MANAGEMENT INFORMATION SYSTEMS CIS Discussion: Step 7
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The9-StepApproachtoEmbracin-DavidGadish.pdf
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David Gadish Ph.D.
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Copyright © 2021 David Gadish – All Rights Reserved
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This book may not be reproduced without the written permission of the author and publisher. Printed in the United States of America
ISBN: 978-1-954713-13-0 BH4 Publishing
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This book is dedicated to the thousands of students that have had to tolerate my stories over the years at California State University, Los Angeles. You have taught me so much!
And of course, I always enjoy the occasional “Hey Gadish, who are you?” when I go shopping at the home depot.
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Motivation
Over the past three decades, I have had the privilege to interact with thousands of people through my decade-long corporate career, followed by two decades of operating my own businesses, coaching, mentoring, and teaching.
I have spent almost two decades as a professor at California State University, Los Angeles, teaching management information systems using various books. I always thought that the books had too many details most students do not care about and will likely not remember following the final exam.
I hope that this book and my perspective will increase your professional and or business success!
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Overview
The book presents a 9-step approach to embracing information systems for increased professional and business success.
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The Information Systems Power Gain (ISPG) Approach Introduced
The Information Systems Power Gain (ISPG) Approach, developed by the author, consists of the following nine steps:
Step 1 - Understand Why You Need to Learn to Handle More and More and More Information Systems Step 2 - Understand Your Organization Better Step 3 - Handle Data, Information, Knowledge, Power Step 4 - Generate Power with Information Systems Step 5 - Understand the Technologies Available to Increase Your and Your Organization’s Power Step 6 - Introduce Change to Your Organization Step 7 - Grow Your Organization’s Power by Adapting Existing Technologies Step 8 - Grow Your Organization’s Power by Creating New Technologies Step 9 - Become a (Better) Project Manager
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FIGURE 1 - THE INFORMATION SYSTEMS POWER GAIN (ISPG)
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Legal Disclaimer
Although the author and publisher made every effort to ensure that this book's information was accurate at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions.
The author and the publisher disclaim any and all liability to the maximum extent permitted by law if any information, analysis, opinions, advice, and/or recommendations in this book prove to be inaccurate, incomplete, unreliable, or result in any other losses.
The information contained in this book does not constitute legal, technical, or financial advice and should never be used without first consulting with legal and other professionals.
The publisher and the author do not make any guarantee or other promise as to any outcomes that may or may not be obtained from using this book's content. You should conduct your own research and due diligence.
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About the Author
David Gadish, Ph.D., is a tenured university professor, a former management consultant, licensed real estate professional, real estate trainer, and coach.
David is a professor at the College of Business and Economics, California State University, Los Angeles. He has been teaching Management Information Systems and Project Management since 2002.
He also currently teaches real estate at Touro College Los Angeles, a division of Touro University Worldwide, where he established the current real estate program.
David is a founding partner at Geffen Real Estate in Beverly Hills, California, where he oversees a team of residential and commercial real estate agents.
David is also the author of several other books available on Amazon, including:
"The Practical Guide to Career Opportunities in Real Estate: A Survey of Over 35 Careers with a Focus on Becoming an Excellent Real Estate Agent, with Introduction to Property Management, Real Estate Finance, Auctions, Leasing, Investing and 1031 Exchange". “The Eight Step Strategy for Success in Real Estate Sales: And The 18 Reasons Why Most New Real Estate Agents Fail, Featuring The 13 Key Factors in Selecting a Real Estate Brokerage”. “Introduction to Real Estate - Listing a Property: Pricing Properties, Handling Occupied Properties, Handing Vacant Properties, Marketing Properties, Offer Management, Escrow/Closing Management (Really Simplified)” “The 6 Step Approach to Embracing Project Management For Increased Personal, Professional, and Business Success (Really Simplified)”
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“Introduction to Real Estate - Beyond Residential Sales: Real Estate Finance, Property Management, Residential and Commercial Leasing, Investing, 1031 Exchange, Auctions (Really Simplified)”
In his spare time, David and his wife and business partner, Orit, raise their four daughters on their over 150 fruit tree orchard in Beverly Hills, California. David Gadish can be reached via text at 310- 433-0694 or via email at [email protected] or [email protected]
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Brief Table of Contents
Motivation
Overview
Legal Disclaimer
About the Author
Brief Table of Contents
Table of Contents
Table of Figures
Step 1 – Understand Why You Need to Learn to Handle More and More and More Information Systems
Step 2 – Understand Your Organization Better
Step 3 – Handle Data, Information, Knowledge, Power
Step 4 – Generate Power with Information Systems
Step 5 – Understand the Technologies Available to Increase the Power of Your Organization
Step 6 – Introduce Change to Your Organization
Step 7 – Grow Your Organization’s Power by Adapting Existing Technologies
Step 8 – Grow Your Organization’s Power by Creating New Technologies
Step 9 – Become a (Better) Project Manager
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Table of Contents
Motivation
Overview
The Information Systems Power Gain (ISPG) Approach Introduced
Legal Disclaimer
About the Author
Brief Table of Contents
Table of Contents
Table of Figures
Step 1 – Understand Why You Need to Learn to Handle More and More and More Information Systems
Step 1 Outline
Step 1 Objectives
Step 1 Overview
The Information Age
The Internet of Things
The Army of Automation
Why Sooner or Later You May Be Left Behind?
Step 2 – Understand Your Organization Better
Step 2 Overview
Step 2 Outline
Step 2 Objectives
Introduction
What is a Functional Area of an Organization?
What Are the Eight Functional Areas of an Organization?
Operations
Marketing
Sales
Customer Service
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Management
Human Resources Management (HRM)
Accounting
Information Systems
The Problem of Information Silos
Organizational Outcomes
Goods
Services
Data, Information, and Knowledge (DIK)
Products
The Value Organizations Add
Competitive Advantage
Organizational Strategies for Success
Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis
What is SWOT Analysis?
Strengths
Weaknesses
Opportunities
Threats
How to Use a SWOT Analysis?
What is the Five Forces Model?
Competitive Rivalry
Supplier Power
Buyer Power
Threat of Substitution
Threat of New Entry
What Are the Generic Strategies?
What is The Cost Leadership Strategy?
What is The Differentiation Strategy?
What is the Focus Strategy?
Choosing the Generic Strategy for Your Organization
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Value Chains
What is a Value Chain?
Components of the Value Chain
What is Value Chain Analysis?
Roles and Responsibilities of Executives
Information Systems Executives
Non-Information Systems Executives
Measuring Organizational Success
Critical Success Factors
Key Performance Indicators
Example of CSF and KPI
Efficiency and Effectiveness
Efficiency and Effectiveness Examples
Organizational Decision Making
What are the Challenges Managers Face When Making Organizational Decisions?
What is the Decision-Making Process?
What Types of Decisions are Made in Organizations?
Supply Chain
What Is a Supply Chain?
How to Control the Supply Chain with Information Systems?
Step 3 – Handle Data, Information, Knowledge, Power
Step 3 Overview
Step 3 Outline
Step 3 Objectives
Introduction
What is Data?
What is Information?
What is Knowledge?
What is DIK?
What is Big Data?
What Is Structured Data?
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What Is Unstructured Data?
Transactional and Analytical Data
Transactional Data
Analytical Data
Data Quality
Data Accuracy
Data Completeness
Data Consistency
Data Timeliness
Data Uniqueness
Data Validity
DIK Governance
Databases
What is a Database?
What is a Database Management System (DBMS)?
What is Structured Query Language (SQL)?
What is a MySQL database?
Why Use Databases?
Database Challenges
What are Self Driving Databases?
Data Warehouses
What is a Data Warehouse?
Why have a Data Warehouse in Your Organization?
Why Not Run Analytics Against Your OLTP Environment?
What are the Components of a Data Warehouse?
Benefits of a Data Warehouse
Data Warehouse Characteristics
Data Warehouse Architecture
Managing DIK Quality in a Data Warehouse
What is a Data Mart?
What is a Cloud Data Warehouse?
What is an Autonomous Data Warehouse?
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What to do with the DIK? Business Intelligence, Business Analytics, Data Analytics
What is Business Intelligence (BI)?
What is Business Analytics?
What is Data Analytics?
What is Data Mining?
What is Data Visualization?
What is an Infographic?
What is a Database Driven Website?
What is Data Ethics?
What is Information Security?
Sources of Information Security Threats
What is Cybersecurity and How is it Different from Information Security?
Types of Cybersecurity Threats
Responses to Threats
What is Involved in Information Security?
How to Handle Information Security?
Possible Careers in Information Security
Step 4 – Generate Power with Information Systems
Step 4 Overview
Step 4 Outline
Step 4 Objectives
What is a System?
Examples of Systems
What is an Information System?
Information Systems Supporting Decisions
Information Systems Making Decisions
What are Operational Support Systems?
What are Managerial Support Systems?
What are Strategic Support Systems?
What is a Digital Dashboard?
Artificial Intelligence Systems
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Machine Learning
Expert Systems
Neural Networks
Genetic Algorithms
Intelligent Agents
Virtual and Augmented Reality
Blockchain Technology
Step 5 – Understand the Technologies Available to Increase the Power of Your Organization
Step 5 Overview
Step 5 Outline
Step 5 Objectives
Do More with the Basics
Internet
Web
Text
Social Media for Organizations
Why Use Social Media?
Benefits of Social Media
Snapchat
YouTube
Content Management Systems
Web Conference (Webinar) Systems
Video Conference Systems
Podcasts
Collaboration Systems
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Crowdsourcing
Crowdfunding
Blog
Wiki
Mashup
Customer Relationship Management Systems
Operational CRM
Analytical CRM
Transaction Processing Systems
Supplier Relationship Management Systems
Human Resource Management Systems
Enterprise Systems (ERP Systems)
Supply Chain Management Systems
3D Printing and the Supply Chain
Mobile Technologies for Business
Wireless Technologies for Business
E-Business
What Are the Main Categories of EBusiness?
What are the Main Ways to Make Money in EBusiness?
Why Sell Direct to Consumers (DTC)?
User-Generated Content
Collaboration Inside the Organization
Collaboration Outside of the Organization
Step 6 – Introduce Change to Your Organization
Step 6 Overview
Step 6 Outline
Step 6 Objetives
What is a Business Process?
Using MIS to Improve Business Processes
Why Document an Organization’s Business Processes?
How to Document Processes?
Why Re-Engineer Organizational Business Processes?
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Manage, Improve, Streamline, Optimize, Re-engineer Business Processes
How to Re-Engineer Business Processes of an Organization?
Automating Business Processes
Management Consulting Process
Step 7 – Grow Your Organization’s Power by Adapting Existing Technologies
Step 7 Overview
Step 7 Outline
Step 7 Objectives
Introduction
Before You Search for COTS Software
Define the problem
Document Your Existing and Proposed Business Processes
Do You Need New Software?
Determine a Budget for the New Software
Gain and Maintain Organizational Support for Change
So, Where to Find New Software for Your Organization?
Customizing the COTS Software for Your Organizational Needs
What are the Costs Associated with Adoption COTS Software?
Integrating Different Software Applications
Why Integrate Software Solutions?
What is Involved in Integrating Different Software Applications?
Step 8 – Grow Your Organization’s Power by Creating New Technologies
Step 8 Overview
Step 8 Outline
Step 8 Objectives
Introduction
What is the Software Development Life Cycle (SDLC)?
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What Are the Steps of SDLC?
Planning Phase
Requirements Analysis Phase
Design Phase
Development Phase
Testing Phase (Conducted in Parallel with Development)
Deployment Phase
Operation and Maintenance Phase
SDLC Methodologies Explained
Waterfall
Agile
Iterative
Step 9 – Become a (Better) Project Manager
Step 9 Overview
Step 9 Outline
Step 9 Objectives
Introduction
What is a Project?
The Characteristics of Projects
The Project Life Cycle
Additional Basic Definitions
Some Projects Have Multiple Phases
Where Do Projects Come From?
When Should Projects Be Handled?
Projects Come with Many Questions
Keys to Project Success
No Fear of the Unknown
Constantly Asking Questions
Your Role as a Project Manager
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Table of Figures
Figure 1 - The Information Systems Power Gain (ISPG) Figure 2 - The Information Age Figure 3 - The Internet of Things Figure 4 - Army of Automation Figure 5 - Functional Areas of an organization Figure 6 - SWOT Figure 7 - Strengths Figure 8 - Weaknesses Figure 9 - Opportunities Figure 10 - Threats Figure 11 - Porter's 5 Forces Figure 12 - Porter's Three Generic Strategies Figure 13 - The Value Chain Figure 14 - Types of Decisions and Related Technology Figure 15 - Challenges Related to Decision Making Figure 16 - The DECISION-MAKING Process Figure 17 - Types of Organizational Decisions at Different Levels Figure 18 – SCM Components Figure 19 - Data, Information, Knowledge (DIK) Figure 20 - Structured Data Figure 21 - Unstructured Data Figure 22 - Machine Generated Unstructured Data Figure 23 - Transactional Data Figure 24 - Analytical Data Figure 25 - Components of Data Quality Figure 26 - Table in a Relational Database and It's Components Figure 27 - Relationship between tables in a Relational Database Figure 28 - Key Database Functions Figure 29 - Database Challenges Figure 30 - Typical Data Warehouse Characteristics Figure 31 - Simple Data Warehouse Architecture
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Figure 32 - Simple with Staging Area Warehouse Architecture Figure 33 - Hub and Spoke Warehouse Architecture Figure 34 - Hub and Spoke Model Figure 35 - Warehouse Sandbox Figure 36 - Possible Problems with Incoming Data Figure 37 - Advantages of Cloud Warehouses Figure 38 - Example of an Infographic Figure 39 - Dynamic Websites Served by Web and Application Servers Connected to a Database Server Figure 40 - Aspects of Data Ethics Figure 41 - Types of Cybersecurity Threats Figure 42 - Responses to Cybersecurity Threats Figure 43 – Information Security Risk Management Figure 44 - Possible Careers in Information Security Figure 45 - A System – Multiple Components Working to Achieve a Common Goal Figure 46 - An Information System – An Integrated Set of Components for Handling DIK Figure 47 - A Decision Support System Figure 48 - A Digital Dashboard Figure 49 - Artificial Intelligence System Figure 50 - Categories of Artificial Intelligence Figure 51 - Virtual Reality Figure 52 - Augmented Reality Figure 53 - Blockchain Technology Figure 54 - The Internet Figure 55 - The World Wide Web (WWW, Web) Figure 56 - Benefits of Social Media to Organizations Figure 57 - Types of CRM Software Figure 58 - Transaction Processing System Figure 59 - 3D Printer Figure 60 - Global Positioning System (GPS) Figure 61 - Geographic Information System (GIS) Figure 62 - Main Categories of EBusiness Figure 63 - Primary Ways to Make Money in EBusiness Figure 64 - Sample Business Process Diagram
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Figure 65 - Nine Step Approach to Documenting Business Processes Figure 66 - Key Cost Categories Associated with Adopting Existing Technologies into An Organization Figure 67 - The Software Development Life Cycle (SDLC) Figure 68 - Categories of Software Development Requirements Figure 69 - Project Characteristics Figure 70 - The 6 Step Approach to Embracing Project Management Figure 71 - The Role of a Project Manager
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Step 1 – Understand Why You Need to Learn to Handle More and More and More Information Systems
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The Information Age
The Information Age is a historical period that began in the mid-20th century, characterized by a swift shift from the traditional industry established by the Industrial Revolution to an economy primarily based upon information technology.
Today, if you own a business or are employed by an organization, small or large, you know that most competitors are just a few mouse clicks away. There is intense competition in every field. With more competition, organizations need to understand their clients better and provide products and services that best fit their needs.
Customers have become extremely valuable assets for organizations, and building strong customer relationships is a key competitive advantage.
