MASTER OF BUSINESS ADMINISTRATION Information and Communication Technology

Transcription

1 MASTER OF BUSINESS ADMINISTRATION Information and Communication Technology Contact details: Regenesys Business School Tel: +27 (11) Fax: +27 (11)

2 Version Control: 11.4_e_f Date of Publication: January 2014 Publisher: Regenesys Management Place of Publication: Sandton Document Change History Date Version Initials Description of Change 28 September DL Rewritten 23 October PL & DL Reworked content and referencing 07 November DL Reworked content and referencing 12 December PL Final review 18 December DL Reworked content 31 December PL Final review 20 January AR SME review 21 January _f FVS Formatting and implementing SME suggestions 22 January _f PL Final review 24 January _e LS Proofread 30 January _e_f FVS Formatting, adding SME suggestions, amending graphics 30 January DL Implementing SME recommendations 31 January _e_f FVS Final formatting This Study Guide highlights key focus areas for you as a student. Because the field of study in question is so vast, it is critical that you consult additional literature. Copyright Regenesys, 2014 All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission of the publisher. Any person who does any unauthorised act in relation to this publication may be liable for criminal prosecution and civil claims for damages.

3 CONTENTS 1 WELCOME TO REGENESYS INTRODUCTION TEACHING AND LEARNING METHODOLOGY ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES ICONS USED IN THIS STUDY GUIDE STUDY MATERIAL FOR THE MODULE PRESCRIBED AND RECOMMENDED RESOURCES RECOMMENDED BOOK OPTIONAL BOOKS PRESCRIBED ARTICLES PRESCRIBED MULTIMEDIA ADDITIONAL SOURCES TO CONSULT LEARNING OUTCOMES CONTENT SCOPE AND LEARNING GUIDANCE INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY INTRODUCTION THE ROLE OF INFORMATION SYSTEMS IN ORGANISATIONS TODAY PERSPECTIVES ON INFORMATION SYSTEMS GLOBAL E-BUSINESS TRENDS IN ICT BUSINESS PROCESSES AND INFORMATION SYSTEMS TYPES OF INFORMATION SYSTEMS SYSTEMS THAT SPAN THE ENTERPRISE THE INFORMATION SYSTEMS FUNCTION IN BUSINESS INFORMATION SYSTEMS, ORGANISATIONS AND STRATEGIES ORGANISATIONS AND INFORMATION SYSTEMS HOW INFORMATION SYSTEMS IMPACT ORGANISATIONS USING INFORMATION SYSTEMS TO ACHIEVE COMPETITIVE ADVANTAGE USING SYSTEMS FOR COMPETITIVE ADVANTAGE: MANAGEMENT ISSUES IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES INTRODUCTION AND THE LAWS OF TELECOSM INFRASTRUCTURE INFRASTRUCTURE COMPONENT CONTEMPORARY HARDWARE PLATFORM TRENDS CONTEMPORARY SOFTWARE PLATFORM TRENDS MANAGEMENT AND ICT INTEGRATION INTEGRATION OF MANAGEMENT AND ICT CHALLENGES DATABASE MANAGEMENT PRINCIPLES THE DATABASE APPROACH TO DATA MANAGEMENT DATABASE WAREHOUSES MANAGING DATA RESOURCES OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY ENTERPRISE SYSTEMS SUPPLY CHAIN MANAGEMENT SYSTEMS CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM ENTERPRISE APPLICATIONS: NEW OPPORTUNITIES AND CHALLENGES E-COMMERCE DIGITAL MARKETS, DIGITAL GOODS INTRODUCTION ELECTRONIC COMMERCE AND THE INTERNET ELECTRONIC BUSINESS M-COMMERCE QUESTIONS AND ANSWERS

