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Information Systems Integration

Department of Management Information Systems, Temple University

INFORMATION SYSTEMS INTEGRATION

MIS 4596.002 ■ SPRING 2019 ■ MARIE-CHRISTINE MARTIN
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The value of IT

January 30, 2019 1 Comment

We often assign a number to evaluate the value of things, but is everything measurable? Is the value of IT measurable? Paul Strassmann, the CIO guru, once argued that IT is just as basic as the accounting department, it is nearly impossible to attach dollar values to an IT investment. Yet, we still use ROI to evaluate an IT project because without a metric, it is hard to keep track of the performance, the success, the failure, and/or the impact of the investment. Such numbers and value attached allow us to compare in quantifiable measurement with respect to the set goal. IT investment is risky and often require large amount of investment. A successful project can have a long return on investment period; yet a failure can cause the company money and time. Even with a high probability success rate, the outcome is still 50-50. Thus, the value of IT is subjective. There is no real formula in calculating the value of IT, but what one thinks about the possible cost and benefit IT can bring. 

 

https://www.cio.com/article/2438921/it-organization/everything-is-measurable.html

Metrics Should Be Used To Change Behavior

January 30, 2019 1 Comment

Image result for kpi

 

In the article by Aaltonen, the author talks about how we can innovate with metrics and how to deliver metrics that are useful to the organization. A quote that stands out to me is “a good metric is often one that you can interact with, that is, take actions and see immediately how the readings change. this is because, instead of merely observing how the world is, we learn much more from observing the changes that result from our own actions“. This quote relates back to an important concept we learned from Project Management: see, feel, change. It is important that the metrics give a tangible representation of a concept, instill in end users the urge to take necessary actions, and create changes that stick. Another important concept discussed in the article is that we should not focus solely on quantitative measurements. By focusing solely on what we can only measure, we can potentially lose sight of the entire customer experience. Therefore, in developing useful metrics, we also need to pay attention to systems thinking and consider how our metrics will impact the entire system.

With that in mind, a recent report by MIT Sloan and Google indicates that our current Key Performance Indicators (KPIs) for customer experience are no longer accurate for today’s digital environment. Customer experience experts often have trouble justifying their efforts with revenue growth even though everyone knows that great customer experiences lead to increased revenue. Some useful KPIs that effectively measured customer experience according to this article are: Customer Lifetime Value (CLV), Customer Acquisition Cost, and Net Promoter Score (NPS). This relates back to the “Everything Is Measurable” article in that even though it is difficult to measure customer experience, it is not impossible. By understanding the object of measurement (customer experience) and the meaning of the measurement, measuring customer experience is not impossible. 

Source:

https://www.dropbox.com/s/zqhicbealro0z26/The%20beauty%20and%20perils%20of%20metrics.pdf?dl=0

https://www.cio.com/article/2438921/it-organization/everything-is-measurable.html

https://www.cmswire.com/customer-experience/are-your-customer-experience-kpis-fit-for-today/

The Meaning and Importance of Metrics

January 30, 2019 Leave a Comment

Image result for metricsMetrics are important for every business, but not only businesses they are just important for measuring anything. For example, when people try to measure how good a player is in the NFL, they look at the metrics and statistics on him and what he has done throughout his career. These same metrics will eventually be used to determine if he is eligible for the Hall of Fame. The article discusses that what is more important, is finding what these metrics actually mean or if the data actually means anything realistically. It is true that since it is less expensive to gather data nowadays, companies will basically gather data and metrics on almost everything, and worry about evaluating it later. The NFL has so many metrics for every situation; for example, they might be able to tell me that a certain quarterback has a 5-0 record when leading by 21 point going into the second half. Now, to me, that doesn’t really mean anything because, not only is five games is a small sample size to begin with, it is also very hard for any team to come back from a 21 point deficit in any situation; therefore, to me it doesn’t really say anything about the quarterback. However, some people may disagree with that and think that it does mean something; either way, the NFL still shares certain metrics like these with their audience during the games and before the games and leaves it up to them to decide if they want to factor it into who they think will win or what they think of certain players. My point here is that I think certain metrics can actually be important to some and less important to others. What do you guys think? Do you think there is a possibility for different viewpoints on metrics? Or is one person just wrong because they aren’t seeing the relevance? What should companies do about this?

