DIRE DAWA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
SCHOOL OF POST GRADUATE

MIS Individual Assignment-II

Prepare a Portfolio on Strategic roles of Information System (IS) and
Management Information System (MIS) Chapters

Prepared by: - Biniyam Yitbarek

ID.No DDU1400966
Submitted to: -Banbul Shawakena(Ass.Prof. Of Financial Management)

Ciro, Ethiopia

October, 2022
 ACKNOWLEDGMENT

It is my earnest intention to express my profound gratitude to Almighty God for His

enabling grace and to all that have contributed or help in one way or the other to the
successful completion of my portfolio.
I wish to express my joy to Mr.Abrahim and Mrs.Andualem for their moral and
financial support in making my studies sweet. I remain indebted to my parents for
their invaluable support throughout the period of carrying out this Project work and
my academic pursuit.
Finally, I thank Girma for being very good to me, and seniet. May God bless and
reward you all for your understanding and patience.
At last but not least gratitude goes to all of our batch mates who directly or
indirectly helped us to complete this portfolio report.

ABSTRACT

The main purpose of this paper is to prepare and present portfolio on Strategic
roles of Information System (IS) and Management Information System (MIS)
Chapters on different topics. the portfolio prepared in this paper organized by
defining the terminology and explaining with brief note on each topics.

In Strategic roles of Information System (IS) Chapter section :-Breaking Business

Barriers ,Business Processes Reengineering ,Improving Business Quality ,Creating
Virtual Company ,Using Internet Strategically ,Building knowledge, Creating
Company ,Challenges of Strategic of IS ,Enterprise – wide systems and E- Business
Applications topics are briefly explained with example for each topic.

In Management Information System (MIS) section: Enterprise Management,

Information Resource Management, Technology Management, IS planning
methodologies, Critical Success factors, Business Systems Planning, Computer
Aided Planning Tools. Security & Ethical Challenges ,IS controls ,Facility
Controls ,Procedural Controls ,Computer Crime and Privacy issues topics are briefly
explained with example for each topic.
 INTRODUCTION
Information system in an organization is very fundament because it serves as the main element
that contributes to the decision-making process effectiveness. Manager and executives rely more
on the information system especially on matters to do with their competitors. A good and effective
information system should be able to cover the data concerning the competitors’ customers. This
simply means that the information system should identify the customers demand and come up
with the suitable strategic plan to meet their needs and requirements. It thus means that it
establishes the supplement products and services that need to be incorporated in the company to
win the customer loyalty, making them to prefer their products and services rather than those of
their competitors (Sarngadharan, 2010).

The new information system should identify the factors that drive the customers to prefer their
competitors’ services and create a method that shift their attention and demands to purchase their
supplies. Information system assists the organization both in the decision-making and in solving
managerial problem. For example, a management information system (MIS) would enable the
entire management hierarchy to decide on the best methods on how they should relate and
improves their business operations with an objective of outshining their competitors in the market
share (McLeod 2009).

The advantage of implementing an information system in an organization is that it enables the

relevant bodies to analyze different data concerning their competitors’ customers such as
statistical analysis within a convenient period thus enhancing easy and fast decision-making
process. This system caters for diverse management requirements because the top-level
management needs strategic data and information. In such a context, the organization has to seek
for an executive support system (ESS) that would distinguish the complex information needed to
make the entity more competitive (Ross, 2004).

An organization with an information system makes the institution attain a competitive advantage
in the sense that it reduces on the cost production and that of operations. The organization would
have the opportunity and mechanisms to differentiate their goods from those supplied by the
competitors. An information system comes along with a high level of innovation making the
organization to major mostly on a selected segment of the market share. This system should
encompass the features that would enable the organization to engage in e-commerce hence
providing more and reliable approaches for competitive business (McLeod 2009).
On the contra to the positive impacts, it brings to the organization the system also disadvantages
the human labor. The human work force gets eliminated by implementation of the system because
most of the activities would be conducted using simplified mechanism. Most of the new system,
require s for trained personnel meaning that it is more costly during it installation and absorption
into the management. The data and information offered by the system may not be timely all time
thus making unnecessary inconvenience (Sarngadharan, 2010).

Most common ethical problems are as a result of the failure of the information system. That the
information system may mislead the entire management leading them to reach an agreement on a
decision based on unreliable facts. For instance, the management may decide to invest in a certain
business expecting to earn more superiority than their competitor only to realize a loss. During the
organization endeavor to winner their competitors customers’ loyalty they should disregard
whether the customer is a business entity or an individual but instead should utilize on both types
of customer in order to ensure that the exhaustively takes over the market. This therefore gives it
the power the customers in the market (Ross, 2004).

The Management Information System does not only include the software
systems but the entire set of business operations and the required resources that are
used to gather information from the functional systems. The acquired information is
then presented in such a manner that is user friendly and at the required time so that
the managers can use it make correct actions for the business. The entire system is
set up in such a way so that the organization will achieve its aims and strategic goals
(Laundon 164).

Organizations have a number of functional systems. This normally includes the

financial systems, sales system, the inventory systems and the logistics system. The
Management Information System then puts together the information from the
different systems. This method will aid the staffs to understand better the
contributions from their own department (Pant 189). Combination of data from the
different systems enables the organization to meet the customers’ needs effectively.

The main function of the Management Information System is to aid the manager to
take correct actions and make right decisions. The primary function is to achieve the
organization’s goals and maximize profits. At the end of a financial period if the
target is not met, the manager and the entire group will review their past actions and
take correct measures in order to increase the sales and meet goals.

Before starting any MIS project, businesses must review the transactional systems,
the organization operations and the actual needs of management within the business.
Many managers believe that, for the project to be successful, all information from
all systems must be put together. Only the valuable data from different systems is
brought so as to help the managers manage even if it means ignoring most of the
information provided the ultimate goal of the organization is met (Laundon 246).
 Unit Iv: Strategic roles of IS
Breaking Business Barriers
When starting a new business, or bringing a new product to market, there's no shortage
or factors that affect the odds of potential success. By understanding barriers to entry
and how they impact the competitive landscape, new firms can put themselves in a
stronger position to compete with existing firms in a given industry.

New entrants in a market will always have an uphill battle to climb especially in the case
of high start up costs. Fortunately, for many ecommerce businesses, the natural barriers
that often keep new entrants from seeing growth compared to their competition is not a
major factor.

In this section, we'll cover the basics of barrier to entry and explore how each of the
barriers to entry impact business success.

What is Barrier to Entry?

Barrier to entry is the high cost or other type of barrier that prevents a business startup
from entering a market and competing with other businesses. Barriers to entry are
frequently discussed in the context of economics and general market research.

Barriers to entry can include government regulations, the need for licenses, and having
to compete with a large corporation as a small business startup.

While there is no universally accepted list of barriers to entry, generally barriers to entry
fall under three categories.

Artificial barriers to entry; Artificial barriers to entry refers to barriers that are the
direct result of existing firms actions. Frequently this involves barriers centered around
pricing, brand, switching costs, and customer loyalty.
Natural barriers to entry; This includes barriers such as network effects, economics of
scale, and other natural barriers that are the direct results of a new entrants new position
in the market place.

Government barriers to entry; Barriers to entry related to the government refer

specifically to challenges for new firms face as a result of government regulations and
restrictions. Governments around the world frequently create favorable conditions for
particular incumbent firms that can make it challenging for new entrants.

Depending on the market, barriers to entry can include barriers in a mix of these three
category buckets. Barriers to entry are

Example of Barriers to Entry

For example, a large established company is able to produce a large amount of products
efficiently (low fixed costs) and more cost-effectively than a company with fewer
resources. They have lower costs because they are able to purchase materials in bulk,
and they have lower overhead because they are able to produce more under one roof.
The smaller company would simply have a hard time keeping up with that, which can
result in them avoiding entering the market altogether.

Another example of barrier to entry would be education and licensing requirements

decided by the government. If you were to create an alternative school for example, you
would need to spend signifiant amounts of capital on the various certifications etc which
can add for new firms who may not have large amounts of cashflow.

Other firms who have already developed marketshare of a certain industry are almost
always at a signifiant advantage compared to new firms. New entrants face high start up
costs in addition to the challenges of growing their business. Existing firms on the other
hand, enjoy cost advantages and have already established market share.

Barriers to entry can have a negative effect on prices since the playing field is not level
and competition is restricted. It’s not really an ideal situation for anyone except the large
company that holds the monopoly.

However, barriers to entry are not always completely prohibitive. In fact, many business
startups encounter some sort of barrier to entry that they must overcome, whether that’s
initial investments, acquiring licenses, or obtaining a patent – it’s just part of doing
business.

Sources of Barriers to Entry

Generally speaking, entry barriers come from seven sources:

 Economies of scale: the decline in the cost of operations due to higher production
volume which helps keeps fixed costs low. More established existing firms have a
significant cost advantage compared to new comers.

 Product differentiation: the brand strength of the product as a result of effective

communication of its benefits to the target market. It can be difficult for new entrants to
"break through the noise" in their market.

 Capital requirements: One of the major economic barriers, capital requirements

refers to financial resources required for operating the business. Starting a car wash
business for example is more capital extensive than creating an ecommerce store.

 Switching costs: This refers to one-time costs the buyer must incur for making
the switch to a different product. Your product may technically be the better solution,
but if the cost to switch is too high, customers will often remain with the solutions
existing firms provide.

 Access to distribution channels: does one business control all of them, or are
they open? Shipping, logistics and more are a powerful barrier to entry, incumbent firms
use to their advantage.

 Cost disadvantages independent of scale: when a company has advantages that

cannot be replicated by the competition, such as proprietary technology.

 Government policy: controls the government has placed on the market, such as
licensing requirements and other required documentation needed to start and grow a
business.

Overcoming Barriers to Entry

While barriers to entry make it difficult for new entrants to establish market share, many
existing firms view barriers to entry as a competitive advantage.

Some businesses want there to be high barriers to entry in their market because they
want to limit competition or hold on to their place at the top. Therefore, they will try to
maintain their competitive advantage any way they can, which can make entry even
more difficult for new businesses.

Existing firms might do something like spend an excessive amount of money on

advertising (in other words, on product differentiation), because they have it and they
can, and any new entrant would not be able to do that, giving them a significant
disadvantage.
When starting a business, evaluating all potential barriers to entry is a crucial step in
deciding whether or not to enter a chosen market. By understanding the barriers to entry
in a particular industry, new entrants can make strategic choices on how to best compete
with other firms.

High start up costs, government regulations, and even predatory pricing are all
challenges new entrants will likely face over the course of growing their business. But
despite the disadvantages new companies may have, there's no shortage of stories of
incumbent firms finally being dethroned—a classic tale of "David vs Goliath" in the
world of business.

What is business process re-engineering (BPR)?

Business process re-engineering (BPR) is the radical redesign of business processes to
achieve dramatic improvements in critical aspects like quality, output, cost, service, and
speed. Business process reengineering (BPR) aims at cutting down enterprise costs and
process redundancies on a very huge scale.

Is business process reengineering (BPR) same as business process

improvement (BPI)?
On the surface, BPR sounds a lot like business process improvement (BPI). However, there
are fundamental differences that distinguish the two. BPI might be about tweaking a few
rules here and there. But reengineering is an unconstrained approach to look beyond the
defined boundaries and bring in seismic changes.

While BPI is an incremental setup that focuses on tinkering with the existing processes to
improve them, BPR looks at the broader picture. BPI doesn’t go against the grain. It
identifies the process bottlenecks and recommends changes in specific functionalities. The
process framework principally remains the same when BPI is in play. BPR, on the other
hand, rejects the existing rules and often takes an unconventional route to redo processes
from a high-level management perspective.