Technology is rapidly changing. There are more and more technology devices available to individuals as well as to organizations.
More and more devices record and collect more and more data in real- time.
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The Internet of Things
The internet of Things (IoT) describes the network of physical objects (things) embedded with software to connect and exchange data with other devices and systems over the Internet. More and more of us live in smart homes, drive smart cars, store our food in smart refrigerators, and wear smart watches. These smart things have sensors and communicate with other devices such as our laptops and cell phones.
Obtaining real-time data from connected ‘’things’’ around us allow us to make more informed decisions and identify new opportunities.
With all of these technological advances come risks which we must learn to identify and handle.
And where there are risks, there are opportunities. As you learn more about information systems in this book, you will hopefully realize that you can create your own opportunities, your own innovative businesses, and possibly your own technologies! This book aims to provide you with the knowledge you should have to compete in the information age.
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Occupational Category
Number of Jobs
(2019)
Job Outlook
2019-2020
Employment Change (%)
Computer and Information Research Scientists
32,700 5,000 15%
Computer Network Architects
160,100 8,000 5%
Computer Programmers 213,900 -20,100 -9%
Computer Support Specialists
882,300 67,300 8%
Computer Systems Analysts
632,400 46,600 7%
Database Administrators 132,500 12,800 10%
Information Security Analysts
131,000 40,900 31%
Network and Computer Systems Administrators
373,900 16,000 4%
Software Developers 1,469,200 316,000 22%
Web Developers 174,300 14,000 8%
Computer Hardware Engineers
71,000 1,100 2%
Computer and Information Systems Managers
461,000 48,100 10%
Computer Support Specialists
882,300 67,300 8%
Total 5,616,600 623,000 11%
The Army of Automation
Millions of people are computer programmers, software developers, and web developers in the US alone. More and more people are hired daily, as you can see in the table below. This data comes from the US Bureau of Labor Statistics (https://www.bls.gov/ooh/computer-and-information-Information Systems/home.htm, and https://www.bls.gov/ooh/architecture-and- engineering/computer-hardware-engineers.htm) and shows the number of jobs related to Information Systems.
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Over five and a half million people work in information systems and directly related professions in the USA alone (2019 figures). This number was expected to grow by 11% within a year.
These individuals are making decent salaries, as you can see in the table below.
Occupational Occupation Description Education Required
Median Pay (2020)
Computer and Information
Research Scientists
Computer and information research scientists invent and design new
approaches to computing Information Systems and find innovative uses for
existing Information Systems.
Master's degree
$126,830
Computer Network
Architects
Computer network architects design and build data communication networks, including local area
networks (LANs), wide area networks (WANs), and Intranets.
Bachelor's degree
$116,780
Computer Programmers
Computer programmers write and test code that allows computer
applications and software programs to function properly.
Bachelor's degree
$89,190
Computer Support
Specialists
Computer support specialists provide help and advice to computer users
and organizations.
Associate’s Degree
$55,510
Computer Systems Analysts
Computer systems analysts study an organization’s current computer
systems and look for more efficient and effective solutions.
Bachelor's degree
$93,730
Database administrators
Database administrators (DBAs) use specialized software to store and
organize data.
Bachelor's degree
$98,860
Information Security Analysts
Information security analysts plan and carry out security measures to protect an organization’s computer
networks and systems.
Bachelor's degree
$103,590
Network and computer systems
administrators
Network and computer systems administrators are responsible for the day-to-day operation of computer
networks.
Bachelor's degree
$84,810
Software developers
Software developers create applications or systems that run on
a computer or another device.
Bachelor's degree
$110,140
Occupation Occupation Description Education Required
Median Pay
(2020)
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Web developers
Web developers create and maintain websites. Digital designers develop, create,
and test website or interface layout, functions, and
navigation for usability.
Associate's degree
$77,200
Computer Hardware Engineers
Computer hardware engineers research, design, develop,
and test computer systems and components.
Bachelor's degree
$119,560
Computer and Information Systems Managers
Computer and information systems managers plan, coordinate, and direct
computer-related activities in an organization.
Bachelor's degree
$151,150
TABLE 2 - OCCUPATIONS
This well-paid automation army is creating more and more buttons, menus, web pages… and, in the process, automating more and more jobs.
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Why Sooner or Later You May Be Left Behind?
By automating their operations more and more, at least some of your business competitors can and are continually reducing the number of jobs needed to produce their products or services. Jobs are the largest expense of most organizations, and by cutting this expense, your competition can provide cheaper products and services than you can to customers, including possibly your customers.
Will your customers continue to buy your products or services if the competition can offer similar ones cheaper? Not likely. And this is how companies die in the age of automation.
If you are a business owner or an executive at an organization, and if you do not automate more and more of your business processes, your organization could be left behind by the competition that does. You may find yourself with no business or no executive position.
If you sit at a comfortable desk working for some organization, you might find out one day that your organization can no longer compete and has to shut down, and you will be left without a job.
On the other hand, your organization may be actively working to be more competitive and automating more and more, and then one day, your job’s turn to be replaced by automation has come.
As you can see, you should learn about information systems and automation, so you can best position yourself to be agile and able to compete and succeed as the pace of automation is accelerating all around you.
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Step 2 – Understand Your Organization Better
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Introduction
It is important to understand how organizations are structured in general so that you can evaluate how your organization is structured.
Once you understand your organization, you can identify opportunities to improve it through automation and beyond.
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What is a Functional Area of an Organization?
People perform different functions to make organizations work. A self-employed business person is likely to perform most or all functions of their business. That individual is said to handle all of the organization’s functional areas. Larger companies have departments with managers and employees. Each department handles a different functional area of the organization.
The terms functional area, department, and business unit are used interchangeably in the corporate world.
What Are the Eight Functional Areas of an Organization?
Most organizations are made of eight function areas. These include:
Operations Marketing Sales Customer Service Management Human Resources Accounting Information Systems
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Let’s look at each of these functional areas briefly:
Operations
Organizations convert inputs into outputs. Operations consist of the various processes which convert organizational inputs into outputs such as goods, services, and DIK (data, information, and Knowledge)
Marketing
Marketing is promoting an organization’s outputs, including products, services, DIK. It also includes promoting the organization’s image and brand(s).
Marketing includes market research, market segmentation, creation of marketing materials (traditional and online), traditional and online marketing, advertising, and public relations.
Sales
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Sales is the exchange of an organization’s outputs for money or outputs of another organization.
Customer Service
Customer Service includes the assistance and advice provided by an organization to those who buy or use its products, services, and or DIK.
Management
Management includes planning, decision making, organizing, directing, leading, and controlling an organization's human, financial, physical, and information resources to achieve its goals efficiently and effectively.
Human Resources Management (HRM)
Human Resource Management (HRM) includes recruiting, hiring, training, deploying, motivating, and terminating organizational human resources. HRM includes handling policies and procedures for the effective management of employees.
Accounting
Accounting includes recording and reporting expenses and revenues, as well as assets and liabilities.
Information Systems
Information systems include collecting, recording, creating, disseminating, and presenting data, information, knowledge (DIK), and other organizational outcomes.
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The Problem of Information Silos
An Information Silo occurs when one function area (department) of an organization cannot effectively communicate with other functional areas. Please note that the term information Silo refers to more than just information and includes the whole DIK.
Information silos exist when:
Management does not believe that there is sufficient benefit from sharing DIK across functional areas. Management believes some DIK may not be useful for others outside its functional area. Management of a functional area is afraid of losing control over their “kingdom” within the organization.
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Organizational Outcomes
There are several types of outcomes an organization can generate. These include products, services, and DIK. DIK was previously discussed. The other two categories are discussed next.
Goods
General characteristics of goods include:
Goods are typically tangible. That is, you can touch them. For example, you go to your hair stylist, and she gives you candy. You can touch the candy. This is an example of a good. Ownership of goods transfers from seller to buyer. Goods can usually be stored in inventory. There is often a delay between the production and the consumption of goods.
Services
Activities provided by others. General characteristics of services include:
Services are typically not tangible. That is, you cannot touch them. For example, your hair stylist cuts your hair. You cannot touch the haircut. The haircut is a service. Ownership of service does not transfer from seller to buyer Services cannot be stored in inventories. Production and consumption of the service happen simultaneously.
Data, Information, and Knowledge (DIK)
Data, information, and knowledge are all products that have become more and more popular in the information age we are in.
Products
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A good or service offered in the market is a product. Consumer services such as haircuts are also known as intangible products (not physical). An insurance policy is another example of an intangible product. A baseball you purchase online is a tangible product (has a physical nature). DIK (data, information, and knowledge) is also a category of products.
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The Value Organizations Add
Value (in our context) is the difference between the price of a product (good, service, or DIK) and the cost of producing it. The price is determined based on what customers are willing to pay.
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Competitive Advantage
Competitive Advantage is a condition or situation that puts a company in a favorable or superior business position.
Competitive advantage refers to factors that allow an organization to produce goods, services, or DIK better or cheaper than its rivals. These factors allow the organization to generate more sales or superior margins compared to its competitors.
A competitive advantage an organization has is typically temporary since competitors often quickly find ways to duplicate it. Therefore, organizations must continually update their strategy to maintain a competitive advantage.
Organizations can create and or maintain a competitive advantage by customizing existing technologies or developing new ones. These technologies aim to add value to the organization’s goods, services, or DIK.
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Organizational Strategies for Success
Organizations may employ different methodologies to create success. These are described in the following sections.
Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis
What is SWOT Analysis?
A SWOT analysis evaluates an organization's strengths, weaknesses, opportunities, and threats. This can help an organization evaluate its competitive position and then define or redefine its organizational strategy.
Strengths and weaknesses are internal to an organization. Opportunities and threats are external to an organization.
Strengths
Strengths describe what an organization is very good at and what separates it from the competition.
Types of organizational strengths include:
A strong brand Unique marketing campaign Loyal customer base Innovative products (such as goods, services, or DIK)
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Low production costs Strong balance sheet
Unique Information Systems
Weaknesses
Weaknesses prevent an organization from performing at its optimal level. They are areas where the organization needs to improve to remain or become competitive.
Types of organizational weaknesses include:
Lack of or insufficient planning A weak brand High employee turnover Large debt Insufficient capital Inadequate supply chain Damaged online reputation
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Outdated information systems
Opportunities
Opportunities refer to beneficial external factors that can provide an organization a competitive advantage.
You should identify opportunities external to your organization and determine how your organization could benefit from them.
Types of opportunities include:
New markets Issues with the competition Demographic changes New laws or regulations Changes in the economy
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New technologies
Threats
Threats refer to factors external to your organization that have the potential to harm the organization.
Types of threats to organizations include:
Tight labor supply Rising costs for materials Increased competition New market entrants (new competition) New substitute products Shrinking markets New laws or regulations Changes in the economy New technologies adopted by the competition
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How to Use a SWOT Analysis?
Come up with four lists: strengths, weaknesses, opportunities, and threats by asking questions.
Questions should be asked of yourself, your employees, managers, clients, and suppliers. The results should be compiled, summarized, and prioritized.
Once you and other key members of your organization clearly understand your organization’s strengths, weaknesses, opportunities, and threats, you need to devise plans for a modified or new organizational strategy that responds to your SWOT findings.
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What is the Five Forces Model?
Porter's Five Forces (Michael Porter, 1979) is a tool for understanding your organization's competitiveness and identifying your organizational strategy's potential profitability.
Understanding the forces in your organization and industry that can affect your profitability will help you adjust your strategy to increase success.
Porter identified five forces that make up the competitive environment and can help increase or decrease your organization’s profitability. They are:
Competitive rivalry Supplier power Buyer power Threat of substitution
Threat of new entry
The five forces are discussed next.
Competitive Rivalry
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Where competition is intense, organizations can attract customers with powerful marketing campaigns and aggressive price cuts. In these situations, your suppliers and buyers can go elsewhere if they feel that they're not getting a good deal from you.
If, however, competitive rivalry is minimal, and no one else is doing what you do, then you'll likely have great strength with your buyers and suppliers and substantial profits.
To determine the situation with your organization, you should get answers to questions like these:
How many rivals does your organization have? Who are they? How does the quality of their products or services compare with yours? How do their prices compare to yours?
Supplier Power
Supplier power is determined by how easy it is for your suppliers to increase their prices.
The more suppliers you have to choose from, the easier it will be to switch to a cheaper alternative. The fewer suppliers you have to choose from, and the more you are dependent on them, the stronger their position and ability to charge you more or limit the number of supplies they provide. That can impact your profit.
To determine supplier power, the following questions should be answered:
How many suppliers do you have? How unique are the goods, services, or DIK that they provide? How expensive would it be to switch from one supplier to another?
Supplier power can be decreased by searching for alternative goods, services, or DIK online. This has become easier now that we can search the web. Buyers can use various web portals to form groups or collaborate with other buyers. Increasing the size of the buyer group can reduce supplier power.
Buyer Power
To determine the situation with your organization, you need to determine answers to questions like these:
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How easy is it for buyers to push your prices down? How many buyers do you have, and how large are their orders? How much would it cost them to switch from your products, services, or DIK to those of your competition? Are substitute goods, services, or DIK available? Are your buyers strong enough to dictate their terms to you?
If you have only a few sophisticated clients, they may have more power over you, and as you gain more and more clients, their power may be reduced. One way to reduce buyer power is to increase switching costs, costs that make customers think twice before switching to another good, service, or DIK.
The power of customers has grown exponentially in the information age. A generation ago, to file a complaint against a company, you could make a phone call or write a letter (and not much would change). Now you can contact thousands to millions of people on the web and voice your complaint with organizations, their goods, services, or DIK. Organizations have to listen like never before.
Threat of Substitution
This is the likelihood of your customers discovering a different way of doing what you do for them, thus reducing or eliminating the need for your goods, services, or DIK.
A substitute good, service, or DIK that is easy and cheap to create can weaken your position and threaten profitability.
You can provide add-on goods, services, or DIK to the ones you already provide to try to keep customers from moving on to the competition and their substitute goods, services, or DIK.
Threat of New Entry
Your position can be affected by other organizations' ability to enter your market.
Ask yourself the following questions:
How easily can other organizations enter your market and become your competitors? What is the cost to enter your business sector? How tight is the regulation of your business sector?
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If the cost and effort to enter your market and compete effectively against you is small, or if you have little protection for your organization’s key technologies, then rivals can enter your market and weaken your position. If you have strong barriers to entry, then you can maintain your advantage in the market.
Understanding Porter's Five Forces and how they apply to an industry can enable your organization to adjust its strategy to maintain and possibly strengthen its position in the market.
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What Are the Generic Strategies?
Different organizations in the same industry choose different strategies to gain a competitive advantage in their business sector.
These approaches are generic because they can be applied to goods, services, or DIK in any business sector and small or large organizations (Michael Porter, 1985).
Differentiation occurs when an organization develops unique differences in its goods, services, or DIK to affect demand.
Porter’s Three Generic Strategies are strategies for entering a new market. They include:
Broad cost leadership (no-frills/cost minimization of goods, services, or DIK) Broad differentiation (unique goods, services, or DIK) Focused strategy (specialized in a niche market)
Cost leadership (no-frills/cost minimization in a focused market)
Differentiation (unique goods, services, or DIK in a focused market)
The two broad strategies reach a large market segment (through cost leadership or differentiation. The focused strategy targets a niche market with either cost leadership or differentiation.
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What is The Cost Leadership Strategy?
The cost leadership strategy involves leading in terms of cost in your industry or market.
To achieve a competitive advantage for your organization with the cost leadership strategy, increase profits by reducing costs, and at the same time charge the same or lower prices.
Companies that are successful in achieving cost leadership typically have:
Very efficient operations Strategy for cutting labor, materials, facilities, and other costs below those of other competitors Capital is needed to invest in information systems that will bring costs down
Note that other organizations may catch up to you in terms of cost reduction sooner than later, which is why you must continue and find additional ways to reduce costs. A key way to accomplish this is to introduce more and more automation into your organization.
