Inflation Chart

Cloud Computing

Software Services

IaaS, PaaS, and SaaS stand for Infrastructure as a Service, Platform as a Service, and Software as a Service. But that doesn’t exactly tell us what these services do. A IaaS is a service provided by a company, group, community, or government that provides basic computer networking, load balancing, content delivery networks, routing, commodity data storage, and virtualized operating system hosting. A PaaS is when a platform provided by a company that develops software applications for the underlying infrastructure of a business, and a Saas is software that provides a solution to the systems clients. (1) All of these software systems help a business run more efficiently and this is demonstrated by the following cases which I have researched.

          A Saas system can help companies cut costs, grow without adding staff, and make existing functions become more efficient to better serve customers.  (2) An article published in BusinessWeek perfectly illustrates how an Saas system can help. In this case a small business named Starr Tincup was in 500,000 dollars in debt, after adopting an Saas system they not only got rid of their debt, but also became profitable. After consulting with a company who provides Saas software services, the small business owner decided to cut 75% of his sales staff that weren’t running efficiently. The new software allowed the sales and marketing to be managed by just one person. This move cut down the payroll amount that the company had to pay per month. Instead of paying employees, he now paid the software company monthly. This system also made the business more automated so that the owner and employees of the company could free up time to focus on other things that generate more revenue. With this simple move, Starr Tincup found ways to automate their sales as opposed to putting in man-hours. “Starr Tincup now uses Vtrenz ($1,000 per month) to manage marketing and Salesforce.com ($100 per month) to automate sales. "This does not even add up to one fourth of one person's salary to get someone who understands sales and marketing," (3). Everything just mentioned gives the company a strong competitive advantage against everyone else in their industry. It allows companies to operate on a higher level of functioning which can lead to becoming a big player in their given industry. 

             However, SaaS systems are not the only way for a struggling business to get ahead. The other software services that a small business can take advantage of is IaaS and PaaS software. These types of software operate off of cloud computing. Which allows companies to “rent” the software as opposed to buying and installing it. This saves time and money for the company. Some of the companies that provide infrastructure services are Google, IBM, and Amazon.com. (4) IaaS operates on a “Pay as you go” model to ensure that a business only pays for what they are using. Which is another convenient way for companies to minimize loses and secure profits. Honestly, the only way I can see these systems becoming improved is if they offered them to companies for cheaper. According to vmwarehosted.com ( a cloud hosting site) prices run from $344 a month for a small business startup program, $199 a month for Storage Cloud, and $69 for a single windows server. (5) If these services were offered for cheaper I feel like more businesses would take advantage of it. Also, if these service providers advertised more they would be able to obtain more business. These systems are not very well known in the world of small business because they are fairly new. If Google, IBM, and Amazon were more aggressive with advertising they could easily obtain more business.

 IaaS, PaaS, and Saas software systems are the future for small business, “According to the International Data Corporation (IDC) October 2008 report, projected Cloud IT Spending in 2012 will be $42 Billion; a growth of about 27% from 2008. IDC forecasts that Asia Pacific spending on IT cloud services to grow fourfold, reaching $3.6 billion by 2013.”In my opinion, every company should be taking advantage of these software services. They are affordable, and allow companies to cut cost, increase productivity, and increase time, which is by far one of the most valuable assets to a business. 

Sources:

1. http://www.cloudave.com/9239/the-confusions-of-iaas-paas-and-saas/

2. http://www.theappgap.com/how-saas-might-just-save-your-small-business.html

3. http://www.businessweek.com/magazine/content/08_72/s0812025631431.htm

4. http://www.cloudtweaks.com/2010/05/cloud-computing-demystifying-saas-paas-and-iaas/

5. http://www.vmwarehosted.com/

Hardware and Software

Hardware and Software 

 Developments in technology have radically changed the way that businesses operate. Employees no longer need to be at work to get work done. Advancements in mobile technology now allow employees and business owners to operate their business from home, on the go, and pretty much anywhere with a Wi-Fi connection.

 Smartphones are, in my opinion, one of the best ways that a small business can extend its information systems to the work regime. Smart phones allow an employee to edit excel files, create word and power point documents, send emails, and use a variety of apps that can help a business operate. In fact, according to AT&T, “nearly three-fourths (72%) indicate they use mobile apps in their business, with roughly four in ten (38%) reporting they could not survive - or it would be a major challenge to survive - without mobile apps.”(1) One application that is crucial to small business is Facebook. Using the Facebook mobile app, business can advertise and keep in touch with their customers for free. Other apps such as gps and mobile banking increase efficiency for businesses and allow them to focus their time in other places. 

