Tuesday, September 20, 2016

Chapter 3 Summary



The porter’s five forces model was used to access the industry structure. The five competitive forces are bargaining power of customers, threat of substitutions, bargaining power of suppliers, threat of new entrains, and rivalry. The level of the five forces depends on the characteristics of the company or business such as how profitable or how sustainable it is.

Bargaining power of customers describe how much power the customer has. For example, if a business that have only 1 customer, of course the bargaining power of customer would be extremely strong. Whereas, if a business with over hundreds thousands of customers, their customers would have weak power of bargaining.

Threat of substitution describes the alternative options that customers have rather than choosing one particular company. If a patient only uses one type of medicine from a single company, then their threat of substitution would be weak. On the other hand, if a customer were to be renting vehicles for travel purpose, then they have many options to go with.

Bargaining power of suppliers describe how much power suppliers have in putting the price on their products. For example, car dealers have strong force in bargaining power because they have control over what price they tell customers rather than having a fixed price. Whereas, grain farmers have weak force in bargaining power.

Threats of new entrants describe how easy a business can enter the industry. For example, a lemonade stand at the corner of the block has strong force of new entrant’s threats because the business is very simple to replicate. An example of weak force would be the professional football team as the number of teams is tightly control by the NFL.

The last force is rivalry, where other competitors in the industry play a big role.

Companies should analyze the structure of their industry, and use that to determine their competitive strategy, whether they want to be cost effective or differentiated or focus.  They need to pick a strategy and implement it, if more than one strategy is chosen; customers would be confused as of what they are selling to them. The question needs to be answer is what is the customer paying for, is it the product, service, or resource?

The ways that companies gain competitive advantage is by creating new products, enhance existing products or service, and by differentiating their products and services from those of their competitors.  

Although our technology world is changing rapidly, the models of business strategy, competitive advantages, and their connection to companies will likely to remain the same in the next 10 years. 



Friday, September 9, 2016

Chapter 2 - Collaboration Information Systems

In order to know what the two key characteristics of collaboration we must distinguish the difference between cooperation and collaboration. Cooperation is a group of people working together, doing the same task to finish an assigned job. Whereas, collaboration is a group of people working together to get the job done by using process of feedback and iteration.
Students tend to go for cooperation where the work are divided evenly with the group and then work independently to get the tasks done, then combined what they did and turn it in. This way may help with finish the project fast but it will not produce higher quality results than working alone. On the other hand, when working collaboratively students are able to give each other feedbacks then revise the project accordingly. This process is what makes collaboration more effective than cooperation or working alone.

It is important that students give effective and critical feedback when working in a team. Students should not be too polite or too negative towards giving feedback. The three criteria for successful collaboration are successful outcome, growth in team capability, and meaningful and satisfying experience. Of course the best way to measure whether the team has successfully collaborated is based on the outcome of the project. For students, it is the letter grade that the team received. For the business team, it is whether they successfully produce the product within time and budget allowed. Growth in team capability is important a long-term team recognize whether or not the team has improved in terms of their common goals. Lastly, another criterion that can determine the success of the team is whether they have a meaningful and satisfying experience. The task that is perceived as meaningful by team members can make a difference in work performance. Also, if the individual is praised for the job that they have done, that can also make her work experience more meaningful.

The four primary purposes of collaboration are become informed, make decisions, solve problems, and manage projects. The purpose of being inform is that all members have the same understanding of given information the same way. It is an important factor that everyone is on the same page and are correctly informed in order to effectively communicate and share data. We need to understand decision making in order to see the role of collaboration.

There are three levels of decisions: operational, managerial, and strategic. In operational decisions, managers decide things from day-today activities such as how much products to order from a certain vendor or which invoice to pay. In managerial decisions, managers make more complex decision that requires collaborative effort of a team. Some decisions need to take many factors into consideration such as analysis of inflation, industry trends, the organization’s profitability the influence of unions, and many other factors. Therefore, it is important to have different perspectives from different people like senior managers, accountants, human resources personnel, labor relationship manager, and other type of managers. Strategic decisions are often big decisions that can affect everyone in the organization and will also require collaborative effort; big decision are such as coming out with new product line, re-locating company, or acquiring another company.

The decision process divides into two types of process: structured decision and unstructured decision. Structured decision only requires a formula to compute or a standard method to make decision. Structure decision is rather straightforward and does not need collaboration effort. Whereas unstructured decision process is one that requires more complex thinking and analyzing data to come up with the best decision. This kind of decision making requires a team working collaboratively.

Solving problem is the third primary purpose of why we collaborate. The most important aspect of solving problem is understanding and defining the problem. If you can define the problem, then it is half solved. A problem is perceived as difference between what is and what ought to be. Because of this perception, different people can have different problem definitions.