What is The Differentiation Strategy?
Differentiation involves making your products, services, or DIK different from and more desirable than those of your competitors. How you do this depends on your industry's nature and the goods, services, or DIK themselves. It will typically involve features, functionality, durability, support, and brand image that your customers value.
To succeed with a differentiation strategy, organizations need:
The ability to deliver high-quality goods, services, or DIK. Effective marketing and sales strategy. The goal is to have the market understand the benefits offered by the differentiated offerings. This often involves creative ways of utilizing technology for online marketing where more and more purchasing is being done. Good research, development, and innovation. These rely on more and more advanced technology.
Organizations following a differentiation strategy need to stay focused on their new goods, services, or DIK development processes.
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Otherwise, they risk attacks by competitors pursuing focus differentiation strategies in different market segments.
What is the Focus Strategy?
Organizations that use focus strategies concentrate on a particular niche market. They work to understand the dynamics of that market and the unique needs of customers within it. This helps them develop low-cost or specialized products for the market.
Such organizations tend to build strong loyalty with their customers. This makes their particular market segment harder for competitors to penetrate or remain in.
You should decide whether you will pursue cost leadership or differentiation once you have selected a focus strategy as your main approach.
Regardless of which of these two approaches you choose, you must also add something additional to your offering due to serving only that market niche. This additional offering can reduce costs (for example, by utilizing specialist suppliers) or increasing differentiation (through your in-depth understanding of your customers' needs).
Choosing the Generic Strategy for Your Organization
It is important to dedicate time and pick the best generic strategy for your organization. The generic strategy selected then serves as the basis for the specific strategies you define for your organization.
It is best not to focus on both cost and differentiation at the same time. Cost is more about organizational processes, while differentiation is more about creative solutions. It is best to consider your organization's SWOT when determining which generic strategy is best for your organization.
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Value Chains
What is a Value Chain?
Organizations generate profits by taking inputs, applying business processes to turn them into goods, services, or DIK that are of value to their customers.
A business process is a set of activities that accomplish a specific goal. An organization in a specific industry must have a generic strategy, as discussed previously in the book. It must also define the business processes required to create its goods, services, or DIK. The processes should add value and create a competitive advantage for the organization.
Michael porter defined value chain analysis, which views a firm as a series of business processes where each of them adds value to the good, service, or DIK.
The value chain concept is based on a process view of organizations, looking at an organization as a system made up of subsystems, each with inputs, processes, and outputs.
Value chain analysis can help you determine how to maximize value for your customers while minimizing your organization’s costs to create and maintain a competitive advantage.
Value chain analysis helps identify processes in which the organization can add value for the customer and create a competitive advantage for your organization, with any of the strategies discussed in the previous section.
For organizations that produce goods, a value chain comprises the steps that involve bringing the goods from initial idea brainstorming to the client’s hands. These steps may include procuring raw materials, manufacturing, marketing, sales, and more.
A value chain can help an organization determine functional areas that are inefficient and then help implement strategies that optimize its procedures for maximum efficiency and profitability. In other words, it's important to maximize value at each specific step in a firm's processes.
Components of the Value Chain
The value chain groups an organization’s activities into two categories, primary value activities, and support value activities.
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Porter’s activities correspond very closely to the different organizational functional areas we discussed previously in the book.
Primary value activities include operations (including logistics), marketing, sales, and customer service.
Products pass through a series of ordered activities, and at each activity, the good, service, or DIK gains some value.
Inbound logistics: acquires raw materials or inputs Operations: transforms raw materials or inputs into goods, services or DIK Outbound logistics: distributes goods, services, or DIK to customers Marketing: Let clients or potential customers know about your goods, services or DIK Sales: Prices and sells products to customers Customer Service: provides customer support after the sale of goods, services, or DIK Support activities to the primary activities include: Firm infrastructure: organizations and or departmental level structures and systems Human Resource Management: provides employee recruiting, training, compensation, termination, and more Technology Management: applies information systems to organizational processes to add value Procurement: purchases inputs to business processes: raw materials, equipment, and supplies.
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Information systems can add value to any of the primary and support activities in the value chain.
Organizations must continually adapt to their changing competitive environments, which can cause the organizational strategy to shift from time to time.
The value chain is a powerful analysis tool for strategic planning.
What is Value Chain Analysis?
A company conducts a value-chain analysis by evaluating the detailed procedures involved in each step of its business. Each business process of each primary value activity and each business process of the support value activities must be analyzed in great detail. The purpose of a value-chain analysis is to increase efficiency so that a company can deliver maximum value for the least possible cost.
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Roles and Responsibilities of Executives
Your organization’s executives should support a centralized strategy for increasing value at each step of the value chain through analysis and the integration of advanced information systems. The following is a look at information systems executives followed by non-information systems executives that you may need to work with to achieve your goals.
Information Systems Executives
Information Systems executives come with different titles and may assume different roles depending on the organization.
Chief Information Officer (CIO) – May be responsible for the people, process, and Information Systems to support the organization’s strategic and operational goals. Presides over all elements of the organization’s Information Systems from systems, infrastructure, DIK, security/governance, architecture, enterprise applications, service delivery, and execution.
Chief Data Officer (CDO) – May be responsible for the organization's governance and utilization of data (and possibly the information and knowledge) as an asset. The CDO may manage the organization’s DIK strategy, policy, analysis, creation, mining, security, governance, distribution, quality, reporting, and monetization.
Chief Technology Officer (CTO) – May be responsible for technology research and development, information systems policy, and information systems architectural planning, and more.
Chief Innovation Officer (CIO) – May be responsible for managing innovation and change within an organization. Often, information systems are key to the innovation of an organization.
Chief Experience Officer (CXO) – Ma y be responsible for the overall experience of an organization’s goods, services, and DIK. As User Experience (UX) is becoming more and more critical to the success of organizations with their customers, the CXO should bring their design experience to the boardroom to make sure it is part of the organization’s strategy and culture. Responsibilities can include user experience strategy, Information Systems/digital design, and working with many previously mentioned executives to enhance customer engagement.
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Non-Information Systems Executives
President or Chief Executive Officer (CEO) - At small organizations, the president is usually the owner. They are often the most knowledgeable about most if not all aspects of the operation.
At larger organizations, the President or CEO is the one who oversees the organization, reports to the board of directors, and implements the strategy approved by them.
Presidents and CEOs also serve as the face of the organizations they lead.
Chief Operating Officer (COO) – Usually a hands-on administrator who oversees the organization’s operations by working with each department. Their responsibilities may include implementing organizational strategies approved by a board of directors, leading strategic organizational initiatives, mentoring other new organizational leaders, and complementing the CEO with talents the CEO is lacking.
Chief Financial Officer (CFO) – Usually manages an organization’s fiscal operations. They oversee budgets, investments, manage accounting and bookkeeping staff, and more. The CFO also helps with quarterly and year-end reports and monitors the expenses, profits and losses.
Chief Marketing Officer (CMO) – May be responsible for marketing. The position may include market research, product marketing development, marketing communications (including advertising and promotions). At times the responsibilities of the CMO may also include pricing, distribution channel management, sales management, and or customer service management.
Vice President, Chief, or Director - Someone who leads a department is often referred to as any of these titles.
Executive Director - Nonprofit organizations usually use the title executive director to refer to their top position. Whether at a nonprofit or for-profit organization, an executive director often serves a board of directors. The executive director position often performs the same functions as a president or CEO and must get approval for large projects from the board.
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Measuring Organizational Success
How well is your organization performing at this time? How well do you expect it to perform in six months or more given your SWOT analysis, given your analysis of the five forces model, given your generic strategy, given your current value chain, given your executives, their performance, perspectives, and contributions?
How well will your organization perform if you introduce information systems and or restructure it in other ways?
The answer is, it will be hard to know if you do not measure your organization’s performance!
In this section, we discuss aspects related to measuring organizational performance.
Critical Success Factors
Critical Success Factors (CSFs) are the key areas in which satisfactory results will ensure the organization's successful performance. They are the key areas where things must go right for the organization to thrive. If results in these areas are not satisfactory, the organization's goals may not be achieved, and the organization may not be able to continue its operations.
CSFs are derived from your organization's mission and strategic goals. CSFs "drill down" into these objectives to get to the bottom line of what you need to achieve and how you will achieve it.
Identifying CSFs will enable you to track and measure your progress toward achieving your organization’s goals. CSFs should receive substantial ongoing and careful attention from management.
CSFs also provide a common point of reference so that the various stakeholders in your organization know what is most important, ensuring that tasks and projects are aligned across teams and departments within your organization.
Key Performance Indicators
Key Performance Indicators (KPIs) are the specific, measurable criteria managers use to assess organizational performance. They are developed based on the CSFs. They provide
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the data that allows organizations to decide whether CSFs have been met and if goals have been achieved.
KPIs specifically help determine a company's strategic, financial, and operational achievements, especially compared to those of other organizations within the same sector.
Example of CSF and KPI
KPIs are typically more detailed and quantifiable than CSFs. For example, for a real estate agent (which operates almost independently within a real estate brokerage), the CSF “Substantially increase sales" could correspond to the KPI "Increase sales to at least 25 homes per year".
A CSF can have one or more KPIs.
Examples of KPIs:
Number of properties sold per year Number of engaged, qualified home buyer leads in the pipeline Net sales (dollar amount or percent growth year over year) Rate of employees leaving company per year Monthly website traffic
Efficiency and Effectiveness
Creating an organizational strategy that is both effective and efficient should be the goal of every organization. Knowing the difference between the two is an initial step to developing a more successful organization.
Efficiency is doing things the right way. A business process is efficient if it functions with the least use of resources.
Effectiveness is doing the right things. A business process is effective if it produces the intended result.
Efficiency and Effectiveness Examples
A few examples:
How quickly can the system find an answer? (efficiency) What percent of the time is the answer correct? (effectiveness)
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How many hours per day is the software available to users (efficiency) How satisfied are the customers with the system (effectiveness)
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Organizational Decision Making
Decision-making is central to the work of management. This includes planning, organizing, staffing, directing, controlling, and more.
Decision-making is about making choices from alternative courses of action based on facts to achieve organizational goals. Human and or non-human resources are typically required once decisions are made, so there is a cost to making decisions.
Decisions can be on an organizational level, such as setting organizational goals. Decisions can be at a localized level, such as a manager deciding what a specific employee must do throughout each day.
Decisions made can have short, medium, or long-term impacts on an organization.
Managerial decisions can be classified into three categories:
Strategic decisions Tactical decisions Operational decisions
For organizations to have a future, they must define and continually make decisions that adjust their strategies.
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What are the Challenges Managers Face When Making Organizational Decisions?
The following are challenges managers may face when making organizational decisions:
Managers need to analyze ever-increasing amounts of DIK. Managers must make decisions quickly Managers must deal with uncertainty when making decisions Managers need to deal with human biases when making decisions
Managers must apply sophisticated analysis techniques to make strategic decisions
What is the Decision-Making Process?
The decision-making process typically consists of the following steps:
Identify Problems / Opportunities - Define the problem as clearly and precisely as possible. Collect DIK - Gather problem-related data, including who, what, where, when, why, and how. Be sure to gather facts, not rumors or opinions about the problem.
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Determine Possible Solutions - Detail every solution possible, including ideas that seem farfetched. Evaluate Possible Solutions - Evaluate the advantages and disadvantages of each solution. Can it be done? How much time and money are needed? Any resistance to the solution from within (e.g., employees) or outside (e.g., customers) the organization? Select a Solution - Select the solution that best solves the problem and meets the needs of the business. Implement and Deploy a Solution
Evaluate Outcomes - Does the solution solves the problem? If not, then you may need to start the decision-making process again.
What Types of Decisions are Made in Organizations?
Managers at Organizations make three types of decisions. They are:
Structured Decisions (at the Operational Level) Semi-Structured Decisions (at the Tactical Level)
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Unstructured Decisions (at the Strategic Level)
Strategic Decisions
Strategic decisions are significant choices of actions that affect whole or significant parts of the organization, usually made by upper management. Strategic decisions contribute directly to the organization’s achievement of common goals. They have long-term implications for the organization.
These decisions are made in situations that are uncertain and dynamic. Strategic decisions are unstructured, and thus, a manager has to apply their judgment, evaluation, and intuition to understand the issues.
Tactical Decisions
Tactical decisions relate to developing plans for each department / functional area based on overall organizational strategy (determined based on strategic decisions). Middle level of management typically handles these decisions.
Tactical decisions include structuring specific business processes, acquiring human and non-human resources, and much more.
Such decisions cover short-and-medium-range plans, schedules, and budgets, along with policies, procedures, and business objectives for the organization.
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Tactical decisions are considered semi-structured decisions since most of the factors needed for making the decision are known. However, human experience and other outside factors may still play a role.
Operational Decisions
Operational decisions relate to the day-to-day operations of the organization, usually handled by lower-level managers. They usually have a short-term focus as they are made repetitively.
Operational decisions are considered structured decisions, as they are based on facts regarding specific events and do not require much business judgment.
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Supply Chain
What Is a Supply Chain?
Goods, services, or DIK that come to market result from the efforts of various functional areas within organizations and outside organizations that make up a supply chain.
Supply Chain Management (SCM) is the management of the flow of goods, services, or DIK.
SCM includes all business processes transforming raw materials/inputs into final goods, services, or DIK. By managing the supply chain, organizations can cut costs and deliver their products to the consumer faster.
This can be accomplished by keeping tighter control of internal inventories, internal production, distribution, sales, as well as of the inventories of the organization’s vendors.
SCM typically consists of:
Strategy The source(s) for raw materials or services Manufacturing Delivery The return system for unwanted or defective products or DIK Demand forecasting Inventory control
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DIK flows between suppliers and customers
How to Control the Supply Chain with Information Systems?
Create Information Systems to help you control your suppliers and or clients!
For example, consider an organization that supplies dental products to dentists. The organization takes orders from dentists and fulfills the orders by picking products from its warehouse and then shipping them to the dentists. This dental supply company does not create/manufacture any of the 1000s of products it offers to its dentist clients. Those products come from a few hundred manufacturers. Imagine how much more efficient the company would be if it created an information system that linked its operations to the dentists' operations and its suppliers' (manufacturers) operations. Imagine a dental assistant logging into an online portal and recording each time the dentist uses a certain product. Imagine the system automatically reordering additional supplies from the dental supply company each time the inventory of any product falls below a certain threshold. And, imagine the system automatically sending messages on behalf of the supplier to the manufacturers to ship additional products on demand. Now imagine if one dental supply company has such a system. Imagine how quicker, cheaper, and more precise ordering is with such a system instead of having people call each other to order products. Can its competitors survive without implementing such systems as well?
Imagine… that eventually, the dental supply company simply becomes a web portal coordinating direct shipments between manufacturers and dentists and charging a small fee for each transaction.
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Step 3 – Handle Data, Information, Knowledge, Power
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Introduction
We often use words such as data and information. Are they the same? If not, what does each one mean? What is the difference between them? What is knowledge? And, how is knowledge related to data and information? Where can they be stored? How? How can they be analyzed, presented, and distributed? We will look at these and many other related questions next.
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What is Data?
There are endless definitions of what data is. In this book, I will refer to data as anything that has a meaning that we or others can understand.
A device (computer, cell phone, robot, etc.) can collect data from some source before it is processed further.
There are multiple ways in which data is categorized. One way is to categorize data into:
Characters Images Video
Audio
For example, many people post and post on Facebook or other social media. Typically, you post data in the form of characters: “I went to the gym this morning!”. You just provided Facebook with data! Or, you post a photo of yourself in the Gym! You just provided Facebook with more data! Or… you post a video of yourself exercising in the Gym. Yes! More and more data for Facebook! Their system is collecting your data.