4 9 REFERENCES APPENDIX A: GENERAL GLOSSARY OF KEY TERMS APPENDIX B: E-BUSINESS FUNDAMENTALS GLOSSARY List of Tables TABLE 1: BUSINESS PROCESS TABLE 2: TEN ASPECTS THAT ADD VALUE TO INFORMATION TABLE 3: INFORMATION SYSTEMS TABLE 4: ORGANISATIONAL STRUCTURES TABLE 5: FOREIGN KEY TABLE TABLE 6: HOW THE INTERNET CHANGES THE MARKETS FOR DIGITAL GOODS List of Figures FIGURE 1: PERSWARE FIGURE 2: FUNCTIONS OF AN INFORMATION SYSTEM FIGURE 3: DIMENSIONS OF AN INFORMATION SYSTEM FIGURE 4: THE BUSINESS INFORMATION VALUE CHAIN FIGURE 5: ENTERPRISE SYSTEMS FIGURE 6: EXAMPLE OF A SUPPLY CHAIN MANAGEMENT SYSTEM FIGURE 7: CLOUD COMPUTING ARCHITECTURE MODEL FIGURE 8: THE ORGANISATION FIGURE 9: PORTER S COMPETITIVE FORCES MODEL (THE 5 FORCES) FIGURE 10: THE VALUE CHAIN MODEL FIGURE 11: THE VALUE WEB FIGURE 12: AN ECOSYSTEM STRATEGIC MODEL FIGURE 13: STAGES IN IT INFRASTRUCTURE EVOLUTION FIGURE 14: ICT INFRASTRUCTURE COMPONENTS FIGURE 15: REGENESYS INTEGRATED LEADERSHIP MODEL FIGURE 16: COMPETITIVE FORCES MODEL FOR IT INFRASTRUCTURE FIGURE 17: STUDENT DATABASE FIGURE 18: A RELATIONAL DATABASE TABLE FIGURE 19: COMPONENTS OF A DATA WAREHOUSE FIGURE 20: BUSINESS INTELLIGENCE FIGURE 21: INTRANETS AND EXTRANETS FOR SUPPLY CHAIN MANAGEMENT FIGURE 22: PUSH-VERSUS PULL-BASED SUPPLY CHAIN MODELS FIGURE 23: THE FUTURE INTERNET DRIVEN SUPPLY CHAIN FIGURE 24: CRM SOFTWARE CAPABILITIES... 93

5 1 WELCOME TO REGENESYS Have a vision. Think big. Dream, persevere and your vision will become a reality. Awaken your potential knowing that everything you need is within you. Dr. Marko Saravanja At Regenesys, we assist individuals and organisations to achieve their personal and organisational goals, by enhancing their management and leadership potential. We approach education and development holistically, considering every interaction not only from an intellectual perspective but also in terms of emotion and spirituality. Our learning programmes are designed to transform and inspire your mind, heart and soul, and thus allow you to develop the positive values, attitudes and behaviours, which are required for success. Having educated over students based in highly reputable local and international corporations across over 100 countries since Regenesys' inception in 1998, we are now one of the fastest-growing and leading institutions of management and leadership development in the world. Regenesys ISO 9001:2008 accreditation bears testimony to our quality management systems meeting international standards. Regenesys is accredited with the Council on Higher Education. Our work is rooted in the realities of a rapidly changing world and we provide our clients with the knowledge, skills and values required for success in the 21st century. At Regenesys, you will be treated with respect, care and professionalism. You will be taught by business experts, entrepreneurs and academics who are inspired by their passion for human development. You will be at a place where business and government leaders meet, network, share their experiences and knowledge, learn from each other, and develop business relationships. You will have access to a campus, in the heart of Sandton, with the tranquillity of a Zen garden, gym and meditation room. We encourage you to embark on a journey of personal development with Regenesys. We will help you to awaken your potential and to realise that everything you need to succeed is within you. We will be with you every step of the way. We will work hard with you and, at the end celebrate your success with you. Areas of Expertise Regenesys Business School 1

6 2 INTRODUCTION Welcome to the module on Information and Communication Technology (ICT). This module focuses on the essential concepts of ICT and MIS/ IT management best practices. It provides you with an overview of ICT management. The overall aim of this Study Guide is to help you work through the recommended textbook. Where necessary, you are required to read additional articles that can be downloaded from Regenesys Online. Please read through this Study Guide carefully, as it will influence your understanding of the subject matter and the successful planning and completion of your studies. 2.1 TEACHING AND LEARNING METHODOLOGY Regenesys uses an interactive teaching and learning methodology that encourages self-reflection and promotes independent and critical thinking. Key to the approach utilised is an understanding of adult learning principles, which recognise the maturity and experience of participants, and the way that adult students need to learn. At the core of this is the integration of new knowledge and skills into existing knowledge structures, as well as the importance of seeing the relevance of all learning via immediate application in the workplace. Practical exercises are used to create a simulated management experience to ensure that the conceptual knowledge and practical skills acquired can be directly applied within the work environment of the participants. The activities may include scenarios, case studies, self-reflection, problem solving and planning tasks. Training manuals are developed to cover all essential aspects of the training comprehensively, in a user-friendly and interactive format. Our facilitators have extensive experience in management education, training and development. Regenesys Business School 2

7 2.2 ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES This course will draw on a model developed by Regenesys Management, which demonstrates how the external environment, the levels of an organisation, the team and the components of an individual are interrelated in a dynamic and systemic way. The success of an individual depends on his/her self-awareness, knowledge and ability to manage successfully these interdependent forces, stakeholders and processes. The degree of synergy and alignment between the goals and objectives of the organisation, the team and the individual determines the success or failure of an organisation. It is, therefore, imperative that each organisation ensures that team and individual goals and objectives are aligned with the organisation s strategies (vision, mission, goals and objectives, etc.); structure (organogram, decision-making structure, etc.); systems (HR, finance, communication, administration, information, etc.); culture (values, level of openness, democracy, caring, etc.). Hence, an effective work environment should be characterised by the alignment of organisational systems, strategies, structures and culture, and by people who operate synergistically. Regenesys Integrated Management Model Regenesys Business School 3