BPI is like upgrading the exhaust system on your project car. Business Process
Reengineering, BPR is about rethinking the entire way the exhaust is handled.
 Five steps of business process reengineering (BPR)
To keep business process reengineering fair, transparent, and efficient, stakeholders need
to get a better understanding of the key steps involved in it. Although the process can differ
from one organization to another, these steps listed below succinctly summarize the process:

Below are the 5 Business Process Re-engineering Steps:

1. Map the current state of your business processes

Gather data from all resources–both software tools and stakeholders. Understand how the
process is performing currently.

2. Analyze them and find any process gaps or disconnects

Identify all the errors and delays that hold up a free flow of the process. Make sure if all
details are available in the respective steps for the stakeholders to make quick decisions.

3. Look for improvement opportunities and validate them

Check if all the steps are absolutely necessary. If a step is there to solely inform the person,
remove the step, and add an automated email trigger.

4. Design a cutting-edge future-state process map

Create a new process that solves all the problems you have identified. Don’t be afraid to
design a totally new process that is sure to work well. Designate KPIs for every step of the
process.

5. Implement future state changes and be mindful of dependencies

Inform every stakeholder of the new process. Only proceed after everyone is on board and
educated about how the new process works. Constantly monitor the KPIs.

A real-life example of BPR

Many companies like Ford Motors, GTE, and Bell Atlantic tried out BPR during the 1990s
to reshuffle their operations. The reengineering process they adopted made a substantial
difference to them, dramatically cutting down their expenses and making them more
effective against increasing competition.
 The story
An American telecom company that had several departments to address customer support
regarding technical snags, billing, new connection requests, service termination, etc. Every
time a customer had an issue, they were required to call the respective department to get their
complaints resolved. The company was doling out millions of dollars to ensure customer
satisfaction, but smaller companies with minimal resources were threatening their business.

The telecom giant reviewed the situation and concluded that it needed drastic measures to
simplify things–a one-stop solution for all customer queries. It decided to merge the various
departments into one, let go of employees to minimize multiple handoffs and form a nerve
center of customer support to handle all issues.

A few months later, they set up a customer care center in Atlanta and started training their
repair clerks as ‘frontend technical experts’ to do the new, comprehensive job. The company
equipped the team with new software that allowed the support team to instantly access the
customer database and handle almost all kinds of requests.

Now, if a customer called for billing query, they could also have that erratic dial tone fixed or
have a new service request confirmed without having to call another number. While they
were still on the phone, they could also make use of the push-button phone menu to connect
directly with another department to make a query or input feedback about the call quality.

The redefined customer-contact process enabled the company to achieve new goals.

 Reorganized the teams and saved cost and cycle time

 Accelerated the information flow, minimized errors, and prevented reworks
 Improved the quality of service calls and enhanced customer satisfaction
 Defined clear ownership of processes within the now-restructured team
 Allowed the team to evaluate their performance based on instant feedback
 What is quality improvement? Definition and examples?
Quality improvement refers to the combined and unceasing efforts of everybody in
a company to make everything about it, especially its production process, better. It is
a systematic approach to the elimination or reduction of rework, waste, and losses in
the production process.

Put simply, quality improvement (QI) refers to methods to improve the production
process. It requires getting rid of or changing parts of the process that do not function
optimally.

In manufacturing, for example, the term nearly always refers to the production
process. However, management can target any part of a company or organization for
QI.

There are several different methods for quality improvement. They cover people-
based improvement, process improvement, and product improvement.
Quality improvement – common in healthcare

QI exists in all industries. However, we read about it more in the healthcare sector. If
you search ‘quality improvement’ in Google, you will notice that the first two pages
consist almost entirely of healthcare organizations.

In a 2007 BMJ article, Paul B Batalden and Frank Davidoff had the following
definition of quality improvement in healthcare:

“We propose defining it as the combined and unceasing efforts of everyone –

healthcare professionals, patients and their families, researchers, payers, planners and
educators – to make the changes that will lead to better patient outcomes (health),
better system performance (care) and better professional development.”

BusinessDictionary.com defines the term as follows:

“The systematic approach to reduction or elimination of waste, rework, and losses in

production process.

There are several different quality improvement methods. Many people say it is
best to combine some of them.
 Part of quality management

QI is part of quality management. It exists alongside quality control, quality assurance, and quality
planning. Below is an explanation of the four parts that make up quality management:

Quality control

Quality control or QC is a system in manufacturing for maintaining standards. Inspectors examine the
final product to make sure it meets standards and specifications. When the company provides a service,
the inspector checks the end results.

Quality assurance

Quality assurance or QA is a program for the systematic monitoring of different aspects of production.
We also use QA for projects and services. QC occurs after the finished product is completed, while QA
happens before.

Quality improvement

Quality improvement or QI focuses on improving the production process. However, the target could be
any part of an organization.

One vital ingredient in successful and sustained improvement is how changes are introduced and
implemented. “Taking a consistent approach is key,” says the Health Foundation.

The Health Foundation adds that it is important to adopt a combination of approaches to ensure
improvements. This is especially the case in healthcare.

Quality planning

Quality planning or QP refers to the process of identifying which quality standards to focus on and then
determine what to do.

According to MyPmps.net:

“Quality planning means planning how to fulfill process and product (deliverable) quality requirements.
Quality is the degree to which a set of inherent characteristics fulfill requirements.”

What is a virtual business?

A virtual business is one that is run primarily online rather than a physical, or brick-
and-mortar, office. While virtual business operations are mostly conducted online, they
can differ in levels of physical operations.
Some virtual businesses are fully online, with no central office or headquarters and
solely remote employees. In other instances, a virtual business may maintain a physical
location for important meetings or a facility where employees can do tasks such as
packing shipments for customers like Amazon.

Because of the minimal overhead costs, virtual businesses are popular among startups
and small businesses that are run from home.
Example of virtual company
Fire Engine RED
Who says that team-building is impossible with distributed companies? Fire Engine RED, a
software provider in the education sector, proves otherwise. A virtual walking club and virtual
book club keep team members connected, while biweekly all-hands meetings, conducted via
conference call, ensure everyone is on the same page. “By not spending money on office
space,” Director of Communications Chuck Vadun explains, “we’re able to invest more in
serving our clients better.”

The company encourages employees to save also, as evidenced by the company’s “REDuce
Your Bills” event. “Our CEO put together a tip sheet,” Vadun explains, “then gave our team the
entire day off to call our cable providers, cell phone companies, insurance agents, and others to
get better deals.” Together, Fire Engine RED employees saved an extra 25,000 dollars each
year. It’s clear that this 100% virtual company has made cost-effectiveness part of its culture, to
the benefit of clients and team members alike.

What is Internet Strategy?

Internet Strategy is the strategy adopted by a business to go online and use web approach for
marketing, communicating and engaging customers through a proprietary website. It is a strategic
plan adopted by business to create and develop online presence of company by adhering to their
overall business development strategy.

It is more than designing web strategy as it uses internet as an opportunity to design business
strategy. It is like a map basically how and when to use internet to expand overall business and to
implement such strategies overall.

The elements included in internet strategy will be business strategy, web design strategy, search
engine optimization, website design and maintenance, website hosting and management .It
includes overall business strategy which can make internet to incorporate in overall business. It
includes all tactical aspects to improve customer relations, communication between employees
and customers, to gain competitive advantage and increase marketing efficiencies.

To improve sales there should be proper internet marketing strategies otherwise they will be of no
use. Internet strategy is designed by high skilled business professionals and web strategist. They
are hired to design internet strategy because they know latest online trends, businesses, users
experience and principles of technology. There is continuous need to made and implement
necessary changes in the internet strategies according to business maturity.
Example of Internet Strategy
Alibaba

In 2018, the net global spend on digital transformation was approximately $1 trillion.
This year, this number is expected to increase to more than double that.7

But the question on many business leaders’ minds is: how?

While AI has become an increasingly popular solution for businesses, many leaders
are still evaluating effective implementation methods for their organizations. One
successful example of this is Alibaba. The Chinese e-commerce giant is making
huge gains in AI thanks to the support, investment, and commitment of the Chinese
government. With hopes to build a $1 trillion AI industry by 2030, China is on a path
to overtake the United States as the world’s leader in technology.8

Alibaba’s application of AI and machine learning in its ‘smart’ warehouse was born
out of necessity. Having reported revenue of $31,147 million in September 2021 (an
increase of 29 percent year-on-year), the sheer volume of products it needs to move
makes it practically impossible for employees to keep up.9 This willingness to
commit to new technologies has allowed Alibaba to stay competitive by packaging
and shipping out more products, more efficiently.

The Knowledge-creating Company

Nonaka says that the knowledge-creating company “is as much about ideals as it is
about ideas.” He describes it as a company where the activity of knowledge
creation is nothing that is only limited to a small group of people (like the R&D
department). In the knowledge-creating company creating knowledge “is a way of
behaving, indeed a way of being, in which everyone is a knowledge worker […].”
When your work is more about using your mental rather than your physical
capacities you are either part of a knowledge-creating company or a company that
should be a knowledge-creating company. To understand how every company can
benefit from knowledge-creation we need to examine what knowledge is and the
different types of knowledge.
Types of Knowledge: Explicit and Tacit Knowledge
There are more than two types of knowledge but within knowledge management
you can break it down into explicit and tacit knowledge.

Everything that you can read (manuals, documents, how-to videos) is explicit
knowledge. It is accessible and can be easily transmitted to or shared with others
because it was codified. The opposite of explicit knowledge is tacit
knowledge. Tacit knowledge is hard to codify because it contains ideas,
experiences and skills. Thus, tacit knowledge is gained by observation and practice
rather than by reading. It is based on intuition and creativity rather than facts. All
knowledge is rooted in tacit knowledge and needs to be codified to become explicit
knowledge.
“Making personal knowledge available to others is the central activity of the
knowledge-creating company.”
Four Ways of Transferring Knowledge
Since we only consider two types of knowledge there are four ways of transferring
knowledge.
Socialization: From tacit to tacit
This is mostly happening when you work closely together with another person. One
person can learn from another person through observation, imitation and practice.

Example: When a junior developer works together with a senior developer he gets
to know how the senior developer uses different tools to solve certain problems.
Over time the junior developer recognizes patterns that he can adapt in his
workflow.
Combination: From explicit to explicit
This is a combination of existing knowledge into a new form.

Example: When you write a company newsletter you use information from different
places and combine it into a new, more digestible form.
Articulation: From tacit to explicit
This is the most difficult part of knowledge transfer. Tacit knowledge becomes
explicit when you codify it. Codifying knowledge happens when you write things
down (e.g. in a manual or wiki) or when creating a product.
Examples:
1.) A designer chooses colors because of his taste and experience (tacit knowledge)
but when creating a mobile app colors need to be codified into color codes (explicit
knowledge).
2.) A QA Tester who is testing a new mobile app discovers a bug. This bug needs to
be transferred into a bug report. That is, the QA Tester needs to describe the bug as
his observation during the test.
Internalization: From explicit to tacit
After transferring tacit knowledge into explicit knowledge, the explicit knowledge
can be shared throughout the organization. Others can consume and understand
(internalize) the knowledge. Afterwards, they can combine it with other explicit
knowledge, their own experiences and creativity (tacit knowledge). This is how they
create new tacit knowledge about a topic.

