Week 1 Discussion
Due January 15 at 12:59 AM
By the due date assigned, submit your responses to the discussion question given below. Submit your responses to this Discussion Area.
Respond to the discussion question using the lessons and vocabulary found in the reading. Support your answers with examples and research, and cite your research using the correct APA format.
Justify your answers using examples and reasoning. Comment on the postings of at least two classmates with regard to whether you agree or disagree with their views.
New Ways to use Web-based Applications
As technology grows, so does its uses. Companies are finding ways to let their employees manage various parts of their job without needing a full-time employee. One way this is done is with web-based self-service applications.
Discuss new ways for employees to use Web-based self-service applications in their companies that will help save time and money. Describe not only the applications and how they work, but how they can save the company money and time. Be sure to include disadvantages to the process from the point of view of the employee.
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Information Systems Management
Moore’s law of doubling computational power every 18 months has contributed to vast improvements
over the last 30 years. Today we use the Internet for business transactions, to access and supply
information, to communicate, collaborate, and participate in discussions, and for entertainment. We
can order books and music from Amazon.com, book vacations or business travel on United.com or
expedia.com and access personal productivity products over the Web from personal computers (PC),
notebooks, personal digital assistants (PDA), or cell phones.
For example, a small company in Brazil used the digital platform to attract a more af�uent type of
customer, which increased their average sales over 15 times and expanded their business in the global
market. Today companies can manage their business on a global scale by leveraging network
economics.
We will also discuss applications and systems used in organizations today.
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E-Government and Information Architecture
E-Government refers to the use of the Internet and related technologies to digitally enable operations
and relationships between government and public sector agencies and citizens, businesses, and other
government agencies. The use of the Internet in government operations offers the following bene�ts:
Most states permit their residents to renew automobile registrations through the web.
You can calculate and �le tax returns over the Internet.
You can �le and renew state unemployment compensation over the Internet.
Soon with proper identity veri�cation, �le encryption, and Internet security to validate,
guarantee, and secure transactions, you will be able to register to vote and vote virtually over the
Internet without having to stand in long lines.
Information architecture refers to the design of the IT system in an organization to attain speci�c
goals or perform speci�c functions. For organizational success it is essential that the Information
Architecture meets current and future business requirements.
Digitally enabling core business processes can enhance an organization’s economic value and enable it
to adapt to changes more rapidly.
For example, eLoyalty Corporation is a virtual CRM management consulting company based in Lake
Forest, Illinois in the northern suburbs of Chicago. The company conducts most of its international and
regional meetings through Web seminars. The performance review process and weekly time sheet
reporting is also done over the Web. Consultants are based out of their homes and travel to client
work sites, and all expenses are paid by the client. The only overhead for eLoyalty is to provide laptops
and the required software packages for all the consultants. Often consultants can upgrade software
over the Web. Internal corporate portals are used to share consulting competencies, methodologies,
and best practices which facilitate internal training, development, and communications. This virtual
infrastructure enables the company to be scalable and the company has grown to thousands of
employees globally within a few short months.
Now let us discuss how collaborative commerce is performed with collaborative planning, forecasting,
and replenishment.
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Managing the Digital Organization
Let us begin by discussing the management of digital enterprises.
Managing the Digital Organization
Let us understand some commonly used terms of management information systems (MIS).
An IS is composed of inter-related components that work together to collect, process, store, and
disseminate information in order to facilitate decision making, coordination, control, analysis, and
visualization in an organization. The following three activities within the IS function generate the
required information for organizations to make decisions, control operations, analyze problems, and
create new products or services:
Input: Captures or collects raw data from within the organization or from the external
environment.
Processing: Converts the raw data into a meaningful format.
Output: Transfers the processed information to users who can use it or to activities that use it. IS
also requires feedback, which is in the form of output that is returned to the appropriate user in
order to help them evaluate information.