8 3 ICONS USED IN THIS STUDY GUIDE Icons are included in the Study Guide to enhance its usability. Certain icons are used to indicate different important aspects in the Study Guide to help you to use it more effectively as a reference guide in future. The icons in this Study Guide should be interpreted as follows: Definition The definitions provide an academic perspective on given terminology. They are used to give students a frame of reference from which to define a term using their own words. Examples The example icon is used to indicate an extra/additional text that illustrates the content under discussion. These include templates, simple calculation, problem solution, etc. Video clip or presentation This icon indicates a URL link to a video clip or presentation on the subject matter for discussion. It is recommended that students follow the link and listen/read the required sources. Interesting source to consult The source icon is used to indicate text sources, from the Internet or resource centre, which add to the content of the topic being discussed In a nutshell This icon indicates a summary of the content of a section in the workbook and to emphasise an important issue. Calculations This icon indicates mathematical or linguistic formulae and calculations. Self-reflection Students complete the action of selfreflection in their own time. It requires students to think further about an issue raised in class or in the learning materials. In certain instances, students may be required to add their views to their assignments. Tasks The task icon indicates work activities that contact students must complete during class time. These tasks will be discussed in class and reflected upon by students and facilitators. E-learning students can use these tasks simply to reinforce their knowledge. Note This icon indicates important information of which to take note. Regenesys Business School 4

9 4 STUDY MATERIAL FOR THE MODULE You have received material that includes the following: Study guide Prescribed and recommended readings Assignment These resources provide you with a starting point from which to study the contents of this module. In addition to these, other resources to assist you in completing this module will be provided online via the link to this module. Guidance on how to access the material is provided in the Academic Handbook that you received when you registered for this qualification. 5 PRESCRIBED AND RECOMMENDED RESOURCES A number of prescribed and recommended resources have been identified to assist you in successfully completing this module. 5.1 RECOMMENDED BOOK The following textbook is highly recommended, as it will assist you to complete the module: McNurlin, B., Sprague, R., and Bui, T. 2014, Information Systems Management: Pearson New International Edition, 8 th edition, New Jersey: Pearson Education. Please ensure you order, or download your textbook, before you start with the module. 5.2 OPTIONAL BOOKS The following books are optional but also recommended for this module: Brown, C.V., DeHayes, D.W., Hoffer, J.A., Martin, W.E., Perkins, W.C Managing Information technology: International Edition. Seventh Edition. New Jersey: Pearson Education. Laudon, K.C. and Laudon, J.P. 2013, Management Information Systems: The digital age.13th International edition. Upper Saddle River, NJ: Pearson Education. Regenesys Business School 5

10 5.3 PRESCRIBED ARTICLES Where applicable, the following prescribed articles must be used to successfully complete this module: Baird, C.H., and Parasnis, G. 2011, 'From social media to social customer relationship management', Strategy and Leadership, 39(5): Chanopas, A., Krairit, D., and Khang, D.B. 2006, 'Managing information technology infrastructure: A new flexibility framework', Management Research News, 29(10): Futher, S.H. 2003, 'A strategy for the implementation of e-business and e-commerce to achieve a competitive advantage in the textile industry', Master Degree: Port Elizabeth Technikon. Gao, F., Li, M., and Clarke, S 'Knowledge, management, and knowledge management in business operations', Journal of Knowledge Management, 12(2): Kraemer, K.L., Dedrick, J., and Yamashiro, S. 2000, 'Refining and extending the business model with information technology: Dell Computer Corporation', The information society, 16: Norton, D.P. 1995, 'Managing benefits from information technology', Information Management & Computer Security, 3(5): The Boston Consulting Group. 2010, 'Managing IT for Business value: the new gold standard', The Boston Consulting group: Unknown. Westermeier, J.T., and Plave, L.J. 2004, 'E-Business: the e-business legal survival kit', Piper Rudnick: Washington. Additional articles that may prompt discussions and further assist you in completing this course will be saved on Regenesys Online under the relevant course. Please visit the site regularly to access these additional sources. 5.4 PRESCRIBED MULTIMEDIA APCICT Website. 2010, 'Asian and Pacific Training Centre for Information and Communication Technology for Development', Incheon City, (accessed 21 January 2014). BBC. 2011, 'BBC Documentary, Steve Jobs The Billion Dollar Hippy' [video] (accessed 4 November 2013). Blakeston School. n.d., Glossary, ICT Faculty, Blakestone Healthcare, (accessed 21 January 2014). Regenesys Business School 6

