INF10009Introduction to Business Information
Systems
Individual Assessment 1 (Individual Report)
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INF10009 – Assignment-1 – TP3-2022
CRICOS: 073432E TOID: 3059
03/10/2022
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INF10009 Introduction to Business Information Systems
Aim
The two primary aims of this assessment is:
• To analyse the operational information of a business and provide your assessment
on how well the business is doing.
• Provide your analysis of the competitive landscape of Explore-Vic as well as
how technology has affected them over time.
Each student is required to use MS Excel to perform an analysis of the state of ExploreVic’s business. You are then expected to write a report that refers to specific analytical
charts which you have created in MS Excel to assess Explore-Vic business. Describing
the data content of each chart is insufficient, you need to analyse the information that the
chart provides.
Note that Explore-Vic is a fictitious company.
Each student is expected to undertake research of the travel industry and use the
information gathered to analyse the competitive landscape of Explore-Vic using
Porter’s Five Forces Model. The application of technology in Explore-Vic and the travel
industry also needs to be examined.
You are expected to apply the concepts (not just define the theory) to Explore-Vic. If
necessary, you can make assumptions to support your argument. These assumptions
must be stated clearly. Clear application of theory will demonstrate your understanding of
these concepts.
Students need to write simply. The sentences need to flow and be easily understood by the
reader. Use of complex jargon and difficult words should be the exception rather than the
norm. Your ability to communicate well and concisely will be assessed.
The assessment is to be done by each individual student on their own. Discussion
on concepts and expectations on the assessment can be done in class with teacher,
but the deliverables must be completed individually. Students who submit duplicate
assessments will be disqualified, irrespective of who copied from who.
Background
Explore-Vic is a tour and holiday business in Melbourne, Australia. The business was
started in 2016 by Parker Bettan. The business focuses on planning, designing,
scheduling, and operating various types of tours across the state of Victoria, Australia.
The tours include
•
Day tours (City, Nature, Wildlife)
•
Weekend tours (2 days – Nature, Wildlife, Trekking, Surfing, Hickling, Camping)
•
Summer Specials (4 to 10 days – Nature, Wildlife, Trekking, Surfing, Hickling,
Camping)
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03/10/2022
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INF10009 Introduction to Business Information Systems
•
Bicycle Specials (7 to 10 days)
•
Mining Specials (4 to 7 days – Explore mining regions and towns)
•
Bespoke Camping / Bicycle
Patrick who loves travelling, directly got involved in the sales and marketing activities.
He successfully negotiated business tip-ups with many of the popular hotels in and
around Melbourne, CBD. These hotel staffs recommended Explore-Vic tours and in
return, Patrick paid them a percentage from the sale.
Explore-Vic business flourished and that encouraged Patrick to recruit more staffs
specializing in marketing and sales. The best performance was in 2017-18, when
Explore-Vic operated 182 tours in total. Patrick was able pay bonuses to all staffs and
opened a website. The website showcased the tours packages and contact details. No
online booking or sales were implemented on the website.
The profit started in 2017-18 and it continued until 2019. At the last quarter of 2020,
Patrick realised that the sales numbers are down and there has been a lot of
cancellations. During the year-end team meeting, the marketing and sales team
informed Patrick that the decline in sales is due to the competition from the online tour
and holiday sites.
Potential Explore-Vic customers are attracted by the online tour and holiday sales
websites. These websites, although not based in Australia, are able to sell and
manage Australian based tour packages at a very competitive price.
These websites operated with very minimal operating cost partially due to no physical
stores and they employ few staffs.
.
You have been given some basic data on the total sales revenues of Explore-Vic over the
last 5 years. Your objective is to analyse the data and provide your assessment.
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INF10009 – Assignment-1 – TP3-2022
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03/10/2022
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INF10009 Introduction to Business Information Systems
Deliverables
You are expected to complete and submit
(a) MS Excel Analysis Document
(b) Business Analysis Report
A. MS Excel Analysis Document
i.
Use MS Excel to populate the following sales data into 1st worksheet called “Sales (Student
Name)”
Ensure that the coloured cells are filled in with the right data. You MUST use a relevant predefined
function to do this. Use the relevant function to add up the annual sales revenue and to count the
number of product categories. Please ensure that the formatting of cells and numbers is done per the
table shown above.
ii.
In the 2nd worksheet, which should be named “Sales Trend (Student Name)”, construct
the following table and fill in the coloured cells. The cells should be referring to the 1st
worksheet.
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INF10009 Introduction to Business Information Systems
You need to calculate the Sales Trend growth or decline for the cells above.
For example, the Sales Trend growth/decline for 2018 is calculated by taking the difference between the sales for
2018 and 2017 and dividing it by 2017 sales.
A negative growth is considered as a decline.
The Status column is to be filled based on the values in 2020 column and referring to the table in the middle-titled
Percentage Decline. Use VLOOKUP to complete this step.
Total Declined Sales and Total Increased Sales should respectively be an addition of the 2020 sales for when the
2020 sales shows a decline or growth. Net sales Growth is the addition of total declined sales and total increased
sales.
Please ensure that the formatting of cells and numbers is done per the table shown above, in terms of grid lines,
colours and decimal places.
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INF10009 – Assignment-1 – TP3-2022
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03/10/2022
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INF10009 Introduction to Business Information Systems
iii.
Create the following 2 charts with appropriate chart title, axis labels, legends, and colours.
Charts should be properly organised in each worksheet
–
–
In the 1st worksheet, create a Line chart which shows the sales revenue of each category from
2016-2020. The sales revenue should be the vertical axis and properly labelled. The year should
be the horizontal axis and properly labelled. The legend should be at the right side of the chart.
The title of the chart to be
“Explore-Vic Sales Analysis (Student Name)”
In the 2nd worksheet, create a clustered column chart showing the percentage sales growth for
the categories. The chart should only show the sales growth from 2018 to 2020. The vertical
axis should be labelled as percentage growth/decline while the horizontal axis should be the
product category. Legend to be shown clearly at bottomof chart. Chart title should be
“Explore-Vic Sales Trend 2018-20020 (Student Name)”.