MIS combines the theoretical work of computer science, management science, and operations
research to develop system solutions for real-world problems and manage information technology (IT)
resources.
Mass customization refers to the capability of offering customized products or services by using mass
production resources. IS enables mass customization by using individual order data to drive
production equipment. For example, a customer walks into a Levi’s store in the Prudential Center in
downtown Boston, Massachusetts to take the measurements for a custom pair of Levi’s jeans. The
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customer’s measurements are fed into a kiosk that is networked with the Levi’s factory’s ERP system
in Monterey, California. The custom pair of Levi’s jeans are then packed and shipped directly to the
customer’s home address.
Inter organizational systems are systems that automate the �ow of information across organizational
boundaries and link a company to its customers, distributors, or suppliers.
A digital market is a virtual marketplace related to IT that links buyers and sellers.
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Collaborative Commerce with CPFR
The Internet has helped organizations become more �exible by coordinating and collaborating with
their suppliers and customers. IT provides managers tools for precise planning, forecasting, and
monitoring business operations. SCM links and coordinates the activities of purchasing, storing, and
moving products. Collaborative commerce refers to the use of digital technology to collaboratively
design, develop, build, move, and manage products through their life cycles.
Enterprise software organizations such as MarketMAX, Peoplesoft, and Manugistics have developed
SCM software that uses CPFR to enable multiple partners to work together on forecasting demand.
VF Corporation, an apparel manufacturer of Lee Jeans and Wrangler Jeans in Greensboro, South
Carolina uses Manugistics software to coordinate production planning with their suppliers. The
system enables the transmission of production plans over the Web, and highlights any con�icts in VF’s
production schedule and its suppliers’ delivery schedule.
Let us understand how CPFR works for an organization.
VF uses MarketMAX’s DISP planning software to support its collaborative, forecasting, and
replenishment processes. This software works with large retailers such as ShopKo, Wal-Mart, JC
Penney’s, and Sears to share their sales forecasts with VF’s demand forecast. When the forecasts
match the results are fed into VF’s replenishment system so that inventory levels are set and the
required styles, sizes, and quantities are restocked on shelves at the right time to maximize sell-
through. Wal-Mart works with VF by taking point of sales (POS) data from Wal-Mart’s checkout
counters and transmits it directly to VF’s CPFR system. VF continuously revises its Wal-Mart forecast
with Wal-Mart’s real-time POS data. This Ef�cient Customer Response system is an excellent example
of how one organization’s value chain works with the industry chain. The result is that products are
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replenished within 24 hours instead of 3 weeks. You learned the importance of CPFR in collaborative
commerce. Now let’s discuss how IS coordinates with various departments of an organization to
perform its daily operations.
/
Response
No Submission
0 points
Emerging (F-D: 1-27)
27 points
Satisfactory (C: 28-31)
31 points
Proficient (B: 32-35)
35 points
Exemplary (A: 36-40)
40 points
Criterion
Score
Quality
of Initial
Posting
/ 40No initial posting
exists to evaluate.
The information provided is
inaccurate, not focused on
the assignment’s topic,
and/or does not answer the
question(s) fully. Response
demonstrates incomplete
understanding of the topic
and/or inadequate
preparation.
The information provided is accurate,
giving a basic understanding of the
topic(s) covered. A basic understanding
is when you are able to describe the
terms and concepts covered. Despite
this basic understanding, initial posting
may not include complete development
of all aspects of the assignment.
The information provided is accurate,
displaying a good understanding of the
topic(s) covered. A good understanding is
when you are able to explain the terms and
topics covered. Initial posting demonstrates
sincere reflection and addresses most
aspects of the assignment, although all
concepts may not be fully developed.
The information provided is
accurate, providing an in-depth,
well thought-out understanding
of the topic(s) covered. An in-
depth understanding provides an
analysis of the information,
synthesizing what is learned from
the course/assigned readings.