11 C House Live Website. 2012, 'C House Live', (accessed 21 January 2014). CSAP. 2013, 'SAP Supply Chain Management: Overview Video' [video], (accessed 4 November 2013). Empowerment High Performance Centre. 2013, 'Pirates of Silicon Valley the Documentary' [video] (4 November 2013). GameBean, 2012, 'History of Nokia Mobile Phones' [video] (accessed 18 December 2013). Handsonerp, 2009, 'Introduction to Oracle Database Administration Oracle DBA' [video] (accessed 4 November 2013). Hawkins, K. 2012, 'Google Car It Can Drive Itself', [video clip], (accessed 21 January 2014). IBM, Autonomic Computing: IBM s Perspective on the State of Information Technology ; 1.ibm.com/industries/government/doc/content/resource/thought/ html. (Accessed on 11 November 2013) Infonomia, 2008, 'Kevin Warwick, Cyborg Life' [video] (accessed 4 November 2013). Knewhok, N. 2013, 'The Evolution of Databases' [video] (accessed 17 December 2013). Kurzwiel, R. 2009, 'Ray Kurzwiel and the future of Nanotechnology', Big Think [video] (accessed 21 January 2014). Layer7tech, 2012, 'How to make your Enterprise Applications mobile ready' [video], (accessed 17 December 2013). Mell, P., and Grance, T. 2011, 'The NIST of Cloud Computing', Recommendations of the National Institute of Standards and Technology, U.S Department of Commerce: Special Publication , (accessed 21 January 2014). Norton, L. 2013, 'How technology is evolving to help doctors keep up' [video] (accessed 18 December 2013). Osorio, S. 2013, 'Mark Zuckerberg The Real Face Behind Facebook' [video] (18 December 2013). Pendse, S. 2012, 'Modern Trends of ICT in Business' [video], Highbar Technologies, (accessed 21 January 2014). PMR. 2014, IT & Telecommunications glossary, ICT market in CEE and CIS, (accessed 21 January 2014). Regenesys Business School 7

12 Reznor, T, 2013 'The Social Network' [video] (accessed 18 December 2013). Schneppat, J. 2008, 'Driving with Nanotechnology on your windshield' [video] (accessed 21 January 2014). Stetfocus , 'Historical look at the types of Databases' [video] (accessed 17 December 2013). Study Yaar.com. 2012, 'Object Orientated Database 1 Introduction to OIDs' [video] (accessed 4 November 2013). The World Bank Group. 2012, Open Knowledge Repository, (accessed 21 January 2014). WakeUpCallPage, 2013, 'Walmart s RFID chips' [video] (accessed 4 November 2013). Weinman, E 'Mobile Commerce World 2013 Overview' [video] (18 December 2013). Zellers, M. 2011, 'Introduction to Relational Databases' [video] (accessed 17 December 2013). 5.5 ADDITIONAL SOURCES TO CONSULT As a higher education student, you are responsible for sourcing additional information that will assist you in completing this module successfully. Below is a list of sources that you can consult to obtain additional information on the topics to be discussed in this module: Emerald: NetMBA: Mind Tools: Brunel Open Learning Archive: ProvenModels: This is an online database containing journal articles that are relevant to your modules. Please refer to the attached Emerald manual to assist you to download required articles. Information on how to access Emerald is provided to you in your Academic Handbook. You will receive access to the database once you register as a student. This is one of several web addresses that provide a selection of MBA constructs and discussion. It is one of the better of these addresses, MindTools.com is a very useful source of ideas, constructs, management models, etc. with even more useful commentary and description. A Brunel University support-site that provides an easily accessible library of ideas, concepts, constructs techniques, tools, models, etc. ProvenModels' Digital Model Book presents digitalised management models categorised in a clear, consistent and standardised information structure to improve the usability and reusability of management literature. Management models are important generalisations of business situations when applied in context and are powerful tools for solving business issues. Regenesys Business School 8

13 12manage.com: The Free Management Library: Business Dictionary Business Day Live This is a website on which one can access numerous models as well as global comments on the models and principles. This could also serve as a place where you could voice your ideas and get feedback from all over the world. The Free Management Library can be used to improve your organisation, and for your own personal, professional and organisational development. This is by far the most comprehensive overview of all aspects of management. This site is useful for general terms and concepts. Enter your word or phrase in the search function (no need to log in). To keep up to date with business news National and World go to this site. Other useful selections include Opinions and Analysis, Markets, Economy, and Personal Finance. There are many more sites and articles available that can help you to successfully complete this module. You are encouraged to post the website addresses or URLs of any additional interesting sites that you come across on the Regenesys Learning Platform. In this way, you can assist other students to access the same wonderful information that you have discovered. A word of caution not all information available on the Internet is necessarily of a high academic standard. It is therefore recommended that you always compare information that you obtain with that contained in accredited sources such as articles that were published in accredited journals. 6 LEARNING OUTCOMES Upon completing this course, participants should be able to: Develop an advanced understanding of the role and importance of information and communication technology in management Evaluate international trends in using ICT to improve business performance and the quality of service Interrogate key challenges of integrating ICT with business processes and management systems Conceptualise, develop and implement a technology-driven customer relations strategy Justify the potential use and application of databases, call-centres and web-based technologies in improving customer relations management (CRM) Evaluate the utilisation of ICT in improving business effectiveness and efficiency Regenesys Business School 9