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What is Information?
Information is a set of data (two or more) in a context and are relevant to one or more people. Information is a set of data that has been interpreted in some way to make it meaningful for the recipient(s). Information is created from data by processing, organizing, structuring it in a certain way for a particular context.
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What is Knowledge?
There are endless definitions and discussions of what knowledge is. In the context of organizational information systems, we define knowledge as a combination of information, experience, skills, and insight that helps the individual or the organization. It is linked to doing and implies know-how and understanding.
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What is DIK?
DIK is Data, Information, and Knowledge. Throughout the book, we will use this term when discussing handling anything that can be any combination of the three. For example, Information Systems handle DIK, not just Data or Information. Information Systems can collect data, turn it into information, collect information, take information, turn it into knowledge, take knowledge collected or created, and use it.
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What is Big Data?
Big data refers to massive amounts of data, including structured and unstructured data (which we discuss next), which cannot be analyzed using traditional database methods and tools (databases are discussed later in this chapter).
Please note that “Big Data” may include data, information, and knowledge, as defined earlier in this chapter.
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What Is Structured Data?
Structured data usually resides in relational databases. Fields store exact length data like phone numbers, Social Security numbers, or ZIP codes. They can also store text strings of variable length like names. Data may be human- or machine- generated.
Structured data is easily searchable, both with human- generated queries and algorithms (algorithms are mathematical formulas placed in software that perform analysis on data) using field names and data types such as alphabetical or numeric, currency, or date.
Examples of relational database applications with structured data include inventory control systems, sales transaction systems, ATM systems.
Please note that “Structured Data” may include data, information, and knowledge, as defined earlier in this chapter.
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What Is Unstructured Data?
Unstructured data is all other data that is not structured data. Please note that unstructured data has an internal structure but is not structured using predefined data models or representations.
It may be human-generated or machine-generated. Typical human-generated unstructured data includes:
Text files - Word processing, spreadsheets, presentations, emails, logs Email (the message field of email) Mobile data - Text messages, locations Communications - Chat, IM, phone recordings, collaboration software Media - MP3, digital photos, audio, and video files Business Applications - MS Word documents Social Media Websites - Data from Facebook, Twitter, LinkedIn
Websites – Dropbox, photo sharing sites
Typical machine-generated unstructured data includes:
Satellite Imagery – Imagery of population centers, oceans, military movements
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Scientific data - Oil and gas exploration data, space exploration data Digital surveillance - Surveillance photos and video Sensor data - Traffic, weather, earthquake, oceanographic sensors
Please note that “Unstructured Data” may include data, information, and knowledge, as defined earlier in this chapter.
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Transactional and Analytical Data
Another way to look at data is to observe if it is transactional, analytical, or both.
Transactional Data
Transactional data encompasses all of the data contained within a single business process, and its primary purpose is to support daily operational tasks.
Organizations need to capture and store transactional data to perform operational tasks and repetitive decisions such as analyzing daily sales reports and production schedules to determine how much inventory to carry.
Analytical Data
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Analytical Data (Actually DIK Analytics) encompasses all organizational data, information, and knowledge, and its primary purpose is to support the performing of managerial analysis tasks. Analytical data is useful when making important decisions, such as whether the organization should expand its manufacturing facility, hire additional employees, modify its marketing strategy towards one of the market segments it is focused on.
Some types of analysis are based on historical data. Others require very timely data.
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Data Quality
Good quality data is likely to lead to good decisions (if all else is in order) that may benefit the organization. In contrast, bad quality data is likely to lead to bad decisions that may harm the organization.
Key components of data quality include:
Data Accuracy Data Completeness Data Consistency Data Timeliness Data Uniqueness Data Validity
They are discussed in more detail next.
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Data Accuracy
Data is said to be accurate when it represents reality. It is said to be inaccurate when the data does not represent reality. It is inaccurate when there is an incorrect value in the data.
Examples of data that is not accurate:
A name that is not spelled correctly. Gaddish instead of Gadish. Is her age 30 but recorded as 33.
Data Completeness
Data is incomplete if a value is missing from the data and or it does not fulfill your expectations of what’s comprehensive.
Example of incomplete data:
Is the zip code missing in the complete home or business address? 5151 State University Drive, Los Angeles, CA instead of 5151 State University Drive, Los Angeles, CA 90032 Is the first name available but the last name missing? David instead of David Gadish
Data Consistency
Data is said to be inconsistent when a data element stored in one place does not match corresponding data stored elsewhere. Data is also inconsistent when summary data is not in agreement with detailed data.
Examples of data inconsistency:
The value of the “Total” field is not equal to the values of the individual items being totaled. Your human resources information systems say an employee doesn’t work there anymore, yet your payroll says she’s still receiving a monthly paycheck.
Data Timeliness
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Data is said to be timely if available to those who need it when they need it. How often is the data used for analysis updated? Is it updated weekly, daily, or hourly?
Example of data that is not timely: If you need certain data or information about the previous month on the first of each month, but it is available only on the 5th of that month, it is not as timely as it could / should be.
Data Uniqueness
Data (actually DIK) is unique when there is only one instance in which this data appears in the database. Is each transaction and event represented only once in the data?
Example of data that may not be unique: Are there any duplicate customers? Are John Smith and John H. Smith the same person?
Data Validity
Data (actually DIK) should be in a specific format and should follow specific business rules. Data should not be in an unusable format.
Example of data that may be invalid: If a date is supposed to be 9/5/1971 but instead is recorded as September 5th, 1971, it may not be usable in its current format.
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DIK Governance
DIK is a critical asset for the organization, and users need to be educated on what they can and cannot do with it. Organizations need special policies and procedures establishing rules on how the DIK is to be created, updated, removed, accessed, and distributed. They need policies on who has access to which part of the DIK of the organization.
Every organization should create a policy concerning data (DIK) governance. Data governance includes processes, roles, policies, standards, and metrics that ensure the effective, efficient and secure use of DIK in enabling an organization to achieve its goals. Data governance defines who can take what action related to what DIK, in what situations, using what methods.
Data governance is used to form agreed-upon definitions and standards for data quality in organizations. In such cases, data cleansing, including standardization, may be required to ensure data quality.
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Databases
What is a Database?
A database is an organized collection of data, information, and knowledge stored electronically in a computer system (a term more reflective of its content should have been DIKbase, but we will continue using the commonly used term database).
There are different types of databases. Relational databases gained popularity in the 1980s and are currently very common in mid and large-sized organizations. DIK in a relational database is organized as a set of tables with rows and columns. Many current information systems provide a flexible and efficient way to access structured DIK in relational databases.
Tables in a relational database have rows and columns. Each column corresponds to a field. Each row corresponds to one record. A (unique) key field contains a (unique) identifier. Relations between DIK elements are expressed in terms of relationships between corresponding tables, which are linked based on (unique) identifiers.
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FIGURE 27 - RELATIONSHIP BETWEEN TABLES IN A RELATIONAL DATABASE
What is a Database Management System (DBMS)?
A database is usually controlled by a database management system (DBMS). A database system, or simply a database, consists of (1) the DBMS, (2) the DIK it contains, and (3) applications that are associated with them.
The DBMS handles:
DIK creation DIK editing DIK deletion DIK storage DIK reporting Multi-user access control Security - Database security is important, as data theft is common.
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Users can create their databases by using database software. A DBMS serves as an interface between the database and its end-users or programs.
A DBMS also facilitates control of databases, which includes:
Performance monitoring Backup Recovery
Commonly used database software or DBMSs include:
Oracle RDBMS MySQL Microsoft SQL Server PostgreSQL MongoDB Microsoft Access Amazon Relational Database Services (RDS) IBM Informix IBM DB2 FileMaker Pro dBASE. SQL Developer
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What is Structured Query Language (SQL)?
Structure Query Language (SQL) is a programming language used by most relational databases to access, define, query, and manipulate DIK. Although SQL is still very popular, new programming languages are beginning to appear.
What is a MySQL database?
MySQL is an open-source RDMS based on SQL. It was designed and optimized for web applications and can run on various platforms. MySQL is the platform of choice for many web developers and web-based applications.
MySQL is the DBMS behind some most well-known websites globally, including Facebook, Uber, Linked In, Twitter, and YouTube.
Why Use Databases?
Using databases can improve organizational performance in general and organizational decision-making in particular.
With massive data collection from the Internet of Things transforming life and industry globally, businesses today generate and have access to more data than ever before.
Organizations more advanced in technology adoption use databases to go beyond basic DIK storage and transactions to analyze vast quantities of DIK from multiple sources and systems, both internal and external to the organization.
Using databases combined with other technologies we discuss later in this book, organizations can utilize the DIK they collect to be more efficient and make better decisions.
Database Challenges
Today’s huge organizational databases often support very complex queries and are expected to deliver nearly instant responses to those queries. As a result, the experts that oversee
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these databases (often called database administrators) need to implement different strategies to improve performance.
Some common challenges that they face include:
DIK volume increases - The explosion of data coming in from sensors and other devices requires database administrators to manage and organize their companies’ data efficiently, making sure organizational systems do not slow down. DIK Security (Data Security) - Database breaches are happening everywhere these days. As more and more security is developed, hackers are not too far behind in figuring how to penetrate it. It is important to ensure that DIK is protected from hackers yet easily accessible to users. Timely decision making - In today’s fast-changing business environment, organizations need real-time access to their DIK to support timely decision-making and capitalize on new opportunities. Managing and maintaining the database and infrastructure
- Database administrators must continually watch the database for problems, perform preventative maintenance, and apply software upgrades and patches. As databases become more complex and DIK volumes grow, companies need to hire additional experts to manage their databases.
Removing scalability limits. As organizations grow, databases need to grow with them in a way that does not diminish their performance.
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What are Self Driving Databases?
Self-driving databases use cloud-based information systems and machine learning to automate many routine tasks needed to manage databases, such as updates, tuning, security, and backups.
Self-driving databases' self-operating, self-securing, and self-repairing capabilities are starting to revolutionize how organizations manage their DIK, enabling better performance, reduced costs (eliminating many jobs in the process), and increased security.
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Data Warehouses
What is a Data Warehouse?
A data warehouse is a type of DIK management system designed to enable and support business intelligence (BI), business analytics, and data analytics (all three discussed previously in the book).
Data warehouses are intended to perform queries and analysis and often contain large amounts of historical data.
Data warehouses may centralize and combine massive amounts of DIK from multiple sources (various operational databases). Their analytical capabilities allow organizations to derive valuable business insights from their data to improve decision- making. DIK is not removed from data warehouses, so with time, historical data and patterns in it can be determined and analyzed. This, in turn, can help with decision-making.
Why have a Data Warehouse in Your Organization?
A data warehouse combines data from various places within the organization and possibly from outside sources into a single repository so that the people who need that DIK can perform timely analysis.
This allows operation databases to operate efficiently as they are not being slowed down by people and algorithms manipulating and analyzing the DIK in them.
Data warehouses typically standardize incoming DIK. For example, yes-no answers can be stored many ways across different systems (Yes/No, Y/N, 1/0), but it should be standardizing in a warehouse with one common way of referring to each data element that stores the answer (1/0, for example). Standardization of data elements allows for greater accuracy, completeness, consistency and increases the quality of the DIK in making strategic business decisions.
Why Not Run Analytics Against Your OLTP Environment?
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Online Transactional Processing (OLTP) is a software program that supports transaction-oriented applications on the internet.
Examples of OLTP systems include:
Retail sales systems Order entry systems Financial transaction systems.
In OLTP environments, historical data is often archived or simply deleted.
If you do not archive and remove older data, your system performance may be negatively affected. Your system performance will be further negatively affected if you run queries and retrieve and analyze large data sets from the same database.
What are the Components of a Data Warehouse?
A typical data warehouse often includes the following elements:
A relational database to store and manage DIK A software module that extracts and prepares the DIK for analysis Analytical capabilities (statistical, data mining, etc.) Visualization and presentation capabilities
Benefits of a Data Warehouse
Data warehouses allow organizations to analyze large amounts and variety of DIK, extract value from it, and keep a historical record.
A well-designed data warehouse will:
Allow users to “slice and dice” DIK at a high level Allow users to “slice and dice” DIK at a detailed level Perform queries and deliver results very quickly
Data Warehouse Characteristics
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A typical data warehouse has the following characteristics:
Subject-oriented - can analyze DIK about a particular subject or functional area (sales, accounting, etc.) Integrated - create consistency among different DIK types from different sources Nonvolatile - Once DIK is in a data warehouse, it does not change
Time-variant - Data warehouse analysis looks at change over time
Data Warehouse Architecture
An organization’s specific needs determine the architecture of a data warehouse. Common architectures include:
Simple
- All data warehouses share a basic design in which DIK is stored within the central repository of the warehouse. The repository is fed by data sources on one end and accessed by end-users and software for mining, analysis, and reporting on the other end.
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Simple with Staging Area - Operational data must be cleaned and processed before being placed in the warehouse. While this can be automated, many data warehouses add a staging area for data before it enters the warehouse to simplify data preparation.
Hub and Spoke Model - Adding data marts, which are smaller-sized databases, between the central warehouse and end-users allows an organization to customize its data warehouse to serve various lines of business. When the data is ready for use, it is moved to the appropriate data mart.
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FIGURE 34 - HUB AND SPOKE MODEL
Sandboxes - Sandboxes are private areas that allow companies to quickly and informally explore new datasets or new ways of analyzing DIK without having to conform to or comply with the formal rules and protocol of the data warehouse.
Managing DIK Quality in a Data Warehouse
Maintaining the quality of DIK in a data warehouse or data mart is extremely important. Incoming DIK from one or more operational databases can result in:
Duplicate data Misleading data Incorrect data
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Nonformatted data Violates business rules data Non-integrated data
Inaccurate data
Software exists to clean and correct issues with data (known as data cleaning software, data cleansing software). Custom software is also often programmed to clean DIK before it is placed in a warehouse.
What is a Data Mart?
A data mart can perform the same functions as a data warehouse but within a more limited scope-usually a single department or functional area. So a data mart is a subset of the data warehouse.
For example, accounting professionals in an organization may need data about production and sales. The environment can be customized so that the organization's data warehouse copies production and sales data on an ongoing basis to a data mart dedicated specifically for such analysis, combines it, and cleans the combined data set. Reports are then from this data mart either manually or automatically and provided to the accounting professionals that need it.
What is a Cloud Data Warehouse?
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A cloud data warehouse is hosted on one or more remote servers on the internet rather than on a local server or a personal computer.
Advantages of cloud data warehouses include:
Easy to create a database – a few clicks away for beginners as well as experts. Easy to use Pay-as-you-go model, resulting in reduced costs. Can accommodate more and more DIK over time (scalable)
Fully managed and self-driving
What is an Autonomous Data Warehouse?
Autonomous data warehouses use artificial intelligence and machine learning to eliminate manual tasks and simplify setup, deployment, and DIK management.
An autonomous data warehouse in the cloud requires:
No human-performed database administration No hardware configuration or management No software installation
The following are all handled without human involvement:
Creating the data warehouse
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Backing it up upgrading the database expanding or reducing the database size
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What to do with the DIK? Business Intelligence, Business Analytics, Data Analytics
Organizations generate a large amount of DIK daily. To make intelligent business decisions, identify problems and opportunities and be profitable, they need strategy and information systems to turn data into information and knowledge they can act upon.
Business intelligence (BI), business analytics, and data analytics—are all data management solutions used to understand historical and current data and create insights to improve your organization.
The distinctions between these are subtle, and to make things more confusing, the terms are often used interchangeably.
What is Business Intelligence (BI)?
Business intelligence (BI) involves the collection, storage, and analysis of DIK from business operations. BI can provide comprehensive business measurements in near-real-time to support better decision-making. Data and information can be collected from multiple sources, including customers, business partners, suppliers, and competitors.
