Download The Power of Modern Information Systems

The Power of Modern Information Systems
• Introduction to information systems
• Achieving competitive advantage
• Networks, Telecommunications, the Internet, WWW
• The Personal Computer Industry and Dell
• TransAlta
• Quiz
• Exercises
Day 1 – Module 1
Introduction to Modern
Information Systems
Text Materials
Chapter 1 – The Information Age in Which You Live
Quotes
“I think there is a world market for maybe
five computers.”
“There is no reason for any individual to have a
computer in his home.”
“Make your own products obsolete.
Otherwise somebody else will do it.”
Introduction to IS
Opportunities
http://www.milliondollarhomepage.com/
Creativity Exercises
The Value Chain
Inbound
logistics
Production
processes
Outbound
logistics
Sales and
marketing
Customer
service
Information technology infrastructure
Upstream
Downstream
• The set of integrated internal processes that combine to deliver value to
customers.
The Supply Chain
Upstream
Downstream
• A set of business processes that allow multiple independent entities
(suppliers, manufacturers, retailers, and so on) to function as one
“virtual” organization.
The Big Picture
Inbound
logistics
Production
processes
Outbound
logistics
Sales and
marketing
Customer
service
Inbound
logistics
Production
processes
Outbound
logistics
Sales and
marketing
Customer
service
Information technology infrastructure
Information technology infrastructure
Inbound
logistics
Production
processes
Outbound
logistics
Sales and
marketing
Customer
service
Inbound
logistics
Production
processes
Outbound
logistics
Sales and
marketing
Information technology infrastructure
Information technology infrastructure
Inbound
logistics
Production
processes
Outbound
logistics
Sales and
marketing
Customer
service
Inbound
logistics
Production
processes
Information technology infrastructure
Inbound
logistics
Outbound
logistics
Sales and
marketing
Information technology infrastructure
Production
processes
Outbound
logistics
Sales and
marketing
Information technology infrastructure
Customer
service
Customer
service
Customer
service
IT Adoption – Why?
• Reduce Costs
Suppliers
Your
Company
Customers
• Improve Efficiency
Value Chain
• Improve Decision Making
Supply Chain
• Innovate
• Gain Competitive Advantage
• Survival
http://newyork.yankees.mlb.com/nyy/ticketing/seating_pricing.jsp
Huge Investments are Being Made
• $2 trillion estimated in 2007
• $2 trillion in consulting and services
Scource: Laudon & Laudon, “Essentials of Business Information Systems, Prentice Hall, 2007.
Some Ramifications
• Major growth for package movement organizations.
• Wireless growth.
• Purchasing moving to the Internet.
• Newspaper readership decline. Blog readership rise.
• Internet advertising growth.
• Growth of digital information storage.
• Changes in jobs and careers.
Example - Walmart
Sales per square foot
Retail Average
Target
Walmart
Example – JC Penny and TAL Apparel
An Information System is . . .
a (hopefully) interrelated set of components that collect, process,
store, and distribute information to support decision making and
control in an organization.
Data and Information
System Software and Application Software
Preprogrammed instructions that control and coordinate the computer
hardware components in an information system.
Computer Hardware
System Software
Application Software
User
Some Common Browsers
Some Common Browsers
The Mainframe Era
1940’s-1950’s
1960’s
The PC Era
1976
1981
1984
The PC Era
1985+
•
The Internet Era
1993+
•
Day 1 – Module 2
Competitive Advantage with
Information Technology
Text Materials
Chapter 2 – Major Business Initiatives
Achieving Competitive Advantage with IT
• Off-line (store) Retail
• Online Retail
• Automotive
• Online music
• Music players
• Web search
• Personal computers
• Software
Competitive Advantage
Hello!?
2008
DJI
MSFT
1990
DJI
$5000
MSFT $5000
Market Capitalization, February 2007
Lockheed Martin
$43,000,000,000
Exxon Mobil
$438,000,000,000
Walmart
$196,000,000,000
General Motors
$15,000,000,000
IBM
$144,000,000,000
Dell
$43,000,000,000
Google
$157,000,000,000
Microsoft
$265,000,000,000
eBay
$38,000,000,000
Apple
$107,000,000,000
Hello!?