The Spiral of Knowledge

The process from Socialization, over Combination, Articulation to Internalization is
the Spiral of Knowledge. After creating new tacit knowledge the spiral starts all
over again but this time on a higher level. The biggest challenge is the transfer from
tacit to explicit knowledge. Nonaka describes it “with finding a way to express the
inexpressible”.He explains how metaphors, analogies and models help you to get
from tacit to explicit knowledge but I will skip this part in this post.

Redundancy—Good or Bad?
At first glance, redundancy might seem as something to avoid. When programming,
it is generally good practice to not duplicate code as fixes and improvements for one
instance of duplication might not reach the other. Whereas in a knowledge-creating
company redundancy is something to aim for in terms of knowledge distribution. It
is a state where everyone in the organization has the same knowledge.
“The fundamental principle of organizational design at the Japanese companies I
have studied is redundancy — the conscious overlapping of company information,
business activities, and managerial responsibilities.”
Since it is not possible that everybody has the same knowledge internalized they
should at least have access to all the explicit knowledge within an organization. This
will foster the internalization of that (explicit) knowledge which leads to new (tacit)
knowledge as described in the spiral of knowledge.
You can achieve redundancy through Socialization. This is why nowadays
companies are keen on topics like mentoring, collaboration, social gatherings,
strategic rotation of positions, and so on. Another way to achieve redundancy is free
access to company information. To achieve the latter you need to encourage the
 articulation of knowledge and make sure that it can be shared and accessed by
everyone in your organization. This happens when you write down your processes
and company information and make it accessible to everyone.
Managers are responsible to challenge their teams to share their knowledge. They
can do so by asking questions like “What are we trying to learn?”, “What do we
need to know?”, “Where should we be going?”. Nevertheless, when it comes to
knowledge management everybody is responsible to create, codify and share their
knowledge as well as finding ways to do so.

What are the challenges posed by strategic information systems, and how
should they be addressed?
Strategic information systems often change the organization as well as its products, services, and
operating procedures, driving the organization into new behavioral patterns. Successfully using
information systems to achieve a competitive advantage is challenging and requires precise
coordination of technology, organizations, and management.

1. Sustaining Competitive Advantage

The competitive advantages that strategic systems confer do not necessarily last long enough to
ensure long-term profitability. Because competitors can retaliate and copy strategic systems,
competitive advantage is not always sustainable. Markets, customer expectations, and technology
change; globalization has made these changes even more rapid and unpredictable. The Internet can
make competitive advantages disappear very quickly because virtually all companies can use this
technology.

Classic strategic systems, such as American Airlines’s SABRE computerized reservation system,
Citibank’s ATM system, and FedEx’s package tracking system, benefited by being the first in their
industries. Then rival systems emerged. Amazon was an e-commerce leader but now faces
competition from eBay, Walmart, and Google. Information systems alone cannot provide an
enduring business advantage. Systems originally intended to be strategic frequently become tools
for survival, required by every firm to stay in business, or they may inhibit organizations from
making the strategic changes essential for future success.

2. Aligning IT with Business Objectives

The research on IT and business performance has found that (a) the more successfully a firm can
align information technology with its business goals, the more profitable it will be, and (b) only
one-quarter of firms achieve alignment of IT with the business. About half of a business firm’s
profits can be explained by alignment of IT with business (Luftman, 2003).

Most businesses get it wrong: Information technology takes on a life of its own and does not serve
management and shareholder interests very well. Instead of businesspeople taking an active role in
shaping IT to the enterprise, they ignore it, claim not to understand IT, and tolerate failure in the IT
area as just a nuisance to work around. Such firms pay a hefty price in poor performance.
Successful firms and managers understand what IT can do and how it works, take an active role in
shaping its use, and measure its impact on revenues and profits.
 Management Checklist: Performing a Strategic Systems Analysis
To align IT with the business and use information systems effectively for competitive advantage,
managers need to perform a strategic systems analysis. To identify the types of systems that provide
a strategic advantage to their firms, managers should ask the following questions:

1. What is the structure of the industry in which the firm is located?

 What are some of the competitive forces at work in the industry?

Are there new entrants to the industry? What is the relative power of suppliers, customers, and
substitute products and services over prices?

 Is the basis of competition quality, price, or brand?

 What are the direction and nature of change within the industry? From
where are the momentum and change coming?
 How is the industry currently using information technology? Is the
organization behind or ahead of the industry in its application of
information systems?

2. What are the business, firm, and industry value chains for this particular firm?

 How is the company creating value for the customer-through lower prices
and transaction costs or higher quality? Are there any places in the value
chain where the business could create more value for the customer and
additional profit for the company?
 Does the firm understand and manage its business processes using the best
practices available? Is it taking maximum advantage of supply chain
management, customer relationship management, and enterprise systems?
 Does the firm leverage its core competencies?
 Is the industry supply chain and customer base changing in ways that
benefit or harm the firm?
 Can the firm benefit from strategic partnerships, value webs, ecosystems, or
platforms?
 Where in the value chain will information systems provide the greatest
value to the firm?

3. Have we aligned IT with our business strategy and goals?

 Have we correctly articulated our business strategy and goals?

 Is IT improving the right business processes and activities to promote this
strategy?
 Are we using the right metrics to measure progress toward those goals?
 3. Managing Strategic Transitions
Adopting the kinds of strategic systems described in this chapter generally requires changes in
business goals, relationships with customers and suppliers, and business processes. These
sociotechnical changes, affecting both social and technical elements of the organization, can be
considered strategic transitions—a movement between levels of sociotechnical systems.

Such changes often entail blurring of organizational boundaries, both external and internal.
Suppliers and customers must become intimately linked and may share each other’s responsibilities.
Managers will need to devise new business processes for coordinating their firms’ activities with
those of customers, suppliers, and other organizations. The organizational change requirements
surrounding new information systems are so important that they merit attention throughout this text.

Enterprise wide system

Small businesses implement enterprise systems to gain company-wide access to
business knowledge, increase employee productivity and minimize the duplication of
company data. Enterprise systems may also enable a business to reduce the cost of
information technology and minimize the manual input of data. These enterprise
system attributes offer particular benefits, such as the support of teamwork, an
improved response to the marketplace, increased work quality and greater employee
collaboration and efficiency.
Enterprise System Overview
Enterprise systems integrate a number of different applications, protocols and formats. In doing
so, an enterprise system allows companies to integrate business processes, such as sales,
deliveries and accounts receivable, by sharing information across business functions and
employee hierarchies. These systems can replace multiple independent systems that may or may
not interact with other systems and that process data to support particular business functions or
processes.

For example, enterprise resource planning supports the entire sales process that includes pre-sales
activities, sales orders, inventory sourcing, deliveries, billing and customer payments. Enterprise
resource planning, supply chain management and customer relationship management systems are
each examples of enterprise systems.

Customer Relationship Management

Customer relationship management systems were developed to address the need to raise a sales
department’s productivity and provide an effective way to increase sales. With CRM functions,
such as sales opportunity management, a company learns more about its customers’ needs and
buying behavior and combines this information with market information to enhance the quality of
the company’s marketing plans and sales forecasts.

Other attributes of the CRM system include integration with other systems and accessibility via
mobile devices, allowing employees to update and compare data and to access information from
any client site or other location. Equally importantly, CRM supports mass e-mail communications
and automates the sales process workflow to improve employee productivity.
 Supply Chain Management
A supply chain is the collection of people, tasks, equipment, data and other resources required to
produce and move products from a vendor to a customer. Supply chain management refers to the
management of supply chain activities in an effective and efficient way to provide a company
with a strategic advantage.

These activities may include product development, material sourcing, production and logistics as
well as the information systems that coordinate these activities. Information flows allow supply
chain partners to coordinate their strategic and operational plans as well as the day-to-day flow of
goods and materials through the supply chain. The physical flows include the manufacture,
transport and storage of goods or materials.

Enterprise Resource Planning

The enterprise resource planning system integrates software applications, such as purchasing,
finance, human resources and inventory management. Within an ERP system, the integrated
software modules, such as sales, quality management and accounts receivable, communicate and
share data. Each of these modules consists of multiple applications that execute end-to-end
business processes. For example, the sales module includes the applications necessary to create
and manage sales contracts, sales orders, sales invoices and sales order pricing. ERP applications
support not only various operational and administrative tasks, such as the creation of an account
payable or a time sheet, they may also be customized to support a number of different industries,
including oil and gas, retail and banking.

Do You Need Enterprise Software?

The first question to consider is whether you need enterprise-wide software for your
particular application. By “enterprise-wide,” we are referring to software that
provides centralized data storage and allows multiple users to access the system
simultaneously. This type of software is typically more expensive and more complex
to implement. It requires adequate server hardware, experienced IT personnel to
configure and support the server(s), appropriate licensing for the underlying database
(e.g., ORACLE or SQL Server), a secure and reliable connection to the server for
each user, ongoing database maintenance and backups, and so on.
An enterprise-wide system is likely to be appropriate if you are dealing with process-
oriented analyses that require input and review by multiple people, such as FMEA or
FRACAS. In these cases, the organization will benefit from centralized data storage
and the ability for multiple users to log in to the system from various locations and
query or update the shared information. ReliaSoft'sXfmea Enterprise and XFRACAS
products are examples of enterprise-wide software designed to support the FMEA
and FRACAS needs of the entire organization, while providing consistency, a
feedback loop for corrective actions, a searchable "knowledge base" of known issues,
etc.
Another powerful application for an enterprise-wide system would be an automated
data analysis and presentation system, such as ReliaSoft's Dashboard. This type of
system is designed to collect data from a variety of sources (e.g. shipments, warranty
claims, failure analyses, etc.), automatically analyze the data and present the analysis
results throughout the organization. This approach is appropriate for analyses that can
be performed without input from an experienced analyst (such as line charts showing
trends over time or bar charts of issues ranked by quantity) and usually requires
custom development to establish the data flow, analysis and presentation mechanisms
that are appropriate for an organization’s particular processes.
However, if you are working with individual statistical data analyses (such as fitting
a distribution to life data or simulating the operation of a complex system over time),
an enterprise-wide system is not required, even if you have many users across the
enterprise. In this case, the analysis is typically (and appropriately) performed by one
analyst at a time and usually requires the computing power and usability that a
standalone software product such as ReliaSoft's Weibull++ or BlockSim can provide.
Under this scenario, employing an enterprise-wide web-based system would be both
prohibitive and unnecessary.

Web-based or Client-Server?
If you have decided that an enterprise-wide system is appropriate, the next question
to consider is whether it should be web-based or client-server. With systems that are
deployed via a Web browser, there is little or no software that needs to be installed or
updated on each user's computer. This characteristic is understandably attractive to
many IT departments! If a web-based system can deliver the desired functionality,
usability and performance then it may be preferred over a client-server approach,
which requires software to be installed and updated for each user.
The technology available for developing web-based systems has been improving and
continues to improve all the time. However, for many types of tasks, users continue
to expect a higher level of usability and performance than can currently be achieved
in a web-based interface. In those cases, your organization will need to carefully
weigh the advantages and disadvantages of the relative convenience of the web-based
system versus the superior performance and usability of the client-server option… or
consider a terminal server approach, as described next.
Consider a Terminal Server Approach
If you have decided that your organization does not want to install a client
application on each individual user's computer but you would prefer the usability and
performance of a client-server solution, then you may consider some sort of terminal
server implementation (such as Microsoft's Terminal Services® or Citrix®) as a
viable alternative to a truly web-based system. With this approach, the application
software will be installed on one or more server computers but the individual users
will employ a "thin client" to remotely connect to the server and operate the software
on the server, instead of on the user's own computer (depending on the
implementation, this could be a Web browser or a small utility such as Microsoft's
Remote Desktop®). With this type of implementation, the application software needs
to be updated on the server computer(s) only but each individual user enjoys the full
functionality, usability and performance of a Windows-based graphical user interface.
There is some IT setup required, of course, but it is comparable to (or even less than)
the effort required to host and support a web-based system.

e-business (electronic business)

E-business (electronic business) is the conduct of online business processes on the

web, internet, extranet or a combination thereof. These customer-, internal-
and management-focused business processes include buying and selling goods and
services, servicing customers, processing payments, managing production and supply
chains, collaborating with business partners, sharing information, running automated
employee services and recruiting employees.