Source: https://www.dropbox.com/s/zqhicbealro0z26/The%20beauty%20and%20perils%20of%20metrics.pdf?dl=0

Business Process Aligned IT Organization

January 30, 2019 Leave a Comment

Image result for Business Process IT Organization

The structure of an IT organization is integral to the types of values it can provide to the company. According to the article “The Built-to-Purpose IT Organization” by Colleen Young, there are three main options for line management structures of IT organizations: technically aligned, business unit aligned and business process aligned. These options, respectively, increase in the value IT provides to the company’s business operations and overall strategic goals. Business process aligned IT structure offers maximum value to the company as it tailors IT services to serve the needs of specific end-to-end business processes. At my current job at a global consumer packaged goods company, I work in the IT function that supports IT needs of R & D, which gives me the opportunity to witness first-hand the effectiveness of a centralized, business process aligned IT structure. My manager, the R&D IT service manager has built a partnership with R&D people and has extensive knowledge of R&D business processes. Thanks to this effective collaboration, we are able to efficiently find opportunities to use technologies to optimize R&D operations. 

Another reflection I had when reading the article was that the three structures don’t have to be mutually exclusive. My company has technically aligned teams (security, infrastructure, etc.) as well as business process aligned teams such as my team, or Marketing IT, Supply Chain IT, etc. and this model has been working successfully. Based on this framework, IT organizations can have a hybrid or a mixed structure combining two or three of the above options to maximize value creation.

Apple: You can’t sue us for slowing down your iPhones because you said we can

January 30, 2019 2 Comments

The battery and internals of an iPhone 6s

A number of lawsuits have recently been targeted at Apple for allegedly slowing down processors on older iPhone’s for the purpose of improving battery life without explicit user consent. Users argue that the messages they received for these updates were misleading, and were not informed that their phones would be slowed down. Apple recently filed a motion to dismiss the lawsuit, claiming that they cannot be found liable as providing updates to the iPhone is similar to a building contractor updating/remodeling a kitchen. They also argued that plaintiffs are incorrect for stating that they  “did not give permission” slow their phones down  and provided proof they in fact did, via the iOS license agreement.

While this specific case only affects individuals who own older iPhone’s and take issue with the aforementioned update, it does fall under a much broader controversy within the tech industry: do we really own our own devices? When people purchase physical devices, they tend to believe that they own that device and can do whatever they want with it. However, more and more, manufacturers are starting to view smartphones and other devices as “portals” to use services, in a similar way to cable companies who own the cable boxes that people have within their homes. Companies are legally required to inform users what they can and can’t do with their devices, but many times this information is buried away in dense “User Agreement” contracts and obscured in legalese. Apple is using their own license agreement as proof that they are not liable for iPhone slowdowns in this very case. 

What does this say about the future of smart devices? Where does society draw the line and what manufacturers can and can’t do with devices that were purchased by consumers? Can companies continue to add more and more permissions within their user agreements, or is it unjust to make it as difficult to discover and understand as possible? Or is it on the responsibility of the user to read and understand everything before agreeing to use a device?

 

Sources:

https://www.theregister.co.uk/2019/01/28/apple_iphone_batteries/

https://appleinsider.com/articles/19/01/30/apple-compares-ios-updates-to-kitchen-renovations-in-motion-to-dismiss-iphone-slowdown-lawsuit

How Technology is Used at the X Games

January 30, 2019 1 Comment

snowboarding photo

The article I will be discussing in this post describes the way technology has changed professional skiing events like the X Games. Only a decade ago, skiers and park professionals were drawing their ideas for jumps and other elements on paper. There was very little information to go on when deciding where to place these jumps or what angles to use. However, now that the skiing industry has integrated more and more technology into its operations, professionals use tools like Google Earth and Google SketchUp to create 3D models of the mountain and its terrain before building the park. These models enable the designers to analyze the terrain and find the best spots for jumps, rails, half-pipes, etc. In addition to helping them analyze and plan the park construction, technology is utilized during the construction of the park. The snow groomers are equipped with self-leveling lasers that ensure the edges are perfectly square. These details are very important as some jumps launch skiers more than 70 feet in the air and the smallest imperfections in the snow can cause serious injury. Technology has eliminated a lot of the guessing and failure in the design process through its accurate, to-scale models and the ability to create and test full parks before actually building them. Just one example of how high-tech solutions can be found in very low-tech industries.

 

Article: https://www.sporttechie.com/how-the-x-games-uses-technology-to-build-snow-terrain-parks/

Global Healthcare Information Systems Market is Growing

January 30, 2019 Leave a Comment

The global healthcare information systems market revenue is expected to expand at a moderate CAGR over the forecast period. Increasing government initiatives and rising adoption of healthcare IT products by various health care sectors are major factors expected to drive growth of the global market over the forecast period.

The global healthcare information systems market report has been segmented on the basis of component, deployment mode, end-use, application, and region. On the basis of component, the target market is segmented into hardware, software and systems, and services. The services component segment is expected to register significant share in terms of revenue over the forecast period, owing to increasing demand for installation of software solutions in various educational and training institutions. On the basis of delivery mode, the target market is segmented into web-based, on-premise, and cloud based.