14 7 CONTENT SCOPE AND LEARNING GUIDANCE A number of topics will be covered to assist you in successfully achieving the learning outcomes of this module. These topics are dealt with in the prescribed textbook. Additional information on related topics is provided in the prescribed articles. It is important to study each of these sections to ensure that you expand your knowledge in the subject and are able to complete the required assessments. The sections that will be dealt with include: Section 1 Section 2 Section 3 Section 4 Section 6 Section 7 Information Systems in Global Business Today Global E-Business Information Systems, Organisations and Strategies IT Infrastructure and Emerging Technologies Operational Excellence and Customer Intimacy E-Commerce Digital Markets, Digital Goods A more detailed framework of what is required for each of these topics follows under each section heading. The content that follows will guide you towards the relevant chapter in your prescribed textbook as well as additional articles to be consulted. A number of questions to probe discussion and guide you towards comprehension and insight are also provided. The timetable under each section heading provides guidance on the time to be spent to study each section. It is recommended that you follow the given timetable to ensure that you spend the appropriate amount of time on each section. Following the timetable will ensure that you have covered the required sections relevant to each assignment and have appropriate time to prepare for the examination. Regenesys Business School 10

15 7.1 INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY Timeframe: Learning Outcomes: 16 hours Develop an advanced understanding of the role and importance of information and communication technology in management Chapter in textbook: Chapters 1 and 2 Additional sources to Norton, D.P. 1995, Managing benefits from information technology. Information consult: Management & Computer Security. 3(5): This section examines the role of information systems in organisations today. It examines how information systems are transforming businesses and how management information systems have evolved. Key ways in which globalisation has created both opportunities and challenges Section overview for information systems are discussed. Critical issues related to the emergence of a digital organisation and how this impacts on the organisation s strategic objectives related to information systems are also explored Introduction It is currently apparent that since the introduction of computers, every aspect of our lives from social interactions to business dealings involves some form of information and communication technology. (Think of how distance learning like this ICT course has changed the way you can study.) The proliferation of negative news about the burst of the dot-com bubble (late 1990s through 2001) has greatly exaggerated the death of the Internet. You need only consider the 2012 listing of Facebook on the stock exchange to know that the Internet remains very much alive and well. The Internet / World Wide Web (WWW) is thriving and growing at an exponential rate. Many of the organisations that went into liquidation in the 1990s did so primarily because of poor business planning or simply because their product was not viable in the first place. Nowadays, many organisations are remodelling their organisations and information systems with the Internet in mind. Think about your own organisation has the Internet changed the way in which you do business and interact with customers and suppliers? The Role of Information Systems in Organisations Today Ask managers in organisations to describe their most important resources and they will list money, equipment, materials, and people not necessarily in that order. It is very unusual for managers to consider information an important resource, and yet it is. As electronic business and electronic commerce grow in popularity and more organisations digitise their operations, having useful information is becoming even more important to the global business community. Regenesys Business School 11

16 This chapter gives you an overview of many of the subjects we will touch on in this course at Regenesys. As an ICT student, it will help you to understand how all organisations today, large and small, local and global, use Information and Communications Technology (ICT) to achieve important organisational objectives, such as operational efficiency, customer and supplier intimacy, better decision making, and new products and services. How information systems are transforming business Data volumes and our reliance on data to make more informed decisions, on both a personal and organisational level, have increased dramatically since the 1980s due to factors such as population expansion and urbanisation, to mention only but a few. This has created pressure on government and organisations to capture, store, retrieve and sort this data into useful information that can be used to make better informed decisions. The typical decisions are the ones we all make daily, such as deciding which shops are conveniently located in my suburb, what facilities are in that area, etc. Technology, especially mobile technology, has allowed both, individuals and organisations, to operate twenty-four hours, seven days a week without having a physical presence. Many offices have become virtual offices and you no longer have to commute to the office to get your work done. This has made our lives far simpler and more convenient. Information has become an essential and powerful resource in organisations today. Buyers have a vast amount of information available on their mobile devices to make better informed decisions and be more selective in purchasing products and services. Look at the simplicity of on-line booking for movies, flights, etc. Could you have studied for an ICT degree in your own home whenever it was convenient for you and still participate in a class session back in the 1980s? What has happened and what is new in Management Information Systems? In reading through Chapter One, it would appear that changes in technology are never-ending. Especially in the business world, the use of technology now extends far beyond the simple desktop computer. As the text points out, five interrelated developments are affecting organisations worldwide: The growth of the personal computer The growth of mobile technologies The emerging mobile digital platform The growth of online software as a service The growth of cloud computing and other platforms Globalisation Challenges and Opportunities: A Flattened World Next time you purchase a product, any product, look at the fine print and see where it is made. It could be China, or the Philippines, or a South American organisation, or even in the United States. You can disagree with the fact that many manufacturing jobs are being moved from the United States to foreign countries; but look at the vast number of jobs that are being created in this country. Regenesys Business School 12