E-business is similar to e-commerce but encompasses much more than online

purchasing transactions. Functions and services range from the development of
intranets and extranets to the provision of e-services over the internet by application
service providers. Enterprises conduct e-business to buy parts and supplies from
other companies, collaborate on sales promotions and conduct joint research.

Corporations are continuously rethinking and reshaping their business models

influenced by advanced technologies, hybrid workforces, heightened customer
expectations and, specifically, the internet's availability, reach and ever-changing
capabilities. The growth of e-business in recent decades has given rise to new
business requirements. Consumers expect organizations to provide self-service
options to conduct transactions, personalized experiences, and speedy, secure
interactions. New regulatory laws and best practices for keeping electronic data
secure have been established. Companies have adopted stringent security protocols
and tools, including encryption, digital certificates and multi-factor authentication, to
protect against hackers, fraud and theft.

Cybersecurity has become ingrained in e-business with deployments of endpoint

device security and advance detection and response capabilities. Security is built
into browsers, and digital certificates are now available for individuals and
companies from various vendors providing cybersecurity tools and technologies.
Even though securing business transactions on the web remains a pressing issue for
consumers and enterprises, e-business continues to grow at a healthy pace.
 E-business model origins and evolution

IBM was one of the first companies to use the term e-business in October 1997, when
it launched a thematic campaign to address the confusion many consumers had about
internet-based businesses. The company spent approximately $500 million on an
advertising and marketing campaign to show the value of the e-business model and to
demonstrate that IBM had the "talent, the services and the products to help customers
capture the benefits of this new way of doing business," according to the company's
website. By 2000, IBM's e-business revenue had grown to more than $88 billion
from $64 billion in 1994, and net income had nearly tripled.

Different types of e-business models

 Business-to-consumer (B2C) model. Sellers offer products and services
directly to consumers online, and the buyer purchases them via the internet.
 Business-to-business (B2B) model. Companies use the internet to conduct
transactions with one another. Unlike B2C transactions, B2B transactions usually
involve multiple online transactions at each step of the supply chain.
 Consumer-to-business (C2B) model. Consumers create their own value and
demand for goods and services. Examples include reverse online auctions and
airline ticket websites such as Priceline and Expedia.
 Consumer-to-consumer (C2C) model. Consumers are buyers and sellers via
third-party-facilitated online marketplaces such as eBay. These models generate
revenue through personal ad fees, charges for memberships and subscriptions, and
transaction fees.

Examples of e-business

E-business encompasses older companies that digitally transformed from legacy

processes to data-centric operations and newer digitally oriented companies. The
latter are organizations that advisory firm Gartner has defined as starting after 1995
with "operating models and capabilities [that] are based on exploiting internet-era
information and digital technologies as a core competency." Since then examples of
e-business organizations of different shapes and sizes have flooded the digital
landscape.

 Amazon, the world's largest online retailer and marketplace, has used its e-
business model to disrupt and expand into numerous well-established industries,
including publishing and supermarkets.
 Uber and Lyft, both of which built businesses that match drivers with people
needing rides, disrupted the taxi and livery services industries. And in 2014, Uber
went one step further and expanded its e-business with the launch of a food
ordering and delivery platform, Uber Eats.
 Travel sites like Expedia, Travelocity and TripAdvisor enable consumers to
research, plan and book all or pieces of their trips based on personalized criteria,
such as price, consumer ratings and location.
 Schindler Group, a multinational elevator and escalator company founded in
1874, is a legacy company that incorporated e-business by using IoT and other
technologies to add internet and mobility services to its product offerings.
Advantages of e-business

E-business has drastically changed how enterprises, government agencies, nonprofit

organizations and other institutions operate, allowing them to increase productivity,
lower costs, move more quickly toward digital transformation and upgrade processes.

Electronic invoicing, automated billing and digital payment systems lower the
amount of time workers devote to these tasks, many of which were handled manually
just a few decades ago. That kind of time savings allows businesses to decrease
department head count or shift workers onto higher-value tasks. Digital systems also
streamline workflows, reducing the time between invoicing and payment and
improving cash flow for the business.

Electronic communication systems, such as email, video conferencing and online

collaboration platforms increase productivity by decreasing delays between inquiries
and responses -- whether the communication is among employees, employees and
external business partners, or employees and customers. Decision-making is faster,
resulting in more agile companies that are responsive to stakeholder needs and
market demands. Electronic communication has also eliminated, in some cases,
employee business travel and supported more open, collaborative cultures so any
employee can contribute ideas.

Digital systems that power e-business can also extend an organization's reach beyond
its brick-and-mortar walls. Cloud-based business applications enable remote and
hybrid workers to perform their jobs in the office, from their home and other
locations. Similarly, cloud-based apps and the internet allow business transactions
24/7 so even solo practitioners and small businesses can conduct business globally.
Advanced technologies like big data, AI, machine learning, the cloud, automation
and IoT have improved the ease, speed and effectiveness of numerous e-business
tasks. These tasks include archiving information, deriving data insights, recording
financial transactions and personalizing interactions with customers.

E-commerce software and services have delivered new capabilities to organizations

like email marketing and created new avenues to sell their goods and services, such
as online stores. It has enabled the creation of entirely new business models, such as
eBay's capacity for B2C and C2C sales, social networking sites like Facebook and
Twitter, and Shopify, which offers the infrastructure and e-commerce platform for
customers to create online stores and sell their own goods.

E-business influences just about every aspect of an enterprise, including customer

service, experiences, expectations and transactions.
 Unit V: Managing information systems

What Is An Enterprise Management System?

An Enterprise Management System (EMS), also known as Enterprise Systems, is an

application software package that helps organizations to manage various software tasks
and achieve their software needs in real-time. The software is customized based on an
organization’s needs. If you operate a large business, investing in EMS can help you
manage your business smoothly and achieve your goals.

What Are The Three Types Of Enterprise Management

Systems?

Customer Relationship Management

This software helps an organization with managing interactions with customers. Its
ultimate goal is to connect brands to existing and potential customers, process data,
gather customer details, streamline processes, decrease the time used by employees on
various tasks and grow businesses.

Enterprise Resource Planning

An organization implements Enterprise Resource Planning (ERP) for easy facilitation of
processes. It helps smooth marketing projects, accounting, human resource management,
finance, and procurement. The modules in this system are interconnected and play a
crucial role in the effective distribution of information.
Supply Chain Management
Managing the supply chain is a challenging task that requires the right tools and
resources. Using a supply chain management system helps an organization manage data,
finances, and the flow of product or service delivery to the end-user. It helps an
organization monitor the entire process, from purchasing raw materials to product
delivery.
 The Advantages Of Investing In An Enterprise Management
System

Supports Complex Infrastructure

An Enterprise Management System supports complex IT infrastructures without needing
many hands from IT professionals. The system is easy to use because it comes in one
package. It is an ideal tool that helps organizations streamline operations, leading to
enhanced collaboration and efficiency.
Boosts Decision Making
Handling big data can be challenging and time-consuming. Investing in EMS helps you
get real-time data and make informed decisions. You will use the most accurate and up-
to-date data to devise creative ways to offer better services to your customers. Your
team can easily access data because this system integrates various elements of the
business into one platform.

Increased Organization Performance

EMS reduces paperwork, leading to increased performance and productivity. Since this
system connects the inventory, supply, human resources, and sales, it gives quick access
to data, thus, enhancing operations and improving efficiency. Using this system also
minimizes human errors and reduces disruptions during production.

Enhanced Business Planning

With enterprise management systems, you can quickly create business plans that help
you track your organization’s operations. The plan enables you to determine whether
you are working towards achieving your goals or not. You can monitor overall service
and customer satisfaction, expenses, and how production is coming along. You will also
get notified of potential inventory problems that enable you to make the necessary
changes in time.

Improved Data Accuracy

Many organizations experience challenges managing operations due to duplicate records
of data. This is why it is imperative to invest in a tool that can give you accurate data for
effective operations. Using EMS creates a centralized information collection with
enhanced data processing and storage. This makes it possible for the staff members to
easily access and share data, thus, improving performance and collaboration.

Better Flexibility and Productivity

Every organization longs to remain productive all year round. While this may seem
straightforward, it can be challenging if you lack the right tools. EMS is an effective tool
that automates specific processes, thus, increasing employee productivity. Your team
will not waste time on various tasks because the software can handle the tasks
automatically. The team will focus on other duties that contribute to the growth of your
organization.

Reduces Running Costs

When using enterprise systems, you do not need much paperwork. You will also
experience reduced optimization of daily activities. Which means you will no longer
need many hands to do various tasks. This saves you money on operating costs in the
long run. You do not have to worry about hiring IT staff because the software can
handle multiple tasks. This enables you to save money that you can use to expand your
business in the long run.

Increased Data Security

With advanced technology today, hackers continue to look for new strategies to hack
systems and manipulate data. This leads to a data breach, hefty fines, and penalties for
the affected organizations. If your business faces a data breach, you will lose money,
experience business disruptions, and compromise the integrity of your organization. An
EMS has an integrated security feature protecting customers and business data from data
loss and theft. You will run operations with peace of mind, knowing that your data is
safe.

Ensure Regulatory Compliance

Different states have stringent regulatory measures that organizations must apply and
comply with. If not, an organization risks harsh penalties and fines. Using an EMS
enables you to keep quality records that you may use in the future whenever a regulatory
body wants to prove the performance of your business. This could be information about
your company’s assets, inventory management, and properties. EMS collects data
automatically, thus, enabling you to meet regulatory requirements for inventory and
asset management.

Improved Coordination
Teams need to remain coordinated to have a seamless experience when managing tasks.
Since EMS contains data, teams can quickly access the data and share it within different
departments in real-time. This minimizes communication delays or breakdowns, thus,
promoting coordination whether the teams work remotely or not.

Enhanced Customer Support

The modern EMS boosts relationships between customers and businesses. Since the
team can quickly access data from a centralized point, they can communicate with
customers effectively and on time. This minimizes delays in serving customers, thus
making them satisfied and motivating them to keep coming back for more. It gives you
an edge over your competitors and helps you gain a higher market share in the long run.

Investing in EMS IS Worth It

From the above information, it is clear that investing in enterprise systems can help you
achieve your goals in real-time. You will experience a regular flow of operations which
elevates efficiency and productivity.

ERP Case Example : Fulton & Roark

Fulton & Roark, a retailer of men’s grooming products, is an example of a successful

ERP implementation.

Prior to upgrading to full-featured ERP, the North Carolina-based business tracked its
inventory in a spreadsheet and its financial data in desktop accounting software, Sage
Live. When the company began doubling sales year-over-year, leadership felt its
current processes weren’t keeping up. Spreadsheets couldn’t account for changing
inventory costs, and the accounting software didn’t have the workflows necessary to
record the cost of goods sold (COGS), an important financial metric.