 Tablet computing is also a way that businesses can become more efficient. Tablet computers such as Ipad’s allow employees to do everything that they normally would at a desk and do it on the go. By using tablets, employees can become more efficient at business meetings, they can do work on their train commute to work, they can bring a tablet everywhere they go and no longer have to be constricted to the confines of an office. Below is a chart illustrating how the majority of people use their tablets.

(2)

On the go software such as Word, PowerPoint, Excel, and a vast array of E-Books also help companies conduct business on the go. Without applications like these, things would move a whole lot slower.

 Conducting business on the go is the future of how companies will operate. Who knows what will happen in the next ten years. For all we know, mobile information systems can go from a useful tool to help a business function more efficiently, to every business operating completely off mobile technology. One thing is for sure, It will definitely be a part of the future for business.

Sources:

1. http://www.cellular-news.com/story/48324.php

2. http://ecsb.exbdblogs.com/2011/04/15/the-gen-x-factor-driving-tablet-use-in-small-business/

Analyzing Value of an IS

Systems Theory

            Systems are everywhere around us. They are a critical part of our existence as human beings. Without systems, the world would fall apart. The idea of the systems theory is that it is a “configuration of parts connected and joined together by a web of relationships.” (1) Information systems is not the only type of system available to us. Systems make up how we function as human beings. We have a family system. It is a web of connections that function off of each other. The web starts with the originators of the family system are parents, and branches down to children, and grandchildren, etc. In addition to branching downward, it branches off to the side. Brothers and sisters, Cousins, nieces and nephews started the web and grew it, until the web of family members became so vast that it extended into other countries. In a biblical sense, human beings came from a single man. So if you are a believer in that, you could say that God was the originator of the first and greatest system of all time.

            If we have access to how the greatest system of all time functions, It would be ignorant not to take that knowledge and apply it to every aspect of life in general. So that’s exactly what system theorist accomplished. They looked into how we as humans build networks, they looked into biology and how ecosystems functioned and applied it to business. That being said, theorists had to start somewhere.       The systems approach was first proposed under the name of the General Systems theory by a biologist names Ludwig con Bertalanffy. Bertalanffy noticed that all systems that made up the world were connected. If you separate an animal from its environment, it will die. He noticed that everything in one system affected the system as a whole, and that whole system affected the systems surrounding it. (2) He also noted that each system was made up of inputs, and outputs. In order for a system to function, there needed to be something going in, and something coming out. The figure below illustrates this:

(2)

           

           

           

            Even though this is an information systems class, I think that it is important to look at other aspects of how systems function in order to obtain a better understanding of how systems in general work. I did a little research into the Behavioral Approach System. The Behavioral Approach System regulates how and why humans work towards something they desire. I found an article in the schools database that talks about how the behavioral approach system affects an individual’s performance in the workplace. The system is comprised of three parts. Work mastery approach, Rewarding climate, and work performance as outcome. Mastery approach orientation focuses on task learning and the development of competence. When an individual masters a new skill, understands the tasks, he bumps up his standards for improvement. That is where the rewarding climate comes into play. After the master approach is taken, a reward is given, and that individual works harder to accomplish work performance as an outcome. The input for this system is the reward after an individual masters a skill, and the output is the better performance from that individual to accomplish a goal. (3)

This system is important in the business world because it needs to be recognized by managers. When an individual has something to work for and a goal that they want to reach, naturally they will work harder. There are so many aspects of Systems theories that can be applied to the business world in order to make things run smoother. This was just one of them. In order to create a good system you need to look at social, psychological, and humanistic aspects of how humans function and how businesses run. Once you incorporate all of this knowledge and information into your system, you can really make an incredible one.

Sources:
1: http://en.wikipedia.org/wiki/Systems_theory
2: http://pcp.lanl.gov/SYSAPPR.html
3. http://www.sciencedirect.com.library.ramapo.edu:2048/science/article/pii/S0191886909005182#sec1.1

Systems

Transaction Processing Systems

A transaction processing system is a type of information system that is arguably one of the most important systems that a profitable company can have. Without a transaction processing system, a company with many sales and transactions would have an extremely difficult time keeping track of their day-to-day business. The function of a transaction processing system is to collect, store, modify, and retrieve the transactions of an organization. For example, If a company sells a product online, an electronic payment is made. The amount charged must be withdrawn from one account and deposited into another. A TPS system takes care of that action.