Participation
No Submission
0 points
Emerging (F-D: 1-
13)
13 points
Satisfactory (C: 14-16)
16 points
Proficient (B: 17-18)
18 points
Exemplary (A: 19-20)
20 points
Criterion
Score
Participation
in
Discussion
/ 20No responses to
other classmates
were posted in this
discussion forum.
May include one or
more of the
following:
*Comments to only
one other student’s
post.
*Comments are not
substantive, such as
just one line or
saying, “Good job” or
“I agree.
*Comments are off
topic.
Comments to two or more
classmates’ initial posts but only
on one day of the week.
Comments are substantive,
meaning they reflect and expand
on what the
other student wrote.
Comments to two or more
classmates’ initial posts on more
than one day. Comments are
substantive, meaning they
reflect and expand on what the
other student wrote.
Comments to two or more classmates’ initial posts and to
the instructor’s comment (if applicable) on two or more
days. Responses demonstrate an analysis of peers’
comments, building on previous posts. Comments extend
and deepen meaningful conversation and may include a
follow-up question.
Writing
No Submission
0 points
Emerging (F-D: 1-
13)
13 points
Satisfaction (C: 14-16)
16 points
Proficient (B: 17-18)
18 points
Exemplary (A: 19-20)
20 points
Criterion
Score
Writing
Mechanics
(Spelling,
Grammar,
Citation
Style) and
Information
Literacy
/ 20No postings for
which to evaluate
language and
grammar exist.
Numerous issues in
any of the following:
grammar, mechanics,
spelling, use of slang,
and incomplete or
missing citations and
references. If
required for the
assignment, did not
use course, text,
and/or outside
readings (where
Some spelling, grammatical,
and/or structural errors are
present. Some errors in
formatting citations and
references are present. If
required for the assignment,
utilizes sources to support work
for initial post but not comments
to other students. Sources
include course/text readings but
outside sources (when relevant)
include non-
Minor errors in grammar, mechanics, or
spelling in the initial posting are present.
Minor errors in formatting citations and
references may exist. If required for the
assignment, utilizes sources to support work
for both the initial post and some of the
comments to other students. Sources include
course and text readings as well as outside
sources (when relevant) that are academic
and authoritative (e.g., journal articles, other
text books, .gov Web sites, professional
organization Web sites, cases, statutes, or
administrative rules).
Minor to no errors exist in grammar,
mechanics, or spelling in both the initial post
and comments to others. Formatting of
citations and references is correct. If required
for the assignment, utilizes sources to
support work for both the initial post and the
comments to other students. Sources include
course and text readings as well as outside
sources (when relevant) that are academic
and authoritative (e.g., journal articles, other
text books, .gov Web sites, professional
organization Web sites, cases, statutes, or
administrative rules).
/
Total / 80
Overall Score
Close
relevant) to support
work.
academic/authoritative, such as
Wikis and .com resources.
No Submission
0 points minimum
There was no submission
for this assignment.
Emerging (F to D Range)
1 point minimum
Satisfactory progress has not been met on the
competencies for this assignment.
Satisfactory (C Range)
56 points minimum
Satisfactory progress has been achieved on the
competencies for this assignment.
Proficient (B Range)
64 points minimum
Proficiency has been achieved on the
competencies for this assignment.
Exemplary (A Range)
72 points minimum
The competencies for this
assignment have been mastered.
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Strategic IS
Strategic IS are computer systems at any level of the organization that can change goals, operations,
products, services, or environmental relationships to help the organization gain competitive
advantage. Various systems operate at various levels of strategy such as:
Business Level: Here IS can serve new markets or help �rms differentiate products and services
and become low-cost producers.
Organizational Level: Here IS can enhance services or achieve new ef�ciencies by tying together
the operations of disparate business units. This is done to promote the sharing of knowledge
across business units.
Industry Level: Here IS can promote competitive advantage by facilitating cooperation with
other �rms in the industry. IS can also create communities for sharing information, coordinating
activities, or exchanging transactions.