BI is focused on descriptive analytics, which analyzes historical and present data to show what has previously happened or what is currently happening in the organization.
BI deals with the questions “what” and “how” so your organization can keep doing what works and modify or remove what does not.
What is Business Analytics?
Business analytics (BA) focuses on predictive analytics, which uses data mining, modeling, and machine learning to find patterns that can be used to make predictions about the likelihood
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of future outcomes. These can trigger organizational changes necessary to succeed.
What is Data Analytics?
Data analytics is about finding insights in data (and in information and knowledge). Data analytics is not only for business applications. It is also used by government agencies, as well as by scientists.
Data analytics is a collection of technical processes of mining data, cleaning data, transforming data, and building the systems to manage data. Data analytics takes large quantities of data to find trends and solve problems.
Data analytics can refer to any form of data analysis, whether in a spreadsheet, database, or app, where the intent is to uncover trends, identify anomalies, or measure performance.
Data analysis can look at how people use your website, identify trends in traffic, analyze visitor demographics, and track how customers click through different pages.
Developing a BI/BA/DA strategy is an important first step for any organization that wishes to capitalize on its accumulating DIK.
What is Data Mining?
Data mining is a process used by organizations to turn raw data into useful information. It is a process of discovering patterns in large data sets involving machine learning and statistics.
Organizations can learn more about their customers, suppliers, competitors, and others by using software to look for patterns in large data sets. Organizations can develop more effective marketing strategies, decrease costs and increase sales. Data mining requires effective data collection, warehousing, and computer processing algorithms.
Please note that data mining is the extraction of patterns from large amounts of data, not the extraction (mining) of the data itself.
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Data mining can be semi-automatic or automatic analysis of large quantities of data to extract previously unknown, interesting patterns such as:
Groups of data records (cluster analysis) Unusual records (anomaly detection) Dependencies (association rule mining, sequential pattern mining)
Note that data analysis, which we discussed earlier, is used to test models and hypotheses on the dataset, e.g., analyzing the effectiveness of a marketing campaign, regardless of the amount of data. In contrast, data mining focuses on discovering hidden patterns in large sets of data.
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What is Data Visualization?
Data visualization is the graphical representation of DIK. Charts, graphs, maps, and other visualization elements provide an accessible way to see and understand patterns, trends, outliers in data. It makes large and or complex DIK sets more accessible, understandable, and usable. It helps simplify organizational decision-making.
To visually communicate a quantitative message, numerical data may be encoded using dots, lines, or bars.
There may be specific analytical tasks, such as making comparisons or understanding cause and effect, which can be visualized.
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What is an Infographic?
An infographic is a chart, diagram, or illustration (as in a book or magazine or on a website) that uses graphic elements to present information in a visually striking way. Infographics display patterns, relationships, and trends in a graphical format. Infographics are exciting and quickly convey a story users can understand without analyzing numbers, tables, and charts.
Organizations use infographics to:
Communicate messages in a timely manner Simplify the presentation of large amounts of data Showcase DIK patterns and relationships Present changes in variables over time
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What is a Database Driven Website?
A data-driven website is a website that is created to display new content to users and customers based on the data analyzed. It is different than a static website that is only updated once.
A static website does not change every time the browser loads a page. Website content is stored on the web server (on the internet) and is the same each time it is presented.
The web pages in a dynamic website change every time they are loaded without having a human being make the changes. A database-driven website is a type of a dynamic website. Web pages grab DIK from a database and insert it on the web page every time it is loaded. When there are changes to the DIK in the database, the web page (connected to the database through programming) also changes automatically.
Examples of Database Driven Websites:
Blogs - Most blogs and online community forums are database-driven. They involve regular updates by users.
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Whether people leave comments or like a post, the changes are stored in the database and pushed to the website, where the user sees the new content. E-Commerce platforms – As products, prices, promotions change in the database, this is immediately reflected on the e-commerce website. Web Content Management Systems (WCMS) – Websites that use WCMS are database-driven. Users can update website content without the need for any specialized programming skills. These content management systems have an easy-to- use interface to publish, edit and delete content in a database connected to the website.
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What is Data Ethics?
Data ethics is a relatively new area of ethics that studies and evaluates moral problems related to data and algorithms and procedures related to data.
Data ethics aims to formulate and support morally good solutions (e.g., right conducts or good values).
Data ethics is concerned with data. This includes:
Generation of data Storage of data Processing of data Distribution of data Sharing of data Use of data
Additionally, data ethics is concerned with the algorithms that relate to data. These include:
Business intelligence Artificial intelligence Machine learning
Finally, data ethics is concerned with practices related to data. These include:
Programming Responsible innovation Hacking
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What is Information Security?
Information security is the practice of protecting DIK (not just information) by identifying and minimizing risks related to it.
Sources of Information Security Threats
Common sources of information security threats include:
Insiders such as employees, contractors, or business associates have access to organizational assets but misuse that access to steal or destroy information for financial or personal gain. Note that the biggest threats to organizations come from within – from their employees. They may be bitter or jealous. They know the most and can cause the most damage Nations may want to disrupt activities, including business activities of other nations Criminals infiltrate systems or networks for financial gain Hackers motivated by personal gain, revenge, financial gain, and political activism Terrorists that wish to destroy, infiltrate, or exploit critical infrastructure to threaten national security, military equipment, disrupt the economy, and cause mass casualties Hacktivists that target organizations or individuals who don’t align with their political ideas and agenda Corporate spies that disrupt a competitor’s business by attacking critical infrastructure or stealing trade secrets Natural disasters Computer/server malfunction Physical theft
What is Cybersecurity and How is it Different from Information Security?
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Information security concerns protecting the DIK regardless of format (it can be in electronic or paper format). Cybersecurity is focused on protecting the electronic DIK only. Cybersecurity is a subset of information security.
Types of Cybersecurity Threats
Some of the more common types of cybersecurity threats include:
Malware (malicious software) attacks are the most common. They include ransomware, spyware viruses, and worms installed when users click a dangerous link or email. It can then damage the system, gather confidential information, and more. Phishing often involves e-mails containing links to websites that are infected with malware. Man in the Middle (MitM) happens when cybercriminals place themselves between a two-party communication. They interpret the communication, and possibly steal sensitive data and return different responses to the user. Denial of Service Attack floods systems, networks, or servers with huge traffic, thus making the system unable to fulfill its intended activities. Structured Query Language (SQL) Injection involves accessing a database by uploading malicious SQL scripts. Once successful, they can view, modify, or delete DIK stored in the SQL database. Advanced Persistent Threats (APT) involve gaining unauthorized access to a system or network and remaining undetected for an extended period. Ransomware is a malware attack in which the victim’s data is locked and threatens to be published unless a ransom is paid.
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Responses to Threats
Possible responses to security threats include:
Acceptance if the cost of the countermeasure outweighs the possible cost of loss due to the threat Assignment/transfer of the cost of the threat to another organization by purchasing insurance or outsourcing, for example
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Reduction/Mitigation by implementing safeguards and countermeasures to eliminate vulnerabilities or block threats
What is Involved in Information Security?
Information security usually involves:
Preventing or at least reducing the probability of unauthorized and or inappropriate access to DIK Preventing disclosure, disruption, deletion, corruption, modification, inspection, recording, or duplicating of DIK Minimizing the negative impacts of such incidents if and when they do occur Protecting confidentiality, integrity, and data availability (also known as the CIA triad) without reducing organizational productivity
How to Handle Information Security?
This requires risk management by the organization. This includes:
Identifying DIK and related assets Identifying potential vulnerabilities and threats Determining likely impacts
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Deciding how to handle the risks (accept, assign/transfer, reduce/mitigate) Implementing appropriate security controls Monitoring and making adjustments as needed
There are industry standards to consider as well as laws and regulations related to information security.
Security specialists are almost always found in any major organization due to the nature and value of the DIK of those organizations. They are responsible for keeping all of the DIK and the information systems within the organization secure from malicious attacks that often attempt to acquire DIK or gain control of the systems.
Possible Careers in Information Security
The field of information security is growing significantly. It offers many areas for specialization, including:
Applications and databases security Business continuity planning Digital forensics Hardware security Information systems security auditing Network security Security testing
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Step 4 – Generate Power with Information Systems
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What is a System?
A system is two or more components working together to achieve a common goal. Systems take inputs and process them into outputs (Input – Process – Output).
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Examples of Systems
Systems are all around us. Here are some examples we all know from our daily lives:
Computer System Heating System Air Conditioning System Audio System Video System Education System Healthcare System
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What is an Information System?
An Information System (also known as Management Information System, MIS) is an integrated set of components for collecting, storing, processing, distributing, and presenting DIK and other deliverables.
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Information Systems Supporting Decisions
A Decision Support System (DSS) is software used to support decisions and courses of action in an organization or a business. A DSS can analyze large amounts of DIK, help solve problems and help with decision-making.
DSS helps managers make more timely and informed decisions.
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Information Systems Making Decisions
Automated decision-making is the process of deciding by automated means without any human involvement.
Examples of this include:
An online decision to award loans An online education system that decides what material to teach a child next and, on their progress, to date.
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What are Operational Support Systems?
At the operational level, lower-level managers and or employees develop, control, and maintain basic organizational activities required to run the organization's daily operations. They make repetitive operational decisions based on previously defined organizational processes and rules. These are known as structured decisions.
For example, hiring decisions are mostly structural decisions. You can have specific procedures that determine if a candidate should be invited to an interview and if a candidate should be hired based on specific existing organizational criteria.
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What are Managerial Support Systems?
Managers are continuously evaluating organizational operations to identify and deploy needed changes. These decisions are taken when some established processes help evaluate potential solutions but are not enough to lead to a recommended decision. These are known as semi-structured decisions.
Possible changes they focus on include:
Budget Schedules Policies and procedures
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What are Strategic Support Systems?
At the strategic level, upper-level managers are responsible for setting organizational goals and developing long- term organizational strategies. Often, this is done as part of an organization’s strategic planning efforts.
Decisions are often made based on internal organizational factors, as well as external factors to do with their competitors, the economy, and politics.
There are not likely to exist procedures in these situations to guide decision-makers towards the best decisions. Such decisions are known as unstructured decisions.
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What is a Digital Dashboard?
The Digital Dashboard is a tool that supports the visualization of key performance, indicators (KPIs), and critical success factors (CSFs).
The digital dashboard can combine DIK from multiple sources and customizing this DIK to allow for timely decision making.
This is similar to the car dashboard that showcases data from various sensors in the car and allows the driver to make timely decisions.
An organization’s digital dashboards can include any components you wish, including but not limited to:
Operational / production performance tracking components Marketing performance components Sales performance components
Issues/problems tracking components
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Artificial Intelligence Systems
Artificial intelligence (AI) systems attempt to simulate human thinking and behavior. This includes attempts at simulating the way humans learn, make decisions, and solve problems.
It includes developing computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, and translation between languages.
Researchers and software and hardware developers are making fast advances in copying human characteristics that are currently understood.
Please note that what used to be considered “Artificial Intelligence” in the past is now looked at as standard technology. What we consider “Artificial Intelligence” today will likely be seen not too far in the future as basic technology we cannot live without.
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Examples of current artificial intelligence:
Robotic surgery Self-driving cars Financial fraud detection Stock trading
Natural Language Processing - Uses language as an input that a computer system can decipher and act upon its meaning, such as Siri and Alexa
Natural Language Understanding - Determines a user’s intentions based on what the user typed or said. For example, search engines use natural language understanding to determine what the user is searching for based on what the user typed or said
The six most common categories of AI are:
Machine Learning Expert systems Neural networks Genetic algorithm Intelligent agents
Virtual reality
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These are detailed in the next five sections.
Machine Learning
Machine learning is based on the principle that systems can learn from data. Machine learning involves algorithms identifying patterns and making predictions and decisions based on patterns with no human interaction.
Expert Systems
Expert systems are a type of AI that attempts to replicate the decision-making ability of human experts.
Expert systems are designed to solve complex problems by reasoning through large sets of DIK by primarily applying if-then rules. These case-based reasoning systems solve new problems based on the solutions from similar cases solved in the past.
Expert systems have two parts:
The knowledge base - represents facts and rules for applying for specific situations.
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The inference engine - applies the rules to the known facts to deduce new facts.
Neural Networks
A neural network is an algorithm that attempts to simulate a human brain’s neural network. A neural network contains layers of interconnected nodes.
The input layer collects input patterns. The output layer has classifications or output signals to which input patterns may map.
Neural networks analyze massive quantities of data to establish patterns and characteristics when the logic or rules are unknown.
Genetic Algorithms
Algorithms that mimic the evolutionary, survival-of-the- fittest processes to generate increasingly better solutions to problems.
Genetic algorithms are commonly used to generate high- quality solutions to optimization and search problems by relying on biologically inspired operators such as mutation, crossover, and selection.
A genetic algorithm tries different combinations of inputs to see which combination will result in the best solution to the problem (output).
Intelligent Agents
An intelligent agent is technology that can decide how to react or respond based on how it interprets its environment and experiences.
An intelligent agents make observations using sensors and then deliver results through actuators. They may also draw on their collective experience and previous information and knowledge via data warehouses worldwide to make decisions.
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Examples of Intelligent Agents are Siri and Alexa.
Virtual and Augmented Reality
As humans, we understand our surroundings through senses (taste, touch, smell, sight, and hearing), as well as spatial awareness and balance.
Our brains process the data gathered by these senses to convey the environment to us.
Virtual Reality (VR) creates illusionary environments that can be presented to our senses with artificial information, making our minds believe it is (almost) a reality.
VR Software creates and provides virtual environments sensed when we wear hardware devices such as goggles, headphones, and or special gloves. This allows us to view and interact with the virtual environment as if we are within it.
Example VR application areas include:
Learning to play sports/playing sports Learning to drive Learning to fly
Walking through a home available for sale
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Augmented reality (AR) is a technology that superimposes computer-generated digital information (such as images and text, sound, or other sensory stimuli) on a user's view of the real world, thus providing a composite view.
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Blockchain Technology
Blockchain is being discussed in almost every industry as a disruptive technology that will become widespread, changing society. It has been stated that blockchain will disrupt the global business environment like the internet did in the mid- 1990s. Blockchain’s disruptive potential and its applications constitute a revolution that will affect many industries, including finance, media, medical, and legal. It is also expected to have a major impact on supply chains.
Blockchain technology is a decentralized system that stores DIK records, blocks that cannot be modified.
A ledger records classified and summarized transactional data. A blockchain is a type of distributed ledger consisting of blocks of data that maintain a permanent and tamper-proof record of transactional data. Distributed ledgers allow many different parties around the world to access and verify the same data. Blockchains are a form of distributed computing. A decentralized database managed by computers in the distributed network maintains a copy of the ledger to prevent a single point of failure. All copies are updated and validated simultaneously. Because data is shared and continually reconciled by thousands of computers (or more), it is almost impossible to corrupt a blockchain.
Changing one block in one chain would make it immediately apparent it had been tampered with. To corrupt a blockchain system, hackers would have to change every block in the chain, across all of the distributed versions of the chain.
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Step 5 – Understand the Technologies Available to Increase the Power of Your Organization
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Do More with the Basics
Internet
The Internet is a global wide area network that connects computer systems across the world.
It includes high-bandwidth data lines. These lines are connected to major Internet hubs that distribute data to other locations, such as Internet Service Providers (ISPs) and web servers.
To connect to the Internet, you must have access to an Internet service provider (ISP), which acts as the middleman between you and the Internet.
The Internet provides various online services, including web, email, social media, online gaming, and more.
Web
The World Wide Web (WWW), also known as the Web, is a system where documents and other resources are identified by Uniform Resource Locators (URLs, such as www.DavidGadishBooks.com), which may be interlinked by hyperlinks.
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Web resources are accessed by users using a software application called a web browser and are published by a software application called a web server.