There are two ways that a TPS system can operate. Real time and batch processing differ in the fact that with real time processing, transactions are processed immediately after placing the order. Batch processing is when orders are placed, and then processed at the same time in large batches at a later date. Some key components of a good TPS system are rapid response, reliability, inflexibility, and controlled processing. Fast performance with a rapid response time is crucial. Businesses using these systems cannot afford to have customers waiting. It is important that the system is reliable. A system needs to operate effectively with a low failure rate in order to keep a company running smoothly. Inflexibility means that a TPS system must process each transaction the same way every time. Controlled processing of a TPS system means that the system must support an organization’s operations, for example, an Atm machine for a bank.

A crucial part of TPS systems is the storing and retrieving of data. Data in a TPS system is stored in large databases called “data warehouses”. This data can be retrieved in a number of ways. Data retrieval is organized and quick. This is ensured by good data placement and “high normalization”, which lowers redundant information to increase the speed and improve concurrency. All of the data that is stored in the warehouses is backed up in several different places in order to protect the information it holds. A TPS system is a crucial system for a company to have and is imperative to a company’s success.

Sources:

http://en.wikipedia.org/wiki/Transaction_processing_system

Value Chain

A value chain is defined as “A series of activities that includes inbound logistics, warehouse and storage, production and manufacturing, finished product storage, outbound logistics, marketing and sales, and a customer service. Every finished product that you can buy from a store has been through a value chain. Cd’s are a great example. The value chain starts at raw materials. Cd's are composed of three basic raw materials: a polycarbonate plastic base, a thin aluminum coating over that base, and then a clear protective acrylic coating. Since I will be in the business of selling used Cd’s, my value chains will not include raw materials. I would buy the used Cd’s from a wholesale distributer; have them shipped into a warehouse for storage.  I would then focus on the customer service and marketing/promotions planning for my business. Once customers start buying I would focus on outbound logistics. I would have a distribution planning system set up to distribute the final product. By buying and selling used Cd’s, I am cutting out the inbound logistics process and devote all of my focus to downstream management.

Information Concepts

Throughout my readings on chapter one so far, I have gotten the idea of generally what makes up a good information system. It is a combination of data, Information, and knowledge. Because an information systems objective is to make a company operate more cost efficiently and smoother. I thought I would take a deeper look into what exactly is the most important key part in making that operation possible. After digging into it, I now understand that to make a system operate it takes a combination of things that weren’t all necessarily put into the textbook.

 The textbook talked about Knowledge Management, I wanted to learn more about it so I decided to look into it. I found one particular website that really helped me understand what it is. According to Russell Ackoff, who is a systems theorist and professor of organizational change, the content of the human mind can be classified into 5 categories; Data, Information, Knowledge, Understanding, and Wisdom. (1)

  Data and Information are pretty self-explanatory. Data is raw facts that are turned to information after it is gathered together. Now we get to knowledge. Which is the appropriate collection of information that’s used to be useful. For example, 2*2=4; that’s knowledge because we’ve memorized that. But when asked 5984*8,938,484, we don’t know the answer because its not to our knowledge. Which leads me to understanding. In order to do that problem, one would need an understanding of how the multiplication system works. It is taking the knowledge that you have, and applying it to new sources. This is a part of “knowledge”. But wisdom is a category of its own which takes understanding and brings it a step further into philosophical thought. This is how new ideas are thought up. Wisdom is a human trait which computers will never be able to possess. However, because knowledge management is not only a computer system, but a combination of people, processes, and technology, wisdom does play a role in information systems. (2) The chart below helped me understand how these five factors all are incorporated into knowledge management and information systems.

(1)

 I never realized how in depth the idea of knowledge and knowledge management was. Basically what its goal is, is to take a massive amount of raw data and information and turn it into knowledge and things that humans can understand. (3) It is absolutely essential to the information systems that corporations have developed and allows companies to make predictions and understand their operations. I think that it will be very interesting to learn more during the semester about how everything fits together in information systems.

Source #1: http://www.systems-thinking.org/dikw/dikw.htm

Source #2: http://net.educause.edu/ir/library/pdf/ERB0420.pdf

Source #3: http://www.systems-thinking.org/kmgmt/kmgmt.htm