17 Maybe they are not the traditional factory jobs we re used to. In fact, many of our new jobs are in the information industry. Many of them service whole new markets that did not exist just a few years ago. There was no position called Webmaster in That is because the Web did not exist. However, this particular job category is now one of the fastest growing in the United States and overseas. The global economy Brown (2012) talks about is being made possible by technology, and that is why it is so important that you understand how to use ICT instead of just computer technology. There is a big difference between the two, and we will talk about it more throughout this Module on ICT (McNurlin, et al., Sprague, and Bui, 2014). The Emerging Digital Firm Brown (2012: 1) argues that the utilisation of Information and Communication Technology (ICT) has become pervasive. He explains that a digital organisation is one in which nearly all of the organisation s significant business relationships with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through digital means and not through brick and mortar buildings. Digital organisations integrate ICT into their strategy and are able to integrate suppliers, buyers, government any other relevant organisation through integrated systems. This integration enables the organisation to automate the manual processes and reduce the time to execute processes. The application of digital organisations can be seen in the way organisations are able to order from suppliers over the Internet anywhere in the world. Organisations can also integrate with government departments, for example in terms of revenue services and for making on-line payment. This creates a paperless process with traceability. This has implications for organisations in terms of the need to rent offices and having employees coming into the office to do work. With a digital organisation, employees can work from anywhere as long as they have connectivity and are linked into the organisation's ICT systems. The digital organisation is therefore not bound to a physical location because staff can operate from anywhere in the world with the correct connectivity and ICT systems. The digital organisation can operate 27/7 all around the world. This gives the organisation its unique competitive advantage (Brown, 2012: 1, and McNurlin, et al., 2014: 28). Task Questions 1. Identify any digital organisation and motivate why you think this is a digital organisation. 2. What are digital organisations and do you think they can have a competitive advantage in the market place? Regenesys Business School 13

18 Strategic Business Objectives of Information Systems Although many managers are familiar with the reasons why managing their typical resources such as equipment and people are important, it is worthwhile to take a moment to examine the growing interdependence between an organisation's ability to use information technology and its ability to implement corporate strategies and achieve corporate goals. Business organisations in particular invest heavily in information to achieve six strategic business objectives (Brown, 2012): Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival Operational Excellence The rapid growth of ICT systems has assisted organisations to become digital and integrate key business processes (Lauden and Lauden, 2011). Digitalisation and integration reduce the time to complete the process and increase the consistency and reliability of the processes. This enhances the organisational excellence as well as the competitive position of the organisation. As an student at Regenesys you will notice that the advancement of ICT systems will assist you in your studies. The ability of any organisation to deliver operational excellence is now becoming more dependent on ICT systems. New Products, Services, and Business Models Brown (2012:3) discusses the emerging growth of Social Networking and the New App economy where Information systems and technologies are becoming a major enabling tool for organisations to create new products and services, as well as entirely new business models. The Regenesys student portal and the applications you can download onto mobile devices allow you greater flexibility in completing your studies, anywhere in the world. A business model describes how an organisation produces, delivers, and sells a product or service to create wealth. As successful as Apple Inc, NetFlix, and Wal-Mart were in their traditional brick-and-mortar existence, they have all introduced new products, services, and business models that have made them both competitive and profitable (McNurlin, et al., 2014). Regenesys Business School 14