As a result, the Fulton & Roark team did double data entry — manually.

To centralize all work in one place, the company’s co-founders

implemented NetSuite ERP. After a three-week implementation process, changes
were immediate, according to team members. Finally, the Fulton & Roark team was
able to:

Catch and correct bookkeeping mistakes related to inventory.

Stop working with external accountants, growing both unit and dollar volumes
significantly with no extra headcount.
Increase sales roughly 50% year-over-year without increasing headcount.

Get a more accurate picture of margins and inventory, which helped grow its
ecommerce operation.

Key Takeaways

ERP implementations don’t have to drag on — Fulton & Roark’s team was up and
working in about 20 days.

The company’s story also emphasizes a major success factor: Getting management
committed to an ERP project. In this case, the co-founders initiated the project, which
consultants say often spurs employee adoption.

Information Resource Management (IRM)

Business Dictionary defines Information Resource Management (IRM) as

"techniques of managing information as a shared organizational resource." IRM
includes
(1) identification of information sources,
(2) type and value of information they provide, and
(3) ways of classification, valuation, processing, and storage of that information.[1]

Information Resource Management (IRM) is a broad term in IT that refers to the

management of records or information or data sets as a resource. This can relate to
either business or government goals and objectives. Information resource
management involves identifying data as an asset, categorizing it and providing
various types of active management. Experts describe IRM as the process of
managing the life cycle of data sets, from their creation to their use in IT
architectures, and on to archiving and eventual destruction of non-permanent data.
The term IRM can refer to either software resources, physical supplies and materials,
or personnel involved in managing information at any stage of use.[2]

IRM provides an integrated view for managing the entire life-cycle of information,
from generation, to dissemination, to archiving and/or destruction, for maximising
the overall usefulness of information, and improving service delivery and program
management. IRM views information and Information Technology as an integrating
factor in the organisation, that is, the various organisational positions that manage
information are coordinated and work together toward common ends. Further, IRM
looks for ways in which the management of information and the management of
Information Technology are interrelated, and fosters that interrelationship and
organisational integration. IRM includes the management of
(1) the broad range of information resources, e.g., printed materials, electronic
information, and microforms,
(2) the various technologies and equipment that manipulate these resources, and
(3) the people who generate, organise, and disseminate those resources. Overall the
intent of IRM is to increase the usefulness of government information both to the
government and to the public.[3]

According to Bergeron (1996), IRM is grounded in the following assumptions:

 recognition of information as a resource;
 an integrative management perspective;
 management of the information life cycle;
 a link with strategic planning (Schlögl, 2005).
One important feature of information resources management consists is that it is
a framework that seeks to integrate different information professionals and functions
under one umbrella. However there are different points of view on which resources
are to be managed (Schlögl, 2005).
In a wide sense, information resources management can be defined as the
management of those resources (human and physical) that are concerned with

 the systems support (development, enhancement, maintenance) and

 the servicing (processing, transformation, distribution, storage, and retrieval)
of information (Schneyman 1985 as cited in Schlögl, 2005).
Marchand and Horton (1986) distinguish between information resources and
information assets. Information resources include
 information specialists;
 information technology;
 facilities like the library,
 the data processing department, and
 the information centre and
 external information brokers (Schlögl, 2005).

Information assets cover all the formal information holdings of

 an organization (data, documents, technical literature),
 know-how (rights on intellectual property, practical experience of staff), as
well as
 knowledge about the environment (competitors; political, economic, and social
environment) (Schlögl, 2005).
While the information assets concern information itself, the information resources are
a means by which information can be gained. Lytle (1988) has a somewhat narrower
view. He differentiates between data, hardware, software, information systems and
services, as well as personnel (Schlögl, 2005).

What Is Technology Management?

Technology management can be described as a discipline – closely related to or

synonymous with IT management – in which businesses and/or companies utilize the
different technologies available to foster strategic growth.
To do this, businesses must understand the role of technology in each of their
departments and as an overall entity.
Further, businesses must invest in new technologies and develop current technologies
for the better. Technology management is a relatively new field that depends heavily
on the comprehension of both business and technical skills.
Technology allows businesses to face contenders in almost any market. There are a
number of ways in which technology can directly impact business growth.
Support and Security
As companies grow, they are required to store large amounts of data and inventory.
With technology, this process can be automated, boosting productivity and cutting
costs.
Technology management also permits companies to bury information with layers upon
layers of encryption, securing the integrity of their business.
Globalization
Technology as a tool for communication has had a grand effect on how markets operate.
Every business now has the opportunity for global outreach where they can establish
the trade of goods and services around the world.
Exports today happen at 40 times the rate as they did in 1913, and technology is the
main culprit.
Mobile Device Management
Perhaps the best example of how technology has significantly changed lives is the
emergence of mobile devices.
The invention of the contemporary smartphone is almost parallel to the first man on the
moon in social gravity. Google can attest to this, as their very own algorithms prioritize
mobile websites.
Any business that wishes to remain competitive must similarly upgrade alongside
progressive technologies and implement optimal mobile solutions.
Cloud Computing
Cloud computing is the reason many startup companies made it off the ground. It gives
businesses the ability to outsource many of their operations to offsite, third-party
resources via the Internet.
In consequence, companies can work on tighter budgets as they do not have to build
infrastructure just to host IT management systems like servers or storage units.
Businesses that operate using cloud computing services often do not have to worry
about downtime, crashes, or data.
As a result, small and medium-sized businesses can garner the same leverage as larger
companies in the corporate world. By 2021, 90% of companies will be using cloud
computing.
Consumer Targeting
When technology changes, consumers change. Not only this, but many millennials and
younger generations have had the unique experience of growing up in a transitory
period where technology has drastically evolved far past presumed boundaries.
The same evolving technology has led to improved analytics and therefore enhanced
customer segmentation which can target specific groups for advertising purposes.
These analyses prove that the technology generation now makes up a substantial
chunk of companies’ consumer base.
Increased connectivity has brought about new modes of communication, where
millennials and people of all generations stay in touch with one another. For that reason,
technology management means managing social media as well.
Technology management, without a doubt, has great potential in developing businesses.
Those who want to grow their companies must put their trust in technology experts.

What Are the Components of Technology Management?

Like with any type of management, technology management takes on a plethora of
responsibilities.
Management teams are tasked with:

• Planning
• Organizing
• Monitoring
• Evaluating
• Implementing and
• Staffing with the end goal of strategically moving their company forward.

Characteristics of technology management bear little to no difference save the technical

aspect.
In fact, though technology management is a major business component in and of itself,
the framework of technology management is composed of four key concepts.
New businesses should heed these concepts in order to effectively implement
technology management into their internal structure.
 1. Technology Strategy
Technology strategy refers to the role of technology in a company or organization. In
this undertaking, organizations examine the logic of how technology will aid business
growth.
Technology management of this kind entails setting objectives and brainstorming
tactics for achieving your particular business goals. Technology is the primary focus
here.
For example, a company may decide that in turn for creating their own technology they
will improve upon previously established innovations.
In utilizing this strategy they can avoid the risk associated with inventing new
technology.
Another company may decide to do the opposite, taking on the exchange in turn for the
prospect of large capital gains.
A technology management team will be culpable for these sorts of decisions.
2. Technology Forecasting
In technology forecasting, businesses identify technologies that can be beneficial to
them. Crucial to this procedure is carefully observing the technological environment.
Businesses have to be on the lookout for the development of new technology as well as
new methodologies and approaches related to their current and upcoming technology.
Historically, technology forecasting originated in the 1960s. There are numerous
methods of technological forecasting, the Delphi method being one of the most popular.
The Delphi method is simply based on the results of questionnaires taken by experts
who are typically anonymous.

While the Delphi method is qualitative, many quantitative methods that are very
mathematical in nature exist.
Forecasting methods as a whole can be categorized as extrapolative or normative the
former relying on present data and the latter historical precedent.
Related reading: IT Outsourcing: A Complete Guide To Outsourcing Software
Engineers
3. Technology Roadmap
Technology road-mapping concerns itself with mapping the different ways in which
technology can be used.
This concept puts planning at the center of technology management. Both technology
strategy and technology road-mapping can play a role in technology road-mapping.
For instance, a company whose technology strategy is to build upon existing
technology will need to start mapping short and/or long-term goals for such technology.
Technology roadmap will be necessary for identifying the distinct technologies that can
be of use.
What companies map will vary widely depending on market needs.
Roadmapping is primarily applied in the case of new product development,
particularly the fuzzy front-end of development – an epithet reserved for the
conceptualization stage of new technologies.
4. Technology Project Portfolio
A technology project portfolio encompasses all the technology projects that a business
has in development along with all the technologies currently in use.
Besides merely starting a portfolio, your business needs to analyze and consider its
outcomes.
Technology management’s function in building a portfolio includes recognizing its
strengths and weaknesses, figuring out what takes priority, and designating resources
amongst other functions.
Businesses use technology project portfolios to invest smartly and capitalize on returns.

The Benefits of Technological Management

The importance of technology management is exemplified by its benefits. You already
know some of the ways in which technological management is employed:

• Marketing
• Cloud computing
• Global outreach
• Security and
• Mobile management.

These can easily be interpreted as benefits themselves. However, the true advantages of
technology management extend even beyond that.
 Product Development
Many of the key concepts of technology management contribute directly to product
development. At the front-end of development is where ideas are formed.
New product development (NPD) comes in five stages:

• Idea generation
• Screening
• Concept development
• Product development
• Rollout

Idea generation results in a batch of interesting project proposals for your company.
Technology road-mapping begins to happen at this point.
Following that, screening takes previous knowledge and relevant research related to
these ideas into account. Seeking opinions from consumers and business associates
alike, technology forecasting proves to be critical to successful screening.
Concept development begins with a SWOT analysis, pinpointing strengths, weaknesses,
opportunities, and threats, in regards to the new product.
This operation is aligned with technology project portfolios, and endeavors to have an
understanding of potential profits and losses.
Product development and rollout are unambiguous stages of NPD. Your businesses’
own expertise where NPD is concerned will be a determining factor of how durable
your product is in an ever-changing market.
All the same, technology has the capacity for effective advertising as well.
Ease of Manufacturing
The United States manufacturing industry is estimated to be worth up to $530
billion by the year 2025. Technology management should take the credit for this
infamy.
Cost-effective emerging technologies like computer numerical control (CNC) and
additive manufacturing are leveling the playing field for small and medium-sized
businesses.
For context, CNC machines automate tools using software while additive
manufacturing is the equivalent of 3D printing.
Collaborative robots, dubbed cobots, are also dramatically changing how
manufacturing looks like, working next to humans in factory spaces.
Some factories are exclusively dependent on technology. Lights-out factories, for
instance, are entirely comprised of self-regulated robots. One company in Japan has
been operating in this fashion since 2001.
Augmented Functionality
Technology management can give businesses cloud conveniences to optimize speed
and efficiency.
Communications platform as a service (CPaaS), as an illustration, will ease the
exchange of information for both customers and coworkers.
Comparatively, a variety of industries can use software as a service (SaaS) to manage
important functions without the necessity of having a team of software developers.
The overt popularity of Google Apps in business affairs, for one, should come as no
surprise.
Market Expansion
Technology management has a hand in observing markets; building products based on
those observations; marketing those products worldwide; and of course, shipping those
products globally.
The Internet has unquestionably expanded the market for an abundance of businesses.
On the consumer side, the Internet’s reach has affected more than only young people.
People have found and developed interests based solely on the World Wide Web.
Strategic Information Systems Planning (SISP)
Meaning and Importance