The World Wide Web is not the same as the Internet. The Web is built on top of the Internet and came into our lives two decades after the internet did.
Electronic messaging primarily over the internet. Your organization should define and enforce email standards. An organization’s email strategy should consist of:
Rules of communicating internally with employees/co-workers Rules for communicating with customers Rules for communicating with suppliers Rules for communicating with others outside the organization Email strategies for marketing Guidelines for email subject line Guidelines for email body (to be brief and to the point)
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Guidelines for email signature (opportunity to market yourself and more) Notification that emails are not confidential Recommendations to review emails before sending Recommendations to spell check Guidelines for replying in a timely manner Guidelines for providing links to cloud space rather than attaching files to avoid email ending up in spam
Text
Texting can be an important communication and marketing tool for many organizations. The following are some rules for business texting:
Do not discuss confidential information over text Keep text short You can record your voice with the texting app and text it if the message is too long to type Respond to texts in a timely manner Business-related texting should be done during business hours (whatever they are for your business and your customers)
Note that multiple software platforms are available online to send text to multiple numbers at the same time.
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Social Media for Organizations
In addition to the popular social media platforms, there are numerous specialized platforms focused on specialized audiences.
The key to a social media strategy for your organization is to determine what platforms are used by your existing and potential customers, as well as your competitors. It is important to identify how your competition uses these platforms – the types of posts and their frequency. This will then help you form your own strategy to attract and maintain the attention of your customers.
If you are a small business, you should establish how much time you spend daily or weekly on social media posting and responding. Suppose you manage an organization with human resources. In that case, you should determine if you should outsource social media work to a part-time resource or recruit one or more employees to execute your organization’s social media strategy.
Why Use Social Media?
Social media allows organizations to:
Discover new ideas and trends Connect with existing and potential customers in deeper ways Bring clients and potential clients to you
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Showcase your organization’s brand
Social media changes all the time, so it is important to keep up with the changes and continually look for ways to optimize your organization’s use of them.
Organizational policies for the use of social media should be created and periodically revised. Employees should be trained on these policies.
Benefits of Social Media
What are the benefits of using social media for business? Consider that there are now more than 3 billion people using social media around the world.
Benefits of social media for organizations include:
Collect perceptions about your brand Establish yourself, your organization, your brand as thought leaders Generate leads of people interested in your organization, products, services, DIK, brand Go viral. As people start liking, commenting on, and sharing your posts, your content spreads over the internet, getting thousands or even millions of shares. Humanize your organization and your brand Increase awareness of your organization and your brand Increase traffic to your website Increase sales. Interact directly with customers and fans
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Learn about your competition Learn more about your customers Partner with influencers (people who have a large following on social media) to get people talking Promote content in front of new people, showcasing your expertise Provide customer service and customer support Reputation management - posts about your brand, highlight the positive and address the negative feedback Stay top of mind Targeted advertising
LinkedIn is a professional networking website with hundreds of millions of users. LinkedIn offers multiple ways to expand your professional network. You can find and connect with professionals in your industry. The key is to find, approach, and connect with both people you already know, as well as those you want to get to know.
You should also post your content, showcasing your expertise, regularly.
You can provide and receive recommendations for people you have worked with in the past.
LinkedIn can be used for recruiting employees and contractors. It can also be used for marketing.
You can create a page for your organization and have customers and potential customers follow you on LinkedIn.
Twitter is about instant connections and sharing ideas – briefly, under 280 characters. You can add photos or videos to your posts. You can also:
Respond to posts by others and participate in conversations that others see Connect privately with someone via direct messages Use group direct messages to have more focused conversations among a larger group of individuals
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Stay current about developments in your areas of interest Expand your business network by sharing, commenting, and being a part of a global conversation that extends beyond people you are friends with Use Twitter Polls to run polls about specific products, services, or DIK to gauge reactions from customers and potential customers Increase your company’s profile by posting and using hashtags Target specific audiences and reach them, so they learn about your business and have an opportunity to become followers and engage with you via Twitter ads
Facebook is currently the largest social network with over 2 billion users. You can use it to expand your network, as well as your influence.
Facebook can be used to:
Create a personal profile showcasing you Connect with clients, prospects, and influencers in your field Share information about your interests Help shape what others think of you Showcase your business with Facebook Live Target potential clients using specific criteria with Facebook ads
You can also create a business page to connect with people who want to know more about your organization, products, or services. You can use the business page to share updates, organizational progress reports, and ideas.
Instagram has over 800 million users. It is a great place to showcase your organization, products, or services via pictures and videos.
Instagram can be used to:
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Tell a story, using multiple photos and videos, for 24 hours Get existing and potential clients excited about what you do Pay to advertise on Instagram to potential clients
Most users of Pinterest are female, so if your organization, its products, or services focus on females, this may be the place for you to establish and maintain your online presence.
The organic reach of posts is determined by the number of keywords in a post and if they align with what a user has searched on Pinterest. Organizations can plan their content to contain words that are searched a lot on Pinterest.
Snapchat
Snapchat is an option for organizations targeting younger audiences.
Snapchat can be used to send Snapchats containing a photo or video about your organization directly to other users or their Snapchat Story
A Snapchat sent directly to another user can only be viewed once. A Snapchat on a Story is visible for up to 24 hours after it’s published.
YouTube
YouTube has 2 billion monthly active users. It is owned by Google and therefore has access to Google’s advertising platform, and you can use this to your advantage when running YouTube ads.
YouTube can be used to:
Showcase videos about your organization, your products, services, DIK
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Optimize the search of your organization’s videos with the proper keywords Watch videos about your industry, competition, clients, suppliers
You can take the YouTube links to your videos and embed them in your websites and social media posts.
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Content Management Systems
A Content Management System (CMS) is software that helps users create, edit, manage and publish content on a website without specialized technical knowledge (no need to know how to write code).
The content itself is usually stored in a database.
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Web Conference (Webinar) Systems
Web Conferencing provides live audio or video communication over the internet between two or more locations to communicate and share content.
Through a web conference, a presenter can communicate and share information with multiple individuals located elsewhere.
Web conferencing is ideal for delivering a large amount of information one way to a group.
The number of users at a web conference can be very large.
Examples of web conferencing websites include:
Zoom.us WebEx.com
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Video Conference Systems
Video conferencing provides two-way visual or audio communication between two or more people in different locations via video or audio streams.
It provides a real-time connection between people over the internet in a way similar to traditional face-to-face meetings.
Video conferencing is ideal for face-to-face communication, building more in-depth relationships with teams, encouraging collaboration, and obtaining feedback.
The maximum number of users at a video conference is usually more limited than at a web conference.
Examples:
Zoom.us WebEx.com
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Podcasts
A Podcast is a digital audio file available on the internet for downloading to a computer or mobile device.
Podcasts are usually available as a series, new installments of which can be received by subscribers automatically.
An example of a podcast creation software is: Adobe Audition - https://www.adobe.com/products/audition.html
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Collaboration Systems
Collaboration is working together to achieve a common goal. Collaboration can occur among people within an organization. It can also occur among people, some within and others outside an organization or all outside of an organization. Collaboration may involve communication as well as sharing documents.
Different types of collaboration systems are presented next.
Crowdsourcing
Crowdsourcing is obtaining input for a task or a project by asking for the services of a large number of people, usually via the internet.
It can involve obtaining work, information, or opinions from many people who submit their data via the Internet. People involved in crowdsourcing may work as paid freelancers or volunteer with no pay.
For example, traffic apps encourage drivers to report accidents and other roadway incidents to provide real-time updated information to app users.
Organizations can:
Assign work to people anywhere in the country or around the world Reduce costs for in-house employees Get infrequent projects completed when they need them
The advantages of crowdsourcing include:
cost savings speed work with people that have skills that an in-house team may not have
Examples of jobs can be crowdsourced:
Website creation Graphic design Opinion survey about a new product or service
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Crowdfunding
Crowdfunding raises small amounts of capital from many individuals to finance various ventures, activities, and situations.
Who raises funds with crowdfunding?
Start-up companies looking to bring a product, service, or DIK to market Individuals who experienced an emergency such as a natural disaster, fire, terror attack Creative people such as artists, musicians, or podcasters that wish to sustain their creative work by receiving a source of income
Examples of crowdsourcing websites:
Kickstarter.com Indiegogo.com GoFundMe.com
When looking for funds through crowdfunding, look at different platforms, learn what types of projects they allow on their platforms, and the various terms, conditions, and costs to use the platforms.
Blog
A blog (a shortened version of “weblog”) is an online journal or informational website displaying DIK in reverse chronological order, with the latest posts appearing first at the top. It is a website where a writer or a group of writers share their views on an individual subject.
An internal blog is a digital communication tool designed to improve internal communication and knowledge sharing inside the organization. It allows teams or departments to engage in discussion and idea exchange efficiently.
Wiki
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A wiki is a website that allows collaborative adding, deleting, and editing of its content by its visitors.
Many wikis, such as Wikipedia.com, are publicly accessible. Organizations use wikis to manage information in-house, enabling teams to share knowledge and work together easily.
Mashup
A mashup is a web page or web application that uses content from more than one source to create a single new service displayed in a single graphical interface.
Zillow is an example of a mashup that combines Microsoft's Virtual Earth data and various MLS databases (local databases that contain information about homes for sale and rent in specific areas).
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Customer Relationship Management Systems
In the age of information technology, organizations are focused on customers and their needs. Customer Relationship Management (CRM) is about managing the various aspects of each customer’s relationship with an organization. CRM refers to the principles, practices, and guidelines that an organization follows when interacting with its customers. The goal is to increase customer loyalty and retention as well as the organization’s profitability.
Each time a customer communicates with an organization, the organization has an opportunity to deepen a relationship with the customer. This is likely to increase the organization’s profitability.
CRM allows an organization to:
Gain an understanding of customers’ shopping and buying behaviors Identify sales opportunities Identify low-value customers and create marketing promotions to increase their spending Identify high-value customers and create marketing promotions to increase their loyalty Measure the level of success of their marketing activities Identify and resolve issues customers are facing
There are two main types of CRM software:
Operational CRM
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Analytical CRM
The two types of CRM are discussed in more detail next.
Operational CRM
Operational CRM streamlines organizational operations, centralizing customer interactions, sales and marketing processes, and service and support efforts in one place.
Companies are no longer trying to sell one product to as many customers as possible. These days, they are trying to sell one customer as many products as possible. Marketing departments switch to this new way of doing business using CRM technologies to gather and analyze customer information to tailor successful marketing campaigns.
There are different types of Operational CRM. Each focuses on different aspects of the relationship of organizations with their customers. Other CRM systems combine various aspects. Below is a list of the possible functionality operational CRM systems might consist of:
Manage contacts
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Track opportunities as potential sales develop, giving you time to respond and capitalize Track project proposals, quotes, letters, contracts Track specific client accounts (activity, pending deals, and associated contacts, payments) Compile customer information from different sources for marketing campaigns Manage marketing campaigns by performing such tasks as campaign definition, planning, scheduling, segmentation, and success analysis Track profitability of various marketing campaigns Manage cross-selling (selling additional products or services to an existing customer) Manage up-selling (increasing the value of the sale) Automate each phase of the sales process to help sales representatives coordinate their accounts Manage call center operators Allow customers to use the web to find answers to their questions or solutions to their problems (Web-Based Self- Service) Automatically gather product details and issue resolution information into a script for the representative to read to the customer (Call Scripting) Allow communication and collaboration among team members as customers are being handled
Analytical CRM Analytical CRM is all about DIK—storing it, processing it,
and making it useful with insights about various aspects of the organization, including but not limited to its departments / functional areas and processes.
CRM applications in this category work behind the scenes with your sales, financial, and marketing data to generate actions that result in better customer retention and increased sales and profits.
Analytical CRM comprises the ongoing analysis of customer data using business intelligence. The data comes from operational CRM systems.
The goals of analytical CRM include:
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Collect data about customers from various channels and sources and integrate them into a central warehouse Convert data to information and then to knowledge Support decision making capability of an organization by determining strong patterns and predictions Handle DIK stored in data warehouses and apply business intelligence, business analytics, data analytics, and data mining
Analytical CRM allows organizations to:
Perform market segmentation Measure customer satisfaction Learn how customers behave Determine the profile of people that are your best customers and how to find similar prospects quickly and efficiently Determine who are the most and least profitable clients Predict which customers are more likely to be more profitable over time Predict which customers are less likely to become profitable over time Be able to market specifically to individual customers (targeted marketing) based on DIK Measure the effectiveness of an organization’s marketing campaigns Understand why clients stop purchasing and move to competition Measure trends of customers not coming back Understand customer’s perceptions of an organization’s sales and customer service operations Understand how to keep customers using the organization’s products, services or DIK Identify potential customer groups based on existing sales Understand how to attract and maintain customers of different demographics
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Transaction Processing Systems
A transaction is an exchange between two or more business entities. A transaction processing system (TPS) is software that supports transaction processing. TPS records, stores, modifies and retrieves the transactions of an organization. Transaction processing allows only predefined, structured transactions that have predictable response times. Each transaction is usually short, and the processing activity for each transaction is programmed in advance.
The following features are important in evaluating transaction processing systems:
Fast performance with a swift response time is critical. A TPS is often measured by the number of transactions they can process in a given period. The system must be available when users are recording transactions. Many organizations rely heavily on their TPS, and a breakdown will disrupt operations.
The system should be capable of growing incrementally rather than require a complete replacement. It should be possible to add, replace, or update hardware and software components without shutting down the system.
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An example of a TPS is a system cashier uses when you check out at a supermarket or some other store.
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Supplier Relationship Management Systems
Interactions between an organization and its suppliers are not discrete and independent – instead, they should be considered an ongoing relationship. Each such relationship should be managed in a coordinated fashion across functional or departmental touch-points and throughout the entire life of the relationship.
Organizations may interact with suppliers over a period of time. Activities include:
Supplier selection Contract negotiations Product design collaboration Purchasing Logistics management
Supplier relationship management (SRM) information systems help with:
Assessment of suppliers’ strengths and capabilities with respect to overall organizational strategy Determination of what activities to engage in with different suppliers, Planning Execution of all interactions with suppliers to maximize the value derived from those interactions. Termination of relationship if necessary
The goals of SRM are:
Maximize the value of the relationship between the organization and each one of its suppliers Minimize the risk of failure
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Human Resource Management Systems
A Human Resource Management System (HRMS) is software used to manage human resources and related processes throughout the employee lifecycle.
The key aspects of a typical HRMS are discussed next.
Recruiting and Onboarding - This relates to how you promote your brand to both the outside world and current employees who may wish to apply for internal jobs or make referrals and employment offers to candidates.
This includes:
Defining the positions Resume management Interview scheduling Making offers Onboarding
Employee Engagement - People who are more engaged tend to produce higher-quality work and more fully adopt the company’s values and execute its vision. How an employee connects with leadership and colleagues is important.
This includes:
Training courses management Skill acquisition management Career path development Recognition management Mentor program management
Employee Management (Core HR) – A central portal where:
An organization’s workforce is structured into departments or locations Relationships between managers and employees are defined Employee information is recorded and maintained
This Core HR functionality serves as the basis for:
Offering employee self-service Maximizing HR reporting Improving HR service delivery
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Payroll Management – Handling the various payroll related activities, including:
Calculating earnings Withholding individual deductions Issuing payments Benefit elections and related employee and employer costs Automated tax filings and deposits Employee self-service functions allow employees to:
Make changes to elective deductions Make changes to direct deposit accounts Make changes to tax withholdings Retrieve copies of earning statements
Workforce Management – This includes the following:
Track employee development Tack evaluations of employees by managers Track disciplinary actions Record time and attendance Ensure the company is providing a healthy and safe work environment Compensation planning Goal planning Performance review management Learning management Incident recording Defining timesheet structures, overtime rules, time-off policies, and approval chains Contractor / consultant management Intern management
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Enterprise Systems (ERP Systems) All departments (or functional areas) of an organization
must work together effectively to achieve organizational goals.