Competitiveness
How effectively an organization meets the
wants and needs of customers relative to
others that offer similar goods or services.
Competitiveness
Our Philosophy
PFSweb is an outsourcing solutions design firm with an extensive offering of world-class
logistics, fulfillment, customer care and technology infrastructure that can be leveraged to
create unique, client-specific business solutions. Our philosophy is not to fit your
business model into our pre-existing infrastructure, but rather to develop our
infrastructure around your unique needs. We are flexible, scalable, and adaptable so
we can keep pace with your ever-changing needs, whether you are adding new sales
channels, marketing initiatives, vendor managed inventory (VMI) programs or special
projects. We realize that no two clients face the exact same challenges, and for that
reason, we are always extending our technology and operations capabilities based directly
on client needs. Our philosophy is that there is absolutely no favorable argument for you to
consider outsourcing with PFSweb unless we can execute at a greater performance level
than what you could achieve in-house or through an alternative partner.
Competitiveness
Productivity
Measures how well an organization is utilizing its
resources.
Outputs
Productivity =
Inputs
England
France
Japan
United States
Productivity
Output per hour
250
200
150
100
50
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet
Year
2002
1998
1994
1990
1986
1982
1978
1974
1970
1966
1962
1958
1954
1950
0
Porter’s Competitive Advantage Model
New
Entrants
Supplier
Power
Rivalry Among
Competitors
Suppliers
Buyer
Power
Customers
Substitutes
Porter’s Competitive Advantage Model
Impact of Internet on Competitive Forces
•
•
•
•
•
•
Reduces barriers to entry
Enables new substitute products and services
Shifts bargaining power to customer
Raises firm’s bargaining power over suppliers
Suppliers benefit from reduced barriers to entry and
from elimination of intermediaries
Widens geographic market, increases number of
competitors, reduces differentiation among competitors
Porter’s Competitive Advantage Model
New
Entrants
Supplier
Power
Rivalry Among
Competitors
Suppliers
Buyer
Power
Customers
Substitutes
Porter’s Competitive Advantage Model
Rivalry Among
Competitors
Buyer
Power
Customers
Porter’s Competitive Advantage Model
New
Entrants
Rivalry Among
Competitors
Porter’s Competitive Advantage Model
Rivalry Among
Competitors
Substitutes
Porter’s Competitive Advantage Model
Supplier
Power
Suppliers
Rivalry Among
Competitors
Porter’s Competitive Advantage Model
IT Systems can help in the areas of . . .
• Low-cost leadership
• Product differentiation
• Customer and supplier intimacy
• Focus on market niches
• Increase your market reach
The Value Chain Model
Core Activities
Support Activities
Basic Value Chain for Federal Express
Human Resources
Build and Improve Distribution Centers
Support Aircraft and Trucks
Order Supplies
Collect Packages
Sort Packages
Ship Packages
Service Customers
Bill & Collect
(Hub)
Day 1 – Module 3
Networks and the Internet
Text Materials
Extended Learning Module E – Network Basics
A Modem
0011101
M
M
0011101
Networks, Internet, WWW
Data communications
Sending messages/information between two or
more computers.
Client
Client
Server
Printer
Client
File system
Client
Upstream
Downstream
Data communications media
5 Mbs
1.44 Mbs
10,000 Mbs
.4 Mbs
1 Mbs
Data Communication
• Network: two or more computers or devices linked
by communication lines.
– Each computer/device is a node
– Transmitter and receiver are nodes
• The network is the medium
• Communication rules are defined by a protocol
Data Communication
• Communication protocol
– An agreed-upon format or procedure for
transmitting data.