Strategic IS can be used for product differentiation and creating new products and services. A focused
differentiation strategic IS can offer organizations competitive advantage by producing data for �nely
tuned sales and marketing techniques. Competitive advantage helps to develop new market niches for
specialized products or services where a business can compete in the target area better than its
competitors.
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Major Types of IS
After understanding the various functions of IS, let us discuss the four major types of IS used in various
organizational levels in an enterprise:
Executive Support Systems (ESS): This serves the strategic level of the organization to solve
critical issues such as business forecast, competitors’ information, and acquisitions. It is primarily
used by senior managers to analyze aggregate internal and external data and make strategic
decisions.
Decision Support Systems (DSS): This category helps managers of an organization to make
decisions based on data analysis. It is used by professional and staff managers for data analysis to
perform operations research, analytic modeling, and data analysis in order to make dynamic
decisions.
Management Information Systems (MIS): It is a special category of IS that serves the
management level of the organization. It is used by middle management to summarize
transaction data and access current performance, historical records, and exception reports.
Transaction Processing Systems (TPS): It is a computerized system which executes and records
several transactions required for the daily functioning of an organization. It is used by
operations, personnel managers, and supervisors for daily reports, lists, and summaries of all
transactions and events in business operations.
Next we will discuss the various strategies adopted by managers in an organization when making
decisions.
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Strategy and MIS
System designers adopt various strategies of decision-making in an organization. There are four stages
involved in decision making such as:
Intelligence: Gathering information to identify problems in the organization.
Design: Proposing alternative solutions to problems.
Choice: Selecting a solution from various alternatives.
Implementation: Executing the decision and reporting the progress of the solution’s
implementation.
You may decide to revisit the design or choice stages when an implementation does not work. To be
able to make the correct decision, you need to understand the concept of value chain analysis.
Value Chain Analysis
The value chain model is the most common analytical tool used at the business level. The model
highlights speci�c activities that add a margin of value to an organization’s products or services, by
leveraging the IS to achieve competitive advantage. IS is said to have strategic impact if it helps the
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organization provide products or services at lower costs compared to competitors or if it provides
products or services at the same cost as competitors but with greater value. The organization’s value
chain can be linked to the value chains of its suppliers, customers, distributors, and partners.
Digitally enabled networks are used not only to purchase supplies but also to closely coordinate and
manage the production of independent suppliers. Let’s consider an example of how Lee Sport, a
subsidiary of VF Corporation, implements Value Chain Analysis. Lee Sport buys and leases production
capability from sewing shops in New York City to produce tee shirts and sweat shirts, which are then
sent to their screen print operation in Tampa for their licensed sportswear business. The sewing fabric
styles, colors, and production size scales change to meet the changing demand and buying patterns of
customers at VF stores and VF factory outlets.
A value web is a customer-driven network of independent organizations on the Internet. These
organizations use IT to coordinate their value chains to collectively produce a product or a service for
the market.
Next we will discuss strategic IS and its functions.
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IS in Organizations
In an organization, the various functions of IS are broadly categorized as:
Sales and Marketing systems: Focus on customer interaction, order processing, and sales
forecasting.
Manufacturing and Production systems: Handle all aspects of production such as production
goals, procurement and storage of materials, equipment, facilities, and the labor required to
produce the �nished products.
Finance and Accounting systems: Track the organization’s �nancial assets and fund �ows
through transactions such as payroll, payments to suppliers, accounts receivable, security, and
tax reporting.
Human Resource IS: Monitors and analyzes the recruitment, allocation, and compensation of
employee bene�ts and employee job performance evaluations, including federal and state
record-keeping requirements for Equal Employment Opportunity (EEO).
Enterprise applications: Support company-wide process coordination and integration. The
applications are ERP systems, SCM systems, CRM systems, and knowledge management (KM)
systems.