This helps the organization:
Increase operational efficiencies Decrease costs Improve customer relations Improve supplier relations Increase revenues Increase market share
An enterprise system, also known as Enterprise Resource Planning (ERP) system, can help an organization achieve these goals.
The ERP system has a central database that collects DIK from and feeds DIK into all the ERP system’s application components (called modules), supporting diverse business functions such as accounting, manufacturing, marketing, and human resources. When a user enters or updates DIK in one module, it is instantaneously and automatically updated throughout the entire system.
ERP automates business processes such as order fulfillment - taking an order from a customer, billing, and shipping.
With an ERP system, when a customer service representative takes an order from a customer, they have all the information necessary to complete the order:
The customer’s credit rating The customer’s order history The organization’s inventory levels The organization’s delivery schedule
When one department completes their work on the order, it is automatically directed to the next department. The order process moves efficiently through the organization, and customers get their orders faster and with fewer errors.
ERP systems can automate other major business processes, such as employee benefits or financial reporting.
ERP systems integrate the various departments / functional areas throughout an organization into a single system (or integrated set of MIS systems). This gives management and
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employees the ability to make decisions by viewing organization- wide DIK on all of the organization’s operations.
In addition to handling various functional areas of an organization, ERP systems can also handle cross-functional business processes such as supply chain management (SCM), which we discuss later in this chapter, and customer relationship management (CRM) which we already discussed.
ERP helps organizations become more efficient by breaking down barriers between organizational departments or functional areas.
To accomplish this, ERP systems include:
Shared database Modular software design - allows organizations to start with one module, such as HR, and then incorporate additional modules, such as accounting and others
DIK has traditionally been isolated within specific departments in many organizations, whether in an individual database, in a file cabinet, or on an employee’s PC. ERP enables employees across the organization to share DIK across a single, centralized database offering the following benefits:
Enterprise-wide integration where business processes are integrated end-to-end across departments Real-time (Or near real-time) operations across departments A common database that requires the various departments to conform to the approved data standards and editing rules Consistent look and feel of user interface which reduces training costs and appears more professional
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Supply Chain Management Systems
A supply chain management (SCM) system manages the flow of products, DIK, and money throughout the supply chain. It starts with the suppliers of raw materials, continues through the intermediate tiers of processing companies, and ends with the distributors and retailers.
The supply chain is only as strong as its weakest link, so if only one organization produces too much or too little, this can affect all other organizations in the supply chain.
Companies use supply chain management metrics to measure the performance of supply chains to identify weak links quickly.
The misinformation about an increase in demand for a product could cause different supply chain members to stockpile inventory. These changes ripple throughout the supply chain, magnifying the issue and creating excess inventory and costs for all.
Misinformation about a decrease in demand for a product can cause different supply chain members to reduce production and shipments. If the decrease does not materialize, all can exhibit loss of business, possibly to competitors.
Today, integrated supply chains allow managers to see their suppliers' and customers’ supply chains, ensuring that supply always meets demand (unless there are huge surprises like the spread of the COVID-19 virus).
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3D Printing and the Supply Chain
3D printing creates physical objects by adding many thin layers of material based on 3D models using a 3D printer.
3D printing is likely to have a huge impact on the supply chain. It will:
Decentralize production – a shift away from mass production in low-cost countries to local production. Organizations will have the capability to produce components in-house or closer to home rather than rely on imports. Product customization – ability to customize products to clients’ specific requirements and enhance the customer experience. Eventually, design, production, and distribution could merge into one supply chain function with greater client involvement in the entire design and production process. Reduce complexity and improve time-to-market – ability to consolidate the number of components and processes required for manufacturing a product. This will significantly impact global supply chains, decreasing complexities, minimizing production costs as well as time- to-market. Be a more energy-efficient production method Result in less waste Minimize the risk of overproduction and excess inventory Take ‘Just-in-Time’ manufacturing to a new level Reduce transportation costs
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Reduce warehousing costs
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Mobile Technologies for Business
Mobile Technology is a technology that goes where you go. In today’s world, you can conduct more and more business wherever you have access to a device connected to the internet and actual internet access. You can be in your office, home, car, hotel, restaurant and so on.
You have access to your bank, to online shopping, to whatever online functionality your company has provided you access to.
For example, a real estate agent can be anywhere in the world. A client can call the agent and request a detailed evaluation of their home. The agent can log in via the web to their local MLS system in Los Angeles (www.TheMLS.com) and get the data they need to create the report. They can save the report in their Dropbox (www.Dropbox.com), create a link, log in to their email account (www.Gmail.com) and email a link to the report to their client.
University professors can teach via zoom (www.Zoom.com) from their home, but they can be by the pool in a resort somewhere else with a virtual background, and you will never know (same for students!).
Organizations are developing and adopting more and more mobile technologies.
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Wireless Technologies for Business
The following technologies help organizations maintain and increase their competitive advantage.
Global Positioning System (GPS) - A system of satellites, computers, and receivers that can determine the latitude and longitude of a receiver on earth by calculating the time difference for signals from different satellites to reach the receiver. A Geographic Information System (GIS) is a system designed to capture, analyze, store, manipulate, present, and manage all types of geographical data, like information from maps and global positioning systems (GPS).
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Radio Frequency Identification (RFID) is a technology that uses radio waves to identify a tagged object passively. It is used in various commercial and industrial applications, from tracking items along a supply chain to keeping track of items checked out of a library.
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E-Business
Electronic business (Ebusiness) is the use of the Internet (and thus the web) to conduct business.
Ecommerce is the buying and selling of goods, services, or DIK over the Internet. Ecommerce refers only to online transactions. Ebusiness includes e-commerce and all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information. Ebusiness allows organizations to minimize costs and increase profits.
Ebusiness includes:
Collaborating among organizational departments with ERP Collaborating with suppliers in the supply chain with SCM Serving customers with CRM
We live in an increasingly wireless world. Managers must understand the impact of the Internet and the innovations in mobile technologies on organizations.
Organizations realize that publishing simple websites for customers, employees, and partners does not create an Ebusiness. Ebusiness websites must be innovative, add value, and provide useful DIK. In short, the sites must build a sense of community and allow for communication and collaboration, eventually becoming the port of entry for business.
Ebusiness Advantages:
Opening new markets Reducing costs Improving effectiveness Expanding global reach
Intermediaries are individuals, software, or organizations that provide a trading infrastructure to bring buyers and sellers together. The introduction of Ebusiness brought about disintermediation, which occurs when a business sells directly to the customer online and cuts out the intermediary. This business strategy lets the company shorten the order process and add value with reduced costs and more responsive and efficient service.
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What Are the Main Categories of EBusiness?
The main categories of EBusiness are:
Content Providers - Generate revenues by providing digital content such as news, music, photos, or videos (e.g., LATimes.com, CNN.com, FoxNews.com) Infomediaries - Provide specialized DIK to their potential customers (e.g., Zillow.com) Online Marketplaces - Bring together buyers and sellers of goods, services, and DIK (amazon.com, ebay.com, …). Portals - Operate a central website for users to access specialized content and other services (google.com, yahoo.com). Service providers - provide services such as photo sharing, video sharing, online backup, and storage (e.g., YouTube.com…)
What are the Main Ways to Make Money in EBusiness?
The primary ways to make money in e-business are:
Advertising fees Licensing fees Subscription fees
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Transaction fees
Value-added service fees
Why Sell Direct to Consumers (DTC)?
Direct-to-consumer (DTC) is an ebusiness model where companies build, market, sell, and ship their products themselves without relying on traditional stores or intermediaries.
The key reasons for more and more DTC ebusiness are:
Better customer experience since organizations have more control over how their products are being marketed and sold Ability to collect customer data and thus the ability to provide better products, services, and DIK Minimizing costs by shipping products directly to consumers Creating a better experience for clients by controlling the marketing and distribution
User-Generated Content
User-generated content is created and updated by people for other people. Websites such as Fl Wikipedia, and YouTube, move control of online media to the hands of users. Netflix and Amazon use user-generated content to showcase product reviews.
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Organizations are embracing user-generated content to help with various aspects of the organizations, including but not limited to product development, marketing, and quality assurance.
Collaboration Inside the Organization
A collaboration system is a tool that supports the work of teams or groups by facilitating the sharing and flow of DIK. Collective intelligence is collaborating and accessing the core knowledge of employees, partners, and customers. The primary objective of Knowledge Management is to be sure that a company’s knowledge of facts, sources of DIK, and solutions are readily available to all employees whenever needed. A knowledge management system (KMS) supports the capturing, organization, and disseminating of knowledge by connecting people and digitally gathering their expertise.
Collaboration Outside of the Organization
Crowdsourcing and crowdfunding are examples of collaboration (they were discussed earlier in the book). There is also the collaboration between different organizations that make up a supply chain. Their collaboration is facilitated with Supply Chain Management Systems, which we discussed earlier in the book.
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Step 6 – Introduce Change to Your Organization
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What is a Business Process?
A Business Process is a set of activities (tasks) that, once completed, will accomplish an organizational goal.
Understanding your organization’s business processes will help it stay in existence and grow.
A Business Process Diagram is a way to visualize processes for ease of understanding. A typical business process diagram consists of:
Circles representing starting and ending points of the process Rectangles representing steps in the process Arrows connecting the steps
Diamonds representing decision points (Yes/No, etc.)
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Using MIS to Improve Business Processes
Business Process Reengineering (BPR) is the analysis and redesign of business processes within and between organizations.
An organization that wishes to undergo BPR needs to evaluate existing processes to create new processes that deliver added value to customers and eliminate or reduce inefficiencies in business processes.
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Why Document an Organization’s Business Processes?
Documenting business processes allows you to understand in detail what work is being done and in what order, to achieve organizational goals. The resulting visual representation of the process is easier to understand.
It can help an organization more easily transfer responsibilities from one employee to the next when an employee gets promoted to a different position or leaves the organization, and another employee replaced them.
It can also help make an organization more efficient, as business processes can be modified effectively when looking at their steps visually.
Manual processes can be partially and fully automated by providing documented business processes to computer analysts and programmers.
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How to Document Processes?
The following steps can be utilized to document each business process:
Step 1 - Identify and Name the Process - determine its purpose (why and how the process will benefit the organization) and provide a brief description of the process. Step 2 - Define the Process Scope - provide a brief description of what is included in the process and what is not included. Step 3 - Define the Process Boundaries - where does the process begin and end? What triggers the start of the process? And how do you know when it is complete? Step 4 - Identify the Process Outputs - what result(s) will the process achieve once completed? Step 5 - Identify the Process Inputs Step 6 - List Resources – identify what resources are necessary to carry out each process step. What are the human resources needed? What are the non-human resources needed? Step 7 - Brainstorm the Process Steps - gather all information on process steps from start to finish. The brainstorming session should involve those handling the process, overseeing it, and or knowledgeable in it. It could also involve research, documentation review, technology review, and more. Step 8 - Organize the Steps Sequentially Step 9 - Visualize the Process - using a business process diagram
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Step 10 – Record Exceptions - note down exceptions to the normal process flow
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Why Re-Engineer Organizational Business Processes?
Key reasons to re-engineer organizational business processes:
Improve the efficiency of the organization Reduce the costs of the organization Streamline communication between people/functions/departments Increate quality of the goods, services, or DIK produced by the organization Minimize errors that result from existing business processes Increase DIK, information systems, and overall organizational security
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Manage, Improve, Streamline, Optimize, Re-engineer Business Processes
Taking the organization and its business processes to the next level can be accomplished in several ways.
Various terms are used in this context (often, people are confused about what each term means). These terms are:
Business Process Management (BPM) Business Process Improvement (BPI) Business Process Streamlining (BPS) Business Process Optimization (BPO) Business Process Re-Engineering (BPR)
Generally speaking, BPM, BPI, BPS, BPO involve more gradual changes to existing business processes, while BPR involves drastic changes.
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How to Re-Engineer Business Processes of an Organization?
You can follow the following steps:
Identify problems within each department or functional area of the organization Identify further problems with specific business processes Identify the causes for the problems previously identified Determine possible solutions for each problem previously identified Determine advantages and disadvantages of each of the possible solutions to a given problem Select a solution to implement Modify the business process documentation (diagrams) or create new business process documentation based on the proposed solution Implement the solution Measure the outcomes Adjust the solution if needed
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Automating Business Processes
Business Process Automation (BPA) is the use of technology to replace manual efforts to execute recurring processes. BPA is done to minimize costs, increase efficiency, and streamline processes.
Business processes can be fully or partially automated. Full process automation entails replacing all work that used to be conducted by humans with technology (which may or may not include Robots).
Partial process automation entails replacing only portions of work currently being handled by humans with technology. Partial process automation applies in situations when human involvement is essential to the process. This includes situations where unstructured decisions need to occur.
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Management Consulting Process
Management consulting is the practice of helping organizations improve their performance, primarily through analyzing existing organizational problems and developing plans for improvement.
The management consulting process typically consists of the following steps:
The process starts when you approach a consultant (or consulting firm) with a problem or problems you have that are related to your organization The consultant works with you to define the initial phase of the engagement. This typically includes signing a contract and charging a retainer (for example, agreeing to pay $350 per hour and paying a retainer of $5,000 to get started) The consultant gathers the materials needed to get started with the analysis (collect documents, conduct interviews, conduct inspections, etc.) The consultant analyzes and interprets the materials previously collected The consultant shares their findings and insights with you The consultant presents you with options and recommendations. You work with the consultant to assess them and make decisions You and the consultant agree on an action plan (strategy) At that stage, the consultant’s work is complete unless it is agreed that the consultant proceeds to be involved in implementing the strategy
The consultant can be from outside of your organization or can be you or an employee of your organization assigned to this (internal consultant). In the latter case, there is likely no retainer and no high hourly fees. However, an internal consultant may not have the industry-wide perspective that an outside consultant (that also consults with your competition) may bring.
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Step 7 – Grow Your Organization’s Power by Adapting Existing Technologies
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Introduction
The following steps should be utilized as a guide to finding software that fits your organizational needs. The right software has the potential to elevate your organization. The wrong software could have a negative impact.
Commercial Off-The-Shelf or Commercially Available
Off-The-Shelf (COTS) are information systems that are adapted after sale to the needs of the purchasing organization.
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Before You Search for COTS Software
Before you search for software, you should:
Define the problem you are trying to solve Document your existing as well as proposed business processes Decide if you really need new software Determine your budget for the new software Gain and maintain organizational support for change
Define the problem
What are the organizational issues you’re looking to solve? What DIK do you want to manage with technology? What process or processes would you like to fully or partially automate?
Work to define and document the issues, reasons, and possible solutions for them in detail.
Document Your Existing and Proposed Business Processes
The steps involved in documenting your organization’s existing business processes and proposed business processes were discussed in the previous chapter.
Do You Need New Software?
Organizations are likely to utilize software for every one of their functional areas. When looking for the best software, you should evaluate your organization’s existing tools first. It is possible that you are not utilizing all the functionality available or not doing so correctly. Learning to use your current software more
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effectively may minimize or eliminate the issues you are having.
If your existing software is COTS, you should research your existing software’s capabilities online, as well as discuss the changes you need to be implemented to your existing software with the software vendor that provided you with your existing software and see if the existing software can be further customized to your needs in a timely manner and within your budget.
Determine a Budget for the New Software
You should establish a budget for the new software for your organization. The budget should be related to the amount of benefit your organization will gain from the new software, as well as your available funds.
The budget should include covering the following costs:
Software (one time, monthly, annual) Customizing of software Migrating DIK to the new system Training employees and management Ongoing maintenance Any hardware or networking you may need to support the software
Gain and Maintain Organizational Support for Change
It is important to gain and maintain the support of the organization’s management and employees throughout the decision-making and software implementation process and ensure that they benefit from the new solution.
