline a standard set of protocols for telecommunications
Figure 4.14
Two key MIS in businesses
10. What are the two key Information Systems in businesses?- You have PC, Servers- You have Networks- You have SoftwareWhat flows through the systems? Information? Data? How to use that to create Value for leaders, managers and employees?
28
Intra-Organizational systemsIntraorganizational systems
• Systems that support all or most of the organization
Enterprise Systems
• Systems that support a specific manager or group of managers
Managerial Support Systems
29
APPLICATION AREASIntraorganizational systems (cont’d)
Managing IT in an E-World
11. What does this stand for?SCMERPCRM
31
ERP SYSTEMSToday’s vendors offer modules beyond the “back-office” modules
ERP
12. Which companies are key vendors or providers of ERP, SCM and CRM solutions?
33
ERP market shares
• Choosing the right software is important– From one vendor or multiple vendors (“best of breed”)
• Implementing multiple modules at once is difficult– Requires large investment of money and people
resources
Source: Gartner Dataquest
CRM
Q13. Why do we need customers database, why do we need CRM systems?
"If you never want to be criticized, for goodness' sake don't do anything new."
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CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
• A new way to compete using IT: service-based differentiation– Single-face-to-the-customer, no matter which channel
customer uses
CRM systems
Traditional Channels New Electronic Channels
• Call centers • E-mail
• Field reps • Web sites for consumers and partners
• Retail dealer networks/ business partners
• Communications via wireless devices
36
CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS
Types of purchased CRM systems
CRM Suites e-CRM
ERP Extensions
Ex. Siebel, Clarify Ex. NetPerceptions(automated customer interactions)
Ex. mySAP, PeopleSoft/Vantive
Personal ICT Applications
Q14. List 10 applications you often use on your PC, laptop every day
List 10 most used applications in your smart phone?
"In the old world, you devoted 30% of your time to building a great service and 70% of your time to shouting about it. In the new world, that inverts."
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Office sharing and collaboration
• A set of office-related applications that might or might not be integrated into a single system
Most Common Office Applications
• Word processing • Desktop publishing
• Electronic mail • Electronic calendaring
• Telephony • Document imaging
• Voice mail • Document preparation, storage, and sharing
• Copying
Managing IT in an E-World
Q15. List at least 5 ICT application in business which helps leaders, managers and staff collaborate and communicate in business everyday?1.2.3.4.5.
MIS - 2016. Publishing as Prentice Hall 40
GROUPWARECommon Groupware Features
• Electronic mail • Meeting support systems
• Electronic bulletin boards • Workflow routing
• Computer conferencing • Electronic forms
• Electronic calendaring • Internet telephony
• Group scheduling • Sharing documents
• Desktop videoconferencing
• Learning management systems
• Electronic whiteboards • Instant messaging
• Shared workspace
MIS - 2016. Publishing as Prentice Hall 41
GROUPWAREGroupware Products
• Microsoft Exchange • EMC Documentum eRoom
• Lotus Notes • Microsoft Office Groove
• Oracle Collaboration Suite • Microsoft SharePoint Server
• Novell GroupWise • Thruport Technologies HotOffice
• Microsoft Office Communications Server
• IBM Workplace Collaboration Services
• Web Crossing
SCM – Supply Chain Management
Q15. Find in Youtube.com a video clip about car manufacturing processes?
Or other product production processesList the key suppliers for this factory?Why do we need SCM?
MIS - 2016. Publishing as Prentice Hall 43
SUPPLY CHAIN MANAGEMENT (SCM) SYSTEMS
• Designed to deal with the procurement of components needed to make a product or service and movement and distribution of finished products through the supply chain
• Five basic components of SCM system:1. Plan: developing strategy for managing resources2. Source: choosing suppliers3. Make: manufacturing the product4. Deliver: logistics of getting product to the customer5. Return: procedure for handling defective products
Automation of production and services
Q16. Find a video clip in Youtube.com which show the applications of ICT in:- Hospital- Factories (car, PC, phone, foods…)- Bank- Supermarket- Everyday life activities
Send links to Class email and also: nvthoan@ftu.edu.vn
MIS - 2016. Publishing as Prentice Hall 45
FACTORY AUTOMATION
• Computer-aided manufacturing (CAM) – use of computers to control manufacturing processes – Series of programs to control automated
equipment on shop floor – Includes guiding vehicles to move raw materials
and finished products– Requires a lot of input from other systems
Factory operations
Managing IT in an E-World
Q17. Data miningHow can banks use customer database?How can super-markets use customer database?
PRACTICE: Create a Google Form to get customer information?
MIS - 2016. Publishing as Prentice Hall 47
Data mining
• Data mining software:– Oracle 10g Data Mining
(http://www.oracle.com/technology/products/bi/odm/index.html)
– SAS Enterprise Miner(http://www.sas.com/technologies/analytics/datamining/miner/)
– XLMiner(http://www.xlminer.com/)
– IBM Intelligent Miner Modeling(http://www-306.ibm.com/software/data/iminer/)
– Angoss Software’s KnowledgeSEEKER, KnowledgeSTUDIO, and StrategyBUILDER (http://www.angoss.com/analytics_software/)
MIS - 2016. Publishing as Prentice Hall 48
DATA MINING
Cross Selling
Losing customer
Retention
Direct Marketing
Fraud Detection
MIS - 2016. Publishing as Prentice Hall 49
DATA MININGInteractive
Analysis
Segmentation
Payment
Trends
MIS - 2016. Publishing as Prentice Hall
End of part 1
• Summary• How fast can you type in English?• List 10 key components of a PC?
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