Day 1 cio and mis - part 2

MIS - 2016
Managing Information Technology
& With CEO, CIO & Managers
Lecture 1
ICT applications in Business and
Manageement
nvthoan@ftu.edu.vn
http://web.ftu.edu.vn/thoan
MIS 8.2011 – 6.2012 – 2013 – 10.2014 – 3.2016

MIS - 2016
Management in businesses and organizations is the function
that coordinates the efforts of people to accomplish goals
and objectives by using available resources efficiently and
effectively. Management
includes planning, organizing, staffing, leading or directing,
and controlling an organization to accomplish the goal or
target. Resourcing encompasses the deployment and
manipulation of human resources, financial resources,
technological resources, and natural resources. 1. strategic
management
2. financial management
3. human resource management
4. operations management or production management
5. marketing management
6. information technology management (responsible
for management information systems)

MIS - 2016
Managing IT in an E-World
• BSG – Business Strategy Game
• Applications of Simulation in Management
– Strategies
– Marketing
– Ecommerce
– Finance
– Production
– International Business
– Management Information Systems
Management is doing things right; leadership is doing the right
things.
Peter Drucker

MIS - 2016 4
Simulation !
Example Uses of VR
Training U.S. Army to train tank crews
Amoco for training its drivers
Duracell for training factory workers on using new
equipment
Design Design of automobiles
Walk-throughs of air conditioning/ furnace units
Marketing Interactive 3-D images of products (used on the Web)
Virtual tours used by real estate companies or resort
hotels

MIS - 2016 5
VIRTUAL REALITY
http://www.circlepix.com/virtualTours.htm?sel=master

MIS - 2016
ICT Application Projects
Project 1. Build a website for your
company
- How long
- How much
- How many people
Making good decisions is a crucial skill at every level.
Peter Drucker

MIS - 2016 7
SYSTEMS DEVELOPMENT LIFE CYCLE
• Systems development life cycle (SDLC)
– Highly structured process for developing customized
applications
– Includes three phases and eight steps, although this can
vary across organizations

MIS - 2016
ICT Application Projects
Project 2. Build a website for selling
products online (Online shop)
- How long
- How much
- How many people
How many stages?
How can you divide budget for each
stage?

MIS - 2016 9
SYSTEMS DEVELOPMENT LIFE CYCLE
• Extensive up-front time spent determining
requirements to avoid expensive changes later
The SDLC steps

MIS - 2016
Purchasing software Process
Project 3. The Accounting and Finance
Department needs a software to facilitate
functional activities, do they need a pilot
version to test, and how can they
implement?
“Don’t spend so much time trying to
choose the perfect opportunity, that you
miss the right opportunity.”

MIS - 2016 11
PROTOTYPING METHODOLOGY
• Two ways in which prototyping is usually
incorporated into an SDLC process:
Prototyping within an SDLC process
1. Used in the
Definition phase
to help users
define system
requirements

MIS - 2016 12
PROTOTYPING METHODOLOGY
• Two ways in which prototyping is usually
incorporated into an SDLC process:
Prototyping within an SDLC process
2. Includes a pilot
implementation
of a working
prototype

MIS - 2016
Make vs. Buy?
Project 4. Human Resources department
needs a software for managing HR
activities, should they buy, hire a
software company to write or buy the
available application in the market?
How much
How long
How many department involved
“Our business is about technology, yes.
But it’s also about operations and customer
relationships.”

MIS - 2016 14
THE MAKE-OR-BUY DECISION
Make Buy

MIS - 2016
Make vs. Buy?
Project 5. Human Resources department
needs a software for managing HR
activities, should they buy, hire a
software company to write or buy the
available application in the market?
List the key stages in purchasing this
application?
“Try never to be the smartest person in the
room. And if you are, I suggest you invite
smarter people … or find a different room.”

MIS - 2016 16
PURCHASING METHODOLOGY
• Steps for purchasing application packages fit into the
three SDLC phases (referred to as the modified SDLC
approach)
The purchasing steps

MIS - 2016
• 21. What is the differences between
alpha and beta versions?
“Well, we started the company by building
to the customer’s order. And interestingly
enough, we didn’t do it because we saw
some massive paradigm in the future.
Basically, we just didn’t have any capital to
mass-produce.”

MIS - 2016 18
Purchasing software solutions
• When purchasing a software package, the
construction phase is generally reduced
• One exception to this is when organizations test
packages that are not fully developed
• The organization may serve as a(n):
– Alpha site: can play a significant role in determining
the final functionality and user interface design for the
new package
– Beta site: plays a significant role in user acceptance
testing for the vendor
The purchasing steps

MIS - 2016
Project 6. Buy vs Make
How much can your company save if
purchasing available HR software in
stead of hiring a software company to
write?
Save cost, but what is the disadvantages
of buying? What benefits?