Drastic organizational changes often lead to resistance. Resistance can come from managers and or
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employees that feel threatened by new technology. Managers may fear losing their power. Employees may fear losing their jobs.
To minimize the chances of that happening, have a meeting with all managers, team leads, and employees (if possible) and ask them about their concerns about implementing new software. Also, introduce them to the list of problems you have mapped out and ask their opinion on finding the right software.
For most projects, the issues start with users not seeing a need for change and trying their best to resist such changes.
To minimize and possibly avoid employees' resistance, it is important to give them a clear understanding of the strategic relevance and value of the new solution. Equally important is to clear out any uncertainty upfront: Why are we choosing this solution? Why is it better than the last one? How will I need to change to work with this system?
Some people might positively associate with the old way of doing things. These people are the ones who will need convincing to adopt the new software solution.
The involvement of your team or organization’s employees is the key to success in any software adoption.
How to get your team or organization on board with efforts to adopt new software:
Understand that most people don’t like change… at first Understand that most people know that things could be improved Build a core coalition Get everyone on board and dispel rumors Identify detractors and work with them individually Understand that some issues people have may not be related to the new software Listen to bargaining Offer support through people’s down phase
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Celebrate short-term wins Give the new system enough time to be accepted
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So, Where to Find New Software for Your Organization?
The best place to find new technologies for your organization is to attend industry events and including conferences. Often you will find software vendors exhibiting at such events and looking to talk to you and convert you to a client. Take the time to meet with various vendors and schedule post-conference (zoom) meetings to discuss further.
Additionally, google the term: “Software Reviews”. Check out the links on the first page. They include:
https://www.capterra.com/categories www.SoftwareReviews.com https://www.pcmag.com/categories
There are other websites as well. Some websites provide user reviews. Others allow you to compare features of two or more software applications side-by-side.
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Customizing the COTS Software for Your Organizational Needs
Software customization modifies software according to the organization’s requirements.
Information systems must fit business processes. Many organizations choose to customize their systems (for example, ERP systems) to ensure that they meet business and user needs.
The most expensive customization occurs when application code is changed and should only be done if the code changes provide specific competitive advantages.
DIK Integration is key when customizing software.
Customization to reports, documents, and forms can consist of simple layout or design changes or complex logic programming rules for specific organizational requirements.
User-Interface changes. A system can be customized to ensure that each user has the most efficient and effective view of the application.
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What are the Costs Associated with Adoption COTS Software?
The following are the key cost categories associated with adopting existing technologies into your organization:
Software Costs - Purchasing the software can cost millions of dollars for a large enterprise. Consulting Fees - Hiring external experts to help implement the system correctly can cost millions of dollars. Customization - If the software package does not meet all of the company’s needs, customization may be required. Integration - Ensuring that all software products, including disparate systems not part of the COTS system, are working together or are integrated. Testing - Testing that all functionality works correctly along with testing all integrations. Training - Training all new users and creating the training user manuals. Data warehouse integration and data conversions -
Moving DIK from an old system into the new system.
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Integrating Different Software Applications
Why Integrate Software Solutions?
Applications such as SCM, CRM, and ERP are the backbone of organizations. Integration of these applications is the key to success for many organizations.
Many organizations have no choice but to piece their SCM, CRM, and ERP applications together in these situations:
The existing systems would cost far more to replace with one system than to integrate No one software on the market can replace the existing systems Developing a custom system to replace all existing systems is too expensive (we will discuss custom systems in the next chapter)
What is Involved in Integrating Different Software Applications?
Organizations design and develop connections among their multiple databases. These connections allow separate systems to communicate directly, eliminating the need for manual entry into multiple systems. Creating such integration allows DIK sharing across databases along with substantial increases in quality.
There are two primary types of integration:
Application integration is the integration of an organization’s existing information systems. Application Integration deals with integrating live operational DIK in real-time between two or more applications. Typically an “event” will occur. For
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instance, when a customer places an order, this triggers an integration flow that updates DIK in other software applications’ databases in real- time. Data integration is the integration of data from multiple sources, which provides a unified view of all data. Typically, data integration is batch- orientated and occurs after the data creation process has already been completed.
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Step 8 – Grow Your Organization’s Power by Creating New Technologies
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Introduction
If you want to create a competitive advantage, you need to go above and beyond your competition. This often involves software you or a software development company creates specifically for your organization.
A process for developing custom software is discussed in this chapter. It is important to understand this process since even if you are not building the software yourself, you want to know enough to effectively manage others within or outside of your organization tasked with building the new custom software for your organization.
We start with discussing the most common framework – the Software Development Life Cycle-and then briefly examine some popular variations of this framework.
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What is the Software Development Life Cycle (SDLC)?
A Software Development Life Cycle (SDLC) is a framework composed of several clearly defined phases used by systems developers, programmers, and others to plan, design, build, test, and deliver information systems.
SDLC aims to produce high-quality software based on client requirements that meet or exceed their expectations. The software development moves through each clearly defined phase within scheduled time frames and cost estimates. Each phase of the SDLC uses the results of the previous one.
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What Are the Steps of SDLC?
The steps of the SDLC are labeled differently by different people and organizations. They are:
Planning (some call it Initiation) Requirements Analysis (some call it Analysis, others call it Define Requirements) Design (and Prototyping) Development (some call it Implementation) Testing (done in parallel with Development) Deployment
Operation and Maintenance
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Planning Phase
The Planning phase, also known by some as the Initiation phase, should define the scope and purpose of the software. It also includes defining costs, creating a timetable, and defining the project team and leadership.
Planning can also include feedback from stakeholders. Stakeholders may include employees, managers, clients, suppliers, and anyone else affected related to or affected by the software.
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Requirements Analysis Phase
The requirements analysis phase, also known as the analysis phase or the define requirements phase, determines what the application is supposed to do and its requirements. Requirements should be defined and documented. Requirements can be derived from stakeholder (employees, clients, suppliers, etc.) interviews, competition research, experimentation, review of organizational documentation including procedures, and more.
There are different types of requirements that need to be specified when developing software. These include:
Architectural requirements Business requirements - include high-level goals, objectives of an organization User (stakeholder) requirements - include the needs of stakeholders that will be affected by the system. This includes employees and management but can also include contractors, vendors, clients, and others Functional requirements - include detailed statements of capabilities, behavior, and information that the solution will need. Examples include formatting text, calculating a number Quality-of-service (non-functional) requirements - reliability, testability, maintainability, availability. Deployment and DIK migration requirements - discuss what will be needed to move from the current software to the new one, including DIK migration, training, and more. Regulatory requirements - Requirements defined by laws (Federal, State, Municipal, or Regional) Contract requirements - include terms and conditions
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Organizational policy requirements - reflect department or organization-level policies.
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Design Phase
The design phase, which may or may not include prototyping, models how a software application will work. Some aspects of the design include:
User Interface Design – Defines the ways customers interact with the software and how the software responds to input. Also known as Graphical User Interface Design, or GUI Design. Database Design – define the way the DIK will be stored. If the database is relational, this includes the tables, fields within tables (columns), and more. Business Process Design – define the detailed processes to be automated. Draw business process diagrams Architecture – Specifies programming language, overall design, and use of any templates Security – Defines how to secure the software and DIK
Prototyping can be a part of the design phase. A prototype can demonstrate some aspects of the software's look and feel. This “hands-on” design is presented to stakeholders, and feedback is used to modify the other design aspects if needed.
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Development Phase
The development phase, also known as the implementation phase, software development phase, systems development phase, is the actual writing of the program.
A small project might be written by a single developer (also known as a programmer). In contrast, a large project might be broken up and worked by multiple developers or teams of developers.
Documentation is also often created during the development phase. This can consist of any of the following:
Guided tour of the software’s basic features that display on the first launch Video tutorials for complex tasks Written user guides Troubleshooting guides FAQ’s for users
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Testing Phase (Conducted in Parallel with Development)
It’s critical to test the software before making it available to users. There are many types of testing, but as software components, modules, pages are being developed, they should be tested. This ensures that work is done according to plans and minimizes the chance for unpleasant surprises at the end.
Once the software is built, it should be tested to ensure all the software components work correctly together.
The testing phase helps make sure users get what was agreed upon and reduces the number of bugs encountered. This leads to higher user satisfaction, increased usage rate, increased chances of successful deployment and adaption of the software by the organization.
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Deployment Phase
In the deployment phase, the software is made available to users, often via the web. Activities include:
Users of the software are trained in the use of the software. DIK from an existing system is copied to the new system. It may be cleaned and re-formatted in the process User names and passwords are created and provided to users of the software
Deployment can be complex. Moving an organization’s multiple software applications and databases to a newly-developed ERP is one example.
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Operation and Maintenance Phase
At this point, the software is deployed and being used by the organization’s employees. In this maintenance phase, users discover bugs that weren’t found during testing. These errors need to be resolved.
In addition to bug fixes, the development of additional features for the next release of the software can be started. For each new release, a new SDLC can be launched.
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SDLC Methodologies Explained
There are different variations of SDLC. Various software development methodologies follow the SDLC phases, but the method varies between methodologies.
The more popular methodologies include:
Waterfall Agile Iterative
They are described in some detail next.
Waterfall
The Waterfall SDLC is the original method of software development. When a phase completes, the project moves to the next phase. One advantage of the Waterfall model is each phase can be evaluated for continuity and feasibility before moving on. It’s limited in speed, however, since one phase must finish before another can begin.
It focuses on complete and correct planning to guide large projects to successful and predictable results.
Agile
The Agile approach produces ongoing release cycles of the software. Each release features small, incremental changes from the previous release. At each iteration, the software is tested. The Agile model helps software development teams identify and address small issues before they evolve into more significant problems and engage various stakeholders (such as future software users) to get their feedback throughout the development process.
An example of an Agile methodology is Scrum, in which a software development team works in “sprints”. These sprints last two to four weeks, during which the team must complete the assigned tasks. Daily Scrum meetings help the team monitor progress throughout the project. And a “ScrumMaster” is responsible for keeping the team focused on its goal.
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Iterative
Instead of starting with fully known requirements for the software, the team implements a limited set of software requirements, then tests, evaluates, and defines additional requirements. A new version of the software is produced with each iteration until the software is ready.
RUP is an example of an iterative methodology. It divides the development process into four phases:
Inception, during which the idea for a project is specified Elaboration, during which the project is further defined Construction, during which the project is developed and completed Transition, during which the product is released.
Each phase of the project involves:
Requirements Analysis Design Development Testing Deployment
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Step 9 – Become a (Better) Project Manager
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Introduction
A software project can be defined both with SDLC (discussed in the previous chapter) and the project life cycle (PLC), during which slightly different activities occur. The PLC will be presented in this chapter.
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What is a Project?
A Project is a temporary effort undertaken to create a specific product, service, DIK, or result. A project is a temporary endeavor with a specific start date, time, and end date and time. It also has a defined scope and specific resources assigned to accomplish it.
This definition is critical to understand, so let’s go over it again, this time as a list of bullets.
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The Characteristics of Projects
A project’s characteristics include:
Specific goal to achieve Temporary in nature (start and end) Specific scope of what to do to achieve the goal Specific human resources assigned to achieve it (for example, you need Linda and Jose to help you with the project)
Specific non-human resources assigned to achieve it (for example, you need a cell phone and a laptop, or a shovel)
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The Project Life Cycle
A project starts with a goal, an idea, or a dream. The goal, vision, or dream can be yours or someone else’s. You can work on your own projects or on those of others.
A Business Case document is created in more formal projects as part of an initial evaluation of a possible project. If a blessing is given to proceed, a Project Charter document is formed next, providing more information and clarity about the project's direction.
If approved, the project continues with a planning phase. In a more formal project, you create various Planning Documents. In the most formal projects, you also create a Project Management Plan.
Once the plans are good enough, Work begins, as is the Control of the work by the project manager (you can do the work and manage yourself in smaller projects). In more formal projects, you end up with a Final Deliverable.
You can end the project there, but in more formal projects, a deliverable does not end the project since you spend time learning lessons and finalizing Documentation related to the project.
The following diagram visualizes the six steps of my approach to embracing project management (which I discuss in my book “The 6 Step Approach to Embracing Project Management for Increased Personal, Professional, and Business Success (Really Simplified)” which is also available on Amazon. You start with step A and end up in step B. To get there, you also go through Steps 1,2,3, and 4 which are the four core steps of managing an actual project (and are based on the project management methodology of the Project Management Institute):
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Additional Basic Definitions A Project Owner is the person that initiates the project,
finances it, and is in charge of it. The project owner is also likely to own the outcomes of the project.
A Project Sponsor is typically in higher management at a larger organization. They provide the approval for projects and resources to accomplish them.
A Project Manager, on the other hand, is responsible for all aspects of the project.
You may be the project owner, project manager, project sponsor, or a combination of the three.
The good news is that managing a project is different than having to do all the work yourself.
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Some Projects Have Multiple Phases
It is up to you how small or large your project is. For example, you can define a project to redevelop your front yard, which includes installing a new fence, a new irrigation system, new sod, and landscaping. You can look at the same work as a set of smaller projects: one project to install a new fence, another project to install a new irrigation system, and so on.
And then, you can look at the work as one project that consists of multiple phases. Phase one of the project – install a new fence, phase two of the project – install a new irrigation system, and so on.
No matter how you choose to look at the work, you will still be able to apply all the project management-related lessons you will learn in this book.
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Where Do Projects Come From?
Projects can come from you. You can turn problems in your personal, professional, or business life into projects. You can turn opportunities into projects as well!
Projects can also come from others. They can come from your husband/wife, partner, child, friend, client, supplier, or anyone/anywhere else.
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When Should Projects Be Handled?
When you dream of a new project, ask yourself if it should be handled in the near future or not. If not, place your idea in the “Future Projects” bucket in your To-Do list. You will get back to it when you can, as well as when you periodically review this “Future Projects” bucket.
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Projects Come with Many Questions
Often when you get started on a project, you have no idea how long it will take to complete. You may have many questions, such as what are the project’s goal(s)? Who will help you? What exactly needs to be done to accomplish the goal(s)? How much time do you have? Need? What resources do you need?
You likely want to do a good job managing the project. What do you need to do to successfully manage the project and achieve the project’s goal(s)?
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Keys to Project Success
Success as a project manager requires many things. Key among them are:
No fear of the unknown Constantly asking questions Understanding how to manage projects Acting when action is called for Working to understand the big picture Uncovering the details that make up the big picture Making realistic assumptions and estimating based on them Surrounding yourself with the right people Communicating clearly with people Leading people
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No Fear of the Unknown
We do not know much about the world we live in. We do not know what the next moment will bring. We do not know who will enter or who will exit our lives, and on and on and on.
What’s the point of being afraid of what we do not know?
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Constantly Asking Questions
Successful people do not have time to be afraid of the unknown. They spend their time asking questions about the unknown and then seeking answers.
For example, most people will never write a book. This is my sixth one. I treat them as projects. I had a project with a goal and no clue how to achieve the goal. I did not know how to write books, so I asked myself: How do I write books? What are the steps? What is an acceptable format for this type of book? How to publish a book, how to get an ISBN, and more and more questions. I then went looking for answers. I bought books on how to write books! I got answers.
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Your Role as a Project Manager
Your role as a project manager may consist of the following aspects:
Determine (or help determine) if to proceed with a project Define the project at a high level Develop detailed work plans for the project Develop a management plan for the project (mainly for more complex and or more formal projects) Delegate the work (if you have a team) Do the work (for some projects), have others do the work (for other projects) Monitor and control the work (this may include monitoring and controlling yourself). This includes handling informal or formal change requests
Learn lessons, and transition to other things
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If you enjoyed this book, please consider posting a review.
Even if it’s only a few sentences, it would be a huge help.
Thank you.
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