– Implemented in hardware and/or software
• Key issues
– Deliver message efficiently
– Detect errors
– Correct errors
Networks, Internet, WWW – 5 of 22
Messages and Packets
Trailer
Packet A1
Message A
Body
Packet A2
Header
Packet A3
A Packet
Version
(4 bits)
Diff-Serv
(8 bits)
Flow Label (20 bits)
Marks a packet as part of a specific flow
Next Header
(8 bits)
Payload Length (16 bits)
Name of next
header
Source IP Address (128 bits)
Destination IP Address (128 bits)
Next Header or Payload (Data Field)
Hop Limit
(8 bits)
Routers
Router 1
Router 4
Router 4
Internet
Router 2
Routers
Router 1
Router 6
Router 8
Router 3
Router 4
Router 4
Router 2
Router 5
Router 5
Router 5
Router 7
Router 9
Sending Messages Across a Network
Message A
Packet A1
Packet A2
Packet A3
Packet A3
Packet
Packet
Packet A1
Packet
Open
Packet
Packet A2
Packet
Packet
Packet
Open
Open
Packet
Packet
Packet
Packet
Packet
Packet A1
Packet A2
Message A
Packet A3
U.S. Internet Backbone
Networks, Internet, WWW – 1 of 20
LANs and WANs
• LAN (local area network)
– A network that connects systems within a limited
physical area (department, dorm).
• WAN (wide area network)
– A network that connects systems throughout a
large geographic area (entire business,
university/branches).
A LAN
Client
Client
Server
Printer
Client
File system
Client
A WAN
Internetworking
• Process of
linking two
or more
networks.
Workstation
Workstation
Workstation
Workstation
Workstation
Workstation
Server
Bridge
Server
A bridge links
similar networks
Workstation
A gateway links
dissimilar networks
Workstation
Server
Gateway
Workstation
Workstation
Router and a Switch
Internet Addressing
sbaserver1.sba.muohio.edu
Top-level domain
Miami University domain
SBA sub-domain
Server within SBA sub-domain
Internet Addressing
sbaserver1.sba.muohio.edu
134.53.40.2
• Physical transmission requires IP address
• Domain name system converts domain name to equivalent
IP address
Internet Addressing
http://www.visualware.com/
http://www.whatismyip.com/
Internet Addressing
TCP/IP
Summary: TCP and IP were developed by a Department of Defense (DOD) research project to connect a number different
networks designed by different vendors into a network of networks (the "Internet"). It was initially successful because it
delivered a few basic services that everyone needs (file transfer, electronic mail, remote logon) across a very large number of
client and server systems. Several computers in a small department can use TCP/IP (along with other protocols) on a single
LAN. The IP component provides routing from the department to the enterprise network, then to regional networks, and
finally to the global Internet. On the battlefield a communications network will sustain damage, so the DOD designed TCP/IP
to be robust and automatically recover from any node or phone line failure. This design allows the construction of very large
networks with less central management. However, because of the automatic recovery, network problems can go undiagnosed
and uncorrected for long periods of time.
As with all other communications protocol, TCP/IP is composed of layers:
•IP - is responsible for moving packet of data from node to node. IP forwards each packet based on a four byte
destination address (the IP number). The Internet authorities assign ranges of numbers to different organizations. The
organizations assign groups of their numbers to departments. IP operates on gateway machines that move data from
department to organization to region and then around the world.
•TCP - is responsible for verifying the correct delivery of data from client to server. Data can be lost in the
intermediate network. TCP adds support to detect errors or lost data and to trigger retransmission until the data is
correctly and completely received.
•Sockets - is a name given to the package of subroutines that provide access to TCP/IP on most systems.
TCP/IP
TCP is a connection-oriented transport protocol that sends data as an unstructured stream of
bytes. By using sequence numbers and acknowledgment messages, TCP can provide a sending
node with delivery information about packets transmitted to a destination node. Where data has
been lost in transit from source to destination, TCP can retransmit the data until either a timeout
condition is reached or until successful delivery has been achieved. TCP can also recognize
duplicate messages and will discard them appropriately. If the sending computer is transmitting
too fast for the receiving computer, TCP can employ flow control mechanisms to slow data
transfer. TCP can also communicate delivery information to the upper-layer protocols and
applications it supports.