On the basis of end-use, the target market is segmented into hospitals, diagnostic centers, and academic and research institutes. The hospitals end-use segment is expected to register significant share in terms of revenue over the forecast period, owing to increasing availability of large number of hospitals across various countries. On the basis of application, the target market is segmented into hospital information system, pharmacy information systems, laboratory information systems, revenue cycle management, and medical imaging information system.

Based on the region the target market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in North America is estimated to be highest share in terms of revenue over the forecast period, owing to early adoption of new technologies and government initiatives for improving healthcare infrastructure in various countries in this region. The market in Europe is expected to register significant share in terms of revenue over the forecast period, owing to increasing government focus towards promoting e-Healthcare solutions and rising patient pool in various countries in this region.

Source: https://www.marketwatch.com/press-release/global-healthcare-information-systems-market-share-growth-trends-and-forecast-to-2027-market-study-report-2019-01-30

 

Can You Measure IT Value?

January 30, 2019 2 Comments

In the past, IT professionals claimed that you can’t measure the value of IT because it is too intangible. IT is unlike the other areas of the business like finance and accounting because IT is unable to evaluate their department as they do. So how do we measure the value of a company’s IT department, which metrics do we use? With IT budgets increasing and having large failures in the past, it may give the executives in the company some concerns. However, if you are able to identify the correct metrics, this can be critical for the organization’s success. Popular metrics that could be used to measure the value of an IT department could be the project satisfaction, project cost, and resource costs. Can you think of any other critical metrics for the success of IT? 

 

 

 

 

 

 

 

 

Resources:

https://www.cio.com/article/2438921/it-organization/everything-is-measurable.html

https://www.cio.com/article/2955777/best-practices/12-critical-metrics-for-it-success.html

IT Problems Are Not Just IT’s Problem

January 30, 2019 Leave a Comment

security photo

In today’s day and age, almost every corporation has moved their systems and business processes into the digital world. When IT was first introduced into businesses, it was a whole separate entity, and any cybersecurity issues were a problem for just the IT team. In recent years, each component of most businesses relies on or ties into cyber systems somehow, so IT problems have begun to reach into other areas of the organization. Many non-technical executives are unwilling to commit the necessary resources towards cyber-defense proactively, as costs can be extremely high and they do not see it as solving an “immediate problem”. This can leave IT teams without adequate funding for the necessary tools and equipment to keep the business technology safe. With hacking tools getting more sophisticated every year, it is becoming less about planning for “if we get hacked” and more about “when we get hacked”.  Flaws in security can lead to hijacked systems and stolen data, and for companies that store customer data, it can mean lawsuits, millions of dollars in damage, and a poor reputation. Research shows that the average cost per record stolen in a breach is $158, and the average cost per incident is nearly $4 million, a 30 percent increase since 2013. This is forcing companies to come up with response and mitigation plans to damage control any potential security breaches. Being properly prepared also requires training employees on policies that they need to comply with to ensure the best security practices are being followed. As is evident, these concerns are not just in the hands of the IT team any longer, and organizational processes must be formed across businesses to ensure the safety of corporate data. Do you think proactively investing in defense against cyber crime is necessary for small businesses? Or do you think that most are only targeting larger businesses and small businesses  do not need to concern themselves with it until something happens? 

Big data helps to mitigate risks, but could it also be a huge risk within itself?

January 30, 2019 Leave a Comment

data security photoIn recent years with the improvement of IT, we have been able to collect more data than ever. According to datafloq, an advertising company that works to leverage big data, over 90% of all user data has been collected in the last two years. That shows that companies are putting an emphasis on collecting and leveraging user data, collecting more and more about users everyday. Without much thought we give companies our names, birthdays, jobs, interests and even addresses. All of this key information allows companies to effectively analyze their consumer market, and allows them to better serve their customers. Big data has helped companies discover optimal business placement, adapt to changes in the market, assess financial risk, identify churn rates and potential fraud, among other things. At a glance, it’s easy to see just how big data can be a big benefit to companies, and even users. While big data can be leveraged to help companies mitigate risks, it can also carry quite a big one in the vulnerability of their IT systems. Big data breaches have shown vulnerability in companies of all sizes and carries considerable risk, such as in 2014 when Yahoo suffered a data breach that cost the company an estimated $350 million in value. This doesn’t just hurt the company but also puts the consumer at risk, with their information now being exposed to the public where it can be leveraged by black hat hackers for their own financial benefit. With several big data breaches in the past few years, and exposing millions of individuals data; it raises questions on how can we protect this information. Should companies be allowed to store user information? What type of data is too important to store? Should there be regulation imposed in an attempt to increase safety?  

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