Students are expected to
• Use absolute addressing, SUM function, SUMIF, COUNTA and VLOOKUP function, where
appropriate. Students are expected to research SUMIF function in more detail, as this
assessment requires students to specify all 3 elements in SUMIF.
• To create the charts as described in the assessment
(Student Name) is expected to be replaced by the student’s name. For example, if the student’s name
is Jerry Lewis, then it should be (Jerry Lewis) in the MS Excel worksheet names and titles, as
demonstrated in one of the charts above.
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INF10009 – Assignment-1 – TP3-2022
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INF10009 Introduction to Business Information Systems
B. Business Review Report
The report will have the sections as per the table below.
The assessment requires you to apply the concepts you have learnt from INF10009 in the
analysis and argument about Explore-Vic. Therefore, pure definitions from the
recommended textbook or lecture material should not be used. Explain the concepts in
your own words (paraphrase) and at the same time referring to the material which you
referred to. Quotations will only be given minimal marks.
Section Description
Title Page
Table of Contents
1.
Introduction
Brief background of Explore-Vic and purpose of report
2.
Business Performance Review
Using the charts from MS Excel, draw your analysis on how the business is
performing.
Describe 2 additional type of information which may be useful in helping
Explore-Vic make better decisions.
3.
Competitive and Technological Analysis
Based on the background information provided in the assessment,
examine the following concepts in relation to Explore-Vic, and their
importance in gaining competitive advantage
• Using Porters 5 forces model, provide an analysis of the
competitive intelligence of Explore-Vic with focus on
Competitive Rivalry and Threat of new entrant and threat of
substitute.
• Discuss on how sustaining and disruptive technology can help
decrease buyer power in travel industry
4.
Conclusion
Summary of Explore-Vic business (from section 2 and 3)
5.
Appendix
Reference Lists
Students are expected to insert the figures/charts in MS Excel and use it to support your
analysis of Explore-Vic business performance.
At least 3 references must be provided to support section 3 of the report.
Assessment marks will also be allocated to correct referencing (Harvard System). There is
a guide freely available at:
http://www.swinburne.edu.au/lib/researchhelp/harvard_system.htm.
Students should refrain from quoting and should paraphrase (rewrite in your own words)
what you have found from the research.
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INF10009 – Assignment-1 – TP3-2022
CRICOS: 073432E TOID: 3059
03/10/2022
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INF10009 Introduction to Business Information Systems
SUBMISSIONS
(YOU NEED TO SUBMIT THE REPORT TO TWO DIFFERENT AREAS)
1. Final Submission
It is expected that the report will be approximately 1200 words +/- 10% (excluding the
bibliography and table of contents). Written reports should not be long winded, but clear,
simple and concise.
2. Turnitin
Turnitin is a tool that checks papers for plagiarism. It is advisable to submit the report at
least 2 days ahead of due date to ensure your plagiarism score is not high.
Your teacher will view your final Turnitin analysis prior to marking your report to ensure that
plagiarism is not present.
LATE SUBMISSIONS
This assessment MUST be submitted by end of the day on the Friday of the week it is due
per the Unit Outline.
Delayed submissions will be penalised per Unit Outline – Submission Requirements.
If a student has a valid reason, the student may request for an extension to their teacher by
email. This needs to be done at least 2 days before the due date. The teacher will only
approve the extension if the student has a valid reason like medical certificate.
A clarification with tutor session has been scheduled for this Assessment per the unit
outline. Students are expected to attend this class and clarify with your teacher if unclear
about any aspect of the Assessment. It is the student’s responsibility to bring up any issues
at this appointed time.
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INF10009 – Assignment-1 – TP3-2022
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03/10/2022
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INF10009
Introduction to Business Information Systems
Competing in the Information Age
Saravanan Thangavel
07-02-2021
Acknowledgement
of Country
On behalf of those present, I acknowledge the
Traditional Owners of the land on which we
now meet. I pay my respects to their Elders:
past, present and emerging.
I also pay my respect to all Aboriginal and
Torres Strait Islander people of Australia and
hope that the path towards reconciliation
continues to be shared and embraced.
Unit Objectives
1. Describe the information age and the differences between data,
information, business intelligence and knowledge.
2. Explain systems thinking and how management information
systems enable business communications
3. Explain competitive advantage and why it is temporary
4. Describe and analyse businesses using Porters 5 Forces Model
5. Compare Porters 3 Generic Strategies
6. Describe how a business can add value by using Porters Value Chain Analysis
The Information AGE How did we get HERE?
Author Josephine Pow. Updated Oct 2019 V5
The Information AGE
What Happens in an Internet Minute?
to
Desjardins 2019
Author Josephine Pow. Updated Oct 2019 V5
Wordpress.com, 20
Business & The Information AGE
❑ We have been living in the information age for sometime
❑ Many business leaders have created exceptional opportunities by coupling the
power of the information age with traditional business methods
DIGITAL ECONOMY
▪
is not a technology company; its original business
focus was to sell books, and it now sells nearly everything
Jeff Bezos saw an opportunity to change the way people
purchase books and applied the power of the
Information age
Tailor offerings to customers,
o speed the payment process,
o enable constant monitoring on shipments,
o recommend future purchases…
o
Author Josephine Pow. Updated Oct 2019 V5
Business & The Information AGE
What is Google?
➢ Search Engine
What is Google.com’s business?
➢ Collecting information
Where does Google’s information come from?
➢ mail, video, mobile, social, search
➢ Guess why they created g-mail, chrome, google
apps?
What is it’s business model?
➢ Google provides services(search for information) to
the Internet users for free.
➢ Google makes revenue via Advertising
➢ Most advertisers pay Google on a Cost per Click
Author Josephine Pow. Updated Oct 2019 V5
(CPC) basis
IT and Information
Triangulating People, IT
and Information
People use…
Information technology to
work with…
Information
Baltzan, Lynch & Fisher 2015
Author Josephine Pow. Updated Oct 2019 V5
Aspects of INFORMATION
Data: raw facts that describe the characteristic of an event
•
e.g., student name, address, unit, tutorial
Information: data converted into a meaningful and useful
context
•
e.g., number of students in each tutorial
Business Intelligence (BI) :
Information collected from multiple sources that analyses
patterns, trends and relationships for strategic decision
making
•
e.g student numbers and origins and course for competing educational institutions
Knowledge :Skills, experience and expertise coupled with
information and intelligence
Author Josephine Pow. Updated Oct 2019 V5
DATA
Author Josephine Pow.