In a global marketplace, information has emerged as an agent and enabler of new

competitiveness for today’s enterprise. However the paradigm of strategic
planning changes sufficiently to support the new role of information and technology.
The question is, are changes can support the new role of information and technology
and what is the relationship between strategic information system planning with the
development database in an organization.
Therefore, the development of strategic information system planning is importance
in an organization. Strategic information systems planning (SISP) is the process of
creating a portfolio based on the use of information system in order to achieve
organizational goals and objectives. Within SISP, organizational can clearly define
their organizational goals, the critical success factor (CSF) and the problem areas
within the organization activity.
Introduction to Strategic Information Systems Planning (SISP)
There are two concepts of strategic information systems planning (SISP). The first
one is SISP viewed as the process of identifying a portfolio of computer based
applications that will assist an organization in achieving the business plan and at the
same time achieve the business organization goals. Meanwhile the second one is
SISP involved searching for application with a high impact and with the ability to
create an advantage over competitors to gain competitive advantage.
Based on the theory of SISP, it can be define that the process of identifying a
portfolio of computer-based applications to be implemented aligned with
the corporate strategy and has the ability to create an advantage over competitors.
Organization goals is analyze by defining what exactly organization hope in order to
accomplish the goals. After organization goals have been analyzed, then critical
success factor will evaluated so that it will affect the organization goals and
objective in long term. Critical success factor is the element that organization
should know and must work in order to survive in the business environmental. And
lastly, identify the problem areas which are the weaknesses that organization
already have.
Strategic information systems planning help organization in overall strategic
planning process in effectively and efficiently. SISP participants include top
business, functional area, and information system management. In an organization,
the success of IS plan can be determined with the involvement and commitment of
senior management. Involvement of senior management is very important to
determine whether the success or failure of the project. Senior management was the
backlog behind the success of the project. Within SISP also can be used to improve
the communication between top management and users regarding IT. This actually
gain top management commitment. Communication and commitment will also help
in increasingly the visibility of IT in organization.
The purpose of SISP is to ensure that the IT organization align with the strategic
goals of organization. Alignment of IT organization and business goals has been
used to control and ensure that business goals will achieve and all the operation
included the IT and IS that used in running the organization will keep in track. SISP
alignment will also help in identifying strategic applications, identifying new and
higher payback applications, and developing an information architecture.
Organizations also use the SISP to help in forecasting and allocating IT resources.
With SISP, also can avoid loss of control of IS/IT in an organization. SISP is
needed for the system to ensure the system that used in the organization integrated
with other system or not.
Without Strategic information systems planning in an organization, may lead to
missed opportunity, duplicate system, incompatible system and wasted resources.
Importance of Strategic Information Systems Planning (SISP)
The importance of Strategic information systems planning in an organization has
been well documented within the IS literature. Within SISP, the integration of IS
function within organization can be facilitate. Besides, SISP supports the
identification of opportunities to use information systems for strategic purpose.
SISP also ensures that adequate resources or the use of scarce resources are
allocated to critical application and the use of resources in properly manner. With
SISP, can ensures that the IS function support the organizational goals and
objectives and also the activities at every level.
Having a good strategic information system planning in organization, will determine
whether the organization will success or failure. The reason why organization needs
good strategic information system planning is that it can help organization to avoid
misused of scarce resources. By planning, only projects that can generate good
returns will get investors from the firm. A good planning is very important to avoid
problem such as the misuse and wasted resources in form of system that nobody
likes and used the system effectively. When a new system developed, pre-existing
system can be used to communicate or interface properly and at the same time avoid
the problem of “Islands of automation”. This can be happen if the organization has
proper planning for their organization.
Before develop a new system, planning is very important to make sure the smooth
of business operation. First of all, the organization should identify their needs.
Development of system should be a response to need whether at the transaction
processing level or at the more complex information and support system levels.
Priorities, objectives and authorization for information system projects need to be
formalized first. The system development plan should identify the project resources
that needed the procedures, and constraints for each application area. Planning
should be flexible to adjust the priorities if necessary. Furthermore, to facilitate
understanding of each application the plan must be specific enough. A strategic
capability architecture must flexible and continuously improving infrastructure of
organizational capabilities and at the same time gain company’s sustainable
competitive advantage.
It is important to have Strategic information systems planning to maximize the
benefits of changing technology and to take account of the different viewpoints of
business professionals and IT professionals. System investments are made to
support business objectives and also to gain inadequate infrastructure. SISP is
important because it emphasizes the need to bring IT to bear on and sometimes
influence strategic direction of the corporation is widely accepted by researchers.
This is particularly true in contemporary environments where harnessing the power
of technology resources could be critical for competitiveness.
Relationship with Organizational Database Development
Data are the raw material from which information is produced. Therefore, it is not
surprising that in today’s information-driven environment, data are a valuable asset
that requires careful management. To access data’s monetary value, data that stored
in company database are data about customers, suppliers, inventory, and operations
and so on. Imagine that all the data in the database loss. What will happen if the
situation like that happen? Data loss puts any company in a difficult position. The
company might be unable to handle daily operation effectively; it might be faced
with the loss of customers who require quick and efficient service, and it might lose
the opportunity to gain new customers.
Data are a valuable resource that can translate into information. If the information is
accurate and timely, it is likely to trigger action that enhance the company’s
competitive position and generate wealth. In effect, an organization is subject to a
data information decision cycle; that is the data user applies intelligence to data to
produce information that is the basis of knowledge used in decision making by the
user.
A critical success factor of an organization is efficient asset management. Critical
success factor involve the management in an organization to know the current status
of the organization in ICT. Based on the analysis of the business environment of the
corporation, the critical success factors concerning the firm are identified. Critical
success factor is refer to the limited number of area in which result, if satisfactory
will ensure successful competitive performance for the organization. There are such
area where thing’s must go right for the business to flourish. Thus, the factor that
are critical for accomplishing the objectives are identified at this stage.
To manage data as a corporate asset, managers must understand the value of
information that is processed data. Data are used by different people in different
departments for different reasons. Therefore, data management must address the
concept of shared data. Whatever the type of organization, the database
predominant role is to support managerial decision making at all level in the
organization. That’s why, Strategic information systems planning play a big role in
organization. SISP is an important management function. It can help an
 organization use information technology (IT) more competitively, identify new,
higher payback IT applications, and better forecast IT resources requirements.
An organization’s managerial structure might be divided into three levels which are
top, middle and operational.
Top level management makes strategic decisions; middle management makes
tactical decisions and operational management make daily operational decisions.
Operational decisions are short terms and affect only daily operations for example
deciding to change the price of a product to clear it from inventory. Tactical
decision involve a longer time frame and after larger scale operation;
for example changing the price of a product in response to competitive pressures.
Strategic decisions are those that affect the long term well-being of the company or
even its survival; for example changing pricing strategy across product lines
to capture market share. This shows that having a good SISP will lead the
organization to achieve the goal and objective in short or long term in an
organization.

What Are Critical Success Factors?

Essentially, critical success factors or CSFs are the elements of an organization or

project that are vital to its success.

The concept of CSFs (also known as Key Results Areas or KRAs) was first developed
by management consultant D. Ronald Daniel, in his article, "Management Information
Crisis." [1]

John F. Rockart, of MIT's Sloan School of Management, built on and popularized the
concept almost two decades later. He defined CSFs as: "The limited number of areas in
which results, if they are satisfactory, will ensure successful competitive performance
for the organization. They are the few key areas where things must go right for the
business to flourish. If results in these areas are not adequate, the organization's efforts
for the period will be less than desired."

Rockart also concluded that CSFs are "areas of activity that should receive constant and
careful attention from management." [2]

The Four Main Types of Critical Success Factors

Rockart identified four main types of CSFs that businesses need to consider:

1. Industry factors result from the specific characteristics of your industry. These
are the things that you must do to remain competitive within your market. For
example, a tech start-up might identify innovation as a CSF.
2. Environmental factors result from macro-environmental influences on your
organization. For example, the business climate, the economy, your competitors, and
technological advancements. A PEST Analysis can help you to understand your
environmental factors better.
3. Strategic factors result from your organization's specific competitive strategy.
They might include the way your organization chooses to position and market itself.
For example, whether it's a high-volume, low-cost producer; or a low-volume, high-
cost one.
4. Temporal factors result from your organization's internal changes and
development, and are usually short-lived. Specific barriers, challenges and influences
will determine these CSFs. For example, a rapidly expanding business might have a
CSF of increasing its international sales.

Critical Success Factors Versus Key Performance Indicators

The term "Critical Success Factor" is often used interchangeably with the term "Key
Performance Indicator." But they are actually very different.

Critical success factors are derived from your organization's mission and objectives.
They set out what you need to do to be successful and tend to be universal across
organizations. For example, they might include things like:

 Increasing profits.

 Improving employee engagement.

 Improving talent acquisition and retention.

 Becoming more environmentally-friendly.

Once you've identified your CSFs, you can use them to develop more specific Key
Performance Indicators (KPIs). These are the specific criteria that managers and
organizations use to measure performance, and they often differ from organization to
organization.

KPIs provide the data that enable a business to decide whether CSFs have been met, and
if goals have been achieved. KPIs can also be used at different levels of a business –
they can be used to clarify strategic, business-wide targets, or even to drill down into
team and personal objectives.

KPIs are typically more detailed and quantitative than CSFs. For example, the CSF
"Increase sales in Asian markets" could generate the KPI "Increase sales revenue in
Asian markets by 12 percent year-on-year."
 Five Steps to Identify and Develop Your CSFs
To identify and develop CSFs for your organization, follow these five steps:

1. Research Your Mission, Values and Strategy

First, take some time to look through your organization's mission , values and strategy.
What are the challenges and key priorities that your organization needs to be focusing on
right now?
If you're unsure, or want to gain some background, do a PEST Analysis to gain a better
understanding of the external market factors that are influencing your organization right
now. Follow this up with a SWOT Analysis to identify how well-equipped you are at
dealing with these market challenges, and to assess your organization's strengths and
weaknesses. This all-round approach should help you to clarify what improvements need
to be made and where.

2. Identify Your Strategic Objectives and Candidate CSFs

Identify your organization's key strategic goals – these are usually linked to your
mission and values . Then, for each objective, ask yourself, "How will we get there?"
There may be a number of things that need to happen for you to achieve each of your
strategic objectives. These are your "candidate" CSFs.
For example, if one of your strategic goals is to "reduce waste over the next year," you
will likely need a number of critical success factors to help you to achieve this, such as:

 Reducing carbon emissions.

 Investing more in renewable energy sources.

 Improving the efficiency of supply chains.

 Developing "green" offices and processes.

3. Evaluate and Prioritize Your CSFs

Now, work through your candidate CSF's and identify only those that are truly essential
to your success.

As you work through each candidate CSF, you may see that some are linked or are
interdependent. For example, if have two CSFs – "to increase your share of the market"
and "to attract new customers," the latter would take priority, as it is only by attracting
new customers that you will likely increase your market share.
Prioritizing your candidate CSFs in this way will enable you to really focus in on the
areas that your business must succeed in. You may find that some candidate CSFs are
not a priority at all, in which you case you can cross them off your list.

4. Communicate Your CSFs to Key Stakeholders

Once you've identified your key CSFs, you now need to think about who is best placed
to help you to achieve them. What departments or people will need to be accountable for
them? What activities or operations will be key in helping you to achieve your CSFs?
Do any activities or roles need to be changed or developed to do this?

