All Flashcards
Anthony’s model
Mixes:
- Functional view in terms of business funtions
- Organizational view in terms of hierarchical levels
- At each intersection different IS functions are needed
Business logic
Business rule encoded in computer language
- – In a 3 tiers architecture a business rule typically is encoded in application tier
- But can also be encoded in presentation layer or data layer (db triggers)
Definition of Business process
Set of activities
- (executed in some parallel or sequential order)
- performed by an organization,
- to deliver a service /product
- With defined inputs/outputs (information and things)
Activity: time spent by one or morepeople to do a task
ERP, main aspects
Enterprise resource planning
Features:
- Data sharing: modules have access to same data, avoiding replication
- Prescriptivity: Same modules are sold to different companies
- Modularity: modules are added to integrate features, good to reduce costs and spread them over time.
Data sharing avoids the chaos of legacy islands where data is inconsistent and lost.
Business rules
Statement that constrains some aspect of the business
- Can only be true or false
- Can apply to people, processes, IS
Definition of Application Portfolio
Set of applications used by an organization
Cobit: Control loop
Control loop model
It focus on the context and theenvironment. The organization is influenced by five actors: customers, suppliers, regulatory agency, stockholders and competitors
COBIT
Control Objectives for information and related technology.
It was introduced to enumerate the IT area processes. Used to verify if IT processes are well governed.
Can be seen as a cube:
- Dimension 1: IT resourced, all assets involved in the company
- Dimension 2: IT processes, all processes that can be found in a company. These processes can be grouped in 4 categories:
- Monitoring ->
- Plan and Organize ->
- Acquire and Implement ->
- Delivery and Support.
- Dimension 3: Information criteria, how to evaluate processes (efficiency, reliability, defectiveness, security, compliance, …)
The model is used through a table having processes on rows and resources/criteria on columns.
Definition of Information System (IS)
System to store and process information used by organizations (paper, people, computesr, software) CBIS: Computer based system to store and process information used by organizations. CBIS: subset of ISs. IS – Definition, Laudon: Interrelated components working together to collect, process, store, and disseminate Information to support: decision making, coordination, control, analysis, and visualization in an organization
ERP, pros and cons
Pros:
- Modules should be tested and robust
- No need to buy specialised software for certain tasks
- Faster, no development time, only installation and training
- Support is guaranteed and should be efficient
Cons:
- The same tech is used in several different company, this should be avoided if a company wants to retain internal know-how
UML Deployment diagram
BMRS
A Business Rules Management System (BRMS) is a software system that can be used to define, deploy, execute and monitor business rules.
Manufacturing: Value Chain
The value of a product is how much the customer is willing to pay for it.
Outsourcing axes
- Activity/service: which parts of the company can I outsource? (IT infrastructure, Apps, Business processes)
- Unicity: Dedicated (only for few customers and customized) or Shared (many customers use the same service)
- Location: On-site (inside the company), Off-site, Near-shore (outside the company but in the same contry/continent), Off-shore (outside company, outside contry/continent)
Managerial processes pyramid
Ways the IT Area can be placed inside a company.
- At the same level of Marketing, Manufacturing, HR, Accounting (line function)
- Detached from the main department of the company, acts as a support area of direction: staff function
- Sub-area of a main one, like a sub-branch of accounting.
Centralized (line and staff function) vs Distributed IT (sub-line function)
Centralized:
Pros:
- Data sharing
- Uniformity of applicaitons and format
Cons:
- Could be hard to reach by other areas in case of problems (bureaucracy)
Distributed:
Pros:
- Easier to reach by a certain area, because IT is part of that area itself
Cons:
- No data sharing
- Each IT dept. could use different apps and different formats, so there is a need for translation.
T Model process families
Management Control Loop
Anthony’s model: information intensity of product vs business process
Process type VS. phase
KPI
Key Performance Indicators
They evaluate the success of an organization/activity. The unit measure should be used.
General:
- Input volume
- Output volume
- Human resources
- Non human resources (plants, machines, facilities) - Inventory
- Other resources
Efficiency:
- Cost per unit
- Productivity of resources: (i.e. products per employees)
- Utilization of resources: effective working hours compared to paid ones (also for machines)
Service KPI:
- Response time, lead time
- On time
- Perfect orders
- Flexibility toward customer
Quality KPI:
- Conformity
- Reliability
- Customer satisfaction
IT View / Model
The IT model is composed by two main models: application model, thatdescribes the software architecture, and technological model, that describesthe hardware architecture.
App. model: presentation, rules (algos), data.
Tech. model: usually client server, either 2-tiered (data and app.) or 3-tiered (data server, app. server, presentation server)
Hosting vs Housing
Hosting: Assets and asset management are outsourced.
Housing: Asset are of the company, asset management outsourced.
Definition of Business Process
Activity: time spent by one or morepeople to do a task (simpler and shorter than a business process) Set of activities:
- (executed in some parallel or sequential order)
- performed by an organization
- to deliver a service /product
- With defined inputs/outputs (information and things)
Company Strategies.
How do companies pursue competitive advantage accross the chosen market?
- Cost leadership: lower costs than competition,can be achieved by process improvement, high asset utilization,minimizing production costs in some ways such as outsourcing,minimizing supply costs (for example ordering large quantities of raw materials to gain a discount)
- Differentiation: differentiate products in order to be more competitive
- Niche: focus on few targeted markets
Cobit: Governance and Management Scheme
Agency Theory
Analyses friction and disturbances that can happen inside an organization.
Transaction theory says that firm is a monolithic entity aiming at one goal. Unluckily, due to nonrational behavior of firms and conflicting behavior of individuals in them that assumption is always false.
The problem of the transaction theory assumption is that it doesn not consider that agents have own interests and goals, and they try to maximize individual utility - not only the firm’s utility. Those contrast between goals of agents and principal (organization) causes agency costs (that have to be reduced as much as possible or company is destined to die)
CSF
Critical success factors
Elements that are fundamental for an organization/project to achieve its mission. They are in poor words, general objectives.
Corporation:
- Brand recognition, image
- Dealers network
- Equipment of cars
- Reliability of cars
- After sale service
Function (manufacturing):
- Production costs
- Quality of product
- Environmental issues
- Relationships with trade unions
Manager (quality):
- Reputation with regard to other roles
- Skills of techicians
- Process certification
- Technology for monitoring quality