The last purpose of collaboration is managing project. Projects can vary from marketing plan, designing a factory, produce new product, or perform the annual audit. There are four primary phases of managing project.
1.     The starting phase is where the team set ground rules for the project. At this phase, there are a lot of question the team need to straighten out such as understand what authority they have? is the project given or they need to identify what it is? Is there any specific method that the team need to use or are they free to use any of their choice? Also, there need to be an initial budget and expectations set out for the project.
2.     The planning phase is where the team decide “who will do what and by when”. Each member will be assign a task based on their expertise. Then once that is decided, the team can plan the project schedule. This step can cause complications as things might not go as original planned. Budget might be adjusted to fit the resources on hand.
3.     This phase is where the team will be working on tasks to complete the project on time. Problems need to be identify as soon as they arise so no time will be wasted.
4.     The finalizing phase is where the team needs to ask themselves, “are we done?”. If it is complete, they need to document results properly for future usage and put the team to an end.
There are two ways of communication that can be used in collaboration team are synchronous communication and asynchronous communication. Synchronous communication is where team members will meet at a specific location and talk directly. Whereas asynchronous communication is where team members will not meet at the same time.
Synchronous uses conference calls, text chats, screen sharing, webinars, and videoconferencing. Asynchronous uses email, discussion forums, or team surveys.


Being able to share content is one of the main functions of collaboration. Team members will use many different types of applications to share project data (documents, spreadsheets, presentation) with each other. Most traditional way of sharing files is using email. But it is found that this method can cause many security issues or that the intended recipient did not get the attachment send out. Another way to share is using google drive. This is an effective way to store and share files, and is also an open-source which can be very cost effective for the company.  

Monday, September 5, 2016

Chapter 1 - The Importance of MIS

The Digital Revolution started in 1970s, this became a big change for companies, individuals, and society as a whole. This change is still vague to people at the time, they only knew that it will make society more efficient. In 1972, Scientist Gordon Bell created Bell’s Law, it states “a new computer class forms roughly each decade establishing a new industry”. And just as he predicted, every 10 years since 1970, new platforms, industries, networks and information systems arise.

This digital world is changing and growing exponentially according to Moore’s Law. When you are purchasing a computer, you don’t buy it because of how fast it is. The cost of data processing is dwindling greatly and is approaching to zero.

Metcalfe’s Law states that “the value of a network is equal to the square of the number of users connected to it. Network will continue to increase as more digital devices are connected. There is a dramatic change in internet user since 1990 that further sharpen Metcalfe’s argument. Large internet companies such as Google, Amazon, and Ebay are so successful as the network of users are increasing rapidly.

Not only the numbers of users on the network that is changing but also the speed. According to Nielsen’s Law, networks connection speed will increase by 50% each year. Youtube is an of this law, when the company first started, there weren’t many users and not a lot of videos were shared. By 2006, the company blew up as the speed of network did too. It was then sold for $1.65 billion dollars.

Kryder’s Law says that “The storage density on magnetic disks is increasing at an exponential rate”. As storage is increasing exponentially, the cost of storing date is approaching zero.

Ultimately, how does one attain job security? “only job security exists is a marketable skill and the courage to use it”. According to RAND, a corporation in California, the marketable skill sets needed in 21st century are abstract thinking, systems thinking, collaboration, and ability to experiment. Abstract Reasoning is the ability to construct a model. System thinking is the ability to envision the components of a system and connect the inputs and outputs among those components. Collaboration is being able to work with a group of two or more people to achieve a common goal. Experimentation is creating and testing an idea that is consistent with available resources.

MIS stands for management information systems, can be defined as the way organizations use information system to be more efficient at the workplace. The difference between information system and information technology is that you cannot buy information systems while you can for information technology. One can buy a software or hardware but cannot buy a predesigned procedure.

Components of information systems are computer hardware, software data, procedures, and people. These are display in every information system. An example is you editing a photo, you are using hardware (computer, storage disk, keyboard and monitor), software (Photoshop, other editing software), data (the photo), procedures (methods use to start program and edit the picture), and the people (you).

What is information? Information in basic definition is “knowledge derived from data”. Another definition is “information is data presented in a meaningful text”. Where are information from? Human get information from collecting data or searching data available to them. The five necessary data characteristics are accurate, timely, relevant, just sufficient, and worth its cost.

Of course if the data presented are inaccurate, we would have no use for it. Businesses and organizations rely heavily on accuracy their information systems. As future user of information systems, we need to take into consideration what Web page or sources are reliable and not rely on how nicely presented the report or query is. Make-sure you cross-check the data you obtain.

The information needs to be presented in a timely manner.  A report that is turned in a month late is worthless. Time can be measured by both calendar or events.

Data should be relevant to the event of case you are working on both to the context and to the subject.

Data needs to be sufficient. There is so much date given as you move up in management level, so you need to learn how to sort out which important data do you need and which to ignore.

Data comes with costs. The costs are developing, operating, and maintaining information system. And also cost of paying you to process the information. Because these data have costs, you need to identify an appropriated relationship between the cost and value of that data