MIS - 2016 20
PURCHASING METHODOLOGY
• Develop a high-level cost estimate with
business manager and IS analyst input
Initiating the purchasing process

MIS - 2016
Project 8. Improve ICT Service Quality?
List 5 methods to improve ICT Service
Quality in your company?
- PC
- LAN
- Internet
- Wifi
- Website

MIS - 2016
ICT Service Quality
• Service Level Agreements (SLAs) should contain:
– A simple definition of the service to be provided (e.g., help desk support)
– The name(s) and contact information of IS personnel to contact for this service
– A table listing the services to be provided and their costs (e.g., how quickly different types of
problems will be responded to, and the costs associated with providing this type of service
level)
– Escalation procedures (e.g., who to contact if the agreed upon service response is not being
provided)
– A sign-off page for the appropriate business client and the IS liaison preparing the SLA
document
• Defines the client expectations for a specific
type of IT service as well as procedures for
when these expectations are not met
Service Level
Agreements
(SLAs)

MIS - 2016
Project 9. ICT applications
List 5-10 software which is used in your
company.
How much spend for a company?

MIS - 2016
Managing IT Applications
• IT Applications Portfolio
– Most companies cannot operate without software
applications – they are critical assets
– Software portfolio needs to be managed as an asset
– A company must know:
• What software it owns
• Where it is located
• What it does
• How effective it is
• What condition it is in

MIS - 2016
Q10. Why managing ICT complicated?
20th Michael Dell Quote – “I believe that
you have to understand the economics of a
business before you have a strategy, and
you have to understand your strategy
before you have a structure. If you get
these in the wrong order, you will probably
fail.” Michael Dell

MIS - 2016
CIO and ICT management
• Need 5 knowledge and skills
•Technical
•Project Management
•Business Domain
•Sourcing
•IT Administration

MIS - 2016
CIO Skills
Technical Skills
• Systems analysis
• Systems design
• Programming
• Systems testing
• Database design/administration
• IT architecture/standards
• Operations (service delivery/ITIL)
• Mainframe
• Distributed systems
• Operating systems
• Voice/data telecommunications
• Help desk/desktop support
• Continuity/disaster recovery
Project Management Skills
• Project team leadership
• Project planning, budgeting, &
scheduling
• Project risk management
• User relationship management
• CMM utilization
• Working globally/virtual teaming

MIS - 2016
CIO Skills
Business Domain Skills
• Account management
& communications
• Industry application
knowledge
• Company-specific
knowledge
• Function-specific
knowledge
• Business process design
& reengineering
• Change
management/readiness
Sourcing Skills
• Sourcing strategy
• Third-party provider
selection
• Contracting & legal
• Vendor relationship
management
IT Administration Skills
• IT governance
• Financial management
• Internal HR
management

MIS - 2016
Project 11. The ABC Airlines needs to
install a new check in system. How can
you suggest to implement?
“There are a lot of things that go into
creating success. I don’t like to do just the
things I like to do. I like to do things that
cause the company to succeed. I don’t
spend a lot of time doing my favorite
activities.”

MIS - 2016 30
Methods to implement new systems
• Transitioning strategies (cont’d)
– Phased: new system is implemented one
component at a time
– Cutover: old system is totally abandoned as soon
as the new system is implemented
Old – New information systems?

MIS - 2016
Project 11. Write your company’s
Information Vision
Information Architecture
(Select a company
Google to find out there Information
Vision)

MIS - 2016 32
ICT application plan (strategy)
• A written expression of the desired future about
how information will be used and managed in
the organization
Information Vision
• Depicts the way an organization’s information
resources will be deployed to deliver that vision
Information Technology Architecture

MIS - 2016 33
The Process Of Setting Direction
• IS decisions must be
tightly aligned with the
direction of the business
• Decisions should impact
the next step in the
process, but that is not
always the case
IS and business planning

MIS - 2016
Q12. What is the most important Skills
for ICT managers?
The entrepreneur always searches for change, responds to it, and
exploits it as an opportunity.
Peter Drucker

MIS - 2016
Google “Kungfu”
Star !
Google to find at least 3 samples of ICT
application strategy for companies in the same
business or industry as yours.
Send links to class email, also to
nvthoan@ftu.edu.vn
Note to put your full name, subject: MIS-PGSM
2016

Chapter 1
1-36
ICT managers skills – What is most
important?
• Skills pivotal for success in executive IT roles

MIS - 2016
Q13. How much VALUE can ICT adds or
contribute to Value Chain of your
company or Industry?
Eg. Airlines, Banks, Hospital, University, Government,
Retails, Travel, Manufacturing, Farmers…

Chapter 1
1-38
29. ICT applications and Value Chain
Value Chain

MIS - 2016
Q14. Find one product that suceed
because of ICT application?