INFORMATION
• Total receipts
• Total bills
• Total expenses
• Total expenses by month
• Total expenses by category by month
Author Josephine Pow.
BUSINESS INTELLIGENCE
Business intelligence information collected
from multiple sources, such as suppliers,
customers, competitors, partners and
industries, that analyses patterns, trends and
relationships for strategic decision making
More examples of BI for Tertiary Institutions
• Historical High School Exam(VCE) results
• Economic performance
• Job trends
Author Josephine Pow. Updated Oct 2019 V5
1-10
KNOWLEDGE
Knowledge
the skills, experience and expertise, coupled with
information and intelligence, that creates a
person’s intellectual resources
Objective
Improve staff productivity
Knowledge workers
individuals valued for their ability to interpret and
analyse information
Author Josephine Pow. Updated Oct 2019 V5
Systems thinking approach to IT
(Baltzan, Lynch & Blakey 2013, p.16 )
Author Josephine Pow. Updated Oct 2019 V5
Definition of System
✓ A collection of interrelated components /
parts that work together to achieve a set of
goals
✓ Systems can be simple or complex
✓ Systems can be made up of manual, semiautomated or fully automated systems
Warehousing
Delivery
Purchasing
Sales
Distribution
Author Josephine Pow. Updated Oct 2019 V5
Definition of Information System
❑
Information System (IS)
▪ “A set of interrelated elements or components that
collect (input), manipulate (process) and store and
disseminate (output) data and information and
provide a feedback mechanism to meet an objective”
(Stair et. al, 2008, p. 9)
Author Josephine Pow. Updated Oct 2019 V5
ENHANCE DECISION MAKING WITH MIS
FIGURE 1.6
Author Josephine Pow. Updated Oct 2019 V5
TYPES OF INFORMATION SYSTEMS
Author Josephine Pow. Updated Oct 2019 V5
TYPES OF INFORMATION SYSTEMS
Author Josephine
Pow. UpdatedOct
2019 V5
Big Data
• A collection of large, complex data sets
• Includes structured and unstructured data
• Cannot be analysed using traditional
database methods and tools
https://www.birmingham.ac.uk/research/activity/ias/workshops/2014/big-data.aspx
Author Josephine Pow. Updated Oct
2019 V5
Identifying Competitive Advantage
• Business strategy: a leadership plan that achieves
a specific set of goals or objectives, such as
– developing a new product or
– entering a new market
– increasing customer loyalty
– attracting new customers
– increasing sales
• Competitive Advantage
• A feature of a product or service which customers place agreater
value than they do on similar offerings from a competitor
Author Josephine Pow. Updated Oct 2019 V5
Identifying Competitive Advantage
• Competitive Advantage in layman’s terms
“Something that a business has (product it sells or service it
offers) that many customers perceive is better than other
businesses” , Pow, J
• First-mover advantage
• occurs when an organisation can significantly affect its
market share by being first to market with a competitive
advantage
• Examples
Author Josephine Pow. Updated Oct 2019 V5
Competitive INTELLIGENCE
• Competitive Intelligence
• Advanced information about the competitive
environment including competitor’s plans,
activities and products, which can be used to improve a
business’ ability to succeed
• 3 Key Competitive Intelligence Tools
Author Josephine Pow. Updated Oct 2019 V5
Porter’s Five Forces Model
❑ Factors which can hurt potential sales
▪
Knowledgeable customers can force down prices by pitting rivals against eachother
▪
Influential suppliers can drive down (your) profits by charging higher prices for supplies
▪
New market entrants can steal potential investment capital
▪
Substitute products can steal customers
❑ Porter‘s 5 forces model
1.
Buyer Power
2.
Threat of substitutions
3.
Supplier Power
4.
Threat of new entrants
5.
Rivalry among existing competitors
(Kroenke 2010, p.43 )
Author Josephine Pow. Updated Oct 2019 V5
Porters Forces IN PLAY
Author Josephine Pow. Updated Oct 2019 V5
23
Rivalry among existing competitors
High – many competitors in a
market
Low – few/complacent
competitors
Product differentiation occurs
when a company develops
unique differences in its
products or services with the
intent to influence demand
Author Josephine Pow. Updated Oct 2019 V5
BUYER POWER
High – buyers have many
choices of whom to buy
from and when buyer is in a
position to bargain or
negotiate down the prices
Low – their choices are few
Ways to overcome high
buyer power
•
Switching cost
•
Loyalty program
BUYERS/CUSTOMERS
Author Joseph ine Pow. Updated Oct 2019 V5
SUPPLIER POWER
High – suppliers can
influence the prices.
Buyer has no or few
options
Ways to overcome high
supplier power
•
More than 1 supplier
for a product line
•
Bulk purchase
(volume discounts)
BUYERS/CUSTOMERS
Author Josephine Pow. UpdatedO ct 2019 V5
Threat of substitute products or services
• Threat of substitute products or services
– high when there are many or a preferred alternative to
a product or service
– For Groceries retail, which sells many types of
products, this may not be obvious
– For Petrol station business, threat is more obvious
Electric charging stations
Author Josephine Pow. Updated Oct 2019 V 5
Threat of new entrants
Threat of new entrants high when it is easy for
new competitors to enter a market, and low when
there are significant entry barriers
https://www.news.com.au/finance/business/retail/kaufland-announces-plans-to-open-at-least-20-stores-in-australia/newsstory/0b56d1f49b1ac453d2a955d441e2150d
(Elmas 2018)
Entry barrier a feature of a product or service
that customers have come to expect and that
entering competitors must also offer for survival
Author Josephine Pow. Updated Oct 2019 V5
The three generic strategies : Choosing a business focus
Author Josephine Pow. Updated Oct 2019 V5
What’s the generic strategy ? Harley Davidson Bikes
Author Josephine Pow. Updated Oct 2019 V5
Value chain analysis
• Business process is a standardised set of
activities that accomplish a specific task, such
as a specific process
• Value chain analysis views a firm as a series
of business processes that each add value to
the product or service
Author Josephine Pow. Updated Oct 2019 V5
Value chain analysis
Author Josephine Pow. Updated Oct 2019 V5
Value Chain Analysis
Support value activities
• Firm infrastructure includes the company format
or departmental structures, environment and
systems
• Human resource management provides
employee training, hiring and compensation
• Technology development applies MIS to
processes to add value
• Procurement purchases inputs such as raw
materials, resources, equipment and supplies
Author Josephine Pow. Updated Oct 2019 V5
Value Chain Analysis
Primary value activities
• Inbound logistics acquires raw materials and
resources, and distributes
• Operations transforms raw materials or inputs into
goods and services
• Outbound logistics distributes goods and services to
customers
• Marketing and sales promotes, prices and sells
products to customers
• Service provides customer support
Author Josephine Pow. Updated Oct 2019 V5
Relationship of Value Chain
Analysis and Porter’s 5 Forces
Author Josephine Pow. Updated Oct 2019 V5
Examples of Competitive Advantages
➢ Lowest Price
➢ High Quality
➢ Unique/Specialised product/service
➢ Better customer service
Author Josephine Pow. Updated Oct 2019 V5
Why are Competitive Advantages Temporary?