Once you've done this, communicate your key CSFs to the relevant people. Make sure
that everyone is clear on what they are, why you need to achieve them and how you
hope to succeed. Get feedback from these key stakeholders, too – they are often best
placed to identify any roadblocks or issues that may need to be overcome to achieve
success. They may also be able to offer some great ideas of their own about how to meet
your CSFs.

5. Monitor and Measure Your Progress

Think about how you will monitor and measure each of your CSFs. This can be tricky as
CSFs are often very broad and may require input from several different departments and
stakeholders across the business.

One way to effectively monitor and measure your progress is by setting a number of
different KPIs against each of your Critical Success Factors. For example, if one of your
CSFs is to reduce your carbon emissions, you might create a KPI to fill in some detail,
such as "Reduce carbon emissions by 30 percent by 2035."

It's also a good idea to put in place monitoring systems to keep track of your progress.
This might mean assigning accountability for this task to a specific person or department.
This person will be responsible for gathering data and regularly monitoring the
organization's progress toward specific CSFs and KPIs.

So, you would need to think about how this person would gather data on your
organization's carbon emissions going forward, where they should store that data, and
how regularly they would need to update it.

Critical Success Factors Example

Let's look at the example of a theoretical company, Freshest Farm Produce. Their
mission is "to become the No. 1 produce store in Main Street, by selling the highest
quality, freshest farm produce to our customers."
The company's strategic objectives are to:

 Gain local market share of 25 percent.

 Fulfill the "farm to customer in 24 hours for 75 percent of products" promise.

 Sustain a customer satisfaction rate of 98 percent.

 Expand the company's product range to attract more customers.

 Have enough space to house the range of products that customers want.
Using these objectives, Freshest Farm can begin to brainstorm some candidate CSFs,
as shown in the table below.

Objective Candidate Critical Success Factors

Increase competitiveness vs other local

stores.

Gain market share locally of 25 percent. Attract new customers.

Keep the "farm to customer in 24 hours for Maintain and develop successful
75 percent of products" promise. relationships with local suppliers.

Sustain a customer satisfaction rate of 98 Retain staff and continue to deliver

percent. quality, customer-focused training.

Expand product range to attract more

customers. Source new products locally.

Secure financing for expansion.

Extend store space to accommodate new Manage building work and any
products and customers. disruption to the business.

Once Fresh Farms has a list of its candidate CSFs, it can start to consider which ones are
the most essential to its success.

The first candidate CSF that Freshest Farm identifies from the list above is to attract new
customers. Without new customers, the store will be unable to increase its market share.
The second candidate is to maintain and develop relationships with local suppliers. This
is vital to ensure freshness and to source new products.

And the third candidate is to secure financing for expansion. The store cannot meet its
objectives without the funds to invest in expanding its store space.

The other factors, such as retaining and training staff, are important, but don't have the
same immediate and crucial impact, so they're not critical success factors.

Business Systems Planning

Business systems planning looks at the whole organization to determine what

information systems the business requires to fulfill its goals. For large businesses,
this can be an expensive process involving consultants and specialists, but smaller
businesses can often perform the analysis and planning in house. Prerequisites for
effective business systems planning are the existence of a business plan that details
the goals and strategies of the company and the communication of the plan to the
people responsible for implementing the plan.

Goals and Strategies

The requirements for a company's information systems can only be integrated into a
plan when it is clear where the company wants to go and how it plans to get there.
A strategic plan lays out the company goals and the strategies it intends to
implement to achieve them. In small businesses, such strategies often focus on
financial goals and corresponding marketing plans. These business plans are the
initial input for the information systems plan and influence the types of systems that
the company will consider.

Corporate Processes

Once the overall orientation of the information system is clear from the strategic
plan, the business systems planning process has to look at what the company does.
If the company has manufacturing, the information system has to include
production planning. If it is service oriented, the software has to have hourly billing
and cost assignment features. The key corporate processes are a second step in
defining the requirements for the proposed information systems. Sometimes the
processes themselves require re-engineering to let them work with information
systems.

Corporate Data

A key question for the planning of information systems is the nature of the
company's data processing requirements. Large volumes of complex data need
different systems than flat, simple databases or mailing lists. A company's data is a
 valuable asset and its nature can't easily be changed. As a result, the data has a
major influence on the kind of information systems that are required.

Constraints

1. The strategies, company processes and data represent the major inputs to the
planning of the information systems, but the systems themselves are subject to
constraints. The most important limitation, especially for small businesses, is the
cost. Other constraints may include technical, space, time and operational factors.
The information system planning process has to consider that the ideal system may
not be a realistic possibility, and alternatives must be situated within the constraints.

End-user Input

1. Once the planning process has established the overall concept and
requirements for the information systems, it is important to involve the end users in
the design for the interface. The people who carry out the work have the best
knowledge of what is required to do their job. Not supplying what is required is a
frequent planning failure, and getting end user input at this stage is vital to the
success of the business systems plan.

Implementation

The final step for an information system is to plan for implementation. At this stage
the plan becomes a project and the planners have to assign responsibilities and
resources, ensure that the project plan matches the strategic and business plans and
set completion, budget and performance targets. At this stage the business can
expect to have functioning information systems at the project completion date,
fulfilling the identified needs.

Computer-Aided Process Planning (CAPP):

It can be defined as an act of preparing processing documentation for the

manufacturing of a piece, part or an assembly, etc. is called as process planning. If
process planning was done by using a computer it is called Computer-Aided Process
Planning(CAPP).

This post mainly focuses on, the structure of Computer-Aided Process

Planning(CAPP) in a detailed manner.

COMPUTER-AIDED PROCESS PLANNING(CAPP) METHOD:

 It can systematically produce accurate and consistent process plans.

 It can reduce the cost and lead time of process planning.
 Less skilled process planners may be employed.
  It increases the productivity of process planners.
 Manufacturing cost, manufacturing lead time and work standards can easily be
interfaced with the CAPP system.

Why Computer Aided Process Planning(CAPP)?

 Understand the interactions between the part, manufacturing, quality, and cost.
 Systematically produce accurate and consistent process plans.
 Reduce the cost and lead time of process planning.
 Skill requirements of process planners are reduced.
 Increased productivity of process planner.
 Easily interface with other application programs for further analysis.

This is the detailed explanation of Computer-Aided Process Planning. Now, let's

discuss the parts of it. They are:

1. Generative Computer Aided Process Planning (G CAPP).

2. Variant Computer Aided Process Planning (Variant CAPP).
3. Retrieval Computer Aided Process Planning (Retrieval CAPP).

The detailed explanation of all these process planning is as follows:

1. Generative Computer Aided Process Planning(G CAPP):

A system which automatically synthesizes a process plan for a new component is

called Generative Computer Aided Process Planning. It synthesizes the process
information to create a process plan for a new part automatically without human
intervention. This post mainly focuses on what is the Structure and Advantages of
Generative Generative Computer Aided Process Planning(G CAPP) in a detailed
manner.

Characteristics of Generative Computer Aided Process Planning(G CAPP):

 No existing standard plans.

 Able to generate process plans for both new and existing parts.
 Process plans are generated by means of:
o Decision logic.
o Formulas.
o Technology algorithms.
o Geometry based data.
o Geometry-based coding scheme.
 o Process knowledge in the form of decision logic and data to perform
uniquely the main decisions for converting apart from raw materials to a
finished state.

A requirement of Generative Computer Aided Process Planning:

Part description:

 Part to be produced must be clearly and precisely defined in a computer

compatible format (OPITZ, AUTAP).

Manufacturing databases:

 The logic of manufacturing must be identified and captured.

 The captured logic must be incorporated in a unified manufacturing database.

Decision making logic and algorithms:

 Decision trees.
 Expert Systems: AI-based approaches.

Decision Tables in Generative CAPP:

 A decision table program structuring tool provides readable documentation as

an automatic by product.
 A decision table is portioned into conditions and actions.
 Can be used with pre-processor to eliminate some program coding to provide
automatic checks for completeness, contradiction, and redundancy.

Techniques for Generative Computer Aided Process Planning (G CAPP)

 Identify the machinable volume and attach necessary technological details

relevant for mfg.
 Do a preliminary sorting of pockets in order of levels that clearly indicate the
likely sequence in the final process plan.
 Examine the pocket for any possibility of combining so that the machining
operations could be reduced.
 Select the machine tools that can be used for each of the identified pockets.
 Identify the process sequence required for the machining of the pocket based
on the technological requirements.
 For each of the pocket and the operation decided, select the cutting tool
required.
 Sort the operations on the basis of the machine tools and cutting tools.
 Sequence the operations on the basis of the machine tools and cutting tools by
making use of heuristic rules.
  Evaluate the machining time and idle time and select the final process plan
based on the lowest cost and machining time.
 Present the final results in a suitable form.

2. Variant CAPP:

A process plan for a new part is created by recalling, identifying and retrieving the
existing plan for a similar part and making necessary modifications for the new part.
In this article, I am going to discuss Advantages and limitations of VARIANT CAPP
(VCAPP) in a detailed manner.

Steps involved in VARIANT CAPP are as follows:

 Define the coding system.

 Group the parts into part families.
 Develop a standard process plan.
 Retrieve and modify the standard plan.

3. Retrieval CAPP:

 Based on the principles of GT.

 Also called a VARIANT Computer Aided Process Planning(Variant CAPP).
 GT: Group Technology.
 The concept of grouping parts together depending upon their similarities in
operation sequence or geometry is called Group technology.
 Experts’ knowledge and standard process plans as per GT are needed as a
database.
 Considerable work is required to collect and organize data.

Salient points of VARIANT CAPP:

 Easy to build, learn and use.

 Experienced process planners are still required to edit the process plan.
 Cannot be used in an entirely automated manufacturing system without
additional process planning.

Problems Associated with Variant PP:

 The components to be planned are limited to similar components previously

planned.
 Experienced process planners are still required to modify the standard plan for
the specific component.
 Variant planning cannot be used in an entirely automated manufacturing
system, without additional process planning.
 Security & Ethical Challenges

Information system Security

MIS security refers to measures put in place to protect information system resources
from unauthorized access or being compromised. Security vulnerabilities are
weaknesses in a computer system, software, or hardware that can be exploited by the
attacker to gain unauthorized access or compromise a system.

People as part of the information system components can also be exploited using
social engineering techniques. The goal of social engineering is to gain the trust of
the users of the system.

Let’s now look at some of the threats that information system face and what can be
done to eliminate or minimize the damage if the threat were to materialize.

Computer viruses – these are malicious programs as described in the above section.
The threats posed by viruses can be eliminated or the impact minimized by using
Anti-Virus software and following laid down security best practices of an
organization.

Unauthorized access – the standard convention is to use a combination of a

username and a password. Hackers have learnt how to circumvent these controls if
the user does not follow security best practices. Most organizations have added the
use of mobile devices such as phones to provide an extra layer of security.

Let’s take Gmail as an example, if Google is suspicious of the login on an account,

they will ask the person about to login to confirm their identity using their android
powered mobile devices or send an SMS with a PIN number which should
supplement the username and password.

If the company does not have enough resources to implement extra security like
Google, they can use other techniques. These techniques can include asking
questions to users during signup such as what town they grew up in, the name of their
first pet, etc. If the person provides accurate answers to these question, access is
granted into the system.

Data loss – if the data center caught fire or was flooded, the hardware with the data
can be damaged, and the data on it will be lost. As a standard security best practice,
most organizations keep backups of the data at remote places. The backups are made
periodically and are usually put in more than one remote area.