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall
10/5/2016
1-40
“If we'd given customers what
they said they wanted, we'd have
built a computer they'd have
been happy with a year after we
spoke to them—not something
they'd want now…”
Steve Jobs,
Apple Computer
Managing in the
Digital World
Needs

MIS - 2016
Q15. Find one company that gain the
success through ICT application?
Bank
University
Ministry
Hospital
Factory
The new information technology... Internet and e-mail... have practically
eliminated the physical costs of communications.
Peter Drucker

10/5/2016
10/5/2016
Apple Computers
1-42
 Apple has many failures:
 Mac TV 1993, PowerMac G4 Cube
 Lisa, Newton
 Peters’ suggest that a company’s survival
may depend upon those employees who fail
over and over but try new ideas.
Creativity

MIS - 2016
Q16. Find one CEO that find success
through application of ICT
FPT
Viettel
Vina milk
Airlines
Coopmart

10/5/2016
10/5/2016
Note #1
Netscape Browser2-44
 August 9, 1995
 Who sees this
opportunity?
 Any one can
access to the
Internet
THEN
NOW
Web Brower –
bring Internet
to every one

MIS - 2016
Q17. Find one website that many people
can use and enjoy their benefits?
Youtube
Facebook
….
The purpose of a business is to create a customer.
Peter Drucker

10/5/2016
10/5/2016
Note #2: Uploading
2-46
 Advertising on
Web – equal
opportunity for
any business in
the world !
 Wikipedia a
huge success
Web 2.0

MIS - 2016
Q18. Find one traditional company which
applied ICT successfully?
Walmart
FTU
Vietcombank

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10/5/2016
Note #3: Supply Chaining
2-48
 SCM-Links
to suppliers
around the
world.
 Wal-Mart
became an
early leader
 RFID tags
used SCM

MIS - 2016
Q19. List 5 applications from Google?
- Search
- Adwords
- What else

10/5/2016
10/5/2016
Note #4: In-Forming
2-50
 You can find
any
information
 Get any
information,
most freely
 Individuals have
access to massive
amounts of
information
Google

MIS - 2016
Q20. List 5 top CIO you know in Vietnam?
- Government
- Education
- Health care
- Industry
- your choice

10/5/2016
10/5/2016
Note #5
Microsoft’s Bill Gates and Paul Allen
3-52
 Both dropped out of college
to run Micro-Soft in 1975
 Partnership with IBM to
install MS-DOS on all PCs set
the stage
 Gates’ worth—$58 Billion
 Allen’s worth—$16.8 BillionKey
People !

MIS - 2016
Q21. Find example for this application of
ICT - Faster

10/5/2016
10/5/2016
1-IS for Automating: Doing Things Faster
3-54
 ICT helps
automation:
 Faster
 Cheaper
 More accurately
 With greater
consistency
Faster

MIS - 2016
ICT - Better

10/5/2016
10/5/2016
2-IS for Organizational Learning: Doing
Things Better
3-56
 ICT helps better
quality, services?
 Learn about
processes
 Improve processes
 Support
organizational
learning
Better

MIS - 2016
ICT - Smarter

10/5/2016
10/5/2016
3-IS for Supporting Strategy: Doing Things
Smarter
3-58
 ICT brings
competitive
advantage – do
something smarter,
differently in a good
way
 Turning benefits of
automating and
informating into
strategic advantage
Smarter

10/5/2016
10/5/2016
32. Strategizing: 5 strategies
3-59
 Create
competitive
advantages
Source: Courtesy A. A. Thompson and A. J. Strickland III, Strategic
Management: Concepts and Cases, 8th ed. (Homewood, III.:
Richard D. Irwin, 1995).

MIS - 2016
ICT – Lower cost!

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10/5/2016
1/5
Overall Low Cost Leadership Strategy
3-61
 Lowest cost,
lowest price
 Broad focus
Wal-Mart
Lower
cost

10/5/2016
10/5/2016
2/5
Focused Low-Cost Strategy
3-62
 Lowest cost in
some categories
 Focus on niche
Dell
Niche
market

MIS - 2016
ICT – Better Quality!
Pubvn
NetFlix

10/5/2016
10/5/2016
3/5
Broad Differentiation Strategy
3-64
 Key
differentiation,
positioning
 Broad Focus
 Sony
 Merceides
Differen
tiation

10/5/2016
10/5/2016
4/5
Focused Differentiation Strategy
3-65
 Offer better
products/services
than competitors
 Focus on niche
iPhone/
iPad/ Sony
Vaio
Niche -
Positioning

10/5/2016
10/5/2016
Best-Cost Provider Strategy
3-66
 Fair quality –
Lowest price
Target
Lower
cost

MIS - 2016
ICT – collaboration world wide?
Boeing
ANZ

10/5/2016
10/5/2016
Phối kết hợp giữa các đối tác
5-68
Boeing
 Information shared between employees across the world
 Reduced product development cycles
 Ability to stay current on projects
 Ability to stay current with the changing market conditions
Network
around the
world

10/5/2016
10/5/2016
End of Part 2
 Summary
 BSG game
 Smart phone competition
 SKYPE – can you call class mates with smart phone?
 Send photos – 5 at the same time
 Google Maps – find time from HK lake to Tuan Chau Resort
 Google Earth - Sydney Opera house to Sydney University
1-69

Day 1 cio and mis - part 2

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Day 1 cio and mis - part 2