Why is it so difficult
to do business?
Author Josephine Pow. Updated Oct 2019 V5
Bibliography
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
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•
•
•
•
•
Business Driven Information Systems, 6th Edition: Paige Baltzan, McGraw Hill, 2019
Baltzan P, Lynch K & Fisher J 2015, Business-Driven Information Systems, 3e, McGraw-Hill, North Ryde,NSW
Baltzan P, Lynch K & Blakey P 2013, Business driven information systems, 2nd edn, McGraw-Hill Australia, NSW.
Desjardins J 2019, What Happens in an Internet Minute in 2019? https://www.visualcapitalist.com/what-happens-in-an-internetminute-in-2019/, viewed Oct 2019
Knight D 2014, Personal Computer History: the First 25 years, http://lowendmac.com/2014/personal-computer-history-the-first-25years/ viewed June 2016
Hirst J 2018, The Life of Charles Babbage; Father of the Computer, https://www.thoughtco.com/charles-babbage-biography4174120, viewed Oct 2019
Rawlinson N 2017, History of Apple: The Story of Steve Jobs and the Company he founded,
https://www.macworld.co.uk/feature/apple/history-of-apple-steve-jobs-mac-3606104/, viewed Oct 2019
Wordpress, Transhumanist Utopia May 2015, https://computerutopia.wordpress.com/, viewed June 2016
Bolma LG & Deal TE 2003, Reframing Organizations, 3rd edn, Jossey-Bass, San Francisco.
Handfield R 2011, What is supply chain management? The SCRC Articles Library, NC State University, North
Carolina, viewed 7 January 2014, http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management
Kalakota R & Robinson M 2001, E-business 2.0: Roadmap for Success, 2nd edn, Pearson Education,Upper
Saddle River, NJ
Kroenke D 2010, Experiencing MIS, 2nd edn, Pearson Australia, Upper Saddle River,NJ
Market & Competitive Intelligence n.d. Porter’s Five (5) Forces Analysis to identify competitive opportunitiesand
attractiveness in any industry or market, Digmind competitive intelligence software, viewed 7 January 2014,
http://www.markintell.com/porters-five-forces-analysis/
Rainer Jnr RK, Turban, E & Potter, RE 2007, Introduction to Information Systems: Supporting andTransforming
Business, John Wiley & Sons, Hoboken,NJ.
Robbin S, Bergman R, Stagg I & Coulte, M 2009, Foundations of Management, 3rd edn, Pearson Education
Australia, Frenchs Forest, Australia.
Stair R, Moisiadi, F, Genrich, R & Reynolds G 2008 Principles of Information Systems, Thomson, Sth. Melbourne,
Australia.
Wood J, Chapma, S, Fromhol, M, Morrison V, Wallace J, Zeffane R, Schmerhorn J, Hunt J & Osborn R 2009
Organizational Behaviour:A Global Perspective. 3rd edn, John Wiley & Sons, Brisbane,Australia.
Elmas M, Sep 2018, Australia’s next international supermarket Kaufland embarks on hiring spree ahead of launch,
Author Josephine Pow. Updated Oct 2019 V5
https://www.smartcompany.com.au/industries/retail/kaufland-hiring-spree-ahead-australia-launch/, viewed Oct 2018
INF10009
Introduction to Business Information Systems
Connectivity
The Business value of a ‘connected’
world
– Business and the Internet
Saravanan Thangavel
07-02-2021
Acknowledgement
of Country
On behalf of those present, I acknowledge the
Traditional Owners of the land on which we
now meet. I pay my respects to their Elders:
past, present and emerging.
I also pay my respect to all Aboriginal and
Torres Strait Islander people of Australia and
hope that the path towards reconciliation
continues to be shared and embraced.
Unit Objectives
1.
Identify the benefits of sharing resources in a connected world
2.
Identify the challenges of a connected world
3.
Compare disruptive and sustaining technologies, and explain how the
internet and the WWW caused business disruption
4.
Explain Web 1.0 and Web 2.0 and identify some of its characteristics
5.
Describe some e-Business tools for collaborating
6.
Describe Web 3.0 and the next generation of online business
Companies are having to change the way they do business
If you need to find a piece of information nowadays, how do you go about doing it? How did
people go about it a decade or two ago?
▪
Publishing (Newspapers, books, …, …)
→
▪
Education (Classroom, online )
→
▪
Music and movies (Digital downloads)
→
▪
Postal services (e-mails replacing physical letters)
→
It seems most changes have been the result of technology
3
OVERVIEW OF A CONNECTED WORLD
•Internet is an international computer network connecting
millions of computers around the world.
•World Wide Web (WWW) provides access to internet
information through documents including text, graphics,
audio and video files that using a special formatting
language called HTML
•Web browsers allow users to access the web.
Examples include Internet Explorer, Google Chrome and
Mozilla Firefox.
•When you use web browser, you initiate data exchange
using HTTP / HTTPS
4
Why has the Internet becomes so popular, so quickly?
Compile, gather together.