19 Customer and Supplier Intimacy Brown (2013: 1) argues that ICT has become pervasive and that this is creating a greater link between the organisation, its customers and suppliers. This allows for a more integrated approach to conduct business and improve the levels of customer service. This is mainly due to the rising technological capability of ICT and the convergence of technology. As Brown (2013: 1) points out, we use GPS systems in our daily lives to navigate the best route from point A to point B. This impacts the effectiveness and efficiency of value chains in organisations, especially logistics organisations. Many organisations, such as Amazon.com, are good examples of how information systems and technologies are extensively used to better serve suppliers and retail customers. Improved Decision Making Information systems and technologies have made it possible for managers to use real-time data from the marketplace when making decisions. Previously, managers did not have access to accurate and current data and as such relied on forecasts, best guesses, and luck. The inability to make informed decision resulted in increasing costs and losing customers. In this Regenesys ICT module we would encourage you to continually scan for new technologies and identify ways in which that technology can be used to improve the organisation. Competitive Advantage This ICT module makes every effort to give you the knowledge to use this information as a competitive tool in an organisation today as you strive to become more competitive in the marketplace. By using ICT as a competitive advantage in organisations, the time to market can be reduced through more integrated value chains. Brown (2012) and Laudon and Laudon (2013) both argue that ICT has integrated organisation more with their suppliers, customers, regulators, relevant industry experts and complementors. In turn, this has created a Value Web, which essentially locks in all members mentioned above (McNurlin, et al., 2014: 28-35). Task Questions 1. Read Chapter 1 of the recommended textbook by McNurlin, et al. (2014) and see how ICT has impacted on this organisation. Regenesys Business School 15

20 Survival Organisations also invest in information systems and technologies because they are the necessities of doing business. Information Communication Systems are not a luxury. In most organisations, ICT systems are core to the organisation's survival. Laudon and Laudon (2013) explain how Citibank was the first banking organisation to introduce ATMs. In doing so, Citibank gained a major competitive advantage over their competitors. In order to remain and survive in the retail banking industry, other banks had no choice but to provide ATM services to banking customers. Task Questions 1. Why do you think Banks have become dependent on ICT systems? Discuss at least 2 reasons Perspectives on Information Systems Information technology (IT) consists of all the hardware and software that an organisation needs to achieve its business objectives (Laudon and Laudon, 2013). What is an Information System? The majority of people today have many mobile devices such as notebooks, mobile phones, tablets and now also smart devices. These are preloaded with operating systems and appropriate application systems such as word processes and spread sheets which allow you to effectively collect, manipulate and report on data. This is required in organisations across various functional areas, such as accounting, production records and compliance to legislation within the respective country. You can have the fastest Internet connection. However, if the organisation does not take advantage of customer data to create new opportunities, then, all it has, is worthless data taking up unnecessary disk storage space. If the output report fails to assist management to identify problems, then all that has been accomplished is to kill a few more trees. If you do not know how to analyse the information from a website to take advantage of new business opportunities, then your organisation will begin to lose market share. Most of us think only of hardware and software when we think of an information system. There is another component of the triangle that should be considered, and that is the people side or Persware. Regenesys Business School 16

21 An organisation collects data, which it sorts into meaningful information. Unfortunately this is not enough to compete in the rapidly changing, global marketplace. We need to be able to interpret this information and create knowledge, which is meaningful data. Only this will give us the wisdom to identify causes and effects in the knowledge. The reality is that we depend on people who have the knowledge and skills to do this. During the course of your studies at Regenesys you will be provided with case studies. This will provide you with the relevant information, but you will need the knowledge to interpret this information to make a detailed analysis of the case study. This is where you will learn to integrate your thinking from various subjects to apply to the case study and generate valuable solutions McNurlin, et al. (2014). Task Questions 1. Study the persware diagram below and discuss how this relates to an organisation of your choice or to answer an ICT case study assignment. Figure 1: Persware People So(ware Hardware (Brown, 2012: 4-6 and Laudon and Laudon, 2010:35) In this section of the recommended text, Brown (2012: Chapter 1) and Laudon and Laudon (2013: Chapter 1) the components of an information system are discussed. These authors talk about input, processing, output, and feedback processes. It is important that there is effective and efficient feedback within this persware relationship. Regenesys Business School 17

22 Figure 2: Functions of an Information System (Yeung 1998:10) Figure 2 illustrates how information systems functions integrate and work together as a system. Brown (2012: 20) is of the opinion that, to be a good information systems manager, you must bring into the above model far more than just computer data. For instance, at an organisation such as the Receiver of Revenue, data is collected around source documents that have been combined into reports, such as a statement of comprehensive income and a statement of financial position. The organisation will use these reports to verify accuracy and compliance to regulations and Acts as well as to determine what will be allowed and rejected as claims made against taxation paid. The use of technology such as online efiling has lead to integration of information on databases at revenue services (McNurlin, et al., 2014). This has allowed revenue services to create knowledge and wisdom around clients in order to detect levels of compliance or fraud. For example, if there is non-compliance, clients may be required to submit a life style audit where this data will be triangulated with the bank s data and the current data at the revenue services. In the past, without information technology and information systems, this would have been an almost impossible task due to the amount of manual intervention and manual reports not on an integrated database system. The Enterprise Resource Planning system, such as SAP software, is an example of a fully integrated system between suppliers, customers and government. Task Questions 1. Identify any organisation of your choice. 2. Discuss and apply the model in Figure 2 to the organisation you selected. 3. How does Enterprise Resource Planning assist government to stop money laundering? To assist you in answering this question read McNurlin, et al. (2014: 5, 15, 22 and 29). Regenesys Business School 18

