Academic Research Paper Guidelines

Directions for your academic research paper
Basic guidelines
Your essay must focus on one of the 15 questions created for
this essay.
Your essay must be four-to-five pages long and must include an
additional, separate Works Cited page.
Your essay must be written using Standard American English
and MLA formatting.
Your audience
· Other scholars interested in the subject matter
Your purpose
· Persuade these scholars that your argument is valid with a
strong claim and clear evidence.
The introductory paragraph must
· Set the context and give any necessary background
information on your topic
· Explain the focus of your paper and state your argument
directly
· IMPORTANT: Your argument must take a specific stance and
be persuasive in nature. In addition, you must underline your
claim.
Each of the first three or four body paragraphs following the
introduction must
· State a specific point in support of your claim
· Explain how the research and evidence supports the point you
are making
The final body paragraph must
· Respectfully acknowledge opposing arguments or
complicating factors

· Answer those opposing arguments or complicating factors
Your five or more direct references to five or more sources must
· Introduce the source
· Quote or paraphrase the important information from that
source
· Explain the significance of the information from the source
· Include a correct MLA in-text citation which is also
referenced in the Works Cited page
Your conclusion paragraph must
Wrap up your paper. Do not simply repeat your introduction,
and do not introduce new information. Drive home your claim
and note any issues you have discussed that may need further
exploration.
A final note
This paper is not about you. It is about the claim you are
arguing. Therefore, the following words and phrases are not
acceptable in your essay: I, me, myself, we, us, in my opinion, I
think, I believe, etc. Your paper is also not about your audience,
and you do not know your reader personally; therefore, the
following words are also not acceptable in your essay: you,
your, you’re, yourself, etc.
1

David Gadish Ph.D.
2
3
Copyright © 2021
David Gadish – All Rights Reserved
This book has been designed using resources from
Freepik.com
This book has been designed using resources from
Flaticon.com
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

4
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.
5
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!
6

Overview
The book presents a 9-step approach to embracing
information systems for increased professional and
business success.
7
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

8
FIGURE 1 - THE INFORMATION SYSTEMS POWER GAIN
(ISPG)
9
10
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.
11
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)”
12
“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]
mailto:[email protected]

mailto:[email protected]
13
Brief Table of Contents
Motivation
Overview
Legal Disclaimer
About the Author
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
Step 8 – Grow Your Organization’s Power by Creating New
Technologies
Step 9 – Become a (Better) Project Manager
14
Table of Contents
Motivation
Overview
The Information Systems Power Gain (ISPG) Approach
Introduced
Legal Disclaimer
About the Author
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?
18
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
Email
Text
Social Media for Organizations
Why Use Social Media?
Benefits of Social Media
LinkedIn
Twitter
Facebook
Instagram
Pinterest

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
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
Solution
s?
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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26
Step 1 – Understand Why You Need
to Learn to Handle More and More
and More Information Systems
27
28
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.
29
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.
30
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.
T
AB
LE
1
-
T
EC

HN
OL
OG
Y
R
EL
AT
ED
J
OB
S
IN

TH
E
U
S
https://www.bls.gov/ooh/computer-and-information-
technology/home.htm
https://www.bls.gov/ooh/architecture-and-
engineering/computer-hardware-engineers.htm
31
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)
32
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.
33
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.
34
Step 2 – Understand Your

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.
38
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 organizatio n 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 concentra te 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 organizatio nal
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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