Example: Quick search for hotel rooms, flights
and tourist attractions
Four information-richness factors:Interactivity,
Multiple cues, Language varieties and Socioemotional cues (refer notespage)
A customer may be anywhere : next door, just
around the corner or on the other side of the
world. They can reach our organisation’s
information through www, phone, printed
material, YouTube, Twitter feed, …,…
Content can be displayed and describedwith
the richness and reach in mind. We can see,
hear, read, watch, ask questions,…nearly
everything except touch the online product.
We need to visit the ‘bricks and Mortar’ shop
front to do that.
(Baltzan, Lynch &Blakey 2015
5
BENEFITS OF ACONNECTED WORLD
• Networks offer many advantages for a
business, including:
– sharing resources
– providing opportunities
– reducing travel.
6
Benefits of a connected world: Sharing resources
The primary resources for sharing include:
▪ intranet
▪ extranet
▪ virtual private network.
❑ Virtual Private Network (VPN)
▪companies can establish direct private network links among themselves across a public
network (the Internet) in order to create private, secure internet access.
▪
In effect a ‘private tunnel’ within the internet.
(Baltzan, Lynch &Blakey 2015)
7
CHALLENGES OF A CONNECTED WORLD
• Even though networks provide many
business advantages, they also create
increased challenges in:
– security
– social, ethical and political issues
SECURITY
“The electronically logged data of mobile,
landline voice (including missed and failed)
calls and text messages, all emails, download
volumes and location information will be
mandatorily retained by Australian telcos and
ISPs.
Intelligence and law enforcement agencies
will have immediate, warrantless and
accumulating access to all telephone and
internet metadata required by law, with a $2
million penalty for telcos and ISPs that don’t
comply.” (Dempster, Sydney Morning Herald, Aug 2015)
SECURITY
How is Data Protected?
• SSL (Secure Socket Layer) standard security technology for
created a secure link between web browser and web server
• SSL Certificate an electronic document that confirms the
identity of a website or server and verifies that a public key
belongs to a trustworthy individual or company
• Secure hypertext transfer protocol (SHTTP or HTTPS)
a combination of HTTP and SSL to provide encryption and
secure identification of an internet server
Availability
• Where and which part of the world has access to internet?
• Factors that control the availability
• 24X7
Social, Ethical, Political issues
❑ Digital Divide
▪A worldwide gap
giving advantage
to those with
access to technology
Social, Ethical, Political issues
Bridging the Digital Divide
➢ Google Loon for unconnected and under-connected
people around the world
https://www.fastcompany.com/90201000/googles-loon-and-wing-are-real-alphabet-companies-now
➢ Facebook Internet Beaming Solar Drones
https://www.wired.com/2016/07/facebooks-giant-internet-beaming-drone-finally-takes-flight/
➢ Starlink, a plan to surround earth with 12000 high speed
internet satellites. (Mosher 2019)
Social, Ethical, Political issues
Leaving your digital footprints
Fake news and misinformation
Political unrest
(Eg. Egyptian Revolution)
•
2011 Arab spring 30 yr power Hosni Mubarak
unseated
•
Twitter Uprising and Facebook Revolution
•
Hundreds of thousands of protesters gathered in
Cairo Square
Forbes 2018
Disrupting & Sustaining technologies – WHY???
❑
Digital Darwinism
▪
“It is not the strongest of the species that survives, or the most intelligent; it is the one most
capable of change”. Attributed to Charles Darwin
▪
Implies that organisations that cannot adapt to the new demands placed on them for
surviving in the information age are doomed to extinction
Disrupting & Sustaining technologies
❑ Sustaining technology
▪
Better, faster, cheaper products in (already) established markets
▪
Produces products that customers are eager to buy, such as a faster car, a cheaper TV
❑ Disruptive technology
▪
A new way of doing things that initially does not meet the needs of existing customers
▪It tends to open new markets and destroy old ones
(Baltzan 2019)
https://www.businessinsider.com.au/this-man-invented-the-digital-camera-in-1975-and-his-bosses-at-kodak-never-let-it-see-the-light-of-day-2015-8
Disrupting & Sustaining technologies
(Baltzan, Lynch &Blakey2013)
SUSTAINING or DISRUPTIVE
TECHNOLOGY?
SUSTAINING or DISRUPTIVE
TECHNOLOGY?
SUSTAINING or DISRUPTIVE
TECHNOLOGY?
WEB Evolution
Web
1.0
Web
2.0
Web
3.0
Web Technology is the catalyst for e-business!!! (Baltzan 2019)
WEB Evolution
Web 1.0
Read Only
StaticWeb
Organisation Focused
Web 2.0
Read Write
Collaborative Web
Community Focused
Web 3.0
Read Write Suggest
Intelligent Web
IndividualFocused
Web 2.0
❑
The first generation of the Internet had static pages (content not dynamically changing)
and a lack of user-generated content
❑
For business, Web 2.0 offered a more mature communications platform characterised by
new qualities such as collaboration and sharing.
Web 2 Characteristics (Baltzan2019)
Content sharing through open sourcing
❑ Open system
▪ Non-proprietary hardware and software based on publicly known standards
that allows third parties to create add-on products to plug into or interoperate
with the system such as iPads and smartphones
❑ Open source
▪ Any software whose source code is made available free for any third party to
review and modify
Firefox
User contributed content
Content that is
➢
created and updated by many users for many users
➢
Includes blogs, wikis, discussion forums, posts, chats, webcasts(podcasts),
video
25
User contributed content
❑ Reputation system
▪ Where buyers post feedback on sellers
▪
http://www.productreview.com.au/p/dyson-cool-am06.html
26
Collaboration inside the organisation
❑
Collaboration system
▪
❑
A set of tools that supports the work of teams or groups by facilitating the sharing and flow of information
Collective intelligence
▪Collaborating and tapping into the
core knowledge of all employees,
partners, and customers
❑
Knowledge management
▪Involves capturing, classifying,
evaluating, retrieving and sharing
information assets in a way that
provides context for effective
decisions and actions
Baltzan, Lynch &Fisher 2015
27
Collaboration outside the organisation
❑ Crowdsourcing – the wisdom of the crowd
2013
Networking communities within WEB 2.0
(Statista 2019)
WEB 2.0 tools for collaborating
❑
Blogs
▪ An online journal that allows users to post their own comments, graphics and video
❑
Microblogging –brief posts to a personal blog to be read instantly. E.g.