Biometric Identification – this is now becoming very common especially with mobile
devices such as smartphones. The phone can record the user fingerprint and use it for
authentication purposes. This makes it harder for attackers to gain unauthorized
access to the mobile device. Such technology can also be used to stop unauthorized
people from getting access to your devices.

Information system Ethics

Ethics refers to rules of right and wrong that people use to make choices to guide
their behaviors. Ethics in MIS seek to protect and safeguard individuals and society
by using information systems responsibly. Most professions usually have defined a
code of ethics or code of conduct guidelines that all professionals affiliated with the
profession must adhere to.

In a nutshell, a code of ethics makes individuals acting on their free will responsible
and accountable for their actions. An example of a Code of Ethics for MIS
professionals can be found on the British Computer Society (BCS) website.

Control Issues in Management Information Systems

Control is the process through which manager assures that actual activities are
according to standards leading to achieving of common goals. The control process
consists of measurement of progress, achieving of common goals and detects the
deviations if any in time and takes corrective action before things go beyond control.
Information systems operate in real world situations which are always changing and
there are lots of problems. Information systems are vulnerable to various threats and
abuses. Some of the points are memory, communications links, microwave signal,
telephone lines etc.
Security Control
The resources of information systems like hardware, software, and data, need to be
protected preferably by build in control to assure their quality and security.
Types of Security Control:
 Administrative control
 Information systems control
 Procedural control
 Physical facility control
Administrative Control
Systems analysts are actually responsible for designing and implementing but these
people need the help of the top management in executing the control measure. Top
executives provide leadership in setting the control policy. Without their full support,
the control system cannot achieve its goal.

Information System Control

Information system control assures the accuracy, validity and proprietary of
information system activities. Control must be there to ensure proper data entry
processing techniques, storage methods and information output. Accordingly
management information system control are designed to see or monitor and maintain
quality, security of the input process, output and storage activities of an information
system.
Input Control
As we know whatever we give to computer the computer processes that and returns
the result to us. Because of this very fact, there is a need to control the data entry
process. The types of input control are:
 Transaction Codes: Before any transaction can be input into the system, a
specific code should be assigned to it. This aids in its authorization.
 Forms: a source document or screen forms should be used to input data and
such forms must adhere to certain rules.
 Verification: Source document prepared by one clerk can be verified by
another clerk to improve accuracy.
 Control–totals: Data entry and other system activities are frequently
monitored by the use of control-total. For example, record count is a control-total
that consist of counting the total number of source documents or other input
records and compare them at other stage of data entry. If totals do not match, then
a mistake is indicated.
 Check digit: These are used for checking important codes such as customer
number to verify the correctness.
 Labels: It contains data such as file name, and date of creation so that a check
can be made that correct file is used for processing.
 Character and field checking: Characters are checked for proper mode –
numeric, alphabetic, alphanumeric fields – to see if they are filled in properly.

Processing Control
Input and processing data are so interrelated that we can take them as first line of
defense. Once data is fed into the computer, controls are embedded in various
computer programs to help, detect not only input errors but also processing errors.
Processing – controls are included to check arithmetic calculations and logical
operations. They are also used to ensure that data are not lost or do not go
unprocessed. Processing control is further divided into hardware and software control.
Output Control
These are developed to ensure that processed information is correct, complete and is
transmitted to authorized user in a timely manner. The output control are mostly of
same kind as input control e.g. Output documents and reports are thoroughly and
visually verified by computer personnel and they are properly logged and identified
with rout slips
Storage Control
Control responsibility of files of computer programs and databases is given to
librarian or database administrator. They are responsible for maintaining and
controlling access to the information. The databases and files are protected from
unauthorized users as accidental users. This can be achieved with the help of security
monitor. The method includes assigning the account code, password and other
identification codes. A list of authorized users is provided to computer system with
details such as type of information they are authorized to retrieve or receive from it.
Procedural Control
These methods provide maximum security to operation of the information
system. Standard procedures are developed and maintained manually and built in
software help display so that every one knows what to do. It promotes uniformity and
minimize the chance of error and fraud. It should be kept up-to-date so that correct
processing of each activity is made possible.

Physical Facility Control

Physical facility control is methods that protect physical facilities and their contents
from loss and destruction. Computer centers are prone to many hazards such as
accidents, thefts, fire, natural disasters, destructions etc. Therefore physical
safeguards and various control procedures are required to protect the hardware,
software and vital data resources of computer using organizations.
Physical Protection Control
Many type of controlling techniques such as one in which only authorized personnel
are allowed to access to the computer centre exist today. Such techniques include
identification badges of information services, electronic door locks, security alarm,
security policy, closed circuit TV and dust control etc., are installed to protect the
computer centre.
Telecommunication Controls
The telecommunication processor and control software play a vital role in the control
of data communication activity. Data can be transmitted in coded from and it is
decoded in the computer centre itself. The process is called as encryption.
Computer Failure Controls
Computers can fail for several reasons like power failures, electronic circuitry
malfunctions, mechanical malfunctions of peripheral equipment and hidden
programming errors. To protect from these failure precaution, any measure with
automatic and remote maintenance capabilities may be required.
 Cyber-crime
Cyber-crime refers to the use of information technology to commit crimes. Cyber-
crimes can range from simply annoying computer users to huge financial losses and
even the loss of human life. The growth of smartphones and other high-
end Mobile devices that have access to the internet have also contributed to the
growth of cyber-crime.

Types of cyber-crime

Identity theft

Identity theft occurs when a cyber-criminal impersonates someone else identity to

practice malfunction. This is usually done by accessing personal details of someone
else. The details used in such crimes include social security numbers, date of birth,
credit and debit card numbers, passport numbers, etc.

Once the information has been acquired by the cyber-criminal, it can be used to make
purchases online while impersonating himself to be someone else. One of the ways
that cyber-criminals use to obtain such personal details is phishing. Phishing
involves creating fake websites that look like legitimate business websites or
emails.

For example, an email that appears to come from YAHOO may ask the user to
confirm their personal details including contact numbers and email password. If the
user falls for the trick and updates the details and provides the password, the attacker
will have access to personal details and the email of the victim.

If the victim uses services such as PayPal, then the attacker can use the account to
make purchases online or transfer funds.

Other phishing techniques involve the use of fake Wi-Fi hotspots that look like
legitimate ones. This is common in public places such as restaurants and airports. If
an unsuspecting user logons into the network, then cyber-crimes may try to gain
access to sensitive information such as usernames, passwords, credit card numbers,
etc.

According to the US Department of Justice, a former state department employee used

email phishing to gain access to email and social media accounts of hundreds of
women and accessed explicit photos. He was able to use the photos to extort the
women and threatened to make the photos public if they did not give in to his
demands.

Copyright infringement

Piracy is one of the biggest problems with digital products. Websites such as the
pirate bay are used to distribute copyrighted materials such as audio, video, software,
etc. Copyright infringement refers to the unauthorized use of copyrighted materials.

Fast internet access and reducing costs of storage have also contributed to the growth
of copyright infringement crimes.

Click fraud

Advertising companies such as Google AdSense offer pay per click advertising
services. Click fraud occurs when a person clicks such a link with no intention of
knowing more about the click but to make more money. This can also be
accomplished by using automated software that makes the clicks.

Advance Fee Fraud

An email is sent to the target victim that promises them a lot of money in favor of
helping them to claim their inheritance money.

In such cases, the criminal usually pretends to be a close relative of a very rich well-
known person who died. He/she claims to have inherited the wealth of the late rich
person and needs help to claim the inheritance. He/she will ask for financial
assistance and promise to reward later. If the victim sends the money to the scammer,
the scammer vanishes and the victim loses the money.

Hacking

Hacking is used to by-pass security controls to gain unauthorized access to a system.

Once the attacker has gained access to the system, they can do whatever they want.
Some of the common activities done when system is hacked are;

 Install programs that allow the attackers to spy on the user or control their
system remotely
 Deface websites
 Steal sensitive information. This can be done using techniques such
as SQL Injection, exploiting vulnerabilities in the database software to gain
access, social engineering techniques that trick users into submitting ids and
passwords, etc.

Computer virus
Viruses are unauthorized programs that can annoy users, steal sensitive data or be
used to control equipment that is controlled by computers.

What is Data Privacy?

Data privacy, sometimes also referred to as information privacy, is an area of data
protection that concerns the proper handling of sensitive data including,
notably, personal data .but also other confidential data, such as certain financial data
and intellectual property data, to meet regulatory requirements as well as protecting
the confidentiality and immutability of the data.

Roughly speaking, data protection spans three broad categories, namely, traditional
data protection (such as backup and restore copies), data security, and data privacy as
shown in the Figure below. Ensuring the privacy of sensitive and personal data can
be considered an outcome of best practice in data protection and security with the
overall goal of achieving the continual availability and immutability of critical
business data.

Security becomes an important element in protecting the data from external and
internal threats but also when determining what digitally stored data can be shared
and with whom. In a practical sense, data privacy deals with aspects of the control
process around sharing data with third parties, how and where that data is stored, and
the specific regulations that apply to those processes.

Almost all countries in the world have introduced some form of legislation
concerning data privacy in response to the needs of a particular industry or section of
the population.
Data Sovereignty
Data sovereignty refers to digital data that is subject to the laws of the country in
which it is located.

The increasing adoption of cloud data services and a perceived lack of security has
led many countries to introduce new legislation that requires data to be kept within
the country in which the customer resides.

Current concerns surrounding data sovereignty are related to governments trying to

prevent data from being stored outside the geographic boundaries of the originating
country. Ensuring that data exists only in the host country can be complex and often
relies on the detail provided in the Service Level Agreement with the Cloud Service
Provider.
Data Privacy - Geographical variations in terms
In the European Union, privacy is recognised as an absolute fundamental right and in
some parts of the world privacy has often been regarded as an element of liberty, the
right to be free from intrusions by the state. In most geographies, privacy is a legal
concept and not a technology, and so it is the term data protection that deals with the
technical framework of keeping the data secure and available.

Why is Data Privacy important?

The answer to this question comes down to business imperatives:

1. Business Asset Management: Data is perhaps the most important asset a

business owns. We live in a data economy where companies find enormous
value in collecting, sharing and using data about customers or users, especially
from social media. Transparency in how businesses request consent to
keep personal data, abide by their privacy policies, and manage the data that
they’ve collected, is vital to building trust with customers who naturally expect
privacy as a human right.
2. Regulatory Compliance: Managing data to ensure regulatory compliance is
arguably even more important. A business may have to meet legal
responsibilities about how they collect, store, and process personal data, and
non-compliance could lead to a huge fine. If the business becomes the victim
to a hack or ransomware, the consequences in terms of lost revenue and lost
customer trust could be even worse.

Data Privacy is not Data Security

Businesses are sometimes confused by the terms and mistakenly believe that keeping
personal and sensitive data secure from hackers means that they are automatically
compliant with data privacy regulations. This is not the case. Data security protects
data from compromise by external attackers and malicious insiders whereas data
privacy governs how the data is collected, shared and used.
Differing legal definitions of Data Privacy
If there is agreement on the importance of data privacy to a business, then the legal
definition can be extremely complex.

None of the most prevalent regulations (GDPR, CCPA, HIPAA etc) define precisely
what is meant by data privacy and it is left to businesses to determine what they
consider best practice in their own industry. The legislation often refers to what is
considered ‘reasonable’ which may differ between laws, along with the respective
fines.

In practice, this means that companies who work with sensitive and personal data
should consider exceeding the legal parameters to ensure that their data practices are
well above those outlined in the legislation.
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