23 Application Case Study As an ICT student at Regenesys you will rely heavily on the portal as well as mobile technology to be able to access your study material and have chats with fellow students. This will allow you to study 24/7 from anywhere in the world at your convenience. This is the power that information systems have given students who have never before had access to classroom facilitation. As a Regenesys student, you will be able to benefit from using information technology by using virtual libraries and online articles to create your own knowledge database. All of this can be done without leaving the comfort of your home. With systems such as Skype, you can have direct video linkage to classmates and lecturers anywhere in the world. Regenesys has taken a further step in recording online video clips, available worldwide through the student portal and YouTube. This has allowed Regenesys to become an international player in the international arena by attracting students from any country in the world, regardless of time zone. This is aligned to Regenesys vision of bringing quality education to the world. During your ICT course, you will also view similar cases such as Amazon.com and Google.com that have used technology to gain competitor advantage in the market place. This aligns to the strategic thrust of their organisations. Task Questions 1. Read the case study above. 2. How have information systems changed the way you as a student view education? 3. Apply the principles extrapolated in the above question to your organisation. 4. What are the benefits of the growth of information technology and systems in today s society for your organisation? Dimensions of Information Systems There is a distinct difference between possessing information systems literacy and simple computer literacy. If you can combine information from internal sources and external environments; if you can use data to help you make better decisions; and if you can use information to help you improve your organisation, you can consider yourself information literate. During this ICT module and throughout your Regenesys MBA studies, you will notice that technology cannot be successful without effective and efficient resources. Management information systems deal with people s behavioural issues and with technical issues surrounding the development, use, and impact of information systems used by managers and employees in organisation. As such, MIS is defined as the study of information systems that focuses on its use in business and management. The dimensions of an information system are depicted in Figure 3 below. (McNurlin, et al., 2014). Regenesys Business School 19

24 Figure 3: Dimensions of an Information System Pragmatical Layer Semantical Layer Temporal Social Social (cultural) Layer Syntactical Layer Material Physical Layer Empirical Layer (Pulkkinen, 2003) Organisations Each organisation is unique and tends to have its own individual personality, yet share many commonalities with other organisations. Elaborate on the following key elements of an organisation: Strategy Structure Systems Business processes People Politics Culture In every organisation you will find senior managers making long-range decisions, middle managers carrying out the plans and goals set by senior managers, and operational managers handling the day-to-day operations of the organisation. As we will see, information systems' output must be geared to each of these levels of management. Just as every rugby team needs good players at different positions, a business organisation requires different employees to help it succeed. Knowledge workers help create new knowledge for the organisation while data workers help process the paperwork necessary to keep an organisation functioning. Without production or service workers, how would the organisation get its products and services to the customer? Regenesys Business School 20

25 A rugby team needs talented and well-trained players at different positions. Sometimes, the success of the team depends on a good, well-informed coach or manager. So it is also with the workplace organisation. By using information technology and information systems, team players can record, simulate and virtually walk through a game without physically having to play the game and improving their play. Examples of this would be simulation software. In pilot training, flight simulation is used to create scenarios and train pilots to handle these situations without putting real aircrafts and people s lives in danger. These simulation packages allow you to evaluate risks without having to lay out any upfront capital. Even games such as the Sims allow people to build up societies with different personalities and social conditions without physically having to do this. Business organisations have major business functions, which need many kinds of players with various talents. These players must be well-trained and well-informed, in order to succeed. The larger the organisation, the more it seems to formalised with rigid management structures. This then creates the need for standardised processes. Most of these business processes have been developed over time and help managers and employees to properly complete their tasks in a more efficient manner. Many organisations now integrate these business processes into their information systems to ensure uniformity, consistency, and compliance. As we will see in upcoming chapters, many organisations are even incorporating informal work processes into their information systems in an effort to capture as much corporate knowledge as possible. An organisation s culture is often an integral part of its information system. This was noted in the earlier discussions around Persware. Management Every good organisation needs effective and efficient managers. Take professional managers for rugby in South Africa. They do not actually play the game; they do not score a goal, take a try or corner, etc. They stay on the side lines during the game. Their real role is to develop the game plan by analysing their team s strengths and weaknesses. However, that is not all; they also determine the competition s strengths and weaknesses. Every good manager has a game plan before the team even comes out of the locker room. That plan may change as the game progresses, but managers pretty much know what they are going to do if they are losing or if they are winning. Technology As a student at Regenesys, you will have noticed the amount of technology available to assist you in your studies. There is the Internet, the Student Portal, On-line Library facilities, etc. This demonstrates the true meaning of technology, which is making life easier for all of us. During this ICT module you will learn more about technology trends and how these make life easier for us all. Regenesys Business School 21