Twitter
❑
RSS (Really Simple Syndication) – a system where relevant information is
extracted from regularly updated information and pushed to user based
on user profile and
preferences
https://play.google.com/store/apps/details?id=flipboard.app&hl=en
❑
Wikis
▪ A collaborative web page that allows users to add, remove and change content,
which can be easily organized and reorganized as required
▪ The ‘Network effect’ – Products increase in value to users as the number of users increase
▪ Organisation wikis – Internal, can be vital tools for share knowledge throughout the
Business 2.0 tools for collaborating
❑ Mashups
▪ A website or application that uses content from
different sources to create a new product or
service
▪ The main characteristics of a mashup are
combination, visualization, and aggregation.
❑
Apps
▪ Small pieces of software that run on the
Internet, your computer, or your mobile phone
▪ Made for target audience of users: Apple,
Android, BlackBerry
Web 3.0: Artificially Intelligent Web
•
•
•
•
•
•
•
Open ids
Visual search
Intelligent Browsers(Search based on personal profile, collected data, location)
More mashups
AI based Location Based services
Smart applications (eg. Cold Calling with AI)
AI based IoT
Web 3.0 and IOT
THE INTERNET OF THINGS
•
•
•
Forbes2019
http:/www.cutter.com/contenLte-acntdu-arnealCysoisn/rneseocurtciev-icteynVte5rs/Abuustinheossr-iJnotesleligpenhcien/seample-our-research/biau0904.html
Availability of cheap
sensor
IoT is the collection of
sensors, devices and
other technologies that
do not normally
interact with customers
like smartphones
IoT used to collect
information, provide
user analytics and
means of developing
new applications.
Bibliography
❖
❖
Baltzan P, 2019, Business-Driven Information Systems, 6e, McGraw-Hill (Chapters 3 and7)
❖
❖
Baltzan P, Lynch K&Fisher J2015, Business-Driven Information Systems, 3e, McGraw-Hill, North Ryde, NSW
❖
Abbott R2010, Delivering quality-evaluated healthcare information in the era of Web 2.0: design implications for Intute: Health and Life Sciences. Health Informatics Journal, 16(1), 5- 14.
Baltzan P, Lynch K&Blakey P 2013, Business driven information systems, 2e, McGraw-Hill Australia,NSW
❖
De Angelis S2013, Web 3.0: Does Anybody Really KnowWhat It Will Be?Enterra Solutions, viewed 14 March 2014, http://www.enterrasolutions.com/2013/10/web-30-does-anybody-
❖
really-know-what-it-will-be-2.html
❖
Hunt C2014, The new digital divide: Thoughts for leaders and laggards, The Denovati Group, viewed 14 March 2014, http://denovati.com/2014/01/new-digital-divide
❖
Kroenke D, Bunker D &Wilson D 2014, Experiencing MIS, 3rd edn, Pearson Australia, Frenchs Forest, Australia
❖
Laudon K&Laudon J2014, Management Information Systems: Managing the Digital Firm, 13th edn, Pearson Education Ltd, Essex, England
❖
Paige J(ed) 2011, How is the digital divide being narrowed? Viewed 14 March 2014, https://wiki.uiowa.edu/pages/viewpage.action?pageId=60266514
Stat Counter Global Stats. http://gs.statcounter.com/
❖
❖
❖
❖
❖
❖
Quentin Dempster, “Data Retention and the end of Australian’s digital privacy”, Aug 29, 2015, The Sydney Morning Herald, http://www.smh.com.au/technology/technologynews/data-retention-and-the-end-of-australians-digital-privacy-20150827-gj96kq.html#ixzz42O5lh2jQ
Hanson, Oct 2015., The Utah Data Centre, National Vanguard, http://nationalvanguard.org/2015/10/the-utah-data-center/
Burrus, 2014, “The Internet of Things is bigger than anyone realises”, Wired.com, http://www.wired.com/insights/2014/11/the-internet-of-things-bigger/
Galeon D May 2017 Futurism https://futurism.com/spacex-just-laid-out-a-plan-to-give-everyone-internet-access/ viewed June2017
Metz CJul2016 Wired https://www.wired.com/2016/07/facebooks-giant-internet-beaming-drone-finally-takes-flight/ viewed June2017
Baer 2018, 6 Unexpected Trends in Social Media Research, https://www.convinceandconvert.com/social-media-measurement/6-unexpected-trends-in-2018-social-media-research/ ,
viewed June 2018
❖
Mosher D 2019, Business Insider, Elon Musk just revealed new details about Starlink, a plan to surround Earth with 12,000 high-speed internet satellites. Here’s how it might work.,
https://www.businessinsider.com.au/spacex-starlink-satellite-internet-how-it-works-2019-5?r=US&IR=T, viewed Oct2019
Forbes 2019, Making the Internet of Things (IoT) more intelligent with AI, https://www.forbes.com/sites/cognitiveworld/2019/10/01/making-the-internet-of-things-iot-more-intelligentwith-ai/#77faa648fd9b, viewed Oct2019
INF10009
Introduction to Business Information Systems
Process and Decisions
Saravanan Thangavel
07-02-2021
Acknowledgement
of Country
On behalf of those present, I acknowledge the
Traditional Owners of the land on which we
now meet. I pay my respects to their Elders:
past, present and emerging.
I also pay my respect to all Aboriginal and
Torres Strait Islander people of Australia and
hope that the path towards reconciliation
continues to be shared and embraced.
Unit Objectives
1.
Explain the importance of decision making for managers at each of the three
primary organisation levels, along with associated decision characteristics
2.
Describe artificial intelligence and how it can be used in processesand
decision making
3.
Explain the value of business processes to a company, and differentiate
between customer-facing and business-facing processes.
4.
Differentiate between business process improvements, streamlining and
reengineering.
5.
Demonstrate the value of business process modelling, and compare as- is and
to-be models.
6.
Describe business process management and its value to an
organisation
7.
Define critical success factors (CSFs) and key performance indicators
(KPIs), and explain how managers use them to measure the success of
Information Systems
Decision making
Why do managers need to make decisions???
➢
Launched in Jan 2015
➢Entertainment streaming Australian company
www.stan.com.au
❖ To sustain their business by making decisions on
what is required to gain competitive advantage
❖ To grow their business and if possible, to disrupt
other businesses by gaining market share
❖ Porters 5 Forces
❖ Competitive Rivalry
❖ Supplier Power
❖ Buyer Power
❖ Threat of new entrant
❖ Threat of substitute product
Systems to support (BANK)
DAY TO DAY OPERATIONS/Processes is called Transaction
Processing System (TPS)
➢ Example Banking TPSs (used by Operational staff)
➢ Savings account system (used by Bank Teller, Supervisor)
➢ Credit Card System (used by Credit Card officer)
➢ Loan System (Loan Officer)
➢ Decision Making is called Decision Support System (DSS)
➢ Operational Managers at each branch
➢ Loan manager needs information on each loan applicant to
make decision on whether to approve/reject loan
➢ Branch Manager needs information on how profitable is
each type of bank product
➢ Victorian Bank Manager needs to know how profitable is each
branch
➢ National Manager needs to know profitability of each state
➢
DECISIONMAKING
Challenges
Baltzan 2019 FIGURE 2.3
Decision making
Layers
▪
Operational Managers
o
o
o
o
▪
Tactical(Middle Level) Managers
o
o
o
▪
Routine / Often repeated daily e.g. front line sales
Structured decisions (clear guidelines)
Eg. How much stock to buy? How many products to make?
Checklist to approve loan? How many staff to employ?
Decision has larger / longer impact 1-2 yr (short term decisions)
Semi-structured decision
Eg. Should we continue to stock the same level of products this year on the
assumption that sales of those products will be the same as the previous
years?
Strategic Managers
o
o
o
Decision has long term impact 3-5 years e.g. open/close stores (long term
decisions)
Unstructured decisions
Eg. New product to introduce to create competitive advantage
(Baltzan, Lynch & Blakey 2013, p. 150)
TPS and DSS
Baltzan, Lynch & Blakey 2013
TPS and EIS
Decision Making System
Information levels
Decision support systems
Digital Dashboards
•
Most DSSs offer
the following
capabilities:
–
Consolidation
–
Drill-down
–
Slice-anddice
–
Pivot
Baltzan, Lynch, Fisher 2015
The future: artificial intelligence
In Daily Operations & Decision Making
• Artificial Intelligence (AI) simulates human
intelligence, such as the ability to reason and
learn
• 2 key classifications
• Rule Based (Weak AI)
• Machine Learning (Strong AI)
“Show a machine long enough what you are
buying, doing, it will make the right decisions on
what to recommend to you “ Kurzgesagt 2017
Artificial intelligence
Baltzan 2019
Which jobs are in jeopardy?
• Middle management
• Sales persons
• Report writers,
journalists, authors
• Accountants and
Bookkeepers
• Professional
athlete
Artificial intelligence
Five most common categories of AI
Baltzan, Lynch, Fisher 2015
Artificial intelligence
INTELLIGENT AGENTS
AKA BOTS
Example 1:
Bots sent by hacker to control a number of
computers
Example 2:
Shopping bots
Example 3:
Chatbot
Who are you dating?
“The average victim of online dating fraud is
conned out of £10,000” Hosie 2017
Artificial intelligence
EXPERT SYSTEM
A SYSTEM THAT HAS A KNOWLEDGE AND REASONING ENGINE AND IS ABLE
TO REPLACE AN EXPERT
Example 1:
GO game is 2500 game which is much more complex than chess Google’s
Alpha GO beats the GO Korean Grandsmaster 4 to 1 (Wired, 2016)
Example 2:
Mechanic AI who can diagnose car problems
Example 3:
Medical AI who can diagnose patient’s illnesses
Example 4:
Uber AI to identify drunk passengers (CNN 2018)
Artificial intelligence
NEURAL NETWORKS
SYSTEM THAT IS ABLE TO MANIPULATE
LARGE QUANTITIES OF DATA/INFORMATION
and LOCATE PATTERNS AND
CHARACTERISTICS WHERE THERE ARE NO
RULES
Example 1:
FALCON FRAUD MANAGER used by >50% of
top 100 Banks in detecting credit card fraud,
leading to approx 50% reduction in fraud loss
Looks at customer spending habits, lifestyle,
location (Derderian M, 2013)
http://www.mapacific.com/falcon-fraud-detection
Artificial intelligence
GENETIC ALGORITHMS
OPTIMISING SYSTEM THAT GIVES THE BEST OUTPUT BASED ON GIVEN
INPUTS. SUITABLE FOR GENERATING MULTIPLE SOLUTIONS
Example 1:
System to decide on best share portfolio
Example 2:
System to decide on which project out of 10 projects
Example 3:
System on alternative telecommunication configurations
Artificial intelligence
VIRTUAL REALITY
SIMULATION OF REAL ENVIRONMENT …. Better still in 360 degree environment
• Virtual Tours
• Emirates 1st airline to introduce VR 3D Airplane Interior and Seat (Gulfnews
2018)
• Virtual seat in a key event/activity (eg Climb Mt Everest)
• DIY Lowe’s Holoroom How to. https://blog.hubspot.com/marketing/vr-marketing-examples
AUGMENTED REALITY
See virtual items in a real environment real time
• Pokemon Go
• Snapchat
• Ford using Microsoft Hololens to design cars
https://www.theverge.com/2017/9/21/16343354/microso
Business processes
“A Business Process is a set of activities that accomplish a specific task, such as
processing a customer’s order”. (Baltzan, Lynch & Blakey 2013, p. 169)
Activities
o Transform resources and info of one type into resources and info of another type
o Can be manual, automated or a combination
Value chain analysis:
➢
Looks at the company as a series of business processes that each add
value to the product or service
➢
A value-chain is a network of value-creating activities
EVALUATING BUSINESS PROCESSES
Baltzan 2013FIGURE
4.21
Evaluating business processes
• Customer-facing process
• Business-facing process
Business process management
Reasons For Improving processes
Inefficient processes lead to many problems which include:
Duplicate work, or work not done
High customer complaints
Low staff morale
Costs increase.
Resources are wasted eg, paper, staff
Bottlenecks can develop, causing you to miss deadlines
23
Business process management
❑Systematic process of creating, assessing, and
altering business processes
❑Creating business process models, assessing
and altering the steps in the business process
model
❑ Goals of BPM
24
Business process management
Every business has business processes. These
processes will change over time and these
improvements could take many forms:
❑ Streamlining
❑ Simplify process
❑ Eliminate redundancy
❑ Eliminate bottlenecks
❑ Business Process Reengineering
❑ Automation
❑ BCI – Business Continuous Improvement
http://www.mirror.co.uk/news/weird-news/building-robot-mcdonalds-staff-cheaper-8044106
25
Business process management
Business Process Engineering (BPR) is when the process is not just
improved to be faster, cheaper and better, but it defines a new way
something is being done(BEST PRACTICES) in an entire industry
http://www.powerretail.com.au/pureplay/catch-of-the-day-warehouse-automation/
26
Business process management
REAL EXAMPLES
Before: Staff started early to prepare ingredients for assembling
tacos: meat, corn shells, beans,tomatoes
After: Ingredients centrally prepared and were sent to
each restaurant.
Results:
✓
Improved customer service (focus on assembling
and customers)
✓
Taco Bell has gone from being a $500 million company in 1982
to a $3 billion company (Early 1990s).
27
Business processes modeling
❑
Creating a graphic description (detailed flow chart or map) of
business processes that shows inputs, tasks and outputs in a
structured sequence (workflow)
❑
❑
As-is model
❑
To-be models
There are different notations or symbols you can use for drawing
business processes.
28
Business processes modeling
(Baltzan, Lynch & Blakey 2013, p. 181)
29
Metrics: Measuring success
•
A business undertakes many
activities and projects
•
Each activity/project has a goal(s)
•
How does a business know it is on
track to reach these goals?
The business needs metrics
30
Metrics: Critical Success Factors (CSFs)
Crucial steps that companies perform to achieve their goals
and objectives and implement their strategies
▪
Create high-quality products
▪
Retain competitive advantages
▪
Reduce product costs
▪
Increase customer satisfaction
▪
Recruit and retain the best professionals
31
Metrics: Key Performance Indicators (KPIs)
The quantifiable metrics a company uses to evaluate progress towards its critical
success factors. For example:
▪
▪
▪
▪
Turnover rates of employees
Number of product returns
Number of new customers
Average customer spending
Important KPI
▪
Market share: the portion of the market that a firm captures
32
Metrics: Key Performance Indicators (KPIs)
KPIs help measure the
progress of the CSF
One CSF can have multiple
KPIs
CSF: Improve Customer
Satisfaction
Average Response Time
Average Resolution Time
Overall satisfaction (survey)
Customer retention rate
Customer churn rate
33
Metrics: Measuring success
IT Metrics
Efficiency IT metrics
measure the performance of
the IT system itself
Effectiveness IT metrics
measure the impact IT has on
business processes and
activities
(Baltzan 2019)
Monitoring and Assessing Metrics
Efficiencies/Effectiveness
Measuring metrics alone is insufficient!!!
Benchmarks: Baseline values the system seeks to attain
Benchmarking: a process of continuously measuring system results,
comparing those results to optimal system performance (benchmark
values) and identifying steps and procedures to improve system
performance
Business Continuous Improvement: A continuous process ofmaking
changes/improvements to the business processes, and measuring
efficiencies and effectiveness of each change/improvement.
Bibliography
❖
Baltzan P, 2019, , Business-Driven Information Systems, 6e, McGraw-Hill
❖
Baltzan P, Lynch K & Fisher J 2015, Business-Driven Information Systems, 3e, McGraw-Hill, North Ryde, NSW
❖
Baltzan P, Lynch K & Blakey P 2013, Business driven information systems, 2e, McGraw-Hill Australia, NSW.
❖
Kroenke D, Bunker D & Wilson D 2014, Experiencing MIS, 3rd edn, Pearson Australia, Frenchs Forest,Australia
❖
Rainer Jnr RK, Turban E & Potter RE 2007, Introduction to Information Systems: Supporting and Transforming Business, John Wiley & Sons,
Hoboken, NJ.
❖
Robbins S, Bergman R, Stagg I & Coulter M 2009, Foundations of Management, 3rd edn, Pearson Australia, Frenchs Forest,Australia.
❖
Rummler & Brache 1995, Improving Performance: How to manage the white space on the organizational chart, Jossey-Bass, San Francisco.
❖
Stair R, Moisiadis F, Genrich R & Reynolds G 2008, Principles of Information Systems, Thomson, Sth. Melbourne, Australia.
❖
Wood J, Chapman S, Fromholz M, Morrison V, Wallace J, Zeffane R, Schmerhorn J, Hunt J & Osborn R 2009, Organizational Behaviour: A
Global Perspective. 3rd edn, John Wiley & Sons, Brisbane,Australia.
❖
Making your business more competitive with business process reengineering (BPR), Cleverism, http://www.cleverism.com/businesscompetitive-business-process-reengineering-bpr/
❖
Improving Business Processes: Streamlining Tasks to Improve Efficiency, Mindtools, https://www.mindtools.com/pages/article/improvingbusiness-processes.htm
❖
Tenser 2016, Rise of the Retail Robots, Customer Think, http://customerthink.com/rise-of-the-retail-robots/ viewed June 2016
❖
Haworth 2016, Building robot McDonald’s staff ‘cheaper’ than hiring workers on minimum wage http://www.mirror.co.uk/news/weirdnews/building-robot-mcdonalds-staff-cheaper-8044106 viewed June 2016
❖
Wired 2016, https://www.wired.com/2016/03/googles-ai-wins-fifth-final-game-go-genius-lee-sedol/#slide-1 viewed Oct 2016
❖
Derderian M, 2013 A Falcon Fraud Overview, FICO, http://pace.sdsc.edu/sites/pace/files/PACE_Derderian_FICOFalcon_20130306.pdf
❖
Kurzgesagt Jun 2017 “The Rise of the Machines – Why Automation is different this time”,
https://www.youtube.com/watch?v=WSKi8HfcxEk, viewed Sep 2017
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